Wichita, KS (PRWEB) October 13, 2012
REMI issued its observations on a study released recently by researchers at Wichita State University forecasting substantial growth for the housing market in 2013, asserting that it would help real estate sellers in the area as the prices and demand grow into the coming year.
Economic researchers at the University of Wichita released a forecast last week entitled “Picking Up Steam,” examining trends in the Kansas housing market this year and using them to make predictions about the economy in the coming year. According to the study, Kansas home sales are already on the upswing in 2012, to the tune of 13 percent, and are expected to rise another 6.3 percent next year. Home prices are rising by around 2 percent statewide so far this year, and next year another 1.5 percent appreciation is expected.
Researchers attributed this growth to realtor marketing and what Bloomberg Businessweek called “pent-up demand” due to the collapse a few years ago of the housing market, which took a steep toll on the Kansas economy. Signs show that some effects from this collapse are still being felt; among this great news about the economy, the forcecast predicts that construction in Kansas will fall by 7 percent in 2013, mostly due to high building costs and a plethora of relatively new homes already on the market.
The growth is significant all over the state, but particularly in Kansas City, one of the state’s most metropolitan areas; home sales in the city are expected to grow almost 18 percent by the end of this year, and an extra 5 percent in 2013. Topeka, the capital city and an area hit hard by the economic downturn, expects that sales and vacation rental by owners will rise a modest 4 percent this year, and prices will be back to 2010 levels by next year. Wichita, the home of WSU and the forecast’s research team, is anticipating a 7 percent rise in sales and an additional 4.2 percent rise in 2013, although construction projects are still at low levels. Other large cities in the state, such as Lawrence and Manhattan, are also prepared for substantial housing growth.
The study is to be taken cautiously, warned Stan Longhofer, director of the WSU Center for Real Estate; it cannot account for potential economic turmoil, such as the possibility of deep spending cuts and tax increases should Congress fail to reach a budget deal by year’s end. For the time being, though, this is wonderful news for the Kansas real estate sector.
The REMI released a statement on a forecast released by Wichita State University’s Center for Real Estate that expects major growth in Kansas’s hard-hit housing market. Statewide, sales are expected to rise 6.3 percent in 2013, and have already grown almost 13 percent this year. Home prices are set to rise about 2 percent in 2013.
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About Real Estate Marketing Insider: REMI is an online publication based in La Jolla, CA which provides real estate professionals with hot news, marketing tips and analysis of housing trends.