SHRED-IT Event at RE/MAX4/22/2014
Wichita, KS economic and real estate, End of Year Report
The last month was good economic news for Wichita, KS.
The unemployment rate in November, 2011 dropped to 8.6% nationally and dropped to 7.2% for the Wichita metro area and 6.7% for Kansas. Jobless claims the middle of December, 2011 dropped to 366,000. A sustained rate of 375,000 or below shows a economic recovery in place.
Americans are gaining faith that the economy is on the upswing.
An improving job outlook helped the Consumer Confidence Index soar to the highest level since April and near a post-recession peak, according to a monthly survey by The Conference Board.
The second straight monthly surge coincided with a decent holiday shopping season for retailers, though stores had to heavily discount to attract shoppers.
The rise in confidence jibes with a better outlook for the overall economy. An Associated Press poll of three dozen private, corporate and academic economists projects U.S. economic growth will speed up in 2012, if it isn't derailed by upheavals in Europe.
Last week the average 30 year, fixed rate mortgage dropped to 3.94% matching the all time low in October, 2011. In Wichita you could get a 3.75%, 30 year, fixed rate loan which would cost you only $463.12 a month for every $100,000 you borrow. This is an ALL Timeâ€ low in interest rates. If you have been waiting to buy that new home, give me a call at 316-554-2831
Employment in the aircraft sector should increase significantly in early 2012, Spirit Aerospace who builds parts for every Boeing built aircraft and builds the entire fuselage-nose-tail cone of the B737 aircraft has received three record orders over the last month, each one breaking the record of the order before.
Emirates Airlines ordered 50 B777 aircraft November, 14; Indonesia Airlines ordered 230 Boeing planes November 18. Many of these planes were the B737 model and December 14 Southwest Airlines ordered 208 B737 aircraft plus FedEx ordered 27 new B737 freighter aircraft. Spirit Aerospace, who is now working at almost full capacity, will have to hire many workers to help Boeing Seattle keep up with this increased demand. Look for a hiring announcement after the 1st of the year. Thats my guess!The only negative news is Boeing thinking about moving their Military division out of Wichita, no B767 Tanker business and 2,100 jobs up in the air. Jan.4 update: Boeing has decided to pull out of Wichita, KS. By the end of 2013. This may not be as bad as it seems since Spirit Aerospace is looking to hire many more workers in 2012 and is in need of space to expand.
The South Central Kansas MLS releases November, 2011 area home sales figures.
Existing home sales decreased 3.6% between October and November, 2011 according to the latest figures, but increased 2.6% on a year over year basis. The median sales price of homes sold in November decreased 2.1% compared to October and decreased 4.4% on a year over year basis. This does not mean that any one particular home decreased or increased from last year.
Existing home inventory this month decreased to 3,607 homes in inventory compared to 3,911 last month. The existing home inventory this month is 6.4% lower than a year ago when it was 3,854 units.
Months-of-inventory for existing homes was 7.2 months in November. A balanced market is a 3-5 month supply of homes.
Again in October, 29% of all sales were cash. 36% were conventional loans and about 20% were FHA loans.
Inventories of New homes continue to drop as builders are not replacing sold inventory and banks are reluctant to loan on spec homes. YTD inventory is down 30% and down 58% from the end of 2008.
The average price of existing homes YTD for 2011 is $124,800. The average price of new homes increased to $255, 405.
A total of 6,839 new and existing homes have sold in the 1st 11 months of 2011 with a total of 11,753 homes being listed for sale. Average list to sales price was 95.86% with the highest list to sale price in the city being the far west side at 97.01%. The highest list to sale in Sedgwick County was the SE area including Derby.
Personally my inventory of homes is of what it was one year ago. Quality homes, staged and well priced are selling. We are seeing many more investors enter the market because of the greater returns due to competitive prices and low-low interest rates
October 2011 Market Update
The South Central Kansas MLS releases the October Wichita-area home sales figures.
Existing home sales decreased 8.9% between September and October according to the latest figures released by the South
Central Kansas MLS. Existing homes sales in October totaled 501, down from 550 units in September. The median sales
price of existing homes in October increased 0.6% compared to September, but decreased 3.2% on a year over year basis.
New home sales decreased in October to 46 units, which represents a 17.9% decrease compared to September. The
October median sale price of new homes increased to $191,510 from $187,899 in September and is 16% higher than one
Existing home inventory this month was down 5.6% with 4,078 homes in inventory compared to 4,318 last month. The
existing home inventory this month is 22.6% higher than it was a year ago when the existing home inventory was 3,327.
New home inventory decreased this month with 464 homes in inventory compared to 497 new homes on the market last
month. The new home inventory is 22% lower than it was a year ago at this time when there were 595 new homes on the
New and existing home inventory combined was 4,542 homes this month compared to 4,815 last month representing a
5.7% decrease in the past month. One year ago the combined inventory was 3,922 which represents 15.8% increase in
total inventory over the past year.
Months of Inventory is determined by taking the inventory and dividing it by the number of sales. A balanced market is
considered to be a 5-6 month supply. If the supply exceeds 6 months, the market begins to favor buyers. When the
supply is less than 5 months, the market tends to favor sellers. Months of inventory for existing homes increased to 8.1 in
October compared to 7.9 last month. This number indicates a buyers market. Months of inventory for new homes
increased this month to 10.1 months of inventory compared to 8.9 last month.