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CENTER FOR REAL ESTATERESEARCH EDUCATION OUTREACHMeritrust Credit Union has been helping our members do more with their money since 1935. Weoffer 17 retail branches providing advisory experiences, complemented by online, mobile andeATM technology allowing members to bank on their time. Our team of lending experts bringssimplicity to the home-buying process, and in-house payments, processing and servicing continueto provide members peace of mind into the future. Meritrust has the products, services, toolsand education members need to achieve their financial goals with confidence, including flexiblemortgage programs. For more information, visit meritrusthomeloans.com. Equal housing lender.Federally insured by NCUA.We Protect Property Rights. Security 1st Title offers licensed and trained professionals toassist you with your local and national title and closing needs. Our local, experiencedstaff delivers exceptional service to the protect property rights of homeownersand lenders. Our team has extensive knowledge and experience in handlingresidential, commercial, new construction, refinance and relocationtransactions. Find us online at www.security1st.com to contact our localoffice for more details on how we can assist you.CENTER FOR REAL ESTATERESEARCH EDUCATION OUTREACHPhoto Credit: Images in this publication were sourced from the NASA.gov image galleries.

Wichita State UniversityW. Frank Barton School of BusinessCenter for Real Estatehousing Wichita20forecast 2222022 Wichita Housing ForecastWELCOMEWe are especially grateful to Security 1st Title andMeritrust Credit Union for underwriting the cost ofpreparing this year’s Wichita Housing Forecast.In the midst of a pandemic and its consequent economic turmoil, it may seem that the Wichita housingmarket is defying gravity. The tightest inventories in history have led to bidding wars, rapidly rising homeprices, and buyer fatigue. Will the market continue a meteoric rise? Or come crashing back to earth?As we navigate into the uncharted void, the 2022 Wichita Housing Forecast is here to give you the guidanceyou need to explore a housing market that is Out of this World!Dr. Stanley D. LonghoferDirector, WSU Center for Real EstateCENTER FOR REAL ESTATEWe are also grateful to the Realtors of SouthCentral Kansas, the South Central Kansas MLS,the Kansas Association Realtors and participatingmultiple listing services across Kansas for providingmuch of the data used to prepare this forecast.RESEARCH EDUCATION OUTREACHWICHITA.EDU/REALESTATEThanks to the many colleagues and friendswho have helped make this forecast possible:Nate Bell, WSU Center for Real EstateMike Busch, WSU Center for EconomicDevelopment and Business ResearchKaren Gehle, Kansas Association of REALTORS DESIGN BY VISUAL FUSION GRAPHIC DESIGN STUDIOJeremy Hill, WSU Center for Economic Development andBusiness ResearchSheila Rumsey, REALTORS of South Central KansasParticipants in the 2021 Wichita Real Estate RoundtableDISCOVERY DATE OF LAUNCH: April 24, 1990 (Hubble Space Telescope)Background image is of the launch pad for the Discovery rocket that contained the Hubble space telescope in 2009.PHOTO CREDIT: IMAGES IN THIS PUBLICATION WERE SOURCEDFROM THE NASA.GOV IMAGE GALLERIES.3

2022 Wichita Housing ForecastUnemployment Rate aEconomicWICHITA mployment Losses since January 2020 b0-4PERCENTOfficially, the recession of 2020 wasonly two months long, but thatdoesn’t mean its effects weremodest. The local unemploymentrate rocketed to an all-time highof 19.2 percent in April as theWichita metropolitan area lost14.3 percent of its jobs in justthree months. And while theunemployment rate has fallenback to earth in recent months,only about half of Wichita’s lostjobs had been recovered by Julyof this year.KANSAS20-8-12WICHITA MSAMortgage rates rose during thefirst quarter of the year, onlyto fall back near historic lowsthrough the summer. When rateswill rise again depends largely onwhen the Federal Reserve pulls backon its holdings of mortgage-backedsecurities and on whether the recentuptick in inflation proves persistent.-162020KANSASU.S.2021Mortgage RatesFORECAST6Sources:Freddie Mac, MortgageBankers Association,U.S. Bureau of LaborStatistics5PERCENTWichita State UniversityW. Frank Barton School of BusinessCenter for Real EstateOverview43HUBBLE TELESCOPE DISTANCE FROM EARTH: 547 kilometers (340 miles)230 YEAR FIXED RATE14ECONOMIC OVERVIEWNew observations from NASA’s Hubble Space Telescope have investigated the nature of the powerful gamma-ray burst GRB 190114C bystudying its environment. Shown in this background illustration, gamma-ray bursts are the most powerful explosions in the universe.201620175 1 ADJUSTABLE RATE2018CMBA FORECAST2019202020212022Notes:a) Seasonally adjustedb) Cumulative changein total non-farmemployment,seasonally adjustedc) Mortgage BankersAssociation August2021 forecastof the 30-yearconventionalmortgage rate5

Home Sales 2018201920202021New Home Construction Activity-0.2% 5.5% 6.4% 4.8% 5.6% 6.2% 0.0% 4.2%-3.1%3,000-0.9%5,000 1.1%4,500 1.0%7,5002022WICHITA 1920202021 8.7% 6.0% 16.0% 12.7% 11.6%600 30.0%-8.1% 8.6% 1.7%20171,6701,5751,075993 1.4%1,0811,000 8.3%849 3.2%1,5008882022300U.S. SINGLE-FAMILY STARTS IN 1,000S1,500c00FORECAST2,5005001,500U.S. EXISTING HOME SALES IN 1,000SWICHITA AREA12,5000WICHITA AREA SINGLE-FAMILY PERMITSNew home construction in the Wichita area exploded lastyear, rising by 30 percent in the face of strong demandand rapidly rising existing home prices. We expect thiscontinue for the foreseeable future, with permittingactivity rising by 12.7 percent to 1,575 units this year,followed by another 6 percent increase in 2022 toend the year at 1,670 units.9,000a2,500The Wichita housing market remains white hot, even if it hascooled somewhat in recent months. We expect that Wichitaarea home sales will rise by 4.8 percent this year to 12,050units. In 2022, we project that sales will continue to expand,growing to an all-time high of 12,710 units.HOME SALES & CONSTRUCTIONFORECAST15,000WICHITA AREA TOTAL HOME SALEShomesalesandconstructionWichita State UniversityW. Frank Barton School of BusinessCenter for Real Estate2022 Wichita Housing Forecast0Sources:National Association of REALTORS , South Central Kansas Multiple Listing Service, Wichita Area Builders Association, U.S. Bureau ofthe Census, WSU Center for Real EstateThe Hubble telescope was named after Edwin Hubble, who was known fortheorizing other galaxies outside of our own Milky Way and for establishingthe Hubble Constant, the speed at which the universe is expanding.6Background image shows how a Herbig–Haro object is a turbulent birthing ground for new starsin a region known as the Orion B molecular cloud complex, located 1,350 light-years away.Notes:a) Total home sales in the Wichita area as reported by the South Central Kansas Multiple Listing Serviceb) U.S. existing home sales as reported by the National Association of REALTORS ; forecast is the August 2021 forecast by theNational Association of REALTORS c) Single-family building permits issued in the Wichita area as compiled by the Wichita Area Builders Associationd) U.S. single-family housing starts as reported by the U.S. Bureau of the Census; forecast is the August 2021 forecast by theNational Association of REALTORS 7

2022 Wichita Housing ForecastHOME PRICESHome1412MONTHS' SUPPLYAlthough inventories have risen slightlyover the course of this year, it remainsa strong sellers’ market, even amonghomes priced above 500,000.Desirable homes are selling at lightspeed, and prospective buyers arecompeting on contract terms aswell as price.1086420As a result, home prices havebeen appreciating at theirfastest pace since at leastthe late 1970s. We project thatWichita-area home values willrise by 10.9 percent this year,followed by another 6.8 percentincrease in 2022.20162017LIST PRICE 100,0002018100,000 LIST PRICE 250,00020192020250,000 LIST PRICE 500,000Home Price Appreciationb2021LIST PRICE 500,000FORECAST1210. 9PERCENT9Wichita State UniversityW. Frank Barton School of BusinessCenter for Real EstatepricesHome Inventory by Price Range a7.66.864.83. 5302.9201720182019202020212022Sources:Federal Housing Finance Agency, South Central Kansas Multiple Listing Service, WSU Center for Real EstateHUBBLE MISSION OBJECTIVE: To gather light from cosmic objects so scientists canbetter understand the universe around us. Optics see ultraviolet light, visible light,and near-infrared light (100 nanometers/1.8 microns in wavelength).8Background image shows a second X-class solar flare, appearing as a bright flash on the left side (from NASA’sSolar Dynamics Observatory).Notes:a) Active listings divided by the 12-month trailing moving average of sales, segmented by list priceb) Year-over-year percentage change in the Federal Housing Finance Agency all-transactions housing price index for theWichita metropolitan area, as measured using 4th quarter values9

2022 Wichita Housing 37641,13244,228 021 15.9% 6.2% 26.3% 3.1% 17.4% 7.5%-5.3% 0.9%-11.1%-0.2% 15.6%15,000 1.6%30,000SINGLE-FAMILY PERMITSB7,5452,00002022Home Inventory by Price Range a108Home sales across Kansas have continued to rise, in spite of historically low inventories across all pricesegments. We forecast that total home sales in Kansas will end the year up 3.1 percent at 45,610 units,although sales would be stronger if there were simply more homes on the market. Sales will rise again in2022, increasing 6.2 percent to 48,430 units.6420The lack of supply is spurring a surge in new home construction activity across much of the state. Singlefamily permits are expected to end the year at 7,545 units, an increase of 26.3 percent. Permitting activityshould rise again in 2022, ending the year up 15.9 percent at 8,745 units.2016LIST PRICE 100,00020172018100,000 LIST PRICE 250,0002019In the face of strong demand and incredibly tight inventories, existing home prices are rising at aremarkable pace across most of the state. We project that typical Kansas home values will end the yearup 10.5 percent, followed by another 7.6 percent gain in 2022.2020250,000 LIST PRICE 500,000Home Price Appreciation b2021LIST PRICE 500,000FORECAST1210. 5PERCENT97. 66.664. 93. 9SIZE OF HUBBLE TELESCOPE: 43.5 feet or 13.2 meters, weights 24,500 poundsBackground image depicts a small section of the Cygnus supernova blast wave, located around 2,400 light-years away.4.43010SALES60,000MONTHS' SUPPLYW. Frank Barton School of BusinessWichita State University10,000ACenter for Real EstateforecastFORECAST75,000TOTAL HOME SALESKansasKansas Housing Market ActivityKANSAS FORECAST201720182019202020212022Sources:Federal HousingFinance Agency,Participating REALTOR multiple listing servicesacross Kansas,U.S. Bureau of theCensus, WSU Centerfor Real EstateNotes:a) Active listingsdivided by the12-month trailingmoving average ofsales, segmentedby list priceb) Year-over-yearpercentagechange in theFederal HousingFinance Agencyall-transactionshousing price indexfor Kansas, asmeasured using 4thquarter values11