Home values in Kansas (Wichita: short sales, 2009, foreclosures)

[talbet]

I have been listening to the news. They are saying that homes need to drop 50% before a recovery can start. I don't think that Wichita has to loose that much as it did not go up that much, but I think it does have to drop some. 2bed one bath homes new were selling for around 85k a few years back, not they seem to be around 100 to 110 depending. This is with unfinished basement and no yard or fence. I assume that a comparable leveling out would be on older homes that have more finished. Should they be selling for more around 90k? I know from several people who are realtors that homes especially new are not moving and builders are at a phase of not wanting to bring prices down.

[thriftylefty]

I think a lot of newer homes were built with such cheap labor that the builders can hold out longer than we think

[Sco]

When the median price is at or near 2001 levels then the market will have hit bottom and be ready for recovery. Even though Wichita did not see the massive bubble like some areas, it still had a healthy rate of appreciation for several years and price declines are inevitable. Wichita is sitting on a smaller bubble, and owners/builders are still in the early stages of denial, but in a few months the price reductions, short sales and foreclosures that have hit the rest of the country will be in full force in Wichita. The myth that Wichita was going to be immune to the recession and housing market collapse was never going to pan out in reality. Is it really reasonable to think that houses in Wichita are going to continue to sell for higher prices than some areas of Florida, California and Arizona? Was there some magical force that would enable Wichitans to hold on to 4-5% annual gains while the rest of the world tanked?

[thriftylefty]

I wonder if it will ever be the same though, the old market was fueled by the concept that your home was your check book. the volume of homes selling won't be the same if most people just buy once in their life time.

[concrete it]

Kansas homes will not drop in price like other states did.They were never overpriced to begin with,We still have jobs in kansas,People still need a home to live in and our giving federal goverment is now giving $8,000.00 to first time home buyers.Why would anyone discount home prices in kansas just because a few other states are?

[AnywhereElse]

The markets in Kansas around most of the state are overloaded with houses. Many of these houses have been on the market for 2 or more years. Almost spring means even more on the market. The market used to be based on supply and demand but that doesn't seem to apply anymore. Kansas is being hit by lay-offs but so many employers here are so small that it doesn't make the national or bigger city news. Property taxes keep going up here because they claim the value is increasing which, of course, is incorrect. I have seen a lot of high dollar houses on the market and with the wages paid in Kansas, I don't know who could afford them.

[GraniteStater]

RE is all about what the market can bear as well as supply and demand. Kansas has a very severe out-migration rate in most rural counties so therefore you have lots of potential properties available. However, the housing stock is usually not very good. That drags down housing values. Another issue is actually trying to attract people to take jobs in some of these rural areas. Often times, the jobs go unfilled because many will not move out to a very isolated town. Less demand + out-migration + low job growth + few natural ammenities = slow to little RE appreciation.

[briansgi]

We're not having that problem here in Oklahoma. Our housing actually appreciated in 2008 and so far 2009 is very strong.

[GraniteStater]

Originally Posted by briansgi

We're not having that problem here in Oklahoma. Our housing actually appreciated in 2008 and so far 2009 is very strong.

Well, doesn't OK have very low average house prices? My sister who lives there says 75K will buy you a decent house in some areas.

[talbet]

Well if not for family living in Kansas it would be on the bottom of my top 50 list. But you can not regulate where your family lives. So I am looking to move around the Wichita area. I have watched and there is a homes that are in the middle of completion that are now foreclosed on showing up on the MLS. I think the best time to buy will be this fall or early winter. By then sellers will come to realize that if they do not drop price they will not sell. Its like a fire, it spreads and Wichita has just not felt the heat until now.