 | Randy Vickers is the owner of Priority Mortgage Corp of Wichita, which opened in Jan. 1989, is the oldest locally owned mortgage company in Wichita. Randy has been in the real state business since 1983 and is a licensed real estate broker as well as a licensed mortgage broker. Priority Mortgage Corp of Wichita KS Lic #1996-0122. Randy can be reached at 316-721-7700 |
Real Estate
2007-02-01 16:23:00
The real estate market for 2007
QUESTION: 2007 - what is going to happen in the Wichita real estate market?
ANSWER: The current Wichita market is pretty active for this time of year. Generally there are three main forces that are at work in a local housing market. Local employment, mortgage rates, and housing affordability. Wichita and the surrounding areas are very fortunate in that all these factors are currently very favorable.
Wichita unemployment is currently less than 5%, which many economists consider full employment. Basically that means there is a job for almost everyone that wants to work. The major local employers in manufacturing, healthcare, finance, and agriculture all seem to be in a strong growth period. Boeing, Spirit, Cessna, Bombardier, and Raytheon are all full of orders and most are currently hiring workers for future work. The machine shops that work with these major employers are generally also experiencing good times, with a favorable eye towards the near future. Healthcare is still a growing and dynamic industry in Wichita as the medical providers expand and specialize. Wichita has become a regional health center and should continue to see good things in this employment sector. Wichita has also grown in the finance/insurance area and continues to see regional strength in these areas. Construction for both commercial projects and residential housing are steady to growing. Large projects like the Wild West Park show that local investors and banks as well as large national companies/lenders have a good outlook for Wichita’s future.
The mortgage rates are still very affordable, even though they have moved up a little this year. With more loan programs now available than ever before, money is available to finance housing for a wide range of borrowers. Rates have been very stable this year and I expect them to stay so through the near future. Nationally, the builders and mortgage bankers expect housing to slow down again this year, and in all nationwide publications you will see that there is some doom and gloom in the real estate industry. Wichita should not experience as much of a drawback as we didn’t have the same boom or increase in values as some of the other national markets. The financing options available for real estate investment are also very attractive and this part of the market should add to the growth and stability of the Wichita market.
We sometimes forget what a great place Wichita is to live. It is always fun to have someone come visit and tell you that your house would cost twice as much in another city. The Wichita area still is one of the most affordable places to buy real estate. All parts of the market from the starter home to the gated communities offer great value when compared with other cities. This has become very evident as you read the business section and see the investors from California to Minnesota spending large amounts of money to invest in Wichita real estate. The reason for this is the affordability and growth prospects for the Wichita market.
Like all investment decisions, it is important to have competent advisors to assist and help you find the best option for your situation, but it is much easier in a market such as Wichita that offers good value and opportunity to own real estate. 2007 will be a good year in Wichita to buy and finance real estate.
