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2/26/2009 February - 2009 Market Update for Wichita KS

February, 2009 Market update

For

Wichita, KS

 

The Center for Real Estate at Wichita State University and the Wichita Board of Realtors reported sales activity for all of 2008 and January of 2009 this week.

 

Real estate sales forecast for 2009 shows existing home sales at around 7,500 units, 11% less than 2008.  New home sales are expected to decline by 17% to 1,280 units.  Building permits are also expected to decline 19% from 2008 levels.

 

No rebound in sales levels are expected until the 4th quarter of 2009.  This date could be extended depending on how long the current recession lasts.

 

Housing prices are expected to rise by 3.2% in 2009.  New homes on the market has continued to slow and keep pace with the decreased demand for housing which has kept the market values in the Wichita metro area stable for the last 12 moths and is projected to do the same for 2009.

 

Home appreciation for 2008 was 1.5% even though the average sales price of existing homes rose by over 13%.  Prices rose the 1st quarter of 2008 .2%, the 2nd quarter 1.3%, declined the 3rd quarter 2.2% and rose the 4th quarter 2.2% for an over all gain of 1.5%.

 

The January sales decline was more severe than expected.  Sales in January, 2009 declined 35% compared to December, 2008.  New home sales declined 45% for the same period.  It appears home buyers were setting on the side lines waiting to see what congress was planning with the stimulus package that was just passed.  The $8,000 tax credit for 1st time buyers (no pay back required) and the continued low interest rates should get buyers back into the market.  Of course, this all depends on additional lay-off notices that may still be issued by local industry.

 

Good news in the local foreclosure rates

And

State and city rankings.

 

Kansas ranked 36th in the nation in foreclosures for 2008.  Kansas real estate prices never had the explosive growth over the last 5 years as did other areas in the country. So prices may have stabilized but have not fallen as they have in most of the country.  Only ½% of all properties in Kansas are in foreclosure.  Compare this to 4.5% in Florida, 4.5% in Arizona, 4% in California and 7.3% in Nevada.

 

Wichita, KS ranked 92nd among the top 100 metro markets in the U.S. in foreclosures. There were 1,698 properties with filings.  This was .67% of all properties in the city.  This low rate was 156% higher than the year before however and may show a and upward trend for 2009

1/26/2009 Wichita Real Estate
Real Estate Update for 2008

2003 thru 2007, Wichita's average increase in home values rose 15.2%. 2008 values rose 3+% the first half of the year and were stable the second half. The Wichita, Kansas metro area was only one of 5 to 6 areas out of the top 100 metro areas that showed an increase in home values for 2008. There were areas in Florida, Arizona and Nevada that showed as much as a 30% drop in values during the same period.

Wichita real estate sales were down roughly 18% in 2008 compared to 2007 but a similar reduction in listing for sale tempered the reduction and created a balanced market for the metro area. 2008 sales were similar to 2003 sales which at that time was a record for the metro area.

The national unemployment rate has passed 7.2% and is projected to go close to 10% before the stimulus packages before congress take effect. Wichita's rate is 2/3rd's the national rate even with the latest round of lay offs in the aviation sector.

Interest rates have reached a 37 year low the end of 2008 and January, 2009. 30 year fixed rate mortgages can be found in the 4.875 to 5% range with no points or origination fees. Now is an excellent time to refinance your home or possibly buy that new home.

Below is an example of what these lower rates mean to you:

Original loan of $150,000 at 6.75% shows a P&I payment of $972.90.
Refinance at 4.875% the same $150,000 loan and get a $793.81 payment.
That’s almost a $175 monthly savings you can apply to the principal, pay off high interest rate credit cards or for the same original payment, buy a $33,500 higher priced home.

Final sales results have come in for 2008 and all the RE/MAX brokers in Wichita were again #1 in Listings sold for 2008 and #2 for total sales. RE/MAX Realty Professionals two offices were #1 in units sold per agent of the top 5 companies in total sales. All the RE/MAX Realtors were #1 in units sold per agent of all real estate brands. The two offices of RE/MAX Realty Professionals were #5 in the city in total sales last year and did this with 48 agents. The 4 companies who out produced us averaged 188 agents.

2008 board and agent Production stats
For the South Kansas MLS

The Wichita Board of Realtors ended the year with approximately 1769 agents and the South Kansas MLS finished with 1880 agents. Two years ago there were approximately 2300 MLS agents.

1880 agents in the MLS at the end of 2008. The year started with about 200 more.

1596 agents had at least one sale in 2008

677 agents or 35% had 2 or less sales.

Only 798 agents (42%) had at least a sale every other month.

There were 20086 units sold by the 1880 agents, or an average of 10.86 sales per agent based on the end of the year #'s. Units sold are sides of the transaction.

The top 5% of the agents did 4681 units sold, 23% of the total. The average units sold per agent was 24.9.

The top 10% of the agents did 7410 units sold, 37% of the total. The average units sold per agent was 19.7.
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RE/MAX Kansas-Missouri | Don Rubottom, CRS, GRI, RE/MAX Realty Professionals (W Maple) | 10100 W Maple, Wichita, KS 67209 | 316-722-0001 | Contact Me by E-mail