Kansas Land, Banking and Ag News

NOTE: This post was originally posted on our Farmland Review blog under farmland and cropland news and we are consolidating all blog posts on farmland investing and Kansas land for sale markets here now.

The week in news in Kansas

BANKING

Here in the Heart of America we tend to not feel many waves as we didn’t feel the extreme highs of the real estate market and also in turn didn’t feel the severe lows. However, it was shocking to learn today that 3 banks are in serious trouble in Kansas. As Kansans I think we feel like it is always happening somewhere else! Nonetheless these banks were issues cease and desist orders from the FDIC and you can read more details in the Wichita Business Journal. The three banks were Security State Bank in Fort Scott, Kansas; First Security Bank and Trust Company in Norton, Kansas; and Pilsen State Bank in Lincolnville Kansas.

ECONOMY

The Feds think our economic recovery is moderate. Jobs are still a major concern as they should be. New housing starts were the lowest since 1963. Kansas Land Brokers believes from the activity we are seeing that land sales are not experiencing these types of lows and highs and are holding slow and steady.

MARKET

The National Association of Realtors has a Realtors Confidence Index and some of the comments from the January report included

• Anything under $100,000 in good condition usually sells within a week and half the time has multiple bids.

• As you know, the homes over $300,000 are like zombies—very little movement.

• Buyers are putting in unrealistic low offers due to all the press about foreclosures and short sales—on regular properties.

• Buyers are unrealistic as to price and sellers won’t put their homes on the market for fear they won’t get what they want.

• Jobs seem to be the key.

• Sellers still think they can get top dollar for their properties without regard to today’s numbers. They then let it sit on the market as a way of “getting their price” and then get testy regarding the market.

The Real Estate Confidence Index (REIC) tracks agent and broker confidence in the marketplace and it has dropped to one of the lowest number at 5.63 nationwide. However, as we reported last month, Kansas was one of only seven states last month that had a higher number showing more optimism in the market. For February Kansas moved slightly downward to 6.16 but considering the nationwide is still at 5.63 that shows great promise for the Kansas marketplace. Some of the comments for the Kansas market include:

• “Weather has stopped some activity here and the first time buyer market is dwindling.”

• “Layoffs at Major industries.”

• “Foreclosures and lay offs are still a strong problem hurting the values in most neighborhoods.”

• “Southwest Ks has a stable market with stable economy. Our Farming/Ranching and Oil/Gas industries are our present and future market factors.”

• “Longer time on market, lower offers on properties, less commitment from buyers.”

• “We have 6.2 months supply of inventory, so we are pretty close to being balanced.”

• “Brutal buyers, less inventory.”

LAND VALUES

The world’s most powerful investors have been advised to buy farmland, stock up on gold by Marc Faber, aka Dr. Doom, who predicted the 1987 stock market crash. Check out the full article here.

FARMING

The ground continues to be wet in most areas although the snow has melted off almost completely in most areas. Little change has occurred in cash rents in terms of land values. Loan demand has remained relatively the same and funds are available. Livestock, especially cattle, seems to be the only area showing any slight weakness. Check out a great article about rotational grazing posted at AgWeb this week.