In this Part 3 of our series of taking a prospective look at some select US markets and forcasts for 2016, we will be analysing the third city in Kansas. The results are the research work of Wichita State University Center for Real Estate. In the previous posts we examined the forcasts for Kansas City in Part 1, and Wichita in Part 2. The last metro area to be reviewed in these series is Lawrence:
Lawrence is the sixth largest city in the state of Kansas and 35 miles west of the Missouri state border. It has a population of about 87,600 according to the 2010 census; It is a college town and the home to the University of Kansas and Haskell Indian Nations University. With high student population, this city house vacancy is reputed to be the lowest in Kansas City.
Lawrence housing forecast for 2016
- Home sales –Lawrence home sales grew at a solid pace in 2014. This trend has accelerated this year, and sales in 2016 should be up another 7.4 percent to 2,020 units, the highest level on record.
- Construction –Permitting activity fell 15.6 percent last year, and while recent figures point to a strong rebound this year, the forecast of 225 new units in 2016 is still less than half of the levels seen in the early 2000’s.
- Home prices–The inventory of homes available for sale in the Lawrence market continues to tighten, as new listings fail to keep pace with increased sales. In response, Lawrence home values have begun to appreciate once again, with average values expected to rise by 2.7 percent this year, and another 3.0 percent in 2016.
In concluding this series on Kansas, it does appear that the research results strongly suggest sustained growth in the Mid-West state of Kansas with Lawrence leading the pack at 7.4% in growth in home sales.
In an earlier post, we looked at the market forcasts for 2016 for Kansas City from the market reserach conducted by the Wichita State University Center for Real Estate.
You can read the post here:
Today, we will look at another city within Kansas State, called Wichita.
Wichita is the largest city in the State of Kansas, located in south-central Kansas on the Arkansas River, Wichita metropolitan area, according to the United States Census, is 641,076.
Wichita housing forecast for 2016
- Home sales –After a slow first quarter, Wichita home sales are now on pace to increase 4.6 percent this year. This trend should continue in 2016, with sales rising 3.3 percent to 9,970 units.
- Construction –New home construction in the Wichita area rose last year to just above 1,000 units. This pace of activity should continue in the foreseeable future, with permits rising 4.9 percent in 2016 to 1,065 units.
- Home prices–Wichita area home prices are beginning to rise in the wake of tight inventories of homes available sale. Wichita home values are expected to rise by 3 percent in 2016.
In the third part of the series, we will review the city of Manhattan.
As we count down to the end of the year and looking forward to 2016, I will be starting a series on the US housing forecasts for 2016. As an investor, one of the most potent tools you need is information of the target market you wish to invest in. In these series, I will provide you with information on some investor friendly markets across the United States with respect to published forecasts for 2016
We have a strong presence in the Mid West and it is not surprising that we are starting with Kansas City:
The Kansas Association of REALTORS in collaboration with Center for Real Estate recently published the 2016 Kansas Housing Markets Forecast and here are the highlights:
Kansas home sales should rise by more than 8 percent in 2016 according to the 2016 Kansas Housing Markets Forecast series published by the Wichita State University Center for Real Estate.
“After a flat year in 2014, home sales activity across the state has rebounded strongly this year,” said Stan Longhofer, director of the WSU Center for Real Estate. “We forecast that sales across Kansas will rise by 8.6 percent in 2016, to 42,110 units.”
Longhofer presented the forecast on Thursday, Oct. 15, at the Kansas Association of Realtors Annual Conference and Expo at the Capitol Plaza hotel in Topeka.
- Home sales –Kansas City home sales were essentially flat in 2014, rising just 0.6 percent. The market has been strong so far this year, however, and this trend should continue in 2016, with sale rising 7.3 percent to 38,280 units.
- Construction –New home construction in the Kansas City area has picked up this year, following a slight decline in 2014. Permitting should continue to rise next year, up 11 percent to 5,260 units.
- Home prices–Tight inventories of homes available for sale have resulted in strong home price gains in the Kansas City area. Average home values are expected to rise by 6.1 percent in 2015 and another 6.3 percent in 2016.
Indeed, the prospects look very bright and the time to start planing for 2016 is now.
Other major cities in Kansas are Lawrence, Manhattan, Topeka and Wichita. We will examine these cities in the subsequent parts in the coming days.