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Randy Vickers
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
2005-12-29 10:13:00
What is a real estate ‘bubble’?
ANSWER: There has been a lot of talk in the national media about a possible Real Estate "Bubble." The theory goes that low interest rates have allowed consumers to push prices to levels that are not sustainable. In my opinion, this theory has no merit in Wichita I would first caution folks about considering real estate as a national market, like you do cars, furniture, etc. Local markets are most influenced by local factors, such as employment, unemployment, development, and public perception concerning the outlook for a specific area. Wichita is currently in a very stable employment market, a controlled development market, with an optimistic, but not exuberant outlook for the future. Wichita also has plenty of room to grow in all directions, unlike areas such as California, New York, or Florida, where the lack of lots of land causes inflation to what little is there. The cost to develop more ground is very reasonable in our area when you compare it to the land costs in these higher cost real estate markets. Homes in Wichita, and the surrounding areas have generally continued to appreciate at a 4-6% rate per year. These are not the kind of numbers that we hear about from Las Vegas, Boston, or San Francisco. This kind of growth establishes a stable investment at an affordable price, at all levels of the housing market. Wichita is still one of the most economical housing markets in the entire country, with a stable consistent number of buyers and sellers that match the supply/demand for housing in the area. Statistics from the Wichita Area Association of Realtors suggest that the growth in Wichita is consistent and stable and should continue in that manner. A person buying a home can expect real estate to be a reasonable investment, as well as providing shelter. A person here should not expect to make gains of 15-20% in short periods of time, and in most cases should expect to live in a home for at least 3 years to cover the cost of buying and selling.  The good news for Wichita is that if you already own a home, it has probably been good to the homeowner for shelter, taxes, and as an investment. If you don't currently own a home, you will have the oppor-tunity to purchase one at a value that some parts of the country can only dream about. With the help of a good Realtor and Lender to help you with the purchaseprocess, nearly everyone can feel good about owning real estate in Wichita. More next month...
 
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