A new report details the Kansas real estate market forecast for 2023

WICHITA, Kan. – Whether you’re in the market for a new home or trying to sell a home, a new report has information that can help you decide what to do.

The 2023 Kansas Housing Market Forecast says Kansas home values ​​will end 2022 up 12.3% and then increase by another 5.4% next year.

The Wichita State University (WSU) Center for Real Estate released its 2023 forecast on Wednesday. Stan Longhofer, director of the center, will present the findings at the state realtors conference on Thursday.

“Home price appreciation is slowing, but the supply of homes available for sale remains near historic lows,” he said. “While the bidding war may not be as fierce as it was earlier this year, it will continue to be a seller’s market in most countries.”

The WSU Center for Real Estate reviewed the current housing market conditions in Wichita, Kansas City, Topeka, Lawrence, and Manhattan. It also looked at 23 counties across the country and created a forecast for housing market activity until the end of next year.

Kansas Real Estate Market Forecast Series 2023

Source: WSU Center for Housing

Kansas Statewide Forecast

  • Home sales – Home sales activity across the country slowed even before mortgage rates began to rise. Sales are expected to end the year down 6.9% at 43,100 units. Home sales should rebound to 44,930 units in 2023, an increase of 4.2%.
  • Construction – New single-family building permits in Kansas are expected to decline by 3.9% this year to 6,310 units. Construction activity should stabilize in 2023, down 0.9% to 6,255 units.
  • Home prices – Home prices across the country rose by 14.6% last year as demand jumped right into supply constraints that had been building for years. While demand has eased with rising mortgage rates, Kansas home values ​​should still end the year up 12.3%. The rate of appreciation should slow next year to a still strong 5.4%.

Kansas City forecast

  • Home sales – Total home sales in the Kansas City area should end the year down 8.3% at 41,940 units due to a combination of lack of inventory and softening demand. Sales activity should rebound in 2023, rising 5.6% to 44,290 units.
  • Construction – Single-family letting activity in the Kansas City metropolitan area slowed in the first half of the year due to supply chain issues and labor shortages. Kansas City should end the year with 6,295 single-family permits, down 10.7% from 2021. Permit activity should drop again slightly in 2023, falling 1.7% to 6,185 units.
  • house prices – The frenzied demand that characterized the market through the early part of this year seems to have eased. However, very tight inventory will continue to put pressure on home prices. Kansas City rates should end the year rising 13.8% before slowing to 6.5% in 2023.

Click here read the full Kansas City forecast.

Wichita forecast

  • Home sales – Tight inventory and rising mortgage rates should cause Wichita-area home sales activity to decline by 4.9% this year to 11,560 units. Sales will rebound slightly in 2023, ending the year up 0.7% at 11,640 units.
  • Construction – New home construction activity in the Wichita area is expected to increase 5.2% this year to 1,530 units. This trend should continue in 2023, allowing activity to rise again by 2.6% to 1,570 units.
  • Home prices – Wichita home price appreciation may have slowed from its torrid pace in the first part of the year but should still end the year up an impressive 12.9%. Appreciation will return to a more normal rate of 4.7% in 2023.

Click here to read the complete Wichita forecast.

Topeka Forecast

  • Home sales – Topeka area home sales will end the year down 2.5% at 3,410 units. Sales should decline again slightly in 2023, ending the year down 0.6% at 3,390 units.
  • Construction – New home construction activity in the Topeka area has risen markedly over the past few years despite supply chain issues and labor market shortages. This trend should continue, with total single-family building permits up 4.3% this year to 435 units. Construction should slow slightly in 2023, falling 2.3% to 425 units.
  • Home prices – Very tight inventory continues to put pressure on Topeka area home prices, which should end the year up 9.7% before slowing to a more common 3.3% gain in 2023.

Click here read the full Topeka forecast.

Lawrence Prophecy

  • Home sales – Lawrence-area home sales are expected to decline by 4.9% this year to 1,470 units due to tight inventory and soft demand. Sales should rebound slightly in 2023, ending the year up 0.7% at 1,480 units.
  • Construction – Single-family permitting activity in the Lawrence area has stabilized at about 270 units annually in recent years. This trend should continue for the foreseeable future, with Lawrence ending the year with 275 new single-family permits, followed by 265 new permits in 2023.
  • Home prices – Extremely tight inventory has caused Lawrence home values ​​to rise at a rapid rate. Lawrence home values ​​should end the year up 12.3% before slowing to a more normal rate of appreciation of 4.8% in 2023.

Click here read the full Lawrence forecast.

Manhattan forecast

  • Home sales – Home sales activity in the Manhattan-Junction City metropolitan area is expected to decline by 9.3% this year to 2,030 units due to a lack of inventory coupled with higher mortgage rates. Sales should drop another 2.5% in 2023 to 1,980 units.
  • Construction – New home construction activity in the Manhattan-Junction City area is expected to rise by 3.4% to 275 units this year despite supply chain issues and labor shortages. This should continue in 2023, with permits rising again by 3.6% to 285 units.
  • Home prices – Home values ​​in the Manhattan-Junction City metropolitan area are up 9.3% this year. The market should normalize in 2023, with home values ​​rising by a solid but more typical 4.2%.

Click here read the full Manhattan forecast.

23 counties of Kansas

Click the link below for each county’s real estate market forecast.

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