Sales and new home construction activity will continue to decline through most the year, according to revised forecast figures released by the Wichita State University Center for Real Estate.

Existing home sales are forecasted to be 7,520 units, off 11 percent from 2008.

New home sales are forecasted to decline by 17 percent to 1,280 units.

Single-family residential building permits are projected to decline by 19 percent to 1,430 units.

Stan Longhofer

"The ongoing national economic situation is a continuing drag on home sales in the Wichita area," said Stan Longhofer, director of the WSU Center for Real Estate. "We now see a rebound coming in the fourth quarter of this year, although that depends in part on the length and depth of the national recession."

Although home sales and construction activity will continue to be slow, average home prices in the Wichita area are forecasted to rise by 3.2 percent in 2009.

"The housing market remains fairly balanced, despite the decline in sales, Longhofer said. "Because many potential sellers are staying on the sidelines, Wichita homes are continuing to hold their values. This is significant in a time when housing prices are falling in many markets across the U.S."

Longhofer will present the revised forecast figures at the 2009 Spring Real Estate Roundtable at noon today (Friday, Feb. 20) in the Rhatigan Student Center Ballroom at WSU.

He will be available for interviews after the meeting at about 1:30 p.m.

www.wichita.edu/thisis/newsresource/2009_Wichita_Housing_Market.doc