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November, 2010 Housing & Economic Report for Wichita , KS

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

November, 2010 Housing report for the

Wichita, KS metro area.

 

Existing home sales declined 8.9% between September and October according to information released by the South Central Kansas MLS.  501 existing homes were sold in October with a median sales price .6% higher than the previous month but 3.2% lower than a year ago.

Existing inventory was done 5.6% from the previous month but still up 22.6% from the previous year.

Months of supply of existing inventory increased to 8.1 months.  A balanced market is in the 4-5 month range.

West Wichita had 62 existing homes close plus 6 new homes.  NE Wichita had 86 existing homes close plus 11 new homes.

Compared to 2007, Wichita's best sales year, residential sales are down 39%.  Existing homes for sale are up 21%.  In a bit of good news, Builders are continuing to get rid of excess inventory.  There were only 464 homes for sale in the 5 county areas compared to 873 homes in October, 2007.

Year to date 12,189 existing homes were placed on the market with 5,941 homes closing.  The average price in the metro area was $124,391 (this number has remained virtually stable), days on the market were 82 and the seller's realized 96.41 of their last asking price.  This number does not take into consideration concessions paid by the seller to get the home sold.

Year to date 930 new homes have been listed with 676 sales.  The average price of a new home YTD is $227,330.

28% of all homes sold in October, 2010 sold for cash.  36% sold with a conventional loan.  28% sold with an FHA loan.  And 6% sold with a VA loan.

 

Additional Financial and employment news.

Somewhere between 3 and 5 million American will max out their 99 extended weeks of unemployment aid and fall off the roles starting in November 2010.

 

GDP growth:  1.7% the 2nd quarter of 2010 and 2% the 3rd quarter.  You need 3.5% GDP growth to start cutting unemployment rates.

The Beacon's Home affordability Index is at the best rate for consumers in 40 years.

New home starts nationally are running 70% below 5 years ago and are running below rates needed to replace aging homes.

Wichita, KS is #1 in the nation in Exports as a percentage of Gross area sales.  The aircraft manufacturing industry drives this number along with food & grain exports.

Nationally, Home sales are 20.6% below September, 2009 levels.

Wichita's foreclosure rate starting the 3rd quarter of 2010 was 1.51% of outstanding mortgages.  This compares to 3.2% nationally.  4.27% of Wichita area homes are at least 90 late on Mortgage payments compared to 7.79% nationally.

In 2010, over 10% of owners with mortgages have been late at least once over 30 days.

Did you know that more that ¼ of all U.S. homes are free and clear........

U.S. Household formations are at their lowest level since 1947.  Between 2002 and 2007, Household formations averaged 1.3 million a year.  During the last year, only 357,000 formations took place.  A normal economy would produce at least 1.2 million formations.

During normal times builders need to be adding 1.7 million units to keep up with new household formations and to replace aging homes and provide 2nd homes for those wanting them.

The sharp drop in Household formations is one reason the glut of unsold homes nationally remains high.  Census data shows that 14.5% of all homes were vacant during the last census.  That along with marriages declining about 20% as a percentage of population since 2000, Immigration declining plus divorces falling about 15% are other contributing factors.

 

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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.

 

 

 

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