Wichita housing and economic update

Kansas ranked 6^th in the nation for new jobs in 2008.  Only 14 of the 50 states had an increase in total jobs with the majority being located in the central United States.  Texas had the largest increase in jobs surpassing all increases in the other 13 states.

Unemployment in November was 4.7% in the Wichita metro area. This rate is well below the national unemployment rate and well below the 2003 unemployment rate of 8.3% in 2003 caused by the 9/11 terrorist strike and subsequent reduction in commercial aircraft orders.  The recent announcement of up to 2,000 additional layoffs should not have a serious impact on home sales in 2009 because Wichita consumers backed away from purchases in 2008, 16% below 2007 levels.  These sales levels were lower than they should have been and were caused by a lack of confidence in the economy.  Fortunately, in Wichita, listings were down 13% which caused the local market to remain balanced between sales and homes on the market.  In fact, the average price of homes sold rose by over 10% in 2008 compared to 2007.  The medium price rose by 5%.  This increase was mostly caused by the inability of low end buyers to find cheap-minimum down loans rather than an over all increase in Wichita home values.

Home foreclosures rose 12% in 2008 but the Wichita, KS market remains well below levels in most other cities and states.  Kansas had only 1.6 % of homes in foreclosure compared to 2.97% nationally.  Wichita never had the huge increases in prices as other areas did nor were there excessive subprime mortgages used in the local area. In 2005 there were only 1,618 foreclosures in Sedgwick County.  There were 2,066 in 2008.