YTD MLS Stats for the Wichita,KS Metro area, 2009

November, 2009 MLS activity
Report for the Wichita, KS Metro area

November 11, 2009 WAAR reported October home sales for the Wichita Metro area.
Existing home sales/closings increased 11% over the previous month and were up 1% over October, 2008. The median sales price of homes in October was 1.9% above the October, 2008 figure.

New home sales were up 8% compared to the previous month of September, 2009.
Existing home inventory was down relative to September, 2009 but was 3.4% higher than a year ago. New home inventory is 24.1% from a year ago.

YTD sales are down 18% compared to the same period in 2008 and down 30% compared to the same period in 2007.

YTD average sales price of existing homes was $120,222 and new homes was $241,497. Average days on the market for all existing homes in all areas and price ranges were 64 days at 96.69% of last list price. YTD over 7,000 homes have been sold in the Wichita metro area.

Absorption rates of homes or
Months of inventory in specific price ranges

There is a large variance in inventory levels and absorption rates at various price points. The lower price points are showing a buyer’s market with limited inventory of quality homes. The mid price points appear to be balanced and the mid-upper and upper price ranges have a surplus of homes on the market and this is defiantly a buyer’s market.


Price range Months of inventory based on October, 2009 closings

Under $100,000 1.83 months of homes
$100,000 to $139,999 2.96 months
$140,000 to $199,999 4.86 months
$200,000 to $299,999 8.15 months
$300,000 to $499,999 11.97 month
$500,000 to $999,999 34 months
$1,000,000 and up 29 months

Wichita, Kansas city update

Wichita is a top SALAD City
Hold the steak. A study by the world's largest producer of fresh salad suggests that Wichita residents may actually prefer salad.
The internal study, conducted by Dole Fresh Vegetables, ranked Wichita among the top salad markets in the United States. This means that local residents eat more salad per person than their counterparts in other U.S. cities, have the potential to eat more salad and/or are more likely to try new salad blends, experiment with salad and salad ingredients in the kitchen or serve salad as a meal.
Dole Fresh Vegetables is a subsidiary of Dole Food Company, Inc., the world's largest producer of fresh fruits and vegetables. The exhaustive, 18-month research effort, part of the company's re-launch of its reinvented DOLE Salads line, surveyed the in-store buying habits and in-home consumption trends of prepackaged salad consumers throughout the United States and Canada.
"Despite its reputation for meat and potatoes, Wichita is among the most sophisticated salad markets in the country and home to an increasing number of salad lovers," explained Russell Evans, senior brand manager for Dole Fresh Vegetables.
"Our research found that salad consumers here are much more likely to use salad as a meal or as the basis for creative new lunch and dinner entrees. From a salad standpoint, Wichita is a trendsetter."
Reported by the Wichita Eagle and local news stations

Boeing Wins Appeal on Tanker Repairs

A federal court has reversed a ruling that overturned Boeing Co.’s (NYSE: BA) $1.1 billion contract for maintenance of an Air Force refueling tanker jet.
Boeing is the Chicago-based parent company of Boeing Integrated Defense Systems, which has a facility in Wichita that employs 2,700 workers.
The U.S. Court of Appeals for the Federal Circuit’s ruling Tuesday overturns a 2008 decision by the U.S. Court of Federal Claims and reinstates Chicago-based Boeing’s 10-year contract for work on the 50-year-old fleet of KC-135 tankers. Competitor Alabama Aircraft Industries Inc. of Birmingham, Ala., had filed suit, alleging the contract was not properly awarded to Boeing and citing issues involving pricing and past performance.
The federal appeals court addressed the issue of the age of the KC-135 planes, which were originally built in Renton more than 50 years ago. The trial court had said the Air Force should have explicitly addressed the age issue of the planes in its request for proposals, but the federal appeals court disagreed.
“There can be little doubt that, since those aircraft first went into service decades ago, both the Air Force and the potential bidders were aware that the KC-135 tanker fleet was aging,” according to the federal court decision.
Boeing was awarded the maintenance contract in September 2007, and the aerospace giant has been awarded similar contracts for nearly a decade.
McConnell Air Force Base in Wichita is home to 48 KC-135 tankers of the 22nd Air Refueling Wing.
Article from the Wichita Business Journal

Wichita posts increase in home sales.

For the first time in more than two years, Wichita saw an increase in home sales during October. They were also 10% higher than September of this year.
Sales were up 2 percent over the same month a year ago.
According to data from the Wichita Area Association of Realtors, 840 homes sold during the month, up from 822 during October 2008. It’s the first time since August 2007 that home sales in the metro posted a year-to-year increase.
Existing home sales increased to 746, from 708 a year ago. Ninety-four new homes sold, down from 114 a year ago. YTD sales are down 18% and 30% from two years ago. The # of active listings were up 3% from one year ago but have remained stable. Homes below $140,000 are the ones selling with less than 2 months of inventory. Homes between $200,000 and $500,000 average 10 months of inventory. Homes over $1,000,000 average over 2 ½ years of Inventory.
Local real estate executives and agents have said the market has been helped by the first-time homebuyer tax credit, an $8,000 incentive that has sparked sales in the lower price ranges.
The credit was slated to end in Dec. 1, sparking a push to get home sales done by the deadline. But the credit has been extended and now applies to a broader group of buyers including existing home owners who have owned their present residence more than five years.


Wichita Jobless rate drops

The Wichita jobless rate dropped to 7.9% in October according to the Kansas Department of labor. The jobless rate in Wichita hit 10% in July, the highest rate in ten years. The jobless rate in Kansas was 6.4% compared to 10.2% in the U.S.

There were 1,400 more Wichitan’s working compared to September and the number of unemployed dropped by around 2,100 workers. Two years ago the unemployment rate was 3.6% and one year ago it was 6%.

Extension of Tax credit for home buyers

Congress just passed and the President signed an extension to the 1st time buyers tax credit. Basic information: Buyers have till 4-30-10 to go under contract on a desired property and must close with in 60 days of 4-30-10. Some pay back protection for service personnel that get transferred. Up to a $6,500 credit for buyers who have owned a principal residence for more than 5 years and are buying another one.

Call me at 316-554-2831 for additional information.

3rd Quarter, 2009 Sales data for Wichita,KS

3rd Quarter report for Real Estate sales
Wichita, KS Metro area.

There are approximately 1902 Realtors. Only 455 Realtors did at least 9 sales so far this year or at least one sale per month. Approximately 75% of the MLS Realtors did not have at least one sale a month, the minimum to survive as a real estate agent. Kirk and I have sold close to 50 residential homes so far this year.

517 Realtors or 27% of all MLS participants
did not have any sales in the first 9 months of 2009.

There has been a reduction of approximately 243 agents (12%) since the fall of 2008, now 1784 WAAR voting members.

Existing home sales decreased 10% August to September, 2009. YTD sales are down 21% from 2008 levels and 32% from 2007 levels. The median sales price of existing homes in September decreased 2% on a year over year basis.

New home sales decreased in September to 87 units, which represent a 13.9% decrease compared to the previous month.

New and existing home inventory combined was 4,047 homes this month compared to 4,105 last month representing a 1.4% decrease in the past month. One year ago the combined inventory was 4,069, which represents 0.5% decrease in total inventory over the last year. Total months of inventory for existing homes increased from 4.7 months to 5.3 months based on September, 2009 sales.

YTD the average sales price of a existing home was $120,403 with an average sales time of 65 days and selling at 96.68% of the final list price.

Inventory levels based on Sept., 2009 sales figures.

$0 to $99,999 price equals 4.2 months of inventory
$100,00 to $139,999 has 3.71 months of inventory
$140,000 to $199,999 has 5.55 months of inventory
$200,000 to $299,999 has 10.73 months of inventory
$300,000 to $499,900 has 14.35 months of inventory
Only one sale above $500,000 in September and there are 130 homes for sale in the price range.

August, 2009 MLS report
From
W.A.A.R for the
South Central Kansas MLS

YTD closings in August, 2009 were down 16% from August 2009. YTD closings for January through August are down 22% from 2008 levels. YTD closings are down 40% from 2006 levels.

Listings YTD for 2008 are down 4% compared to new listings from January to August, 2008. Total existing homes on the market are up 4% compared to August, 2008.

New home inventories are down 24% compared to August, 2008.

The average sold price of an existing home in August was $122,823 and the Average home sold at 96.95% of the last asking price.

We are starting to see more standing inventory of existing homes in the higher price ranges.

$0 to 119,999 showed 4.24 months of inventory with 1701 homes available based on August, 2009 closings.
$120,000 to 159,999 had 724 homes and 3.48 months of inventory
$160,000 to 199,999 had 536 homes and 5.47 months of inventory
$200,000 to 299,999 had 655 homes and 6.01 months of inventory
$300,000 to 499,999 had 377 homes and 13.46 months of inventory
$500,000 and up had 136 homes and 19.43 months of inventory

Wichita was just ranked the 10th best priced real estate market in the nation in one poll and one of the most affordable markets in the U.S. in another.

Sedgwick County was ranked the lowest in tax burden of the 7 most populas counties in Kansas. Kansas was ranked as a state with lower than average tax rates.

Stan Longhofer, director of the WSU Center for Real Estate recently spoke to a meeting of real estate brokers at the Kansas Realtors convention. He says the local real estate market is stabilizing but do not expect a rapid increase in sales. He does say an extension of the 1st Time buyers Tax Credit could have a pump-priming effect on the local market. He also said the Wichita and Kansas City markets inventories of homes remained well below national levels. He does not expect any substantial declines in real estate activity but the recovery will be slow.

Wichita, KS Economic Update
September, 2009

The unemployment rate dropped in August for the 1st time in 2009. The revised rate for Wichita in June was 10% and it has dropped to 8.9% in August. The rate in Kansas was 7.1% and the lowest rate in the state was for Manhattan at 4.1%.

RealtyTrac has reported that 1 in 347 homes received a foreclosure filing in August.

Option ARM loans are the next big worry for the economy starting in the next few months. The mortgages differ from other ARMs by offering an option to pay only the interest each month or a low minimum payment that leads to a rising balance in the loan's principal. When the balance of the loan reaches a certain level or the mortgage hits a specific date, the borrower must begin making full payments to cover the new amount. The majority of these loans were taken out by borrowers who could qualify for regular conventional loans and many loans tend to be on more expensive homes. In many cases the borrower could choose the payment they wanted, often $100’s per month below what the payment should be.
Because the new monthly payments can be five or 10 times what borrowers are accustomed to paying, they threaten a much greater hit to the consumer than the subprime loans which were often extended to less credit-worthy borrowers.
Tanker Contract: Round three…….
For the 3rd time the defense department is expected to put up for bid a $35 Billion dollar contract for the new-generation USAF refueling tankers. Boeing will submit a bid based either on the 767 or 777 airplane. The other main bidder will be Northrop Grumman in partnership with Airbus. Wichita Boeing is hoping to do the modification work which would create 300-500 jobs plus another 500 jobs by local contractors. The request for bids should happen in the next two weeks.
Wichita real estate #’s will be released in a few days but appear to be 15% below last years level. YTD sales to July were down 25% from 2008 numbers. Nationally, August sales matched 2008 sales and in many depressed markets were up dramatically. The $8,000 1st time buyer’s credit will end the 30th of November, 2009. There is a push in Washington to extend the program and possibly make in available to any one buying a residential, owner-occupied home. There is only a 60% chance this will probably happen and then only if it can be done with out increasing the deficit.

Wichita Economic update
September, 2009

The new double deck terminal for Wichita Mid Continent Airport will cost $150,000,000. Bids will be let this fall. No local taxpayer funds will be used for this project. The terminal will be built just west of the present terminal.

International air travel has been serious hurt by the global economic recession. Air travel for 2009 will be down 6 to 8% globally and is not expected to return to normal levels until 2011. China and India are the exceptions to these downturns and travel is expected to be up 4% in 2009 and 6% in 2010. Asia will surpass North America in the next 20 years as the largest air travel market. Locally, air travel has been steady but the local aircraft plants have laid off 40% to 50% of their workers and the local unemployment rate has climbed from 4.7% in November, 2008 to 10.2 % in August, 2009. No improvement in hiring or the unemployment rate is expected till later next year.

Phil Ruffin, Owner of the Wichita Greyhound Park, has submitted a plan to the Kansas gaming commission to re-open the park if he can have additional gambling with slots. Ruffin wants the state to amend the current gaming law to allow more profit for the Tracks that have racing and slots. Additionally, voters of Sedgwick County (Wichita area) would have to approve slots for the Wichita track. The track was previously closed in 2007 when slots at the track were defeated by the local voters in an extremely close vote where they also did not vote for a state owned casino in the county. A casino has now been approved just south of Sedgwick County at the Mulvane exit in Summer County.

The Kansas City Chiefs foot ball team was recently ranked as the 14th most valuable NFL Franchise at a little over $1 billion. The Dallas Cowboys were the most valuable team and the Oakland raiders were the least valuable.

Ranking for National Real Estate Franchises for sales in 2008 has been released.

In 2008 RE/MAX agents led the nation in unit and volume sales. RE/MAX agents sold 21% more than Coldwell banker agents, 46% more than C-21 agents, 57% more than Keller Williams’ agents, 60% more than Prudential agents, 85% more than ERA agents, 89% more than Realty Executive agents and 91% more than GMAC agents.