Wichita housing forecast predicts rising home prices despite market softening
WICHITA, Kan. (KWCH) - A new forecast expects demand for housing in the Wichita area to remain high, but it also says this year will end with a drop in sales. The biggest problem Wichita’s housing market faces is a lack of inventory.
The Center for Real Estate at Wichita State University estimates Wichita-area home sales will end the year down nearly 5% from the year before. However, the value of homes will be almost 13% higher than in 2021. The statewide forecast shows a similar trend. The forecast then expects sales to rebound slightly next year, up 0.7% for 2023.
After decades of building about 1,000 new homes annually, it now appears that 1,500 will be the new normal for the market. It’s anticipated new single-family permits will be up about 5% for this year. That figure is predicted to rise slightly in 2023.
Overall, Kansas’ home sales will drop about 7% and home values will end the year up about 12.3%. The CRE says the Federal Reserve’s interest rate hikes have caused demand for housing to soften in Wichita, but home prices will continue to increase in 2023 because inventory is so tight. And, it could be a long time before we return to a balanced market.
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