July, 2011 Housing report for the Wichita, KS metro area.

July, 2011 Housing report for the Wichita, KS metro area.

Existing home sales increased from May to June, 2011 according to data released by the South Central Kansas MLS. Existing sales decreased 10.8% on a year over year basis. Existing and new sales decreased 22% during this same time period.

Median sales price of existing homes sold increased in June 0.4% over May but were down 3.2% from 2010’s numbers. Only 43 new homes were sold in June but the median home price was 35.1% higher than a year ago.

New and Existing homes YTD were down 22% from 2010, 215 lower than 2009 and 32% lower than 2008 when the massive layoffs started in the Wichita MSA.
Some good news:
Existing home inventory was down .3% from May. Total new listings added to the market YTD were also down 11% from the same time last year.

Slower sales have increased the total number of homes available for sale at the end of June, 2011. There were 4,197 existing homes and 367 new homes available for sale. Existing home inventory is up 2% from 2010, 18% from 2009 and 20% from 2008. New home inventories are down 28% from last year’s levels. It looks like builders/lenders have got the message and are waiting for the market to turn before building more spec. properties. Based on June sales there is 6.1 months of inventory of existing homes. A balanced market is closer to 4-5 months.

New foreclosure filings have dropped over 25% from last year’s levels. This drop may have more to do with the banks reluctance to add any more properties to the ones they must maintain than more owners being current with their loans.

Internet activity on real estate web sites is increasing which may hold well for the coming months. Buyers seem ready to start buying at a healthy pace once they get clearer signals of how the economy and job market will be. For now, they are fence sitting waiting for something to stir them to action.

Other Local economic news…….

Mortgage interest rates continue to be very favorable for home buyers. FHA/VA rates are 4.25% for 30 year fixed rate loans and 3.5% for 15 year fixed rate loans.
Conventional 30 year fixed rate loans are in the 4.625% range and you can get a 5/1 adjustable loan for 3.25%. This is a great program for corporate buyers or others who expect to move up in price range with in a 5-6 year period.

Downtown Wichita got a serious boost when it was announced that three new projects or renovations were going to take place. One group of investors have bought the “hole in the ground” on East Douglas and plan to build a new building. The Dockum Drug Building was bought and there are plans to build a Boutique hotel with 117 rooms. Another group of investors have purchased another downtown Douglas building and plan to convert it to apartments.

The Kansas Lottery commission announced that the Kansas Star Casino being built in Mulvane has already contacted them with early expansion plans. More space is now planned to the proposed gaming floor, hotel and RV Park.