About a month ago, I read that Wichita Kansas had the second most protected Housing Market in the midwest, and in the top 20 nation wide. By protected, I mean we won't be having a big loss of value here like those being experienced elsewhere. What an impression that made. I was in Orlando last week, and heard a radio ad announcing $150,000 incentives to buy a new home. In Wichita, $150,000 new home will get you 1400 sq ft, 3 car garage, full unfinished view out basement, on a 75 x 120 lot. They were offering INCENTIVES of more than our low to low-mid home. Holy Shmokes!!!
I know builders here who wish they could clear 5% on some homes, a really good one might make 8%. How do you offer $150,000?
On the other hand, our prices never really escalated either. While people were making money just selling a contract (condo never started) in Vegas, we were plugging along at our annual 3-4% increase. Just like we have for years. People make a fair profit over time, first ones in New Homes go a little faster than the last ones, and most neighborhoods gain.
It is a real shock for people who are moving here. First, they think a real heavy discount on offers will go thru. They're shocked when a 20% discounted offer is rejected. Second, they always seem so suprised at the amount of home they can buy for the money (makes me wonder why the really low offers...).
And protection comes in other forms as well. At a convention, we spent an hour on short sells. I learned a lot about how to deal with the banks, and to treat the homeowner with dignity. I also learned that Kansas is one of 11 states in the US where the judicial branch must be involved in a foreclosure. And courts are backed up, so a 6 month time to be "removed" from a home is quite normal. I was shocked to learn that in Texas, 28 days and you're out. 28 days, very little protection for those experiencing problems. Ok, I know a lot of things have to line up for that short of time, but still, why so long in Kansas?
A little research helped me understand. Many years ago, banks were loaning money to farmers based on crop production. If a crop failed (weather, bad luck, who knows), and the farmer couldn't pay: FORECLOSURE!!! Well, back then the government got together and decided to mandate a Judge to order the foreclosure. The outcome would be a farmer would have 6 months to get another crop in, sold, and pay up.
Bottom line: You won't get rich buying and selling homes here on speculation, but you get a lot of value - stability - and if you run into tough times, you're given more of a chance to keep your home.
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