Wayne "SHORTY" Short

2008 MLS Stats for the Wichita, KS Metro area

The Wichita, KS metro area survived the 2008 housing meltdown better than most real estate markets. Home values in the 1^st half were up 3.5% and were relatively flat for the 2^nd half. The overall market in units sold declined 16% from the previous year which was the 2^nd best year on record for the area. Volume sold for existing homes declined 13% but was the 2^nd best year on record. New home sales were 1561 units which was the lowest since 2001.

The market was able to maintain a stable presence because new & existing listing added to the market actually declined 13%. This stabilized the market. Average days on the market of existing homes were 63 days and the average sold to list price was 96.74% for the 4 county areas. The number of existing homes for sale at the end of 2008 was 10% lower than 2007.

Surprisingly the Average sales price of existing homes rose 13% to $133,262. Median prices rose 5%. The average new home sold rose 10% in price. This does not mean all prices rose this amount but that folks were just buying more expensive homes. The large increase in existing homes had more to do with the elimination of sub-prime loans, larger down payment requirements and credit score levels.

Over 3/4ths of all existing sales were co-op and 2/3rds of new home sales were co-ops.

Absorption rates for existing single family homes at the end of 2008.

There was 4.5 months of inventory for homes under $100,000.

There was 4.7 months of inventory in the $100,000 to $159,999 range

There was 7.8 months of inventory in the $160,000 to $199,999 range.

There was 9.2 months of inventory in the $200,000 to $299,999 range

There was 9.8 months of inventory in the $300,000 to $499,999 range

There was 16 months of inventory in the ½ million plus range.

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 2/3^rd'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 ever 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.

Agents losses of the top 8 companies for 2008:

Company 2007 2008

Prudential 357 289

Coldwell Banker 168 127

JPW 249 230

Plaza 119 108

RE/MAX Realty Pro. 49 48

R.E. of Wichita 44 42

Keller Williams-west 80 53

Keller Williams-east 80 73

January 1, 2008 to October 31, 2008

MLS Statistics

For Wichita, KS metro area MLS

The # of residential sales for October, 2008 was 822 homes. That is the 3^rd lowest # for the year and 17.3% below October, 2007.

YTD closings of existing homes is 8,768 compared to 10,259 YTD for 2007. This is a 14.4% drop in closed homes for 2008.

New residential listings declined in October, 2008 to 1,115 units compared to 1,247 in October, 2007. YTD new listings were 13.2% below the total YTD for 2007.

The total number of existing listings available for sale at the end of October, 2007 was 4.6% less than a year ago. There were 10.2% less new homes available than 2007. Unlike other metro areas, listing inventories in the Wichita metro area have actually dropped which has helped the Wichita market actually have a positive increase in average sales price compared to 2007. Out of the top 100 metro markets in the U.S., Wichita ranked #4 in average value increase for 2008

Average DOM for existing home in 2008 was 64 with an average list to sales price of 97.01%.

West Wichita and SE suburban Sedgwick County had the tightest market. Zone 100 or West Wichita averaged 49 days on the market and 98.09% list to sales price. Zone 900 or SE Sedgwick County was 53 DOM and also 98.09% list to sales price. The average price of existing homes in October, 2008 was $123,412 and the average price of new construction was $235,564.

Absorption rates for various price ranges:

Price range Units sold Units on the market Months of inventory

Under $100 340 1411 4.15

$100-140 169 647 3.83

$140-200 174 821 4.72

$200-400 120 874 7.29

$400+ 17 210 12.35

Wichita economic and real estate update:

Kansas is in the lead to get the new U.S. Bio-defense lab. It would be located in Junction City, KS-about 2 ½ hours NE of Wichita.

The $563 Million federal bio-defense lab is also wanted by Texas, Georgia, North Carolina and other states.

Should Kansas be chosen the construction of the lab would bring 1,600 temporary jobs with a payroll of $183 million to the state.

Wichita home prices continue to hold their own in a report just released by the U.S. Office of Federal Housing Enterprise Oversight. Wichita's prices grew by .8% from the third quarter of 2007 to the third quarter of 2008. Third quarter prices were 2.2 percent lower in the third quarter than in the second quarter of 2008 but show a gain for the year. There is 15% fewer listing on the market than a year ago with average days on the market at slightly more than 2 months.

Kansas banks, Credit Unions and Savings and Loans are all showing strong 3^rd quarter results. All credit union's net worth climbed 5.7% compared to the 3^rd quarter of 2007. Three Wichita area banks/savings and loans have declined funds from the federal bailout