Wayne "SHORTY" Short

August, 2009 MLS report

From

W.A.A.R for the

South Central Kansas MLS

YTD closings in August, 2009 were down 16% from August 2009. YTD closings for January through August are down 22% from 2008 levels. YTD closings are down 40% from 2006 levels.

Listings YTD for 2008 are down 4% compared to new listings from January to August, 2008. Total existing homes on the market are up 4% compared to August, 2008.

New home inventories are down 24% compared to August, 2008.

The average sold price of an existing home in August was $122,823 and the Average home sold at 96.95% of the last asking price.

We are starting to see more standing inventory of existing homes in the higher price ranges.

$0 to 119,999 showed 4.24 months of inventory with 1701 homes available based on August, 2009 closings.

$120,000 to 159,999 had 724 homes and 3.48 months of inventory

$160,000 to 199,999 had 536 homes and 5.47 months of inventory

$200,000 to 299,999 had 655 homes and 6.01 months of inventory

$300,000 to 499,999 had 377 homes and 13.46 months of inventory

$500,000 and up had 136 homes and 19.43 months of inventory

Wichita was just ranked the 10^th best priced real estate market in the nation in one poll and one of the most affordable markets in the U.S. in another.

Sedgwick County was ranked the lowest in tax burden of the 7 most populas counties in Kansas. Kansas was ranked as a state with lower than average tax rates.

Stan Longhofer, director of the WSU Center for Real Estate recently spoke to a meeting of real estate brokers at the Kansas Realtors convention. He says the local real estate market is stabilizing but do not expect a rapid increase in sales. He does say an extension of the 1^st Time buyers Tax Credit could have a pump-priming effect on the local market. He also said the Wichita and Kansas City markets inventories of homes remained well below national levels. He does not expect any substantial declines in real estate activity but the recovery will be slow.

Wichita Economic update

September, 2009

The new double deck terminal for Wichita Mid Continent Airport will cost $150,000,000. Bids will be let this fall. No local taxpayer funds will be used for this project. The terminal will be built just west of the present terminal.

International air travel has been serious hurt by the global economic recession. Air travel for 2009 will be down 6 to 8% globally and is not expected to return to normal levels until 2011. China and India are the exceptions to these downturns and travel is expected to be up 4% in 2009 and 6% in 2010. Asia will surpass North America in the next 20 years as the largest air travel market. Locally, air travel has been steady but the local aircraft plants have laid off 40% to 50% of their workers and the local unemployment rate has climbed from 4.7% in November, 2008 to 10.2 % in August, 2009. No improvement in hiring or the unemployment rate is expected till later next year.

Phil Ruffin, Owner of the Wichita Greyhound Park, has submitted a plan to the Kansas gaming commission to re-open the park if he can have additional gambling with slots. Ruffin wants the state to amend the current gaming law to allow more profit for the Tracks that have racing and slots. Additionally, voters of Sedgwick County (Wichita area) would have to approve slots for the Wichita track. The track was previously closed in 2007 when slots at the track were defeated by the local voters in an extremely close vote where they also did not vote for a state owned casino in the county. A casino has now been approved just south of Sedgwick County at the Mulvane exit in Summer County.

The Kansas City Chiefs foot ball team was recently ranked as the 14^th most valuable NFL Franchise at a little over $1 billion. The Dallas Cowboys were the most valuable team and the Oakland raiders were the least valuable.

Ranking for National Real Estate Franchises for sales in 2008 has been released.

In 2008 RE/MAX agents led the nation in unit and volume sales. RE/MAX agents sold 21% more than Coldwell banker agents, 46% more than C-21 agents, 57% more than Keller Williams' agents, 60% more than Prudential agents, 85% more than ERA agents, 89% more than Realty Executive agents and 91% more than GMAC agents.

July, 2009 MLS & Economic Report

Wichita, KS

July, 2009 Home sales figures:

Existing home sales decreased 4.5% from June, 2009 totals. June sales had been up 20% over last May's dismal figures. YTD home sales in the metro area are down 24% from 2008 totals as of the end of July. July, 2009 sales were down 16% compared to July 2008. #'s of new listing rose 3% in June compared to last year but were still down 5% YTD.

The number of existing homes on the market was slightly up compared to last month but was stable compared to a year ago.

New home sales were down 20% compared to June, 2009. New home inventories were slightly lower than a month ago and 14.9% lower than a year ago.

Over all inventory levels were 4.6 months. Lower priced homes tended to sell faster and for a high % of list price than more expensive homes.

Example of time on the market:

$119,000 and lower homes had 3.97 months of inventory based on July, 2009 sales #'s.

$160,000 to $179,999 homes had 4.8 months of inventory.

$200,000 to $249,999 homes had 6.71 months of inventory

$300,000 to $399,999 homes had 10.3 months of inventory

$500,000 to $749,999 homes had 13.6 months of inventory

Unemployment levels continue to climb in the metro area based on the slow down in the aviation sector. Sedgwick County had an unemployment rate of 10.2% in August, the metro area was 9.9% and this compared to a national rate of 9.4%. Last November, the area rate was 4.7%. Improvement in this area is not expected for 15-18 months.

The 1^st 6 months, Wichita, KS metro area real estate activity

Existing home sales increased 20.9% over May 2009's figures but were still down 10% from the same period in 2008.

New home closings were up 48% compared to a month ago. The median new home price in June was $196,998 compared to $215,400 a month ago.

Existing homes on the market rose by a little over 2% compared to a month ago. The total inventory of existing homes was only 1.5% higher than a year ago.

Builders are slowing building and more buyers' interest in the market is further reducing the inventory levels to 5.5 months. Existing home inventories in all price ranges was 4.5 months.

June, 2009 absorption rates:

Under $119,900, 4+ months of Inventory

$120,000 to 179,900, 3.5 months of inventory

$180,000 to 299,900, 6.5 months of Inventory

$300,000 to 499,900, 7 months of inventory

Above $500,000, 12+ months of Inventory

YTD numbers for Existing homes:

Average days of the market, last listing: 67 all markets, only 48 days in west Wichita

Average % of list price: 96.54%, 97.84% in west Wichita

81% of all residential sales in the Wichita metro area were co-op sales.

Wichita was just rated the #2 metro area out of the top 90 in the U.S. for the least commute time for residents and least traffic delays.

McConnell AFB has added 15 air refueling tankers to the 31 tankers already based in Wichita. By October, 48 tankers will be based in the "Air Capital". With the additional people, and projects being completed to support the new planes there will be a $500 million dollar a year impact for the metro area. The KC-135 tankers arrived from bases in North Dakota, California and Georgia. Wichita is now home to one of the largest tanker bases in the USAF.

Cessna has formally cancelled the Columbus Wide Body Business jet. They are paying back $10 million in bonds already given to them by the city and the county. Cessna will revisit the concept once the Business jet market returns.

There have been approximately 12,000 lay offs announced or completed in the last year in the Aviation sector in Wichita since last summer. These lay offs are projected to last 15-18 months before call backs start.

The new 15,000 seat downtown arena is being completed faster than planned. It may be finished 3 months a head of schedule. The arena was fully paid for by a 30 month 1/2 cent increase to the local sales tax.