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Why own real estate in Wichita, KS Wichita was named the #1 place in the country to live the good life cheaply, Forbes Wichita ranks in the top 32 cities nationally for quality of life. Forbes Wichita was ranked last year the 2nd best real estate market in the Midwest. Money Wichita’s real estate prices are 12% below what they should be. National City Wichita is ranked #1 in manufacturing among cities below 1,000,000 populations. December, 2007 unemployment rate was 3.6%. State of Kansas City wide apartment vacancy rate was 6.3% and the industrial building Vacancy rate dropped below 4%. CCIM Council, 2008 Wichita was ranked the 9th best city in the nation in future job growth. Forbes, 2007 Wichita was ranked the 2nd best city under 1,000,000 residents to relocate your family too. ERC, 2007 Wichita home appreciation was 5.7% November, 2006 to November, 2007. NAR Wichita was ranked second by Forbes, 2008 in their list of the “Best Cities for Jobs” This same list ranked Wichita the fifth best city in income growth and the seventh best for cost of living and job growth. Wichita is a key global competitor with nearly 50% of its products being shipped overseas. Kansas State, 2008 Wichita was ranked the strongest real estate market in the United States for 12-1-07 to 12-01-08. The ranking was done 1-14-08 by Vero FORECAST. Vero real estate solutions is a leader in risk management and valuation services in Santa Ana, CA April, 2008 unemployment rate for Wichita, KS was 3.8% April, 2008. Kansas approves $33,000,000 for Cessna to build new Aircraft plant for the Citation Columbus model. The plant will employ 1,000 aircraft workers generating around $77,000,000 a year in new wages for the city. An additional 2,000 to 3,000 jobs will be created in the metropolitan area because of this work. 1st Quarter, 2008 The Wichita MLS reported that the sales price of existing homes for the same period in 2007 were up 5.56%. Sales were down 11.5% but new listings were down even more, 12%, keeping the market tight with reports of multiple offers on homes below $150,000 Wichita unemployment rate dropped to 3.5% for April, 2008 Nationally, Home prices dropped 7.7 in the 1st quarter of 2008. Median prices fell 4.8% compared with the last three months in 2007. Wichita, KS prices, according to the National Association of Realtors (NAR) actually climbed 4.0% for single family homes and condo prices rose 11.7% based on a year ago. June, 2008 MSN Real Estate Best Bargain Markets. Wichita, KS just ranked #1 in MSN’s nine best, livable cities. The cities had to have at least 500,000 population in the metro area. Wichita was ranked one of the most affordable in the Study. The high job growth, values of homes, quality of life, revitalization of the downtown and new Arena contributed to the ranking. July, 2008: Wichita ranks high on wealth building survey by Salary.com. Wichita, KS just ranked #6 on a survey of 69 cities for building personal wealth and Quality of life. The survey shows Cities which have the largest difference in pay and expenses plus quality of life. Education, industry and colleges in the area were also considered in the ranking. More good news for Wichita housing! July 2, 2008: A new study by PMI Mortgage Insurance Co. ranked 381 Metropolitan areas in ability to hold their market value over the next 2 years. The Metro Wichita, KS area ranked right at the top of this report with only a 1% chance of home prices declining between now and the 1st quarter of 2010. Metro areas in Florida and California had a 90% chance of homes decreasing in value. 66 Cities Where Buying Makes Sense July, 2008: MSN just released a report on the 66 best cities in the United States to buy a home and expect equity increase between now and 2012. Wichita, KS ranked #24 on the list in potential appreciation of a moderately priced home between 2008 and 2012. Potential increase in values for Wichita on a moderately priced home exceeded $52,000 by 2012. July, 2007. Wichita State University reported that the Wichita area’s per capital personal income climbed above the U.S. average for the 1st time in 21 years. August, 2008: MSN Real Estate just put together 2008’s Most Livable, Bargain real estate markets for cities/metro areas above 500,000 Population. Wichita, KS was Ranked #1 of the top 9 cities. The ranking was done by “Sperling’s Best Places” for MSN. The Milken Institute, A think Tank from California ranked Wichita, KS the 3rd fastest improving city in the country on it’s list of “Best Performing” cities in the country. Wichita’s rank overall improved from 114th to 45th of the top 200 large city markets. The Milken report looks at cities and ranks them for creating and keeping jobs in the area. Wichita, Kansas ranked 12th in GDP growth (wealth building) and 12th in High tech GDP growth. The Aerospace industry, with it’s huge growth and continuing job openings, helped the city in this arena. Wichita also ranked 11th in one-year wage growth and 23rd in one-year job growth. October, 2008 Economic Update for the Wichita, KS MSA Local plane makers at the NBAA convention in Orlando Florida are continuing to see orders grow for business jets made in Wichita. This year over 70% of all new jet orders have come from over seas. Cessna Aircraft has now over 900 Cessna Citation jets in Europe and is building their second service center in Spain. Bombardier Learjet is expanding their production facilities in Wichita and Mexico because of the introduction of the Learjet 85. Bombardier will hire almost 100 new engineers for the Wichita facility and will hire an additional 500 to 750 employees in Wichita by 2015 when the program is in full production. Flight Safety International will add an additional 250 to 320 jobs in the Wichita area as it adds more aircraft simulators to it’s Hawker Beechcraft, Learjet and Cessna Training centers. Flight Safety trains pilots and maintenance personnel from across the world in its Wichita centers. Flight Safety employs around 450 people now. “Good News for the Local Economy” The annual business forecast for the Wichita area was just completed and 2009’s job growth is projected at 6,100 new jobs in Wichita. Jobs in the Aircraft sector, education and healthcare, local government and the Professional and business services will be growing. Several factors contributed to the good report: The multibillion-dollar backlog of aircraft orders will keep tens of thousands of highly paid workers on the job, the steady appreciation in the local housing market and there is plenty of credit for local businesses The “Old Town” entertainment district in Downtown Wichita was just voted one of the “top ten neighborhoods” for revitalizing and cleaning up polluted areas in America’s cities. The Wichita City council has approved $25 million in industrial revenue bonds to be used to purchase the Broadview hotel in down town Wichita and completely renovate the property down to its studs. The Hotel was purchased by the Drury hotel company and will be open for one year before closing for a year to completely renovate the property. In October, 2008, Wichita was rated by the RE/MAX-AP report on U.S. Housing as one of the very few markets where the average sales price actually rose from the same period in 2007. The report showed a 3.5% gain in average prices in the Wichita metro area. Sales activity, however, was down over 18% from the previous year. DOM was virtually the same because housing inventories dropped around 15% during the same time period. Wichita housing and economic update Kansas ranked 6th in the nation for new jobs in 2008. Only 14 of the 50 states had an increase in total jobs with the majority being located in the central United States. Texas had the largest increase in jobs surpassing all increases in the other 13 states. Unemployment in November was 4.7% in the Wichita metro area. This rate is well below the national unemployment rate and well below the 2003 unemployment rate of 8.3% in 2003 caused by the 9/11 terrorist strike and subsequent reduction in commercial aircraft orders. The recent announcement of up to 4,600 additional layoffs should not have a serious impact on home sales in 2009 because Wichita consumers backed away from purchases in 2008, 16% below 2007 levels. These sales levels were lower than they should have been and were caused by a lack of confidence in the economy. Fortunately, in Wichita, listings were down 13% which caused the local market to remain balanced between sales and homes on the market. In fact, the average price of homes sold rose by over 10% in 2008 compared to 2007. The medium price rose by 5%. This increase was mostly caused by the inability of low end buyers to find cheap-minimum down loans rather than an over all increase in Wichita home values. Home foreclosures rose 12% in 2008 but the Wichita, KS market remains well below levels in most other cities and states. Kansas had only 1.6 % of homes in foreclosure compared to 2.97% nationally. Wichita never had the huge increases in prices as other areas did nor were there excessive subprime mortgages used in the local area. In 2005 there were only 1,618 foreclosures in Sedgwick County. There were 2,066 in 2008. March 12, 2009 Wichita, KS Economic update Wichita, KS city council members have voted to add another Bridge from the core area of Wichita to the Cities’ West side, the fastest growing area in the metro area. Presently there are only two accesses west and the new bridge will increase traffic flow by 50%. Kansas will receive $1.75 billion of the federal stimulus package to rebuild roads, universities, help with education and the health care system. Federal budget cuts could delay the replacing of the U.S.A.F.’s aging tanker fleet. A five year delay is being considered on the $100 billion dollar program that Boeing Military is bidding on. Should Boeing get the contract, all major modification of the aircraft will take place in Wichita. A recent survey of area employers shows that 70% plan to no job cuts over the next three months. 15% of those surveyed plan to hire more employees and 11% plan to cut some employees. 1st Quarter, 2009 Real Estate & Economic report for the Wichita, KS metro area Another Round of lay offs in the aviation industry was announced this week in Wichita, KS. In addition, there will be two to three companies doing furloughs for two to three weeks this summer. Total lay offs in the Aviation industry announced or all ready done exceed 10,000 workers. This will be a total employment impact of 20,000 plus workers before the end of the year. Before last fall, Wichita had seemed to be immune from the financial hardships of other areas of the country. But after 16 months of a recession, the negative job impact was bound to hit the local area. Nationally, an upturn in the economy is projected in the 3rd to 4th quarter of 2009. Wichita will not see a local upturn until the following year. It’s just a reality that corporations do not go out and buy a $20,000,000 jet because they had one good quarter. In contrast to what has happened in 2009, U-Haul has issued a report on metro areas that had more than 5,000 moves in or out. Wichita ranked #1 for % of inbound moves over outbound moves in 2008. __________________________________________________ Wichita, MLS data for the 1st two months of 2009 Wichita closed sales for the 1st two months of 2009 were down 32% from last year. Last years sales for the entire year were down 16% from 2007 sales data. Total listings on the market compared to last year is only up 2% and total new listings added to the market is actually down 3% but the dramatic decrease in sales has pushed up the months of inventory in most price ranges. The average sales price for the 1st two months has dropped from last year but it’s in line with the previous two years. Average days on the market of sold properties was 71 days (does not take in to account previous listings of the same property) and average list to sale price was 95.85%. These numbers are basically the same as last year. A significant piece of data is the 779 sold existing homes in the 1st two months compared to the 1,965 new listings, 2.5 times as much. This may be a fore warning of things to come over the next few months. The absorption rate on inventory has increased since last fall’s report. There is 6 months of inventory below $120,000 8.25 months of inventory from $120,000 to $160,000 11.9 months of inventory from $160,000 to $200,000 20.25 months of inventory from $200,000 to $300,000 17.35 Months of inventory from $300,000 to $400,000 These inventory levels are based on sales for February, 2009 and total listings available. ___________________________________________________________ 1st 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 1st 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 1st 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 1st four months of 2010 was $120,949. The Median price was $107,450 indicative of the large amount of 1st 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 1st 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.
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