Wichita Real estate and Economic news for August, 2011

Wichita Real estate and Economic news for August, 2011

Existing home sales in the Wichita metro area increased .3% from June 2011 to July 2011 but increased 32.3% on a year over year basis. The median sales price increased 3.6% compared to June and increased 12% on a year over year basis. Total sales for the year still lag 2010 YTD sales 13% because of the Large Tax credit available last year. This should balance out by the end of the year.

Nationally homes sales declined 12.7% in July after rising the previous two months. Home sale were up 13.1% on a year over year basis.

Existing home inventory remained steady June to July, 2011 and was 2% lower than a year ago. New home inventory was 29.3% lower than a year ago. There have been 12% fewer residential homes listed in 2011 that the same time period in 2010

Nationally there was 7.2 months of inventory. Inventories were down 17.1% from June, 2010 and continue a 13 month drop in supply of homes. Locally there was 6.1 months of inventory in the Wichita metro area in July, 2011

Days on the market nationally are down to 88 from a high in March, 2011 of 105 days.
Nationally the Federal Housing Finance Administration is reassessing the government’s refinance programs. Too few borrows have taken advantage of this program to refinance and try to avoid foreclosure.

Consumers had to have a 80 to 125% loan to value ratio to qualify. The government is looking at expanding this ratio because so many home owners are under water. It is estimated that the average family could save at least $2,000 a year if they could refinance with the favorable interest rates now available.
FHFA said they need to review the HARP program and find ways to get more homeowners to participate.

Several new announcements came from the aviation sector that should help Wichita’s job picture in the next few months.

• Boeing’s 747-8 Freighter has received Federal Certification. Boeing has 114 orders for the freighter and 56 orders for the larger passenger version.

• Wichita aviation suppliers are gearing up for the increased production of all Boeing aircraft. This along with the work local companies are doing for the Gulfsteam G650, Bombardiers c Series and Airbus’ A350 should increase hiring at all of these suppliers.

• Boeing has just completed flight testing for the Rolls Royce engines for the B787 Dreamliner. Boeings is still flight testing the B787 with GE Engines.

• Bombardier’s Learjet 85 will be delivered in 2013. The fractional ownership company, Flexjet, has already started its sales program of the new larger jets to their corporate clients. This program will support 600 workers at the Wichita plant.