The Midwestern state’s property market is suffering from a meltdown after oil prices slid to low levels last year. But surprisingly, the general real estate market condition is fairing better compared to other states. Thanks to the few subprime and Alt-A loans that lured only a few borrowers. Nonetheless, some areas have experienced the crunch with the number of foreclosed homes, mostly dilapidated, hitting double figure rates.

In Kansas City, home purchases remain slack. Prone to tornadoes and ice storms, the property market has been hit harder by the financial crisis. RealtyOutlook.com forecasts home sales to stay sluggish throughout the year when the borrowers with adjustable rate mortgages will start paying new rates. Furthermore, home values will drop by 13.5 percent.

Wichita achieved quite a feat last year when home prices inflated just when most metropolitan cities are experiencing a hard fall. But interest rates plunged dramatically that sent the real estate industry downward. Nevertheless, flip sales can provide the needed support this year and can tame depreciation by 10 percent.

In Lawrence, another college town, the property market isn’t auspicious in the year ahead. Prices are subject to drop by 5.5 percent and may reach lower still by the following year. The reason behind this slight drop is the minimal appreciation of home prices during the real estate expansion a few years back.

Topeka’s Court of Tax Appeals remained very busy during the previous years when homeowners attended hearings that sought to lower their property taxes. Appraisal reports of most homes have reported very low values. Obviously, this is a bad sign for mortgage borrowers since it will cause more foreclosures in Shawnee County. RealtyOutlook.com expects home prices to plunge by 11.5 percent.