Muncie Community Schools turmoil to destroy real estate market?

But real estate agents remain optimistic.

"The problem is that they have been losing students, primarily to surrounding schools, and done nothing to adjust staff or facilities to meet the declining revenues," professor Michael Hicks told The Star Press. "This has been, and will continue to be, very damaging to Muncie's economy. The uncertainty about the school situation will absolutely destroy the real estate market in Muncie this year.

The professor also predicts the continued uncertainty will lead to the loss of 500 more students this year. That will worsen the school corporation's finances, lead to more layoffs and school closings in the coming years, and negatively impact real estate prices, which will reduce property tax revenue, according to Hicks. "This combined with the loss of another 500 students — my best guess — will trim another $4 million off next year's available budget," the professor says.

The uncertainty includes the possibility of closing at least five schools: Northside Middle School along with four elementary schools.