Don’t believe the national headlines…

4.2%

““The housing market was socked by bad The housing market was socked by bad news for the third consecutive day…”news for the third consecutive day…”

Wichita remains an island of calm

Economic Overview

Sources: U.S. Bureau of Labor Statistics;Kansas Department of Human Resources

Employment Growth

-6

-4

-2

0

2

4

6

2001 2002 2003 2004 2005 2006 2007

Pe

rce

nt

U.S.

Wichita

Existing Homes

Source: WSU Center for Real Estate using data from SCK MLS

Typical Time to Sell a Home

30

35

40

45

50

2003 2004 2005 2006 2007

Da

ys

on

Ma

rke

t

Existing Homes

Sources: National Association of Realtors®;WSU Center for Real Estate using data from SCK MLS

Inventory of Existing Homes Available for Sale

3

4

5

6

7

8

9

10

2003 2004 2005 2006 2007

Mo

nth

s S

up

ply

U.S.

Wichita

Existing Home Sales

Existing Home Sales

6,183

6,7787,076

6,478

6,039

6,3768,407

8,842

9,867

10,20610,482

10,662

4,000

5,000

6,000

7,000

8,000

9,000

2003 2004 2005 2006 2007 2008

U.S

. Sa

les

in T

ho

us

an

ds

6,000

7,000

8,000

9,000

10,000

11,000

Wic

hit

a S

ale

s

U.S.

Wichita

Sources: SCKMLS; NAR; WSU Center for Real Estate

Existing Homes

Sources: National Association of Realtors®;South Central Kansas MLS; WSU Center for Real Estate

New Homes & Construction

Sources: National Association of Realtors®;WSU Center for Real Estate using data from SCK MLS

Inventory of New Homes Available for Sale

3

4

5

6

7

8

9

2003 2004 2005 2006 2007

Mo

nth

s S

up

ply

U.S.

Wichita

Existing Home Sales

New Home Construction

1,499

1,611

1,716

1,465

1,1281,070

2,7022,653

2,683

2,5152,461

2,620

800

1,000

1,200

1,400

1,600

1,800

2,000

2003 2004 2005 2006 2007 2008

U.S

. Ho

us

ing

Sta

rts

in T

ho

us

an

ds

1,800

2,000

2,200

2,400

2,600

2,800

3,000

Wic

hit

a S

F B

uild

ing

Pe

rmit

s

U.S.

Wichita

Sources: SCKMLS; NAR; WSU Center for Real EstateSources: U.S. Census Bureau; Wichita Area Builders

Association; WSU Center for Real Estate

New Homes & Construction

New Home Sales

1,086

1,203

1,283

1,051

852 848

1,830

1,898

2,0692,101

1,898

1,997

600

800

1,000

1,200

1,400

2003 2004 2005 2006 2007 2008

U.S

. Sa

les

in T

ho

us

an

ds

1,400

1,600

1,800

2,000

2,200

Wic

hit

a S

ale

s

U.S.

Wichita

Sources: SCKMLS; NAR; WSU Center for Real EstateSources: National Association of Realtors®;

South Central Kansas MLS; WSU Center for Real Estate

New Homes & Construction

Sources: SCKMLS; NAR; WSU Center for Real EstateSource: WSU Center for Real Estate using data provided by

the Sedgwick County Appraiser’s Office

Home PricesSedgwick County Home Price Appreciation

1.8

3.8

4.4

3.8

4.4

0

2

4

6

2004 2005 2006 2007 2008

Pe

rce

nt

Some Facts about the “National” Housing Market• No one owns the “average” U.S. home• Home prices are actually rising in most

markets• Other than two problem areas,

foreclosures are down across the U.S.– Rust belt– Arizona, California, Florida, and Nevada

• Recent problems in the financial markets are not a “mortgage market meltdown”

Mortgages & Foreclosures

Sources: Freddie Mac; Mortgage Bankers Association of America

Mortgage Rates

3.0

4.0

5.0

6.0

7.0

8.0

9.0

2000 2001 2002 2003 2004 2005 2006 2007 2008

Pe

rce

nt

30-year FRM15-year FRM1-year ARMMBAA Forecast

Mortgages & Foreclosures

Source: WSU Center for Real Estate using data fromSedgwick County Register of Deeds

Sedgwick County Foreclosure Rate

0.5

0.6

0.7

0.8

0.9

1.0

1.1

1.2

2003 2004 2005 2006 2007

Fo

rec

los

ure

s p

er

1,0

00

Mtg

s

2007 2008

Q3 Q4 Q1 Q2 Q3 Q4

Home Price Appreciation 3.83 3.82 4.09 4.49 4.51 4.45

Existing Home Sales 2,964 2,463 2,141 2,992 3,032 2,497

New Home Sales 514 486 425 533 545 494

Building Permits 635 612 614 734 662 609

Forecast Summary