Joel Weihe

Wichita Grand Opera

2010-11-25T11:30:00.000-08:00

April 3rd, 2005, 3pm at Century Two concert hall at home here in Wichita KS I experienced my first opera. I have been hooked, some say obsessed, ever sense. We even watch opera DVDs here at home.
It just so happened that my first was Puccini’s La Boheme, one of the greatest all time Operas ever written, in my humble opinion.
I went with my dear friend and Mother In Law who is a big opera and symphony fan. What a show. Act one when Marcello and Rodolfo were burning pages of the book and…well, if you haven’t seen it yet, you should.
Here in Wichita we have a very good opera company. Besides our super talented Resident artists, the artistic directer, Margaret Ann Penn, also brings in some really great and often times famous outside help. Names such as Hector Sandoval, Zvetelina Vassileva, Marcello Giordani and even Kansas own Samuel Ramsey. The list doesn’t stop there either.
The performances over the years have included Carmen, The Magic Flute, Faust, La Traviata and Aida, just to name a few. The sets are professionally done, elaborate and beautiful designs. The costumes nothing short of stunning.
If you should ever call Wichita Home and are an opera fan, you have chosen the right place to live. If the WGO doesn’t have something to your liking, or if you just want more opera, the Lyric in Kansas City, just 3 1/2 hours away also has a really nice program. Tulsa Oklahoma, believe it or not, is famous for thier opera house. Again, just three hours away. There is more great opera around here than the biggest critic, or fan, could ever dream of.
Last season was another great one. As always we’re looking forward to next seasons performances.
So, are you an Opera fan, and if so what’s your favorite?

Kansas State Fair

2010-09-06T08:49:00.000-07:00

The Kansas State Fair is like a whole world unto itself. Just forty minutes west of Wichita the fair is close to the best little city in Kansas.
One can easily get lost in time and space while wandering around the 280 acres of buildings, rides, fairways and commercial vendors. There is so much to see and so much to do it all can't possibly be done in a single outing.
Get there first thing in the morning on the first weekend. That's the best time to see all the many different animals before or shortly after they are judged. There are cows of many different varieties. More than one breed of goat (my personal favorite among the mammals), sheep, and many beautiful horses. Even llamas, or alpaca as the ones at the fair are, make an appearance.
After the buildings that are a temporary home to these mammals the birds have some real estate of their own. Inside the rabbit and bird complex you can find chickens of many different and quite interesting varieties. There are also ducks, geese and pigeons of lots of different sizes and shapes. You never knew there were so many different kinds of rabbits.
The fairway is something that Kansas can be proud of. Full of rides for all ages and tolerances. Tall scary ones, super fast spinning ones and slow easy rides for those more tame souls. There's Loads of games to win prizes at, cotton candy to eat, a fun house and much, much more.
If competition is your game you'll find plenty of that at The Kansas State Fair.
A building dedicated to the domestic arts is full of beautiful hand made quilts of every size, baked goods and knitting, all judged for ribbons. There's even cooking demonstrations.
There's the livestock competitions. The beasts are all groomed and pampered to look their best then paraded around in front of the judges and public to be admired. Who has the best looking cow, sheep, goat or even chicken. Whatever it may be. Some really beautiful animals are to be seen here.
4-H is a big part of the Kansas State Fair. Young people learning about ranching, farming and life. A really great program. Boy scouts and girl scouts make their presence known too.

Kansasis a big agricultural state so there's plenty of vegetables and such to be judged. Can't forget about wheat in Kansas. You can learn all about wheat at the fair. Where it comes from, how it's harvested and what it's used for. Yep, wheat is a pretty big deal in Kansas. Not just wheat either, lot's of different crops are on display here and there's lots to learn about them.
When your hungry it's not hard to find a good place to eat something. Food vendors of all kinds are strategically placed about the fairgrounds to ensure no one goes hungry while enjoying the fun.
One thing you won't want to forget when you come to the Fair is a good pair of walking shoes. There is so much to do and see you'll be on your feet all day racing from one cool thing to another. While there are plenty of places to sit in the shade and rest, you'll want to be sure not to miss any of the fun!
The Kansas State Fair is just one more great thing about Wichita Kansas.
You know ya wanna live here!!

Wichita Gets Noticed!!

2009-07-31T07:41:00.000-07:00

Wow, the city I live and work in selling real estate was recently voted number one on Newsmax. Wichita holds the number one ranking of the "Top 25 Most uniquely American Cities and Towns." Not sure what that's worth, but what I found interesting, and I agree, was that we were rated a 9 on culture.

It must be the underground culture. Really, you would never believe it by the things you hear about Wichita. Nothing to do, flat, full of rednecks and then we had that little mini scandal where they tried to ban teaching evolution in the schools.

When you take off the blinders and look around though, it really is a nice place to live. It's quiet. Family values are held in high esteem. I think there may be more churches than liquor stores. (that's an exaggeration, but there are a lot of churches)

The people are friendly, the business climate is good, taxes a little high, but we're working on that. The crime rate isn't bad and the hospitality is outstanding.

We have loads of museums to wander thru including a modern world class art museum.

The Sedgewick County Historical Museum is a wonderful old building full of rich Kansas history. One of my favorites is a private museum, The Museum of World Treasures, owned by a Doctor here in town who has traveled the world collecting artifacts from full dinosaur skeletons to ancient Egyptian relics to military paraphernalia from across time and around the world.

The opera company is well known around the area for it's magnificent performances and the Wichita Symphony Orchestra rivals any in the world.

Music theater of Wichita preforms stunning off Broadway shows that can easily compete with the real thing. On top of that the many playhouses and theater groups that dot the community are all fun and extraordinarily entertaining.

The Wichita Grand Opera is the best opera company around these parts. Some of the greatest names in opera are enticed to come here and preform. Many of the resident artists were trained right here in Wichita at the fine arts department of WSU.

There's a living museum, Cowtown, that is an exact replica of a small Kansas town in the young frontier days of our country. We have an Indian center that celebrates the culture of the first Americans that were here before our forefathers immigrated over.

Exploration Place is a museum of sorts built half in the Arkansas river for kids and adults alike. A really unique building design and a place to learn and play. Recently we had the world renown "Body: The Exhibit" on display.

Just getting finished up is the brand new arena that the people voted to have built downtown for concerts, games and shows. If that's not enough venue, there's the coliseum right outside of town where there is everything from monster truck rallies to horse and dog shows. The Sedgewick county 4-H club uses the coliseum for all of it's major events too.

Am I forgetting anything? I'm sure I have. We have the Arkansas River that runs through downtown and hosts the River Festival every year, can't forget that.

The town and surrounding area is full of lakes to fish in. If you like to hunt your own meat, the hunting in the area is famous for deer and turkey. Hunters come from around the country to bag their limits every year.

All in all there is more to do here than you can "shake a stick at". The really nice thing is the people. Friendly, down home, laid back and full of "culture".

Home of the Wichita Grand Opera

2009-07-27T22:43:00.000-07:00

April 3rd, 2005, 3pm at Century Two concert hall at home here in Wichita KS I experienced my first opera. I have been hooked, some say obsessed, ever sense. It just happened that the performance was Puccini's La Boheme, one of the greatest all time Operas ever written, in my humble opinion.

I went with my Mother in Law at the time who was a big opera and symphony fan. What a show. Act one when Marcello and Rodolfo were burning pages of the book and...well, if you haven't seen it yet, you should.

Here in Wichita we have a very good opera company. Besides our super talented Resident artists, the artistic directer, Margaret Ann Penn, also brings in some really great and often times famous outside help. Names such as Hector Sandoval, Zvetelina Vassileva, Marcello Giordani and even Kansas own Samuel Ramsey. The list doesn't stop there either.

The performances over the years have included Carmen, The Magic Flute, Faust, La Traviata and Aida, just to name a few. The sets are professionally done, elaborate and beautiful designs. The costumes nothing short of stunning.

If you should ever call Wichita Home and are an opera fan, you have chosen the right place to live. If the WGO doesn't have something to your liking, or if you just want more opera, the Lyric in Kansas City, just 3 1/2 hours away also has a really nice program. Tulsa Oklahoma, believe it or not, is famous for thier opera house. Again, just three hours away. There is more great opera around here than the biggest critic, or fan, could ever dream of.

So, are you an Opera fan, and if so what's your favorite?

Who's Watching The Builder?

2009-07-24T10:18:00.000-07:00

You have saved your money, planned, made a list of all you want, and had plans drawn up. The new home you have always dreamed of is now ready to be built in Wichita. Next task is finding a builder, and someone to watch that builder.

Do your research thoroughly. The best way to find a builder is through referrals. Find other people who have built with them and ask questions. If you already have found a good Realtor, get them to help. It can not be stressed enough the importance of finding a good and reputable builder.

There are good builders and bad ones. The one constant is that they are in it for a profit and are looking out first for their own best interest. Sure they may do quality work, maybe even be honest and ethical, but the fact remains that in their minds they come first.

When times are good every one and his brother wants to be a builder. It's amazing the number of small building companies that pop up. A lot of these are questionable operations and if a downturn in the economy comes along you may just get stuck with a half built home and a lot of wasted money. After the market does some weeding most of the companies left are good ones with a solid financial foundation. Even these reputable companies need to cut costs and find ways to save money and if their working on your house....well.

That leaves you, as the future homeowner pretty much at their mercy. You can read books, watch HG TV and it seems every new homeowner has done some “remodeling”. Nothing can prepare you for the actual construction of your home. You can't be there 24/7 to make sure it's being done right and to your standards. It's not the builder that does the work, but subcontractors. It's not the subcontractors that do the work for the most part, but their employees and those employees don't really care much about you and your dream home. Mostly they care about quitting time and the weekend.

Having spent nearly 20 years in the construction business, 10 of that in management, I saw a lot of what goes on. We were the people that watched over your house as it was being built and while we genuinely cared for the interest of our clients, the builders interests is always number one. Loyalty to the company and whatever policies it may have is key to collecting your paycheck.

That is why it is essential to have someone knowledgeable in the industry watching out for you and your interest. That is why you must have a Realtor. A Realtor will know their way around the local building scene. He or she will be able to recommend builders that maybe they have worked with or have some knowledge of. Having help to negotiate tricky building contracts always favoring the builder is a must for success on your project. When the time comes for the several different walk throughs that building a home requires, you will have someone watching out for your best interests. Last is the final walk through to make sure everything is done right and complete. It will be just you, the builder and his staff. That's when you need a Realtor most. Their there to watch the Builder for you. At the closing table his/her job is to make certain no surprises appear and that your building and closing experience are a good one. That will give you piece of mind and the insurance that your dream home is built to your dream standards.

Now you and your family can live happily ever after.

It Takes More Than Just A Realtor

2009-07-20T12:06:00.000-07:00

When thinking about services or employment in real estate an agent or sales come to mind. Selling residential real estate is a big part of the real estate business of course, but there are many other services offered. Services that revolve around investing in or buying real estate. There are many other career opportunities than just becoming a real estate agent.

Education is big in real estate. To receive a license to sell real estate one must first learn and study for the test. Special schools exist for the purpose of teaching prospects what they need to know to pass the licensing exam. After the license is received ongoing education is required by most states. Education in the real estate business never ends. Many different types of classes are taught at Universities, community colleges and real estate schools. Seminars are another way to get information and training.

A real estate agent works under a broker. A broker brings together buyers and sellers or landlords and tenants, what ever the case may be. Brokers negotiate the real estate deal for their clients, take care of paper work, and get the deal closed. This is also what agents do, but agents do it for a broker.

Real estate deals, transactions and activity usually requires the services of an appraiser. Appraisers are in the business of making appraisals, or finding the value of something. In real estate appraisers are needed to find the value of properties to be bought and sold. Banks require appraisals before they can lend money. Tax assessment and insurance adjusting requires the services of an appraiser also.

There are counselors in the real estate business whose service is to provide advise to people and firms regarding buying, selling and using real estate properties. Counselors have to have a large knowledge base of tax laws, investing, finance and real estate.

Property management is a big part of the real estate business. Large commercial properties as well as apartment complexes and sometimes subdivisions have companies that manage the day to day operations. Filling vacancies, maintenance and collecting moneys are some of the responsibilities of property management. In the process property mangers find ways to maximize income and keep properties maintained and profitable. There are property management companies and sometimes real estate firms have their own property management divisions.

Mortgage brokers are an important facet of the real estate business. Real estate transactions generally require financing. Mortgage brokers bring buyers and lenders together, much like real estate brokers bring buyers and sellers together. Some real estate brokers also hold a license as a mortgage broker.

To have real estate you need property development. Developing property involves sub dividing land, installing roads, sewers and utilities, and constructing buildings. Everything from construction workers to builders to developers fall into this category.

As you can see there are many jobs that are related directly to real estate. If being a real estate agent is not your desire, there are other services needed to get the job done. From finding the right parcel of land to putting the finishing touches on the landscaping to finding and putting a perspective client into their dream property. Every one of these services plays an important role and the end result couldn't be accomplished without the entire team.

Good News For Housing

2009-07-17T07:42:00.000-07:00

Good news for housing could mean bad news for home buyers. Those sitting on the fence waiting for prices and rates to drop are taking a pretty big risk. Interest rates are to low as it is to support this debt ridden economy and raising them could put a damper on the recovery. Know what "catch 22" means. It means we're stuck between a rock and a hard place.

Many economists and analysts believe the economic recovery in this country rests on the shoulders of the housing market. Once the market begins to turn around, as we are seeing clear signs of, home prices and interest rates charged on loans to buy those homes will rise.
How much and how fast is anyone's guess, but in order to fuel a recovery and provide momentum, banks, builders and sellers have to start making money again.

There was a 3.6 percent increase in housing starts last month. The largest jump since 2004, according to Bloomberg. Builders are feeling confident and putting up homes again. "It seems clear that housing starts bottomed in the first quarter", says Mark Vinter of Wells Fargo.

A lot of that buying is do to Government incentives and tax breaks. When that ends....

Forecasters had predicted a fall in starts. Home starts are still down quite a bit from this time last year but the improvements are solid evidence buyers are creeping back into the market.

Others, of course, say we still have further to fall. If forecasting was easy, everyone would do it. The one sure thing is there will be a recovery, just no one really knows when. (except maybe Goldman Sachs)

Make Buying A House Easy With a Realtor

2009-07-14T09:40:00.000-07:00

When buying a new home using a Realtor costs you nothing. He or She works for you for free. The benefits are unlimited however. In fact, searching for a home without a Realtor makes no sense at all.

These days most home buyers begin their search on-line looking through the many different Internet sites that offer MLS services and real estate sites such as Zillow, Yahoo Homes and Trulia. If your on your own sometimes there is a number provided to set up showing appointments, sometimes not. So right there your limited.

Most times the number listed puts you directly in touch with the sellers agent. This isn't necessarily a bad thing but it leaves you at the mercy of that agent. As a seller agent they are responsible to look out for the best interest of their client. As your buyers agent they are also responsible for your best interest. That presents a conflict.

In a situation when the same broker is handling both sides of the transaction that puts him as a deal maker, or broker. In the Real estate business this is called a transaction broker. You can have two different agents, one representing the buyer and one representing the seller, both working under the same broker. The best interest of both parties is presumably represented by each different agent. He or she must be honest, ethical and completely non biased. This doesn't present a problem as long as you feel comfortable with the person making the deal for you.

You can see how having your own Realtor is to your advantage.

Having a real estate professional when shopping for a home makes the task easy, convenient and even fun. Your Realtor will keep you up to date as to what becomes available when it does. They will walk you through the process of buying from finding a house, to inspections to closing.

Many new homes come on the market and get sold off every day. You never know when that perfect house is going to come along so it's nice to have someone knowledgeable about the industry constantly scanning the market for you. When it's found your real estate agent can notify you right away and immediately set up a time to show the home to you and your family thus insuring you never miss an opportunity when it's ripe.

I know here in Wichita Kansas the housing market is very competitive. Homes can hit the market and have a contract the same day. It happens often. Many times a potential home buyer will see a house he likes only to find it's been contracted that very day. With all the tools available to Realtors these days it makes finding the perfect home for you a real possibility and not just a dream.

Remember your Realtor is your friend. He gets paid when your happy and not by you. Someone out there has worked it into the price of a house to find them a buyer. They are willing to pay to turn the equity they have in their house into cash. The Realtor brings you and that person together and brokers a deal where everyone's happy and gets what they're after.

Still Renting?

2009-07-01T09:01:00.001-07:00

Are you still throwing your money away on rent? Really, think about it. Every month you write that check and give to the landlord, never to be seen again as it disappears into his pocket.

Being a land lord has got to be one of the easiest jobs there is. He buys a house, just like you could, then lets someone live there while he builds equity and makes profit. Sure once in while he may have to fix something, or paint or whatever, but overall it's a very stress free and profitable existence.

I'm not suggesting you should become a landlord, although if you did you could be taking some other poor saps money, what I am suggesting is that you look into buying. Did you know that it's very possible, likely even, that you could be laying out less cash every month on a Mortgage than on rent.

When you own a home you in essence have a place to live for free. Every month when you make a payment on your house your building equity. Equity is money. That doesn't even include the improvements you make. More money.

Then there's the tax benefits. Every year when you file your tax returns for the money the Government has been holding for you, you can write off your house. Not the whole house of course, but things like mortgage interest and real estate taxes. There are write offs for making your home more energy efficient. First time home buyer write offs. In fact,this year, 2009, the Government will even give you $8000 to buy a house.

I have a story about a young man who used to work for me. He and his girlfriend rented. Every month throwing that money away, and every month complaining about it. Every month I told him “then stop it, go find a house to buy. It's really not that difficult. Doesn't have to be a dream house, just STOP paying rent! Later you can sell it when you want to move up, and make money instead of throwing it away!.”

Well, he did. Him and the girlfriend went out, found a small house with a nice yard, went to the bank and now they are proud homeowners investing their money in their future rather than wasting it. He is so happy. When I see him now he's bragging about his latest remodel project, or his garden or what he's doing with the money he's saving. It's really nice to see him so happy as opposed to complaining about being broke all the time. The whole process took less than a month, and he even broke his old lease because the numbers worked in his favor.

Here is an open question posted by a renter on a real estate site that asked

“I pay $800/mo. for 1 bed apt., should I just find a home for rent and hope there's an option to buy?”

Here is the answer,

“In all honesty you should try and buy a home and quit enriching your landlord, start building some equity for yourself and become a proud home owner. Often times in that price range, $800, you will lay out less cash every month for a nicer place that is your own. It's also a great way to hold on to your money and even grow it. Now is a good time too as economic indicators are pointing to an improvement in the economy which will mean higher prices and interest rates in the near future.”

So why are you still renting?

Click here to enlarge the cartoon!!

Mixed Housing News

2009-06-25T08:24:00.000-07:00

New home sales unexpectedly fell last month as existing home sales were on the rise for the second straight month, although still slightly below expectations.

New homes dropped 0.6% to 342,000 units sold. The previous month saw 344,000 new homes taken off the market, but again below estimates. Builders are having to slash prices to try and keep pace with the existing homes market as foreclosures are still driving down prices.

There are a lot of good deals out there, many of them getting snatched up as soon as they become available. It's certainly a buyers market right now, but they must be quick to catch the best deals.Last year at this time the median price for a home was $207,900. The median price right now for a home in the U.S. Is $173,000. That is a very significant drop in price.

There comes a point where lowering prices on new homes becomes unsustainable. At present Builders are losing the battle as banks and homeowners are dominating sales in the housing market. With new homes sales down so drastically, many builders will get “weeded out” by either stopping building or be forced out of business. Good news for consumers when the contraction is over. In boom times in any business lots of new companies are formed to grab quick dollars off the top. Not all of them are always reputable, reliable or customer oriented. Left in the aftermath of a major contraction are generally strong and good companies. Survival of the fittest at it's best.

The sales price of homes dropped a whopping 17% from last year at this time making buying an attractive prospect. For two months in a row now existing home sales have been on the rise reducing standing inventory. Experts predict more foreclosures in the future until this housing market has a chance to stabilize. Of course any good news is welcome by investors, buyers and sellers alike. The market seems to have, arguably, bottomed somewhat.

Existing home sales rose 2.4% to 4.77 million, up from 4.66 million the month before but below the 4.83 million forecasted. While sales were up, unemployment figures released by the Government and borrowing costs have put a damper on buying enthusiasm, as is in evidence in new home sales figures. This after four years of decline. Again, a lot of this buying activity is due to Government programs, specifically the $8000 first time buyer credit being offered.

Some economists see the light at the end of the tunnel in the housing market. “Improved affordability because of low prices and lower interest rates stirred some sales,” says Nigel Gault, chief economist at his Global insight. ”As long as rates don't rise substantially further from here, we could still stabilize in the housing market.”

Whether we have reached a bottom in the housing market decline or not the pressure being put on bonds will have an impact on interest rates. The Federal Reserve has as much as said the Federal funds rate will remain the same the rest of this year barring a national emergency. There is always the chance of inflation sneaking up on us. The problem will be as the economy improves, investors will move from the relative safety of bonds to the more risky and profitable stock market. As bond prices go down from lack of demand, it will drive up the interest rate that banks charge to lend money to consumers. Bonds and interest rates move inversely to each other.Here in lies the risk for perspective new homeowners. As the economy improves and consumers can better afford homes, the price of homes and the interest rates will most likely begin to rise. So the choices are to buy now while prices and interest rates are at historical lows and the Government incentives are there or to wait and hope the economy falters further and prices drop more.

Joel Weihe

06/25/2009

Time To Buy A Home

2009-06-20T08:36:00.000-07:00

If ever there was a good time to invest in real estate, it's now. Seriously. We happen to believe the bottom is in. Regardless of whether it is or isn't there are several factors that bring me to the conclusion that it is time to buy now.

The first is that the banks need money. Banks are in trouble, they need money to survive. Not all banks of course. There are many regional banks that avoided this economic crisis we're in by following sound business practices and lending money to people that could pay it back. The problem is that the responsible banks will still pay for the greed and bad practices of the big major conglomerate bank/finance companies. The way banks make money is by charging interest rates for money they lend. OK, simple enough. This contraction the economy is in has put most of these big banks in the red. The best and easiest way for them to become profitable (and pay back all that money they owe us, the taxpayer) is to make more money, and they do this by raising interest rates. Credit companies are already doing it.

The Wichita Real Estate market faired better than most during the latest housing bubble. It slowed, like the rest of the country, but in comparison actually did very well. This shows how well this particular market holds it's value. Housing prices are on the rise though. The last housing price index, HPI, came in at a positive 0.7% when analysts were expecting a negative 0.7%. That's a full point! On the sales front, existing new home sales were less that expected by .11 million. Not a bad number really. People are buying, just not in droves yet. When the flood of buyers start, prices will react quickly. Builders and homeowners alike have been taking much lower prices than their homes warrant. Whether buying a home for the first time, buying a second or vacation home or just investing in Real Estate you will want to buy while prices are low.

The last really bad inflation we had was in the 1970s and 80s. I remember my family paying 17% interest on the home we lived in. Back then it certainly didn't bother me, that was my Dads problem. Now it will be mine. When the economy becomes inflated the Federal reserve is inclined to raise interest rates to try and tame it. Just as the Feds started to drastically reduced rates around 1999-2000 to stimulate the economy they will easily go the other way to slow it down. Inflation is coming. With all the money the Government and Fed have had to print and borrow in 2009, inflation will surely come around. Inflation happens when there is to much money supply. It reduces demand making money not so important, causing the price of goods and services go up.

The Government has made available an $8000 dollar tax credit to first home buyers for this year only. That's the time period between January 1^st to December 1st. This does not have to be repayed. It is a big incentive to get people to buy. There are many economists that believe the health of the recovery we are beginning to feel depends on the housing market. The Government is doing everything it can to promote this. Extraordinary measures are being taken. When the recovery comes, and it will, home prices and interest rates will rise quickly. The Government will not be so generous as the next task will be to repay all the money that was borrowed and printed.

Now is the time to buy and this is the perfect market. A perfect storm of good news for investors and potential homeowners alike.

Housing Data

2009-06-16T08:38:00.000-07:00

The latest housing data came out on the positive side today. That's good news for real estate and the economy as a whole. Since the housing and banking industry seem to be shouldering the blame for this downturn, any improvement is seen as a good sign.

New building permits came in at .52 Million which is slightly better than the .50M that was forecast. Last months figures were .50M, same as the current forecast.

Housing starts were also up by a nice margin. There were .53M new starts last month, up from .45M in May and .5M higher than the .48M forecast.

This is good news for the economy as it means people are buying homes. Simple supply and demand, homes are being bought and new ones are needed. Now whether this is due to the incredible Government assistance or not is irrelevant, either way it props up the industry while we struggle for a full recovery.

For real estate it's obviously good news. For potential buyers it could mean rising home prices. Over supply equals lower prices as builders and sellers try and unload inventory. Not enough supply means higher demand as builders and sellers run low on inventory and can create competition among buyers.

The industry as a whole benefits from higher demand. Buyers who are not able to buy now due to job loss, decreased salary or whatever financial reason still benefit as the economic recovery is spurred and more jobs are created.

Those buyers riding the see saw of interest rate and price fluctuations run the risk of being on the wrong side of the fence when the breakout occurs.

Home Sales on the Rise

2009-06-02T08:50:00.000-07:00

Pending home sales tracks the number of signed contracts. A signed contract is the beginning of the final steps of buying you new home. It generally takes a month or two to get to closing and ownership. The National Association of Realtors, or NAR, existing home sales tracks the number of actual closing.

Americans signing contracts last month to buy homes increased 6.7%, the largest increase in seven years. That is really good news for the economy and you too if you have bought a home recently. Let me explain. As the economy improves and people spend more money, the US bond yields will rise as investors look for other more profitable places for their money. This will drive up interest rates, as is already happening.

Right now the foreclosure market and tax incentives are helping home sales. As the momentum increases, builders and sellers will start to take advantage of simple supply and demand laws. Supply decreases, demand increases and prices rise. This could take several months, even a year, or it could start tomorrow. No one knows for sure.

The previous pending home sales figures from last month was 3.2%. Analysts had predicted an increase of .4%. The actual number blew the predictions away. This could just be an influx of first time buyers taking advantage of the revised $8000 tax credit, or it could be from an improvement in consumer confidence and people not willing to take the chance and wait for further decreases in price. Again, no one knows for sure.

It's ultimately your decision to either wait the market out and hope rates drop and prices remain low or to get in your new home before inflation comes and prices rise. One thing is for sure, the market is on it's way back to equilibrium.

Home Prices Going Up

2009-05-21T12:30:00.000-07:00

As I have been writing about quite a bit lately, median home prices are on the rise here in Wichita KS. as inventory shrinks. Very soon the sellers will be at the advantage. Good news for builders wanting to make up for all the merchandise they've been giving away at rock bottom prices. Even better news for owners and sellers who have watched their home prices and equity plunge for the last two years. Deals will begin to be harder to come by and while negotiations have been in the buyers favor as of late, those good times are coming to an end. This is all happening very fast, certainly sooner than I had estimated.

The American economy is the most resolute in the world and will once again prove itself indestructible. Once out of this contraction the next thing to watch out for will be inflation. So far this FED has not expressed much concern to that issue, but mark my words, it's inevitable.

The dollar index is at the lowest seen this year as the USD falls to the pound and Euro. Gold is on the rise again. All signs of the coming inflation and with inflation comes higher interest rates. Position yourself now to avoid the pain later.

Be sure to click the link above for the Wichita Realtors housing report.

Housing Starts Down? I Don't think So!

2009-05-19T08:18:00.000-07:00

.The Commerce department in Washington D.C. reported today that housing starts dropped 13 % to a record low in April. The largest contributor was Multi family unit, such as Condominiums and apartment complexes, which were off a whopping 46%. Single family structures were actually up 2.8%. That would help to explain the positive growing home builders sentiment. NAHB, the National Association of Home Builders, housing market index reported numbers in line with expectations and improving over the previous months figures.

As stock futures tumbled this morning on the negative news my first thought was of inventory. Having been in the construction business for twenty years I've been through a few cycles. Home builders normally have inventory. Specs are built to have on hand for showing and also "quick" sales. When the economy turns sour and people quit buying builders are stuck with excessive inventory and while those homes sit the banks and utility companies are still expecting their money. Money going out with none coming in is not good.

A smart Builder has made contingencies for this contraction by putting some money aside to carry through the difficult times. As the economy starts to turn around, as I feel it is, Builders will begin to sell off some of this excessive inventory until a point of equilibrium is met. Back on a level field where as many are being built as are being sold. It's natural then that housing starts would be down. Not really such bad news as long as the other economic numbers are coming in positive or at least above expectations. As an optimist, and not an economist, I think in terms of human nature and business, not just numbers.

So after further examination this morning I read that single family home starts were actually up 2.8% to 380000, the second straight month of improvement. That is really good news for real estate people. Home buyers on the fence still have time to find good deals, but this particular market seems to be improving. Here in the town where I live, Wichita KS, there are lots of prime properties at discount prices.

Multi family buildings dropped from 167,000 to just 90,000. While those numbers are certainly bad, it affects construction more than the Realtor. Residential real estate professionals deal mostly in single family homes. If builders are building again it means that they must be selling off some of that inventory.As demand increases, so will the price of real estate. Home builders have been taking a hit in the pocket book during this recession. Homes have been selling, when they sell, at record low prices just to get rid of inventory. Home builders have been forced to slash prices to stimulate demand. Once that point of equilibrium is reached, and builders are selling as many as their building, prices will almost certainly begin to rise.

The good news is that while builders profits are low, it means buying opportunities are abound.. Good buying opportunities and a chance to buy a new home with built in equity. After a contraction in the economy when the prices of homes and goods in general are sold off at discounts the time to buy is ripe as the recovery begins. We've all heard “buy low, sell high”. We seem to be right at or close to that point in this recession. As home prices rise, so will the equity in your new home. Say your Realtor brokers a really good deal for you on your new home. You buy low, maybe really low. As the recovery continues the price of housing will rise quickly. As housing prices rise, your built in equity is like money in your pocket.

2009-05-17T14:34:00.000-07:00

Mortgage rates pretty much held steady last week, which is good news for those wanting to refinance at a lower rate and buyers, especially first time buyers. Freddie Macs Primary Mortgage Market Survey (PMMS) for a 30 fixed loan was a scant 4.86%, up slightly from last weeks 4.84%. Last year at this time, while the "bubble" was bursting, mortgage rates were 6.01%.

Real estate professionals from around the country are reporting increasing sales, not by a lot, but increasing. Still, there is quite a bit of inventory out there on the books yet, meaning supply is still out in front of demand.

Another thorn, the major banks have been impediments standing in the way of short sales. Banks get less money in a short sale situation. Some banks, including Bank of America, have reportedly been taking a more rational stance lately on short sales to avoid the costly foreclosure process. So banks with a lot of inventory and eminent foreclosures will be able to get more homes off the market. They may take less money, but some is better than none and it lessons inventory which will eventually drive prices up.

Higher home prices will definitely be part of the near future. Good news for sellers and builders. Bad news for buyers.

Some really good news coming out has to do with the Government $8000 tax credit for
qualified first time home buyers. Right now the FHA is finalizing a plan that would allow for the tax credit to be used up front as a down payment.

After the sub prime loan debacle of the last several years where anyone could get a loan and buy a house with no money down the banks have become much more strict in their lending practices. It's been difficult for this administration to get any momentum behind it's efforts to end the housing crisis. This new FHA program just makes sense. By giving the credit up front, it will greatly improve the chances of peoples ability to acquire financing with the required 3.5% down. There will still be income and credit qualifications so we don't end up in another mess like the one we're pulling out of, but it will help to get the ball rolling and get these houses off the market and lived in.

So again, the time to buy is now. The time to sell will be in the near future. Somewhere along that line the market will hit equilibrium, where it is the most beneficial for both buyer and seller, but for the most part one benefits more than the other. Right now it's the buyers turn. Right now it's a buyers market!

Buying a House Should Be Fun

2009-05-13T22:30:00.000-07:00

Buying a home can be a stressful and time consuming event in your busy life. The good news is that it doesn't have to be. A good real estate professional can take the stress out of home buying by saving you time and taking care of all the hard stuff!

The initial search is the most time consuming and frustrating part of buying a new home, and it's just the beginning. Scanning newspaper ads, websites and driving around looking at yard signs can take what seems like forever.

Then once you find a house or two, or three, or however many, now you have to find a way to comfortably view the insides without the current owners following you around looking over your shoulder. When that happens people tend to just want to rush through and get out without really having a chance to inspect. When we're thinking of buying a house we want to bring the family. We want to open doors, cupboards and closets, not to be nosy but just to get a feel for the place. We want to see the kids run around , gauging their reaction. After all, it's a family event. Everyone wants to feel at “home” in the home your thinking of buying. That's near impossible with the current tenants present. I'm not saying it will happen, maybe it won't, maybe if your lucky, which no ever is, you'll fall in love with the first one seen. Then you'll never know what could have been!

Let's say you find a few houses you might like. You've arranged and rearranged schedules and viewed them. By now your exhausted and the original excitement of buying a new home has definitely worn off. You've probably completely lost track of what you were looking for and why to begin with. It happens, we've seen it.

Your real estate professional, preferably a Realtor, takes care of all the headaches for you. At his finger tips are virtually all of the homes for sale, with detailed descriptions, in any given area. Now you and your family can sit down in the evening together and make lists of what you want in a new home and what you need. Your Realtor then takes that information, your dream list, and narrows the search in a fraction of the time it will take you to do so on your own.

How many bedrooms and baths do you need? The size of the rooms is important. What kind of square footage are you looking for? Do you need a fenced yard? All of these questions and many more can be answered quickly. With this information a list is generated of prospects for your new home. The Realtor then arranges for showings where you can view the house at your own relaxed pace without annoying owners present. This way your family and you get a good feel for the place. Check out as many as you need to. Buying a house is a major event and finding the perfect one is of the utmost importance.

Once He or She has found the perfect home for you, the next step is to negotiate the best possible price. This is done by first putting in an offer on the house. The offer is the price that you, with your Realtors professional help, decide you want to pay for the house. Offers can include extras like window covering stay, leave the refrigerator or sometimes to even do some work on the house. Whatever, the first offer should be reasonable but tilted to your benefit. Getting the seller to pay closing costs or other expenses is a popular offer theme. The seller than excepts or comes back with a counter offer, and on and on until an agreement can be reached. A Realtor is a pro at negotiating. Their job is to guide you through the whole process to assure you the best deal possible.

Once the contract is in hand there are a number of tasks yet to be completed before you get your house. If you haven't already you'll need to find a lender, unless of course your paying cash. A Realtor knows the market and can suggest mortgage brokers to you. Then Inspections and appraisals and more inspections are next. A title company will need to clear the title making sure it's not held up by any previous obligations, liens or trickery.

Finally one day you, the seller and your respective agents sit down at the title company and sign papers. That's the day the house is yours. The real estate professional carried this whole process through for you. They took care of all the headaches, running around and complicated paperwork while you carried on comfortably with your everyday life. Now you and your family can celebrate and move into your new home. But don't despair, there is something you can do for that person that worked so hard to make your dreams come true.

Realtors love referrals!!

More Good News for Real Estate

2009-05-09T09:26:00.000-07:00

There was more good news on the home buying front last month. The National Association of Realtors, or NAR for short, reported that pending home sales were up from February by 3.2 percent. Pending home sales is a forward looking indicator that counts the number of contracts signed. The Analysts were predicting no increase, but for the market to remain flat.

Not only were the numbers up from February, 2009, there was also a 1.1 percent increase over March of last year, right around the time the economy began it's decline.

Pending home sales are not yet actual sales, just signed contracts awaiting loan approval. They are still considered a very good gauge to the overall health of the housing market. The positive numbers could be thought of as an anomaly in an otherwise severely depressed economy. The next report will give more of an idea if the housing market is gaining momentum. Two months of positive growth will be good news for the overall health of the U.S. Economy. Three months of positive numbers will not bear well for those sitting on the sidelines waiting for property values to contract yet further. That will show that the population is out buying in force, and when that happens the best deals will be snatched up quickly.

Once the real estate market gets some momentum behind it, there is a good chance that home prices and interest rates will rise quickly. The theory behind such a prediction is simple supply and demand. Right now there is a glut of housing on the market,. Builders are holding to much inventory for to long, and what they have been able to sell has been at deep discounts, often below costs. People wanting or needing to sell homes are sometimes forced to take much less than the homes value as recently as last year. Then there are the foreclosures the banks are trying to get rid of. All of this makes for an over burdened market ready to explode.

Prices and interest rates are at almost historic lows. When the housing bubble and the failing economy met, it left many people hurting while opening up a once in a lifetime opportunity for buying or investing in residential real estate properties. Brokers and agents around the country are reporting an increase in activity and sales. The people are coming out and looking again.

Going into and at the height of the real estate bubble buying rundown properties and fixing them up to re-sell at a profit was popular. Many people missed the opportunity, but it is back again. There are decent properties out there that can be picked up at substantially lower prices than what they are worth. There has been evidence of this already. It's an easy way for aspiring entrepreneur to make substantial profits with little investment.

The biggest incentives in history are being offered by the Government. An up to $8000 tax credit is available for qualifying first time home buyers. This program alone is expected to bring 30000 new home buyers to the market. That could very well be the beginning of the end for bargain hunters.

The time to buy if one is intending is now. Many analysts and economists both are optimistic about the economic recovery happening soon, if not already in it's early stages. Those that wait to long for better deals may get left behind as we leave the contraction behind and start working on a new and prosperous future.

Joel Weihe

Time to Buy Real Estate in Wichita Kansas

2009-05-07T05:44:00.000-07:00

The first is that the banks need money. Banks are in trouble, they need money to survive. Not all banks of course. There are many regional banks that avoided this economic crisis we're in by following sound business practices and lending money to people that could pay it back. The problem is that the responsible banks will still pay for the greed and bad practices of the big major conglomerate banks and finance companies. The way banks make money is by charging interest rates for money they lend. OK, simple enough. This contraction the economy is in has put most of these big banks in the red. The best and easiest way for them to become profitable (and pay back all that money they owe us, the taxpayer) is to make more money, and they do this by raising interest rates. Credit companies are already doing it.

The Wichita Real Estate market fared better than most during the latest housing bubble. It slowed, like the rest of the country, but in comparison actually did very well. This shows how well this Wichita market holds it's value. Housing prices are on the rise though. People are buying, just not in droves yet. When the flood of buyers start, prices will react quickly. Builders and homeowners alike have been taking much lower prices than their homes warrant. Whether buying a home for the first time, buying a second or vacation home or just investing in Real Estate you will want to buy while prices and interest rates are low.

The last really bad inflation we had was in the 1970s and 80s. I remember my family paying 14% interest on the home we lived in. Back then it didn't bother me, that was my Dads problem. Now it will be mine. When the economy becomes inflated the Federal reserve is inclined to raise interest rates to try and tame it. Just as the Feds started to drastically reduced rates around 1999-2000 to stimulate the economy they will easily go the other way to slow it down. Inflation is coming. With all the money the Government and Fed have had to print and borrow in 2009, inflation will surely come around. Inflation happens when there is to much money supply. It reduces demand making money not so important, causing the price of goods and services to go up.

The Government has made available an $8000 dollar tax credit to first home buyers for this year only. That's the time period between January 1^st to December 1st. This does not have to be repaid. It is a big incentive to get people to buy. There are many economists that believe the health of the recovery we are beginning to feel depends on the housing market. The Government is doing everything it can to promote this. Extraordinary measures are being taken. When the recovery comes, and it will come, home prices and interest rates will rise quickly. The Government will not be so generous as the next task will be to repay all the money that was borrowed and printed.

It's possible that the tax credit is what's driving this market. If that's the case, when it ends December 1st 2009, no one knows what will happen. The hope is that the market has built some momentum and keeps improving. A bill has been introduced in congress to extend the tax credit.

Now is the time to buy and this is the perfect market. A perfect storm of good news for investors and potential homeowners alike.