What's really happening with the Manhattan, KS area market
Friends, family, neighbors and clients are all asking the same question. Is Manhattan headed for a housing crash? And my answer to them over and over is an emphatic no.
Don't buy into the simple-minded analysis that our housing market is on steep decline. These concerns are based on comparisons to artificially high reference points over the last two years. Volume is down, but this is more of a supply issue than a demand issue.
This statement rings true across the U.S. and especially in central Kansas.
In the past 30 days, Manhattan has seen 101 homes go under contract and only 75 came on the market to replace them. Median days on market for all homes sold in 2019 was 44. Compare that to the median days on market we've seen the last month: 16. Last year at this time homes were on the market an average of 18 days.
We are seeing home prices remain stable. In August 2021 the average sales price was $263,000, just slightly above what we saw last month at $260,000. And when you look at the 5-year trend, you'll see Manhattan home prices are up more than 27%. That upward trend is true for many communities in the Manhattan area. Here are some stats on the areas with the fastest-growing home prices, according to a Zillow analysis by the online publication Stacker. Cities were ranked based on changes as of July 2022.
So, if we aren't in a housing crash, what is happening? Throughout the Manhattan area we are seeing a correction from the unsustainably high market we've seen over the last 18 months or so. The sky is not falling. It's just coming back to earth.
Sources:
https://www.usatoday.com/story/money/personalfinance/real-estate/2022/09/20/why-builders-slashing-home-prices/10425241002/
https://stacker.com/kansas/manhattan/cities-fastest-growing-home-prices-manhattan-metro-area