Reported by Wayne Shorty Short, Broker/Owner, CRS, CRB, ABR, ABRM, e-PRO, CRP
Updated October 13, 2009.
Current Market Rating: 2
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Current Price Trend: 2
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August, 2009 MLS report From W.A.A.R for the South Central Kansas MLS
YTD closings in August, 2009 were down 16% from August 2009. YTD closings for January through August are down 22% from 2008 levels. YTD closings are down 40% from 2006 levels.
Listings YTD for 2008 are down 4% compared to new listings from January to August, 2008. Total existing homes on the market are up 4% compared to August, 2008.
New home inventories are down 24% compared to August, 2008.
The average sold price of an existing home in August was $122,823 and the Average home sold at 96.95% of the last asking price.
We are starting to see more standing inventory of existing homes in the higher price ranges.
$0 to 119,999 showed 4.24 months of inventory with 1701 homes available based on August, 2009 closings. $120,000 to 159,999 had 724 homes and 3.48 months of inventory $160,000 to 199,999 had 536 homes and 5.47 months of inventory $200,000 to 299,999 had 655 homes and 6.01 months of inventory $300,000 to 499,999 had 377 homes and 13.46 months of inventory $500,000 and up had 136 homes and 19.43 months of inventory
Wichita was just ranked the 10th best priced real estate market in the nation in one poll and one of the most affordable markets in the U.S. in another.
Sedgwick County was ranked the lowest in tax burden of the 7 most populas counties in Kansas. Kansas was ranked as a state with lower than average tax rates.
Stan Longhofer, director of the WSU Center for Real Estate recently spoke to a meeting of real estate brokers at the Kansas Realtors convention. He says the local real estate market is stabilizing but do not expect a rapid increase in sales. He does say an extension of the 1st Time buyers Tax Credit could have a pump-priming effect on the local market. He also said the Wichita and Kansas City markets inventories of homes remained well below national levels. He does not expect any substantial declines in real estate activity but the recovery will be slow.
Wichita, KS metro homes sales For May, 2009
The Wichita Area Association of Realtors and the South Central Kansas MLS have released data for May, 2009 reference Wichita, KS metro home sales figures.
Existing home sales increased 10.5% in May compared to sales in April, 2009. Existing home sales were up to 650 units from 588 units. Sales are down 26% from last year based on May, 2008 data. The median sales price of existing homes in May increased .9% compared to the month before. This data is contrary to most sales figures of the other top 100 real estate markets.
New home sales were also up in May over April of 2009. They increased by 2.5%.. The median price of homes sold in May was up to $215,400 compared to $196,310 in April, 2009. Total sales in may were down 7.8% compared to one year ago.
Total re-sale home inventory was up 5.4% compared to last month. Total inventory is .6% lower than one year ago. New home inventory decreased slightly from April's data and was 7.7% below one year ago.
Existing sold homes averaged 69 days on the market for May sold properties. The average list to sell price was 96.3%.
Absorption rates for various price ranges: Months of Inventory
Under $120,000 4.67 Months $120,000 to $180,000 4.44 Months $180,000 to $250,000 8.56 Months $250,000 to $400,000 9.4 Months $400,000 to $750,000 8 Months
Real Estate market update For 1st Quarter, 2009
Kansas ranked #36 out of the 50 states in lowest foreclosure rates for 2008 at 0.51%.
Wichita ranked #92 out of the top 100 markets in lowest foreclosure rates at 0.67%
Average sales prices for the Wichita MLS have increased each of the last two years. Only 31 of the top 162 metro markets had an increase from 2007 to 2008.
With just 46 agents in 2008, RE/MAX Realty Professionals was ranked #374 out of the top 600 real estate offices nationally. The company was also the top company in units sold out of the top 5 companies in total sales for 2008.
The average sales price for existing homes for the 1st quarter was $114,115. Average days on the market (last listing) were 71 days at 96.08% of final list price.
77% of all real estate sales in the metro area were co-op sales. (listing and seller agent work at different companies)
The average sales price of new homes for the 1st quarter of 2009 was $249,797.
In March of 2009, the number of closed transactions was 32.5 % lower than a year before. For the 1st quarter the reduction was 32%.
Sales are down 43% from three years ago, the busiest year of sales in Wichita. Total listings on the market are about the same as a year ago. New home inventories are down 6%.
Absorption rates for different price ranges: $0 to $119,999 is 4.5 months, a very good number. $120,000 to 179,900 is 6.4 months $180,000 to $249,999 is 12.75 months. Anything over 4-6 months becomes a buyer's market. $250,000 $399,999 is 14.5 months $400,000 to $749,999 is 17 months. Only 11 homes out of 189 sold in this price range in March, 2009.
1st Quarter, 2009 Real Estate & Economic report for the Wichita, KS metro area
Another Round of lay offs in the aviation industry was announced this week in Wichita, KS. In addition, there will be two to three companies doing furloughs for two to three weeks this summer. Total lay offs in the Aviation industry announced or all ready done exceed 10,000 workers. This will be a total employment impact of 20,000 plus workers before the end of the year.
Before last fall, Wichita had seemed to be immune from the financial hardships of other areas of the country. But after 16 months of a recession, the negative job impact was bound to hit the local area.
Nationally, an upturn in the economy is projected in the 3rd to 4th quarter of 2009. Wichita will not see a local upturn until the following year. It's just a reality that corporations do not go out and buy a $20,000,000 jet because they had one good quarter.
In contrast to what has happened in 2009, U-Haul has issued a report on metro areas that had more than 5,000 moves in or out. Wichita ranked #1 for % of inbound moves over outbound moves in 2008. __________________________________________________
Wichita, MLS data for the 1st two months of 2009
Wichita closed sales for the 1st two months of 2009 were down 32% from last year. Last years sales for the entire year were down 16% from 2007 sales data.
Total listings on the market compared to last year is only up 2% and total new listings added to the market is actually down 3% but the dramatic decrease in sales has pushed up the months of inventory in most price ranges.
The average sales price for the 1st two months has dropped from last year but it's in line with the previous two years. Average days on the market of sold properties was 71 days (does not take in to account previous listings of the same property) and average list to sale price was 95.85%. These numbers are basically the same as last year. A significant piece of data is the 779 sold existing homes in the 1st two months compared to the 1,965 new listings, 2.5 times as much. This may be a fore warning of things to come over the next few months.
The absorption rate on inventory has increased since last fall's report.
There is 6 months of inventory below $120,000
8.25 months of inventory from $120,000 to $160,000
11.9 months of inventory from $160,000 to $200,000
20.25 months of inventory from $200,000 to $300,000
17.35 Months of inventory from $300,000 to $400,000
These inventory levels are based on sales for February, 2009 and total listings available.
Wichita was a highly ranked city in 2008
Wichita, KS for most of 2008 outpaced the rest of the nation in the quality of its real estate market, job increases and local private and public building projects. The economy started catching up with Wichita in the 3rd quarter and buy the 1st quarter of 2009 lay-offs increased the local unemployment rate to 6% and there for slowed down real estate sales.
Before all that happened Wichita has received many accolades in 2008 • U-haul ranked us the #1 city for inbound moves • Wichita is once again an All-American City Finalist • MSN.com ranked us one of the best cities to enjoy spring • One of top cities for Filmmakers to live • #11 in least congestion for the top 100 U.S. Cities • Veros Real Estate ranked us the #1 real estate market for 2008 • Forbes.com ranked us the 2nd best city for jobs • Best city for bargain real estate by MSN Wichita ranks high on wealth building survey by Salary.com. • Wichita, KS just ranked #6 on a survey of 69 cities for building personal wealth and Quality of life. • Wichita, KS just ranked #1 in MSN's nine best, livable cities. The cities had to have at least 500,000 population in the metro area. Wichita was ranked one of the most affordable in the Study. The high job growth, values of homes, quality of life, revitalization of the downtown and new Arena contributed to the ranking.
We are sure these ranking will fall in the next couple of years as Wichita recovers from the economic downturn but they are an indication of the inherent strength and desirability of Wichita and the Midwest.
February, 2009 Market update For Wichita, KS
The Center for Real Estate at Wichita State University and the Wichita Board of Realtors reported sales activity for all of 2008 and January of 2009 this week.
Real estate sales forecast for 2009 shows existing home sales at around 7,500 units, 11% less than 2008. New home sales are expected to decline by 17% to 1,280 units. Building permits are also expected to decline 19% from 2008 levels.
No rebound in sales levels are expected until the 4th quarter of 2009. This date could be extended depending on how long the current recession lasts.
Housing prices are expected to rise by 3.2% in 2009. New homes on the market has continued to slow and keep pace with the decreased demand for housing which has kept the market values in the Wichita metro area stable for the last 12 moths and is projected to do the same for 2009.
Home appreciation for 2008 was 1.5% even though the average sales price of existing homes rose by over 13%. Prices rose the 1st quarter of 2008 .2%, the 2nd quarter 1.3%, declined the 3rd quarter 2.2% and rose the 4th quarter 2.2% for an over all gain of 1.5%.
The January sales decline was more severe than expected. Sales in January, 2009 declined 35% compared to December, 2008. New home sales declined 45% for the same period. It appears home buyers were setting on the side lines waiting to see what congress was planning with the stimulus package that was just passed. The $8,000 tax credit for 1st time buyers (no pay back required) and the continued low interest rates should get buyers back into the market. Of course, this all depends on additional lay-off notices that may still be issued by local industry.
Good news in the local foreclosure rates And State and city rankings.
Kansas ranked 36th in the nation in foreclosures for 2008. Kansas real estate prices never had the explosive growth over the last 5 years as did other areas in the country so prices may have stabilized but have not fallen as they have in most of the country. Only ½% of all properties in Kansas are in foreclosure. Compare this to 4.5% in Florida, 4.5% in Arizona, 4% in California and 7.3% in Nevada.
Wichita, KS ranked 92nd among the top 100 metro markets in the U.S. in foreclosures. There were 1,698 properties with filings. This was .67% of all properties in the city. This low rate was 156% higher than the year before however and may show a and upward trend for 2009
March 12, 2009 Wichita, KS Economic update
Wichita, KS city council members have voted to add another Bridge from the core area of Wichita to the Cities' West side, the fastest growing area in the metro area. Presently there are only two accesses west and the new bridge will increase traffic flow by 50%.
Kansas will receive $1.75 billion of the federal stimulus package to rebuild roads, universities, help with education and the health care system.
Federal budget cuts could delay the replacing of the U.S.A.F.'s aging tanker fleet. A five year delay is being considered on the $100 billion dollar program that Boeing Military is bidding on. Should Boeing get the contract, all major modification of the aircraft will take place in Wichita.
A recent survey of area employers shows that 70% plan to no job cuts over the next three months. 15% of those surveyed plan to hire more employees and 11% plan to cut some employees.
Location Characteristics: Wichita is the largest city in Kansas and is located in south central Kansas. There is a strong manufacturing base with 4 major aircraft companies located here. In addition there are several large medical facilities located in the area, oil & Gas, and a serious agricultural presence.
About Wayne Shorty Short:
Wayne Short is Broker/Owner of RE/MAX Realty Professionals. He has been licensed for over 28 years, has a MBA degree, is a past President of the Wichita Area Association of Realtors and actively sells 60-85 homes a year.
These reports reflect the views and opinions of their authors and are not necessarily the views and opinions of Realty Times.
