Sedgwick County home prices appreciated by 1.12 percent between the fourth quarters of 2006 and 2007, according to new figures released by the Center for Real Estate at Wichita State University.

For the quarter, home prices declined by 0.51 percent, which translates into annualized decline of 2.04 percent.

For the year, Wichita home prices appreciated at the slowest pace since 1990, when prices were essentially flat for the year.

“The slowdown at the end of the year was driven by declines at the lower end of the market,” says Stan Longhofer, director of the WSU Center for Real Estate. “In fact, sales of existing homes priced above $100,000 rose by 4 percent in 2007, while sales of lower-priced homes fell by 4 percent. It appears that buyers for these lower-end homes have been constrained by tightening credit standards in the mortgage market.”

“Despite the slowdown at the end of last year, the fundamentals in the market remain strong. We believe that sales and prices will hold steady through 2008.”

Overall, home prices in Sedgwick County have risen at an average annual rate of 2.85 percent during the past five years. In contrast, prices of other goods and services have risen by 3 percent per year over the same time frame.

For a complete chart of the data, go to http://www.wichita.edu/thisis/newsresource/HomePrice.asp.

Wichita Sector Definitions

The six sectors for which home price indices are calculated are defined using minor MLS zones as established by the Wichita Area Association of Realtors. The sectors can be generally described as follows.

West sector: Neighborhoods west of the Big Ditch.

East sector: Newer subdivisions (less than 25 years of age) that wrap around Wichita’s east side. This sector is intended to mirror the west sector.

Northeast, northwest, southeast and southwest sectors: Quadrants of older neighborhoods in Wichita as divided by Kellogg and Broadway.

For a downloadable version of the graphic image (encapsulated postscript format) and a detailed description of the sectors, including the MLS zones that comprise each sector and street boundaries, go to http://realestate.wichita.edu/research.housing.wsu_hpi.asp.