In Saturday’s Eagle, Plaza Real Estate President John McKenzie – who is one of the straightest shooters in Wichita’s residential market – is going to tie Wichita’s increasingly soft home sales numbers to the price of oil.
Existing and new home sales in April were at four-year monthly lows – despite a relatively steady inventory of homes for sale and some strength in certain market sectors.
It’s an interesting correlation, to be certain: Potential homebuyers and sellers confronted with rising energy costs, food costs and the trickle-down bad news that oil prices bring are becoming so nervous about their economic situations that they’re leaving the housing market.
The statistics seem to back him up. Perception does indeed appear to be reality. And if you’re looking for a rebound, McKenzie doesn’t think one is coming until Congress cracks down on oil speculators.