Wichita home values will end the year up 12.9 percent and then rise by another 4.7 percent next year according to the 2023 Wichita Housing Forecast published by the Wichita State University Center for Real Estate.
“Home price appreciation is slowing, but the supply of homes available for sale remains near historic lows,” said Stan Longhofer, director of the WSU Center for Real Estate. “Although bidding wars may not be as intense as they were earlier this year, it will continue to be a sellers’ market across most market segments.”
Longhofer will present the forecast at the 2023 Wichita Housing Forecast Conference at 1:30 p.m. Wednesday, Oct. 19 at Woolsey Hall on the Wichita State University campus. Lawrence Yun, chief economist with the National Association of Realtors, will also speak at this event remotely over Zoom.
Longhofer will be available for interviews following the conference at about 3:30 p.m.
The Wichita Housing Forecast is a part of the 2023 Kansas Housing Markets Forecast series that 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 wichita.edu/realestate.
Highlights of the 2023 forecast include the following:
Wichita Forecast
- Home sales – Tight inventories and rising mortgage rates should cause Wichita-area home sales activity to fall by 4.9 percent this year to 11,560 units. Sales will rebound slightly in 2023, ending the year up 0.7 percent at 11,640 units.
- Construction – New home construction activity in the Wichita area is expected to rise 5.2 percent this year to 1,530 units. This trend should continue in 2023, with permitting activity rising another 2.6 percent to 1,570 units.
- Home prices – Wichita home price appreciation may be slowing from its torrid pace of the first part of the year but should still end the year up a remarkable 12.9 percent. Appreciation will return to a more-normal pace of 4.7 percent in 2023.
Kansas Statewide Forecast
- Home sales – Home sales activity across Kansas was slowing this year even before mortgage rates began to rise. Sales are expected to end the year down 6.9 percent at 43,100 units. Home sales should rebound to 44,930 units in 2023, an increase of 4.2 percent.
- Construction – New single-family building permits in Kansas are expected to fall by 3.9 percent this year to 6,310 units. Construction activity should stabilize in 2023, dropping a modest 0.9 percent to 6,255 units.
- Home prices – Home prices across the state rose by 14.6 percent last year as surging demand ran headlong into supply constraints that have been building for years. While demand has eased with rising mortgage rates, Kansas home values should still end the year up 12.3 percent. The pace of appreciation should slow next year, to a still-strong 5.4 percent.
For more information and a copy of each of the publications in the 2023 Kansas Housing Markets Forecast series, go to wichita.edu/realestate, or contact Longhofer at 316-516-6365 or stan.longhofer@wichita.edu.
About Wichita State
Wichita State University is Kansas' only urban public research university, enrolling almost 22,000 students between its main campus and WSU Tech, including students from every state in the U.S. and more than 100 countries. Wichita State and WSU Tech are recognized for being student centered and innovation driven.
Located in the largest city in the state with one of the highest concentrations in the United States of jobs involving science, technology, engineering and math (STEM), Wichita State University provides uniquely distinctive and innovative pathways of applied learning, applied research and career opportunities for all of our students.
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About the W. Frank Barton School of Business
Located in Kansas’ business hub and with significant ties to the business community, the W. Frank Barton School of Business provides extensive applied learning opportunities. With in-person and online options, Barton School undergraduate and graduate programs are tailored to transform the lives of its students. It also holds a double AACSB accreditation for business and accounting, which puts it in the top 1% of business schools worldwide. The Barton School was established as the university’s College of Business Administration and Industry in 1926 and has thousands of graduates around the world.