There are approximately 1902 Realtors. Only 455 Realtors did at least 9 sales so far this year or at least one sale per month. Approximately 75% of the MLS Realtors did not have at least one sale a month, the minimum to survive as a real estate agent. Kirk and I have sold close to 50 residential homes so far this year.
517 Realtors or 27% of all MLS participants did not have any sales in the first 9 months of 2009.
There has been a reduction of approximately 243 agents (12%) since the fall of 2008, now 1784 WAAR voting members.
Existing home sales decreased 10% August to September, 2009. YTD sales are down 21% from 2008 levels and 32% from 2007 levels. The median sales price of existing homes in September decreased 2% on a year over year basis.
New home sales decreased in September to 87 units, which represent a 13.9% decrease compared to the previous month.
New and existing home inventory combined was 4,047 homes this month compared to 4,105 last month representing a 1.4% decrease in the past month. One year ago the combined inventory was 4,069, which represents 0.5% decrease in total inventory over the last year. Total months of inventory for existing homes increased from 4.7 months to 5.3 months based on September, 2009 sales.
YTD the average sales price of a existing home was $120,403 with an average sales time of 65 days and selling at 96.68% of the final list price.
Inventory levels based on Sept., 2009 sales figures.
$0 to $99,999 price equals 4.2 months of inventory
$100,00 to $139,999 has 3.71 months of inventory
$140,000 to $199,999 has 5.55 months of inventory
$200,000 to $299,999 has 10.73 months of inventory
$300,000 to $499,900 has 14.35 months of inventory
Only one sale above $500,000 in September and there are 130 homes for sale in the price range.
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.
The unemployment rate dropped in August for the 1st time in 2009. The revised rate for Wichita in June was 10% and it has dropped to 8.9% in August. The rate in Kansas was 7.1% and the lowest rate in the state was for Manhattan at 4.1%.
RealtyTrac has reported that 1 in 347 homes received a foreclosure filing in August.
Option ARM loans are the next big worry for the economy starting in the next few months. The mortgages differ from other ARMs by offering an option to pay only the interest each month or a low minimum payment that leads to a rising balance in the loan's principal. When the balance of the loan reaches a certain level or the mortgage hits a specific date, the borrower must begin making full payments to cover the new amount. The majority of these loans were taken out by borrowers who could qualify for regular conventional loans and many loans tend to be on more expensive homes. In many cases the borrower could choose the payment they wanted, often $100's per month below what the payment should be.
Because the new monthly payments can be five or 10 times what borrowers are accustomed to paying, they threaten a much greater hit to the consumer than the subprime loans which were often extended to less credit-worthy borrowers.
Tanker Contract: Round three.......
For the 3rd time the defense department is expected to put up for bid a $35 Billion dollar contract for the new-generation USAF refueling tankers. Boeing will submit a bid based either on the 767 or 777 airplane. The other main bidder will be Northrop Grumman in partnership with Airbus. Wichita Boeing is hoping to do the modification work which would create 300-500 jobs plus another 500 jobs by local contractors. The request for bids should happen in the next two weeks.
Wichita real estate #'s will be released in a few days but appear to be 15% below last years level. YTD sales to July were down 25% from 2008 numbers. Nationally, August sales matched 2008 sales and in many depressed markets were up dramatically. The $8,000 1st time buyer's credit will end the 30th of November, 2009. There is a push in Washington to extend the program and possibly make in available to any one buying a residential, owner-occupied home. There is only a 60% chance this will probably happen and then only if it can be done with out increasing the deficit.
The new double deck terminal for Wichita Mid Continent Airport will cost $150,000,000. Bids will be let this fall. No local taxpayer funds will be used for this project. The terminal will be built just west of the present terminal.
International air travel has been serious hurt by the global economic recession. Air travel for 2009 will be down 6 to 8% globally and is not expected to return to normal levels until 2011. China and India are the exceptions to these downturns and travel is expected to be up 4% in 2009 and 6% in 2010. Asia will surpass North America in the next 20 years as the largest air travel market. Locally, air travel has been steady but the local aircraft plants have laid off 40% to 50% of their workers and the local unemployment rate has climbed from 4.7% in November, 2008 to 10.2 % in August, 2009. No improvement in hiring or the unemployment rate is expected till later next year.
Phil Ruffin, Owner of the Wichita Greyhound Park, has submitted a plan to the Kansas gaming commission to re-open the park if he can have additional gambling with slots. Ruffin wants the state to amend the current gaming law to allow more profit for the Tracks that have racing and slots. Additionally, voters of Sedgwick County (Wichita area) would have to approve slots for the Wichita track. The track was previously closed in 2007 when slots at the track were defeated by the local voters in an extremely close vote where they also did not vote for a state owned casino in the county. A casino has now been approved just south of Sedgwick County at the Mulvane exit in Summer County.
The Kansas City Chiefs foot ball team was recently ranked as the 14th most valuable NFL Franchise at a little over $1 billion. The Dallas Cowboys were the most valuable team and the Oakland raiders were the least valuable.
Ranking for National Real Estate Franchises for sales in 2008 has been released.
In 2008 RE/MAX agents led the nation in unit and volume sales. RE/MAX agents sold 21% more than Coldwell banker agents, 46% more than C-21 agents, 57% more than Keller Williams' agents, 60% more than Prudential agents, 85% more than ERA agents, 89% more than Realty Executive agents and 91% more than GMAC agents.
Wichita, KS is making sure it's water supply stay available for future growth by taking excess water from the Arkansas river, filtering it and pumping it back into the Equus beds aquifer to create plenty of product through 2050. The cost of the project will be around $400 million.
NCAA scouting out Wichita:
The NCAA is in town checking out the new 15,000 seat Intrust arena in Downtown Wichita. Wichita has bid on tournament games for 2011, 2012 and 2013. NCAA official are checking out the arena, parking, hotels and other services for future events. It has been fifteen years since Wichita hosted a post season NCAA men's basketball game.
Wichita rated top 10 City in finding jobs:
U.S. News and World report rated Wichita one of the top ten cities in finding a job. Even though the unemployment rate has reached 10+% in the last few months the stable housing market, health care sector and U.S. Air Force base expansion justified the ranking. The downturn in the aviation sector was noted but the potential for a strong recovery signaled strong growth for the city and future jobs.
Wichita Real estate prices Stable.
Wichita home prices for the 1st half of 2009 were stable and slightly higher than the year before. Even though there were 25% less sales in the 1st half of 2009, Wichita was able to remain one of the few areas in country with out declining prices. While other markets went up 15% a year in values in previous years, Wichita's values raised 2-4%. When the down turn hit the national price index fell almost 35% while Wichita still maintained a positive number.
Existing home sales decreased 4.5% from June, 2009 totals. June sales had been up 20% over last May's dismal figures. YTD home sales in the metro area are down 24% from 2008 totals as of the end of July. July, 2009 sales were down 16% compared to July 2008. #'s of new listing rose 3% in June compared to last year but were still down 5% YTD.
The number of existing homes on the market was slightly up compared to last month but was stable compared to a year ago.
New home sales were down 20% compared to June, 2009. New home inventories were slightly lower than a month ago and 14.9% lower than a year ago.
Over all inventory levels were 4.6 months. Lower priced homes tended to sell faster and for a high % of list price than more expensive homes.
Example of time on the market:
$119,000 and lower homes had 3.97 months of inventory based on July, 2009 sales #'s.
$160,000 to $179,999 homes had 4.8 months of inventory.
$200,000 to $249,999 homes had 6.71 months of inventory
$300,000 to $399,999 homes had 10.3 months of inventory
$500,000 to $749,999 homes had 13.6 months of inventory
Unemployment levels continue to climb in the metro area based on the slow down in the aviation sector. Sedgwick County had an unemployment rate of 10.2% in August, the metro area was 9.9% and this compared to a national rate of 9.4%. Last November, the area rate was 4.7%. Improvement in this area is not expected for 15-18 months.
The 1st 6 months, Wichita, KS metro area real estate activity
Existing home sales increased 20.9% over May 2009's figures but were still down 10% from the same period in 2008.
New home closings were up 48% compared to a month ago. The median new home price in June was $196,998 compared to $215,400 a month ago.
Existing homes on the market rose by a little over 2% compared to a month ago. The total inventory of existing homes was only 1.5% higher than a year ago.
Builders are slowing building and more buyers' interest in the market is further reducing the inventory levels to 5.5 months. Existing home inventories in all price ranges was 4.5 months.
June, 2009 absorption rates:
Under $119,900, 4+ months of Inventory
$120,000 to 179,900, 3.5 months of inventory
$180,000 to 299,900, 6.5 months of Inventory
$300,000 to 499,900, 7 months of inventory
Above $500,000, 12+ months of Inventory
YTD numbers for Existing homes:
Average days of the market, last listing: 67 all markets, only 48 days in west Wichita
Average % of list price: 96.54%, 97.84% in west Wichita
81% of all residential sales in the Wichita metro area were co-op sales.
Wichita was just rated the #2 metro area out of the top 90 in the U.S. for the least commute time for residents and least traffic delays.
McConnell AFB has added 15 air refueling tankers to the 31 tankers already based in Wichita. By October, 48 tankers will be based in the "Air Capital". With the additional people, and projects being completed to support the new planes there will be a $500 million dollar a year impact for the metro area. The KC-135 tankers arrived from bases in North Dakota, California and Georgia. Wichita is now home to one of the largest tanker bases in the USAF.
Cessna has formally cancelled the Columbus Wide Body Business jet. They are paying back $10 million in bonds already given to them by the city and the county. Cessna will revisit the concept once the Business jet market returns.
There have been approximately 12,000 lay offs announced or completed in the last year in the Aviation sector in Wichita since last summer. These lay offs are projected to last 15-18 months before call backs start.
The new 15,000 seat downtown arena is being completed faster than planned. It may be finished 3 months a head of schedule. The arena was fully paid for by a 30 month 1/2 cent increase to the local sales tax.
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
Sales figures are in and April's sales were 9.1% higher than March. They were still 27.5% below 2008's numbers. Average sales price of existing homes in April was $113,445. The existing inventory of homes remained relatively stable from March to April this year and to April, 2008 figures. Total existing listings available for sale are 10% below 2008 levels.
The new home inventory dropped 7.9% from March's levels and was 7% below April, 2008's level. Average sales price was $254,000.
Absorption rates:
Homes priced below $120,000 have 4.5 months of inventory.
There are 5.2 months of inventory in the $120,000 to $180,000 price range.
$180,000 to $249,900 price range of homes is 9.67 months of homes for sale, down from 12.75 months in March.
$150,000 to $399,999 price range has 11 months of inventory and anything above 400,000 has 3 years of inventory.
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Wichita Economic update
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