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Wichita, KS real estate mortgage update, fall, 2012

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

 

Wichita, KS Financial update for the Fall, 2012

 

By Wayne Short, broker/owner

 

 

 

Mortgage Interest rates continue at record low rates for the rest of 2012.

 

30 year fixed rate loans are at or below 3.5%

 

15 year fixed rate loans are at or below

 

Investors can get loans in the mid 4% rate with a 20% down payment.

 

 

 

What does this mean to you?  Real estate is again becoming the “BEST” investment someone can make.  It has the highest return of any safe place a person can put their excess cash.

 

Below is a couple examples of payments on residential properties:

 

A $200,000 loan with a 30 year fixed rate loan would have P&I payments of only $898.

 

A $200,000 loan with a 15 year fixed rate loan would have payments of $1,369.

 

In the 1st 15 years the extra payment of $371 would total $66,780 but would save $161,640 in the later 15 years compared to a 30 year loan.

 

 

 

A great investment for someone starting out to own real estate.

 

I just listed an all-brick, west Wichita, twin home with over 1,000 sq ft on the main floor and around 750 sq ft finished in the basement.  The units are 2 br, 2 bath, one car garage with both sides costing $179,900.

 

 

 

A person could buy them both on a FHA loan, live in one side and rent the other.  You can get owner/occupied rates if you live in one side and rent the other.

 

The owner will pay $3,000 of the buyers closing costs.  Total down payment would be around $6,000 with total payments of less than $1235.  The rented side brings in $895 each month making the buyers side cost only $340 a month.  WHAT A DEAL.

 

You cannot even rent an efficiency apartment in the area for that kind of money let alone a 2 br, 2 bath all-brick home with a 1 car garage.  A year or two later when the client decides to move up to a single family property they could rent the twin home for a profit of around $555 per month.  That’s quite a return for only a $6,000 investment.

 

Interested in Buying or selling real estate in the Wichita, KS metro area?  Call Wayne or Kirk Short at 316-554-2831 or 1-800-779-SOLD.

 

Email is shorty@realtor-shorty.com and visit one of my real estate web sites at www.move2ks.com or www.realtor-shorty.com.  We are licensed with RE/MAX Realty Professionals with two offices in Wichita, KS.

 

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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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