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Wichita Aviaition news for the Summer, 2012

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

Wichita Aviation news update

 

The Wichita aviation industry has taken a big hit over the last 4 years.  Since 2008 almost 13,500 aviation jobs were lost due to the down turn in the Industry.  Finally, it looks like things are turning around……..

 

 

 

Boeing aircraft has received over the last 9 months 4 record orders for aircraft, the latest was an order for 150 Boeing 737s from United airlines.  The good news for Wichita is that Spirit AeroSystems builds parts for all of Boeings jet liners but builds the entire fuselage for the B737.  Last year Spirit hired around 500 additional workers at the Wichita facility and is expected to hire hundreds more in the coming year.

 

The chief Executive officer at Textron Inc.’s Cessna Aircraft sees business for the areas general aircraft builders increasing due to decrease in used jets now available for sale.  Business jet delivers gained 5% over a morbid 2010 and are expected to gain 6% in 2012.  Most jet makers are coming out with much larger aircraft as the demand for those are outpacing the smaller versions built by all manufactures.

 

Evidence to that was the order from Warren Buffett’s Berkshire Hathaway’s Net Jet’s.  Net Jet may buy as many as 425 jets from Cessna and Bombardier at a value of 9.6 Billion.  This is the largest order ever for business Aircraft.  In a related matter, the Wichita City Council just voted 6-0 to approve industrial revenue bonds for capital improvements at the two plants in West Wichita.

 

Bombardier’s Learjet facility in Wichita is building a $52 million expansion that will greatly modify the look of their plant and grounds at Mid Continent Airport in west Wichita. The facility is to help bring three new aircraft models to the market. Bombardier expects to create at least 1,000 new jobs in Wichita by 2022.

 

The one sour note to the General aviation business in Wichita was the announcement of Hawker Beechcraft’s  filing for bankruptcy.  The good news now is the Federal bankruptcy judge has approved Superior Aviation Beijing the exclusive right to negotiate to buy the company for $1.78 billion.  The purchase is just for the civilian business and would have the company focus mostly on airplanes and their maintenance.  Hawker Beechcraft filed for Bankruptcy may 3, 2012.  The purchase would not include the pensions that were underfunded by $751 Million that cover 17,866 employees and retirees.

 

 

 

 

 

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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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