Wichita, KS economic and real estate report for December, 2011
The last month and especially last week was good economic news for Wichita, KS.
The unemployment rate in November, 2011 dropped to 8.6% nationally and dropped to 7.2% for the Wichita metro area and 6.7% for Kansas. Jobless claims the middle of December, 2011 dropped to 366,000. A sustained rate of 375,000 or below shows a economic recovery in place.
Last week the average 30 year, fixed rate mortgage dropped to 3.94% matching the all time low in October, 2011.
Employment in the aircraft sector should increase significantly in early 2012, Spirit Aerospace who builds parts for every Boeing built aircraft and builds the entire fuselage-nose-tail cone of the B737 aircraft has received three record orders over the last month, 3each one breaking the record of the order before.
Emirates Airlines ordered 50 B777 aircraft November, 14; Indonesia Airlines ordered 230 Boeing planes November 18. Many of these planes were the B737 model and December 14 Southwest Airlines ordered 208 B737 aircraft plus FedEx ordered 27 new B737 freighter aircraft. Spirit Aerospace, who is now working at almost full capacity, will have to hire many workers to help Boeing Seattle keep up with this increased demand. Look for a hiring announcement after the 1st of the year. That’s my guess!
The South Central Kansas MLS releases November, 2011 area home sales figures.
Existing home sales decreased 3.6% between October and November, 2011 according to the latest figures, but increased 2.6% on a year over year basis. The median sales price of homes sold in November decreased 2.1% compared to October and decreased 4.4% on a year over year basis. This does not mean that any one particular home decreased or increased from last year.
Existing home inventory this month decreased to 3,607 homes in inventory compared to 3,911 last month. The existing home inventory this month is 6.4% lower than a year ago when it was 3,854 units.
Months of inventory for existing homes was 7.2 months in November. A balanced market is a 3-5 month supply of homes.
Again in October, 29% of all sales were cash. 36% were conventional loans and about 20% were FHA loans.
Inventories of New homes continue to drop as builders are not replacing sold inventory and banks are reluctant to loan on spec homes. YTD inventory is down 30% and down 58% from the end of 2008.
The average price of existing homes YTD for 2011 is $124,800. The average price of new homes increased to $255, 405.
A total of 6,839 new and existing homes have sold in the 1st 11 months of 2011 with a total of 11,753 homes being listed for sale. Average list to sales price was 95.86% with the highest list to sale price in the city being the far west side at 97.01%. The highest list to sale in Sedgwick County was the SE area including Derby.