Wichita Area House Rentals

[WuDrWu]

Unless you plan to cash out entirely and move to another continent, or buy an RV and travel the country, the rationale of selling your own house when the market is high so that you can then buy another in that same market is fool's gold. A rising tide lifts all ships, or sinks them.

Believe me you don't want to be sitting on a contract to sell your own home right now without either another one 100% lined up or being built. Very high likelihood you would need to move into temporary housing of some sort in the interim. It is a terrible time to be a buyer right now. Things are changing very rapidly though with the rise in interest rates (which should have happened many, many months ago). While affordability will continue to suffer due to a rise in monthly payments as a result of rates rising, it should put a cap, or at worst a governor, on the unbridled housing inflation. It is a simple economics equation.

Exactly. I will give my wife your number the next time she brings it up. Clearly, I don't explain it well enough.

[Kel Varnsen]

Zillow is a unbridled joke. Trust me. Their values are intentionally high, because high draws the eyeballs of the curious, and eyeballs drive page views and ad sales. If zillow gave everyone a realistic and/or conservative "zestimate" of their home, no one would go to look right?

Within the past year or two they had started a large division within their company where their model was to buy homes low and sell homes high based on their own data. They killed off the division within just a few months as it was losing money hand over fist. That was their "zestimate" in real life action, and it failed hilariously to the tune of over half a billion dollars. And it happened when the market was booming, not during a shift (like now).

https://www.bloomberg.com/news/artic...king-up-losses

https://www.wsj.com/articles/zillow-...es-11635883500

https://www.nytimes.com/2021/11/02/business/zillow-q3-earnings-home-flipping-ibuying.html

[/soapbox]

True. Not like I take Zillow as gospel, but the value has probably gone up overall due to low supply. To what degree, they're probably fudging.

[SHOCKvalue]

That may be true, but prices are going up. I've seen houses comparable to mine, which is nothing special and quite small, listed by agents at nearly double what I feel I could get for mine. Locations may differ a little, but not that much. I've seen some within a few blocks of me going for about 40k more than I feel I could get for mine. Are they selling at these prices? I don't know, because I'm actually looking to upgrade and these don't do that for me, but it shows that the market is loopy. I was lucky enough to buy my house from my brother about 15 years ago for much less than it was worth. He'd bought it from our grandparents at a low price and just wanted to get that amount back and was pretty desperate to upgrade as he had three girls sharing one small bedroom and they desperately needed more space.

I have always felt the zestimates were off, but I'll usually look at three or four different apps/agencies to get a feel for things and they can vary pretty drastically. Years ago I looked at the estimates on my home and I mostly agree with the lowest estimate that I saw there. The highest was probably about 50% higher. Maybe I underestimate things, but there are a lot of crazy numbers out there right now. Some legit, some not.

You're talking about AVM's - automated valuation models. Yes, there's a bunch. Some are semi-legit (which you as a private homeowner wouldn't normally have access too), others like Zillow are not. Zillow is not used at all in the mortgage field, but there a lot of AVM's that are. They're most useful in sample size, as any single AVM is generally not great at what it does. They are trying to homogenize data from physical assets that are themselves generally heterogeneous. Obviously new, entry-level-ish cookie cutters (think anything made by Klausmeyer or Comfort Homes) are generally homogeneous, but once homes gets some age on them they are a long ways from homogeneous.

AVM's are at times used by lenders in borrowing situations where credit scores are very high and/or the LTV is low. They get the official approval on using an AVM for risk assessment from the GSE's (Fannie and Freddie) by running the numbers and borrower profile through a standardized system developed by the GSE's that basically gives them the go or no-go.

[SHOCKvalue]

True. Not like I take Zillow as gospel, but the value has probably gone up overall due to low supply. To what degree, they're probably fudging.

Sure, I'm certainly not arguing housing inflation. Just cautioning you on giving stock to Zillow. Like I said in the post above, AVM's are used in mortgage lending at current, but Zillow is not anywhere in that conversation. It is consumer-level clickbait.

Certain submarkets in the Wichita market are up 30% y/y. And Wichita is a market that - historically - you were lucky to see housing values keep up with CPI. Not anymore.

[Kung Wu]

We need more California voters to move in and inflate prices and bring their politics!

[SubGod22]

We need more California voters to move in and inflate prices and bring their politics!

That's not ****ing funny. Don't even joke about that ****ing **** you ****ing ****. **** you, Kung Wu.

[Kung Wu]

That's not ****ing funny. Don't even joke about that ****ing **** you ****ing ****. **** you, Kung Wu.

Baby, I didn't know you log into Shockernet! Would you grab some beer on the way home?

[1972Shocker]

Someone is not fond of leftugees.

[AndShock]

I could get about 40% more than my Zestimate FWIW. Not sure why it’s lower than purchase price pre-housing market explosion as well as tax appraisal.

[shoxlax]

If your house is paid for and you can make enough to cover rent somewhere else being semi retired, seems to me it makes a little sense to cash out high. Just don’t do it, like ShockValue said, with the intention of buying another house in which case you’ve gained nothing.

[MikeKennedyRulZ]

Here in the land of milk and honey (tongue firmly in cheek), our house purchased in 2018 has doubled in value. I know that is artificially inflated so unless you are selling here to move to another cheaper state (AZ, NV, Texas, KS) it makes zero sense to sell because you are also buying at the inflated prices. The median home price in San Diego is now approaching a cool million which is absolutely bananas. A lot of it is being driven by Bay Area transplants moving to San Diego because they are actually the only ones saving money by doing that. Luckily we were able to refi in to a 15 year in the low 2's last year so we are pretty golden. You also have people here who are cashing in on the artificial equity in their house with equity lines taking them up to 85-90% of the "value", which is likely going to spell t.r.o.u.b.l.e. when things correct.

Why anyone would move to CA in this environment outside of family being here is beyond me.

[RoyalShock]

My son is moving into a new duplex development near N 119th W and 33rd Street N. If I recall correctly, it's a 3BR for around $1500. They may have 2BR configurations for less, but can't say for sure.

[shock]

I have to carefully have that discussion with my better half on a monthly basis it seems. I was lucky to get my current location at 20K under asking 4 years ago. Since then tax basis is up almost 60k and a neighbor sold last week at 100k over what I paid (basically same floor plan minus 3rd garage, basement and upgrades). She wants to sell so bad......It's crazy last 2 years.

Life up here isn’t so bad. We are getting fiber to the home this year and I live 45 miles from “town” (basically Potwin) with a population density less than anywhere else in the US.

[Kung Wu]

Life up here isn’t so bad. We are getting fiber to the home this year and I live 45 miles from “town” (basically Potwin) with a population density less than anywhere else in the US.

Just so you know, "fiber to the home" doesn't mean Amazon deliveries of Bran Flakes.

[shock]

Just so you know, "fiber to the home" doesn't mean Amazon deliveries of Bran Flakes.

We munch on willow bark like the moose. Their poop doesn’t break down for a decade.