Wichita, KS metro area Real estate, Business and Financial update for February, 2012
Data from the South Central Kansas MLS shows that Home sales have stabilized in the last year and will increase in 2012. In 2011 there were 4.1% less existing home sales than 2010. The 1st month of 2012 shows a 18% increase in sales compared to January, 2011.
There were 12,759 new residential properties placed on the market in the MLS in 2011. This was 11% below the amount listed in 2010. In January of 2012 there were 1128 homes placed on the market, only 10 units more than a year ago.
Total existing homes available for sale at the end of 2011 was 3374 units, this was 9.7% less than a year before. In January there were 3450 existing homes for sale, a 8% drop from January 2011.
The big drop in inventory was in new homes available for sale. That number is down to 317 homes in January, 2012, a drop of 315 from a year ago. Builders were unwilling in 2011 to carry too much inventory/spec homes and banks were unwilling to fund those builds.
The average sales price of existing homes sold in January of 2012 was $106,989. The metro area showed the average Days on market (DOM) was 99, average sales to list price was 95.24% and 402 homes went under contract that month compared to the 1073 new existing listings.
In January there were 138 conventional loans, 131 cash sales, 86 FHA loans and 32 VA loans.
Interest rates for 30 year fixed rate loans hovered around 3.875% and 5/1 adjustable loans could be written at only 2.5% for a 5 year period.
Nationally, foreclosed homes made up 35% of all January sales. Investors accounted for 23% of all purchases last month.
How do national sales in 2011 compare to previous years. 2011 sales of existing homes increased 1.7% to 4.26 million compared to 4.19 million in 2010. Peak demand was 7.1 million in 2005 during the national housing boom.
Other business news for the Wichita Metro area
· Boeing Aircraft landed another record order with a 230 order for B-737 aircraft from Lion Air out of Indonesia. Lion Air also has options for 150 more. The value of this order is $22.4 billion. The good news for Wichita is that 80% of the fuselage is built by Spirit Aerospace in east Wichita.
· New homeowners to get a 5 year tax rebate. The city council of Wichita has approved the 1st reading of the tax rebate. The Wichita Builders Association Wichita are putting this program in place to stimulate the area housing market. Only certain developers/builders will be allowed to participate, there will be a limit on the number of homes in the program and there will be a short time limit on how long the program will be available.
· Good Sports of Kansas City has proposed a 53,000 sq ft multi-sport facility at K96 and Greenwich road in NE Wichita. The facility would be part of a 370 acre tourism and shopping district that includes the Cabella’s store set to open this spring. Good Sports is seeking a $50 million Star Bond district to help fund the project. The Wichita City Council has unanimously approved the district. Local and state sales taxes will be used to pay off the bonds.
The core of the field house would be 6 basketball courts to be used for national and regional tournaments. In addition there would be facilities for Archery, power lifting, boxing, cheerleading and volleyball on a regional and national level.
· In early February Inman news ranked the 10 top real estate markets expected to rebound in 2012. Wichita, KS was ranked #2 nationally based on the resurgence of the aircraft industry. The Top five markets for improvement were: #1 Raleigh, NC; Wichita, KS; Rochester, NY; Des Moines, IA & Chattanooga, TN.
· The Wichita area unemployment rate dropped to 6.9% (the lowest level in 3 years). This compares to the 8.3% national rate. The rate was 10% in October of 2009.
· Union Pacific railroad announced they will be adding around 4,000 to 5,000 jobs in 2012 and spending $3.6 Billion on infrastructure improvements in 2012. The Wichita/Newton area is a major grain transfer and track area for the railroad.
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