Wichita, KS economic and real estate report for December, 2011

By
Real Estate Agent with RE/MAX Grand Lake

 

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.

 

 

 

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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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Rainmaker
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Kay Van Kampen
RE/MAX Broker, RE/MAX Solutions - Springfield, MO
Realtor®, Springfield Mo Real Estate

Wayne, with the increase in production for the airlines, your area should see an increase in home sales.  Great information on your local area.

Dec 15, 2011 09:06 PM #1
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Rainmaker
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Wayne Short

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