In the center of the country stands a market that has weathered the latest real estate downturn. While surrounding markets fell in the double digits, Kansas City -- a market split between two states -- has moved forward with level prices and sales volume in the last 12 months. In an era of slipping prices and volume, just keeping up with a year earlier is quite an accomplishment -- one KC has accomplished very well.

The economic forecast for the rest of 2008 is for an addition of 19,000 jobs for the region, which is on top of last year's 19,000 jobs. The Kansas City Chamber reports the regional economy grew more rapidly than expected last year, surpassing employment growth estimates by 53 percent.

Frank Lenk, Director of Research Services for the Mid-America Research Council, prepared the economic forecast for the Chamber and predicts an area Gross Regional Product growth of 2.4 percent during 2008 and increasing to 3.4 percent in 2009. Along with that growth will come real personal income expansion of 2.6 percent in 2008; and 3.3 percent in 2009.

Job and income growth usually means a need for more housing and Kansas City is no exception. Lenk says: "Fortunately, unlike much of the rest of the U.S., home values are not expected to generally decline here. In fact, according to the Home Builders Association of Greater Kansas City, there is a good chance that metropolitan Kansas City will weather the economic difficulties caused by a retrenchment in housing values better than most parts of the country."

While sales prices held relatively steady with growth in new homes by 5 percent and a slip in prices in resales by 5 percent; the number of home sales from January to February 2008 jumped 25 percent.

Published: April 11, 2008

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Mr. Carr has covered real estate since 1989. He is the author of Real Estate Investing Made Simple. Got a personal real estate issue? Post your questions and comments at Anthony’s blog: commonsenserealestate.blogspot.com.