Topeka Market Report – January, 2010
There were 94 closed sales in the month of January, up from 84 for January of 2009, or an increase of about 12%. We’re still down from 134 (-29.9%) in 2008 and 199 (-52.8%) in 2007. The absorption rate (number of months to exhaust current supply, given current number of sales) for single family units (all price ranges) was 13.7 months at the end of January, compared to 14.0 in 2008, 9.3 in 2008 and 6.2 months in 2007. Our average and median list and sale prices are down a bit, and the best showing is in days on the market. From listing date to contract date, DOM at the end of January was 62, compared to 89 in 2009, 93 in 2008 and 72 in 2007.
What do I think of this? I’m not sure. We have property listed that all-of-a-sudden there is a huge increase in interest; other properties are showing no activity whatsoever. I do see buyers scrambling to get the extended & expanded tax credit. I’m not sure what to expect when that ends – we won’t have the incentives, but we’ll have a market that has hopefully continued to improve, and it will be great weather, I hope.
2009 Year-End Market Report
The numbers for 2009 are in from the Topeka Area MLS, Inc. and they confirm my belief that we can see the light at the end of the tunnel. Total closed sales for 2009 were 2613, compared to 2769 for 2008. That’s “only” a decrease of 156 or 5.6%
The breakdown by price range is as follows (units closed – see the report for actual numbers):
$1-$99,000: down 101 units or 7.8% (Absorption Rate about 5 months)
$100,000-$159,999: down 59 units or 6.7% (Absorption Rate about 5 months)
$160,000-$199,999: down 3 units or 1.1% (Absorption Rate about 6-1/2 months)
$200,000-$299,999: up 8 units or 3.3% (Absorption Rate about 8-1/2 months)
$300,000 & up: down 1 unit or 1% (Absoprtion Rate about 12 months)
The absorption rate (number of months to exhaust current supply, given current number of sales) for all price ranges was 7.148 and the end of 2009, compared to 7.740 at the end of 2008. At the end of 2007, this number was 5.691 and at the end of 2006, the number was 4.502.
Average days on the market (all price ranges) was 71 for the year ended 12-31-2009, while it was 72 at the end of 2008. 2007 was 64 DOM and 2006 was 59 DOM.
Despite the tough winter weather and all the snow, internet searches and phone inquiries are up. I believe 2010 spring will see an increase over last year.
Topeka is #3 in the U.S. to Buy A Home
Barbara Corcoran, a consultant for NBC’s Today show, named Topeka as the number three city in the country to buy a home, right behind South Bend, Ind. and Akron, Ohio. Locations were picked based on local real estate markets, size and value of houses, job growth and quality of education.
“Home prices haven’t gone down by more than 1 percent,” Corcoran said of Topeka. “Unemployment is only 6 percent. And it’s a great family area.”
Topeka sales statistics show the number of active real estate listings in November 2008 were 1,266, nearly identical to 1,278 active listings in November 2009, according to the association. However, the number of pending sales on Dec. 1, 2009 was 235, up from 77 pending sales on Dec. 1, 2008.
The average sale price of new and existing homes in November 2009 was $122,895, up from $120,093 the previous November, according to the Topeka Area Association of REALTORS®.
Top 10 top cities to get the most bang for your buck:
South Bend, Ind.
Akron, Ohio.
Topeka, Kan.
New Haven Conn.
Tuscon, Ariz.
Minneapolis.
Portland, Maine.
Miami.
Kingston, NY.
Trenton, NJ.
Visit msnbc.com for breaking news, world news, and news about the economy
Exterior Remodeling Proves Best Bang for Your Buck, Realtors® Report
Washington, December 17, 2009
Despite a slow market and a slight decrease in the resale value of most remodeling projects, Realtors® report that the smartest home improvement investments may also be some of the least expensive. Results from the 2009 Remodeling Cost vs. Value Report show that small-scale exterior projects are the most profitable at resale, according to estimates by Realtors® who completed a recent survey.
On a national level, eight out of the top 10 projects in terms of costs recouped were exterior replacement projects that cost less than $14,000. Certain types of door and siding replacements, as well as wood deck additions all returned more than 80 percent of project costs upon resale. A steel entry door replacement – a new addition to this year’s list – recouped 128.9 percent of costs, followed by upscale fiber-cement sliding replacements at 83.6 percent. Wood deck additions recouped 80.6 percent of costs.
“Once again, this year’s Remodeling Cost vs. Value Report highlights the importance of a home’s first impression,” said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz. “With exterior projects returning a high percent of project costs upon resale, Realtors® can help give your home curb appeal while adding value to the real estate transaction.
The 2009 Remodeling Cost vs. Value Report compares construction costs with resale values for 33 midrange and upscale remodeling projects comprising additions, remodels and replacements in 80 markets across the country. Data are grouped in nine U.S. regions, following the divisions established by the U.S. Census Bureau. This is the 12th consecutive year that the report, which is produced by Hanley Wood, LLC, was completed in cooperation with REALTOR® Magazine, as Realtors® provided their insight into local markets and buyer home preferences within those markets.
On a national level, the project with the biggest improvement from 2008 was the attic bedroom addition, recouping 83.1 percent of remodeling costs compared to 73.8 percent in 2008. The only other interior project that landed in the top 10 was a minor kitchen remodel with 78.3 percent costs recouped.
Other exterior projects in the top 10 include midrange vinyl and upscale foam-backed vinyl sliding replacements, which returned more than 79 percent of costs. In addition, several types of window replacements – midrange wood, midrange vinyl, and upscale vinyl – all returned more than 76 percent of costs upon sale.
Similar to last year’s report, the least profitable remodeling projects in terms of resale value were home office remodels and sunroom additions, returning only 48.1 percent and 50.7 percent of project costs.
Regionally, cities in the Pacific states of Alaska, California, Hawaii, Oregon and Washington once again outperformed the rest of the nation in terms of remodeling costs recouped upon resale. The West South Central region of Arkansas, Louisiana, Oklahoma, and Texas; the East South Central region of Alabama, Kentucky, Mississippi and Tennessee; and the South Atlantic region of the District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia also performed relatively well.
The regions that generally returned the lowest percentage of costs were New England (Connecticut, Massachusetts, Maine, New Hampshire, Rhode Island and Vermont), East North Central (Illinois, Indiana, Michigan, Ohio and Wisconsin), West North Central (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota), and the Middle Atlantic (New York and Pennsylvania).
Golder commented that remodeling projects are just one of many factors that contribute to a home’s overall resale value. “As the first, best source for real estate information, Realtors® are experts in providing insight into what projects and investments will make a difference in your house. It’s important to consult with a Realtor® who can explain the variety of factors that affect a home’s value, such as location, condition of surrounding properties and the regional economic climate,” she said.
Results of the report are summarized in the January issue of REALTOR® Magazine. To read the full project descriptions, access national and regional project data, and download a free PDF containing data for any of the 80 cities covered by the report, visit Cost Vs. Value. “Cost vs. Value” is a registered trademark of Hanley Wood, LLC.
Hanley Wood, LLC, is the premier media company serving housing and construction. Through four operating divisions, the company produces award-winning magazines and Web sites, marquee trade shows and events, rich data, and custom marketing solutions. The company also is North America’s leading provider of home plans. Founded in 1976, Hanley Wood is a $240 million company owned by JPMorgan Partners, LLC, a private equity affiliate of JPMorgan Chase & Co.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
Copyright National Association of REALTORS®. Reprinted with permission.
MLS Statistics though November Looking Up
I just received the Topeka MLS Statistics for the period ending November 30, 2009 and things are looking up. Just as we’ve been fortunate to never be in the same situation as some of the extreme markets in the U.S., we also appear to be leveling out quicker.
Total closed transactions are down just 6% from the same period last year (last year I would have used 17.2% for that number!). Numbers of listed and sold properties, as well as their respective average and median prices are up. Homes on the market are up just slightly.
November closed trasactions are up (from 147 in 2008) to 232 – that’s an increase of 85 or 57.8% The overall absorption rate (time it takes to sell current inventory) is at 5.509%, down from 8.612% a year ago. Days on the market remain about the same (70, down from 72).
These numbers are everything in the Topeka MLS – all property types, all price ranges, all areas. No doubt the extended and expanded tax credit has some effect on this, as does the recent rallies in the stock market, as does increased consumer confidence. I am cautiously optimistic that 2010 will continue to see our market inch towards “normal.” I’ve said it before and I’ll say it again – we are fortunate to live in a place with a “boringly stable economy” (for the most part).
