Kansas home prices will increase by six percent in 2025, according to the annual forecast from the Wichita State University Center for Real Estate.
The forecast was presented Thursday by the Center’s director, Dr. Stan Longhofer. He said inventories of homes available for sale are still tight, and at the same time buyers are remaining cautious in the face of higher home prices and financing costs. As a result, housing markets across the state are more balanced than they have been in years.
Dr. Longhofer presented the forecast at the Kansas Association of Realtors Annual Conference in Overland Park. WSU released a list of highlights from the presentation:
Kansas Statewide Forecast
- Home sales – After falling for the past two years in the face of rising mortgage rates, home sales activity across Kansas has stabilized during the first half of 2024. Sales across the state are expected to fall slightly this year and then rebound in 2025, rising 3.3% to 36,080 units.
- Construction – New single-family building permits in Kansas are expected to rise by 5% this year to 5,175 units. Permitting activity should decline slightly in 2025, dropping 1.6% to 5,090 units.
- Home prices – Kansas home values will continue to appreciate at an above-normal rate for the foreseeable future, rising 7.9% this year, followed by another 6% gain in 2025.
Wichita Forecast
- Home sales – Wichita area home sales should end the year down slightly at 9,360 units before rebounding slightly in 2025, rising 2% to 9,550 units.
- Construction – New home construction activity in the Wichita area is expected to end the year virtually unchanged from 2023 at 1,255 units. Activity should rise modestly in 2025, ending the year up 4.9% at 1,285 units.
- Home prices – Wichita home price appreciation remains quite strong due to a lack of supply. While we won’t see the double-digit gains we had in recent years, Wichita home prices are projected to rise by 8% this year, followed by another 7.7% increase in 2025.
[ photo credit: Reuters ]
