Short Sales are increasing.

Nationwide, Short sales made up 18% of Buy-side transactions in June, 2010.  Over all, Short Sales are up 50% from a year ago. 

Short sales are much more complex and time-consuming transactions and agents handling them should be educated on how to assist homeowners in these situations said RE/MAX Chairman and Co-Founder, Dave Liniger, ABR, CDPE, CRB.

Liniger said, Well see an even greater influx of Short Sales flood the market as people take advantage of the government Home Affordable Foreclosure Alternatives (HAFA) program.

More about HAFA:

The HAFA program is crucial in streamlining the Short Sale process for homeowners, lenders and real estate agents as an alternative to foreclosure.  Here are some of the key program guidelines:

1. Lenders must respond to Short Sale Requests within 10 Business days of receipt of the offer package.

2. The seller will be released from all liability for repayment of the primary mortgage debt.

3. Subsequently, the seller is entitled to a relocation incentive of $3,000, which will be deducted from the gross sale proceeds at closing.

4. The lender will be paid $1,500 to cover administrative and processing costs for a Short Sale or deed-in-lieu.

5. The property must be listed with a licensed real estate professional who does regular business in the community where the property is located.

6. The lender is prohibited from requiring, as a condition of approving the Short Sale, a reduction in the agreed-upon real estate commission.

2010, 1^st Six Months, Economic &

Real estate activity for the Wichita, KS metro area

The South Central Kansas MLS has released their June, 2010 figures for Wichita-area homes sales.

Existing home sales decreased by almost 10% between May and June, 2010. However, YTD sales increased by 10% due primarily to the Federal Tax Credit offered until 4-30-2010.  Many of the sales that closed in May and June were contributed to that Credit. 

New home sales increased dramatically (58.8%) from May with 77 sales compared to only 274 for the 1^st 6 months. New Home inventory increased 11% to 512 units but this was still 22.5% lower than a year ago.  Both new and used inventory are up 6.4% over Last month and up 10.1% over a year ago.  There were 9% more existing homes listed so for in 2010 compared to the 1^st 6 months of 2009.

Months of inventory increased to 5.4 months based on June, 2010 sales.  Anything over 6 months favors Buyers.

YTD the average price of an existing home sold was $123,396 compared to $222,121 for new homes.  The average existing home sold at 96.71% of their final list price and averaged 78 days on the market.  Market days only count homes that actually closed.

Since the end of the Federal Tax credit in April, new contracts written are done 50% in both May and June.  For the 1^st time we are tracking showings in our two offices and showings are down over 50% from April 2010s level.  These numbers do not bode well for the remainder of the year. 

With interest rates at a 50 year low you would think buyers would be beating a path to any Realtors door.  It appears the continued worry about additional layoffs before the recovery in the aviation sector in Wichita has many potential buyers on the fence.  The announcement last Thursday from Beech Craft about 25% to 75% worker layoffs in Wichita did not help.

What is selling:  VERY well priced homes in excellent condition.  Short sales made up 18% of all sales nationally (up 50% from a year ago) with some observers saying Short sales and REOs made up 40%+ of the national market.

What are Short Sales?  This is where the sales price minus charges to the sale including loans owed is a negative value.  In these cases we go to the lenders to get them to accept less than what is owed and the let the sale proceed.  This does damage the sellers credit but less than a foreclosure.  Medical problems and loss of job are the most common reasons for short sales, REOs and bankruptcy.

Why would a lender do this?  The loss is usually less than taking back a home plus the lender does not have any caring costs to the property

In Kansas, foreclosures rose 47% but were still low compared to the national average.  In Kansas the foreclosure rate was 1.51% of all loans compared to 3.15% nationally.  More troubling is the delinquency rate at 4.33% in Kansas.

What is projected for the rest of the year?  More of the same until more jobs are created in the Wichita metro area.  Rates should continue to stay low through the fall and this will help a bit in getting buyers to act now rather than later.

May, 2010 MLS Sales Statistics for the

South Central Kansas area including

The Wichita, KS metro area

Home sales in May increased 5.7% over April 2010 closings, nationally they decreased 2.2%. Closings in May 2010 were still up 23% compared to May 2009.  Average values of existing homes sold were up 2% over a year ago.  This was expected with the end of the federal tax credit April 30, 2010 and closings needed to take place over the next two months.  New contracts written since April 30^th, 2010 and property showings are showing a downward trend (as much as 50%) and this will be indicated in July-thru September closings.   YTD, closings are up 13% over 2009 for existing residential homes. 2009 sales were the lowest since 2005.

There are 4.6 months of existing home inventory, a number trending to a sellers market.  There have been 6,508 homes listed in 2010 compared to 5,875 listed in the same time period in 2009, a 11% increase.

Builders have done a better job in controlling inventory.  New Home inventory is down 34% from a year ago.

YTD it is taking on average 79 days to sell an existing home at 96.57% of listed value.  This data is for the last listing of a property at the last listed price.  The average sales price of an existing home in 2010 is $123,330.  The average price of a new home sold was $230,898.

2010 will be known as the year of two selling seasons.  The 1^st with good sales fueled by the Federal Tax credit and the 2^nd known more for a selling season no better than 2009.

Some good news:  This week Mtg. interest rates dropped to a 50 year low.  30 year fixed rate conventional loans were 4.75% or lower, 15 year rates were 4% and FHA/VA 30 year rates were 4.375%.

1^st four months Sales data for the Wichita, KS metro area.

Residential real estate sales for 1-1-10 to 4-30-10

Existing home sales increased 33.9% between March and April, 2010.  The median sales price of homes increased 5.6% on a year over year basis. Sale YTD are 9% higher than a year ago.

Existing home inventory was down 2.4% compared to a month ago but home inventory is 11.6% higher than it was a year ago.  There were 3,765 residential homes on the market the end of April, 2010 in the South Central MLS district. .  There have been around 18% more homes listed in the 1^st four months of 2010 compared to a year ago.

New home inventory is 35.2% lower than it was a year ago at this time.  The average new home price in the 1^st four months of 2010 was $242,733.

A balanced Market is when there is less than a 5-6 month supply of homes for sale.  There was 4.6 months the end of April, 2010

The average sales price of all existing homes sold in the 1^st four months of 2010 was $120,949.  The Median price was $107,450 indicative of the large amount of 1^st time buyers in the market taking advantage of the Federal Tax Credit.  The Average Days on market for listings during this period was 81 days and the average list to sales price for the LAST time the property was listed was 96.46%.

Sold active residential sales in January were 354 units, February was 480 units, March was 695 units and April was 891 units in the Wichita, KS metro area for 2010.

Sales figures for various real estate franchises were:  Based on data from the Wichita MLS, 2010

JPW was #1 in sales with 775 sales by their 300 agents who averaged 2.58 sales in the 1^st 4 months

Prudential was #2 with 666 sales by their 271 agents who averaged 2.46 sales..

RE/MAX was #3 in total sales of 462 by their 95 agents averaging 4.86 sales per associate…#1 in production per associate.

#4 was Coldwell banker with 426 sales by 115 agents averaging 3.7 sales per associate

#5 was Keller Williams selling 381 homes but needing 148 agents who averaged 2.57 homes per associate.

November, 2009 Real Estate Report

For the

Wichita, KS Metro Area

Existing home sales decreased 4.8% from October, 2009 but were up 40% from a year ago because November was the original month that the $8,000 1^st Time Buyers Credit was suppose to have expired.  The Tax Credit has since been extended to April 30, 2010 plus a $6,500 Tax credit for existing homes owners who have owned their principal residence more than 5 years.

The Average sales price has remained relatively stable in 2009 and is currently $120,721.  Average days on the market for the 1^st eleven months of 2009 were 64 days at 96.69% of the last listed price.  79% of all existing sales were co-op.   There have been 8,081 residential sales in the Wichita metro area.  That number is 15% below the same period last year and 28% below 2007s figures.  I January there was 8.7 months of existing home inventory.  That number has dropped to 4.6% in November.

The average price of new homes sold in 2009 was $239,481.  991 new homes have been sold in the 1^st eleven months of 2009.  New home inventories are 25% lower than a year ago.

The National unemployment rate appears to have topped out in October and should start a very slow slide back to single digits.

The Kansas State unemployment rate dropped to 6.2% in November, 2009.  The Wichita, KS rate was in the upper 7% range but may climb a little higher before stabilizing with the recent spat of business jet cancellation of orders for Beechcraft and LearJet.

    Freddie Mac, one of the largest buyers of home loans, said that the average 30 year fixed rate loan fell to the lowest rate, 4.71%, since they have kept records starting in 1971.  Quotes today in Wichita were 4.875 to 5% for 30 year, fixed rate loans.

The unemployment #s for last week were the best in 2 years.  New claims were only 11,000 compared to 721,000 last January.  Over time worked and take home pay was also up.  Rates normally will rise a bit if these factors continue for a couple of months.

1^st time buyers have until April 30 to be fully under contract and be eligible for up to an $8,000 Tax credit (a dollar for dollar reduction in your tax bill).  Existing owners can get up to a $6,500 tax credit if they have owned a primary residence 5 of the last 8 years.  There is a cap of $800,000 for the price of a home you will buy plus an income limit for single and married buyers.

Wichita real estate prices and total closings rose for October closings over the value of September, 2009 closings.  YTD business was down 18% from 2008.  The Wichita market should be bottoming out over the next couple of months and with these historic rates this may be the best time in years to buy a home.

Call SHORTY at 316-554-2831 for more real estate information…or to find that next home.

3^rd 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.