Kansas home values will end 2022 up by 12.3% over 2021 and will continue to rise at a slower pace in 2023 ending that year up 5.4% over 2022, according to the Kansas Housing Markets Forecast series published by the Wichita State University Center for Real Estate.
Stan Longhofer, director of the center said the supply of homes for sale is near historic lows. “Although bidding wars may not be as intense as they were earlier in the year, it will continue to be a sellers’ market across most of the state,” he said.
The Housing Markets Forecast series reviews current housing market conditions in the major markets across the state including Kansas City, Lawrence, Manhattan, Topeka and Wichita and forecasts housing market activity through the end of 2023. The series also includes Housing Outlooks for 23 smaller markets across the state.
Copies of all the forecast and outlook publications in the series can be found at www.wichita.edu/realestate.
Rising mortgage rates and tight supplies have contributed to a reduction in the number of homes being sold across Kansas with the year expected to end down 6.9% at 43,100 units, Longhofer predicts. Sales are expected to rebound to 44,930 units in 2023, an increase of 4.2%.
New single family building permits in Kansas are expected to be down to 6,310 units, a drop of 3.9%. Longhofer predicts construction activity will stabilize in 2023, but will still be off slightly at 6,255 units, a drop of 0.9%.
Tight supplies and rising mortgage rates will mean fewer homes sales in the Wichita area, Longhofer predicts, with sales falling to 11,560 units, a drop of 4.9%. He expects a rebound in 2023, with that year ending with 11,640 units sold, an increase of 0.7%.,
New home construction in the Wichita area is expected to be 1,530 units by the end of the year, an increase of 5.2%. The forecast sees that trend continuing in 2023 with 1,570 permits, another 2.6% over 2022.
Prices in Wichita have outpaced the state as a whole in 2022, and are expected to end the year up 12.9%. Longhofer sees continued appreciation in 2023, but at a more normal pace of 4.7%.