Thursday, Oct. 13th 2016

Wichita State forecast: KC housing will set record for sales next year

Kansas City-area home sales should set a record next year, according to the 2017 Kansas City Housing Forecast published by the Wichita State University Center for Real Estate.

“The Kansas City housing market continues to strengthen,” Stan Longhofer, director of the WSU Center for Real Estate, said in a release. “We expect sales to top 38,000 units in 2017, the highest level on record.”

Longhofer was scheduled to present the forecast at 10:15 a.m. Tuesday at the Kansas Association of Realtors Annual Conference and Expo at the Wichita Marriott.

The Kansas City Housing Forecast is part of the 2017 Kansas Housing Markets Forecast, which covers all the primary markets in the state – Kansas City, Lawrence, Manhattan, Topeka and Wichita.

This year, the series also includes housing outlook publications for 17 smaller Kansas markets. Copies of all of the forecasts and outlook publications can be found at www.wichita.edu/realestate.

Highlights of the Kansas City forecast include the following:

Home sales – Kansas City-area home sales posted strong gains in 2015, rising by 9.7 percent to 35,394 units. Sales continue to grow this year, albeit at a slower pace. Sales are projected to rise again in 2017, by 4.5 percent to 38,460 units.

Construction – New home construction in the metro area has continued to accelerate this year, as well. After posting a 10.2 percent increase in 2015, permitting activity is on pace to rise by 22.7 percent this year. Permitting activity should continue to rise in 2017, up 4 percent to 5,810 units.

Home prices – Area home prices rose on average 4.1 percent in 2015. The pace of appreciation is accelerating this year, with average values set to rise by 5 percent. Prices should rise an additional 3.8 percent in 2017.

Highlights of the statewide forecast include:

Home sales – Home sales activity continues to rise in markets statewide. Sales should increase by 4.6 percent this year and increase 6.2 percent more in 2017, to 41,090 units.

Construction – Outside the Kansas City area, new home construction activity throughout the state has posted only modest gains. New single-family building permits in Kansas should increase by 6.4 percent in 2017 to 5,745 units, with Kansas City-area activity driving much of the gain.

Home prices – Markets statewide are reporting tight inventories of homes available for sale. As a consequence, price gains have been widespread. Average Kansas home values should increase by 5 percent this year, followed by an additional 3.8 percent bump in 2017.

Source: Kansas City Business Journal


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