Kansas

A slowing home market has had just a slight influence on the Kansas economy. But as sales slow and real estate prices decline Kansas is sure to feel the growing impact.

Jobs are the heartbeat of the economy and what allows so many to attain the American Dream of home ownership. They’re on the upswing in Kansas. Some 19,000 new jobs are forecast to be developed this year statewide.

Kansas doesn’t only have the same problems in its housing market as nearly the rest of the country with the mortgage mess. Home owners are also being asked to pay property taxes on homes and other real estate that are more than a year old and out of date with falling values.

There’s been a housing slump in Kansas for more than a year, but tax bills have increased for most home owners.

City	Forecast
Kansas City	− 7.8%
Topeka	− 6.4%
Wichita	− 6.1%
Lawrence	− 5.9%

Permits for new home construction and single family home sales are down in Kansas City, where at least homes are reappraised every year for property tax bills. Tens of thousands of real estate owners are expected to appeal their property tax bills for 2008.

In Kansas City, where housing prices have only slipped modestly compared to other areas the market is forecast to slow further in the coming year, and deflate an average of 7.8%.

The capitol city of Topeka has more modest housing prices on average than Kansas City. Topeka saw a local real estate boom during the markets hey day grind to a weak pace. There are few buyers in the market these days with growing uneasiness over the economy. Topeka will see an even slower pace of sales through the year on 6.4% deflation.

In Wichita the market flew when interest rates were at their lowest before the credit crunch slammed it nearly closed. These days it’s harder to get a mortgage and it’s having a huge impact on home sales in Wichita, where the market is forecast to be slow through the year and deflate home prices an average of 6.1%.

Lawrence is a river city on the Kansas River once renowned for being one of the places in the nation’s history where anti-slavery sentiment began. Some locals in Lawrence say they are now slaves to their homes with high property taxes they cannot afford. As a result of higher than expected property taxes and a slumping real estate market, Lawrence housing isn’t moving much these days.

The slowdown is forecast to last through the year and will only worsen as Lawrence adjusts to changing economic conditions nationally with deflation of 5.9% this year.