Special offer
Home > Blogs > Wayne Short > Wayne's Real Estate Blog
bookmark_border

December, 2010, Economic and real estate update for the Wichita, KS area

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

Wichita at nightDecember, 2010, Financial and real estate update for the

Wichita, KS metro area.

Up to five Dollar General stores are being built or in the planning stages for the Wichita Market area.

Spirit shows off the 1st composite fuselage for the Sikorsky Helicopter used by the U.S. Marine Corps.  This is the first of up to 200 units to be built for the Corps.  More are expected to be bought by other service branches and countries.  This is a move by Spirit to not just be a supplier of aircraft parts for Boeing aircraft

Spirit Aerospace has been told to expect to ramp up production of the 737 models it builds in Wichita.  Current production of 33 units a month may go as high as 41 units in the next couple of years.  Spirit builds about 70% of the model for Boeing and builds parts for all other Boeing aircraft.  They are expected to ramp up production for the B787 and B747x aircrafts in 20100 and 2012.

Depending on the report you read, Wichita's unemployment rate went up .2% or remained stable over the last month.  Unemployment claims were stable but there were fewer employees in full time jobs.  The rate was 8% to 8.4% compared to a national unemployment rate of 9.8%.  The Kansas unemployment rate was 6.7% and Manhattan had the lowest rate of 5.2% I the state.  The jobless recovery continues.

Retail and new car sales in November and December are up in the Wichita metro area as well as nationally.  Retail sales rose for the 5th straight month according to the U.S. Commerce department, over .8% for the month. 

Long term interest rates have bottomed out and are now holding around 5% for a 30 year fixed rate mortgage.

Mulvane, KS in Summer County seems to be the big Winner for the Next Kansas State Cansino.  This week the Kansas Gaming commission choose one of two sites in Mulvane (just south of Wichita) as the future home of a $220+ Million dollar facility.  Work is supposed to start early next year on a temporary facility.  The entire project is expected to take 4 years to complete.

A private research company said future Economic activity rose 1.1% last month.  This is the fastest rise since March of 2010.   9 of the 10 measures that make up the index rose in this report.

Airbus has just come out with a report on Airliner demand and has increased their projection over the next 20 years.  Demand in China and the Far East was attributed to this.  Boeing continues to estimate a lesser demand but still solid growth.

 

22.5% of all Mortgages by Americans are more than the clients homes are worth.  (A total of 10.8 million)  This number has fallen for the 3rd straight quarter.  In a health market only 5% of mortgages are greater than the value of the homes.

Home prices defy predictions; remain stable, National report by RE/MAX

In recent months, the real estate market has been impacted by several outside forces that have resulted in some uncertainty. While the Tax Credit has expired and some lenders are still working their way out of a foreclosure moratorium the market is struggling to find secure footing. A monthly survey of 54 metropolitan areas indicates that sales were 4.9% below those in September and 25.9% below sales in November 2009. However, sales declines appear to be headed in the right direction, with much smaller losses than were recorded last month. Housing inventory continues a trend of single digit declines, while home prices only fell 1.7% from last year.

"While home sales usually decline in the winter months, we are seeing a larger than normal correction this winter due to several artificial factors like the expired tax credit," said Margaret Kelly, CEO of RE/MAX, LLC. "Despite predictions about falling home prices, they appear to be remaining stable with several markets reporting significant price increases over last year."

 

Wichita real estate sales in November were up 2 units from last month but the 509 sales were 36% less than the 801 sales in November, 2009 ( these sales were fueled by the then ending of the federal tax credit).  Sales across the Midwest were down 30.6% compared to 2009 numbers.  Good news: inventories are down, avg. prices are up 7.9% and it appears that hiring for jobs will increase next year which should increase home sales.

Posted by

 

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
Frances C. Rokicki
Fran Rokicki Realty, LLC - Bolton, CT
Broker-Mentor,CRS

Wayne, I just have to believe that we are slowly getting our market back.  Due to all of the short sales, and unemployment, I know that it will be years of an up and down situation.  At least, it feels like we are moving in the right direction.

Dec 22, 2010 07:45 AM
Back to Top

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?