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January to June 2010, Wichita, KS Real estate update.

By
Real Estate Agent with The Wichita Home Team with KW Signature Partners

Old town, Wichita

2010, 1st Six Months, Economic &

Real estate activity for the Wichita, KS metro area

 

The South Central Kansas MLS has released their June, 2010 figures for Wichita-area homes sales.

Existing home sales decreased by almost 10% between May and June, 2010. However, YTD sales increased by 10% due primarily to the Federal Tax Credit offered until 4-30-2010.  Many of the sales that closed in May and June were contributed to that Credit. 

New home sales increased dramatically (58.8%) from May with 77 sales compared to only 274 for the 1st 6 months. New Home inventory increased 11% to 512 units but this was still 22.5% lower than a year ago.  Both new and used inventory are up 6.4% over Last month and up 10.1% over a year ago.  There were 9% more existing homes listed so for in 2010 compared to the 1st 6 months of 2009.

Months of inventory increased to 5.4 months based on June, 2010 sales.  Anything over 6 months favors Buyers.

 

YTD the average price of an existing home sold was $123,396 compared to $222,121 for new homes.  The average existing home sold at 96.71% of their final list price and averaged 78 days on the market.  Market days only count homes that actually closed.

Since the end of the Federal Tax credit in April, new contracts written are done 50% in both May and June.  For the 1st time we are tracking showings in our two offices and showings are down over 50% from April 2010's level.  These numbers do not bode well for the remainder of the year. 

With interest rates at a 50 year low you would think buyers would be beating a path to any Realtor's door.  It appears the continued worry about additional layoffs before the recovery in the aviation sector in Wichita has many potential buyers on the fence.  The announcement last Thursday from Beech Craft about 25% to 75% worker layoffs in Wichita did not help.

 

What is selling:  VERY well priced homes in excellent condition.  Short sales made up 18% of all sales nationally (up 50% from a year ago) with some observers saying Short sales and REO's made up 40%+ of the national market.

What are Short Sales?  This is where the sales price minus charges to the sale including loans owed is a negative value.  In these cases we go to the lenders to get them to accept less than what is owed and the let the sale proceed.  This does damage the seller's credit but less than a foreclosure.  Medical problems and loss of job are the most common reasons for short sales, REO's and bankruptcy.

Why would a lender do this?  The loss is usually less than taking back a home plus the lender does not have any caring costs to the property

In Kansas, foreclosures rose 47% but were still low compared to the national average.  In Kansas the foreclosure rate was 1.51% of all loans compared to 3.15% nationally.  More troubling is the delinquency rate at 4.33% in Kansas.

What is projected for the rest of the year?  More of the same until more jobs are created in the Wichita metro area.  Rates should continue to stay low through the fall and this will help a bit in getting buyers to act now rather than later.

Wayne "SHORTY" ShortABR, CRB, CRS, CRP

Broker/Owner, RE/MAX Realty Professionals

East and West Offices, 316-554-2831

www.realtor-shorty.com,  www.move2ks.com

shorty@realtor-shorty.com

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July, 2015 Mid-year Real Estate Report

 

For the United States, NE Oklahoma and the Grand Lake area.

 

 

 

Nationally, June Home sales were the highest of any month since the RE/MAX National Housing report began in 2008.  In the last 5 month each month’s sales were higher than the proceeding moth and the same month one year ago. The median sales price of homes sold in June was $224,671, 7% above a year ago.  Nationally, supply still lags demand with only a 3.6 month supply of housing.  A 6 month supply is a balanced market.

 

 

 

Nationally, April, May and June saw an increase in inventory but June’s inventory was still 11.8% below a year ago.  For example the DFW area reported only a 1.8 month’s supply of homes. Grand Lake’s supply of housing was almost 14 months.

 

Nationally The average home lost $13,067 of equity value in the last 9 years but over the last 3 years the value of a home went up $45,533 and that equity loss should be wiped out in another two years.  The Tulsa area was not hit nearly as bad.  The last 3 years equity gain was only $21,100 but the 9 year position was a $19,400 value increase over 2006.  The Grand Lake area is still behind values 9 years ago but values are slowly rising.  The only negative to a faster recovery will be the dramatic decrease in oil prices and increase in job losses in the oil industry and how that impacts buyers from the OKC, Tulsa and Wichita, KS area.

 

Grand Lake real estate sales

 

2015 sales started slow but are beginning to accelerate. There were 426 residential sales in the 1st 6 months of 2015, a 2.9% increase but Junes increase over June, 2014 was 40.8% or 100 sales compared to 71.

 

Pending sales at the end of June, 2015 were up 13.4% over June, 2014 and YTD pending sales were up 5%.  During June, 2015 32 homes went under contract priced over $200,000, 34 homes sold between $100,000 and $200,000 and 27 homes were sold under $100,000. 

 

The number of listings available for sale was down 11.4% at the end of June, 2015 compared to a year ago. The greatest need seems to be homes under $100,000 that are stick built so they can qualify for government loans. (USDA, FHA and VA)

 

Homes are selling at 91% of last listed price, the highest level in over a year.  If no new listings entered the market it would take about 13.5 months to sell Grand Lake’s entire inventory.  This number is three times the national average for major metro areas.

 

 

 

Show All Comments
Kay Van Kampen
RE/MAX Broker, RE/MAX - Springfield, MO
Realtor®, Springfield Mo Real Estate

Nice market report.  I see our sales down since April 30.  I'm hoping the low interest rates will  stir the buyers into buying now.

Jul 18, 2010 02:37 PM
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