US Housing Market Forecasts for 2016:Kansas City Part 3

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_KC

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.

 

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