August, 2010 economic update for the Wichita, KS metro area.....
Real estate activity in the 1st ½ of August seems to have picked up from July. The continued low rates for loans will not last forever and some buyers want to make sure they take advantage before they end. Showings in the higher price ranges have in particular have risen well above the June and July levels.
Sales are still slower than we would like. They are a function a lack luster job market so far. The government is realizing this and plans to keep rates low through the rest of the summer and maybe into the fall.
Machinist Unions are starting negotiations with Beech and Cessna a year earlier than normal. Beech Aircraft has suggested they move up to 75% of their operation to the South and the union is trying to get this stopped. The recent 10 year contract with spirit aerospace may be an inducement for Beech to try and work something out. This fall we should start seeing more deliveries of the B787 and new B747 cargo plane. We are still awaiting word on the 3rd round of negotiations on whether or not Boeing gets the large Military tanker contract. This will mean more business for Spirit, Boeing military in Wichita and local suppliers. We are also waiting to see if the new Casino in Summer County gets approved. More construction jobs with this one.
I just got back the 13th from the National RE/MAX broker conference in Denver and listened to a number of experts in the industry. These experts all say the existing market will linger on for the next 2-3 years and Short sales and REO properties will last another 3-5 years before the oversupply is cleaned up.
Locally the local aircraft execs said that good employment growth will not really happen till 2012 and full employment at the 2008 levels will not be reached until 2015.
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