Kansas City Housing Market Report 2013
Kansas City Housing Market is definitely on the rebound: apartment construction has tripled in 2013 from the previous year and housing prices have been steadily increasing. Kansas City is showing almost equally strong sectors in both new construction and existing home sales, which indicates that this area is part of an uptrend market.
Kansas City Housing Market in 2013:
Kansas City is following national housing trends, with slightly lower sales volume, but higher sales prices.
The Home Builders Association of Greater Kansas City reported 1,946 permits issued for single-family homes through June, up 31.6 percent from the same six-month period last year, and 1,702 apartment units, up 229.2 percent.
The Kansas City Regional Association of Realtors also reported the average sales price of an existing home in June was up 7 percent from the same month last year and the average sales price of a new home was up 7.8 percent, while the existing inventory supply has gone down over 8 percent.
As far as Kansas City being part of an uptrend market, that means that areas where there is a steady flow of people moving in, because of available jobs, will show a steady recovery and an uptrend phenomena. Kansas City Housing Market definitely reflects this scenario.
What does this all mean to a real estate investor?
During the recovery phase, which Kansas City Housing Market is going through, prices of property will still be low, but rapidly increasing. Investors can sell their property at much higher prices in a short amount of time. This is especially interesting to wholesalers, who tie up properties at today’s discounted value and are looking to raise the resale price in a short amount of time.
Some of the most sought-after areas for homes in the metro include Shawnee, Lee’s Summit and the Brookside neighborhood of Kansas City.
Also the rental market is very strong, favorable to investors who are interested in buying and holding, instead of flipping. The demand for rentals is very high, due to homeowners who have lost their homes to foreclosure in recent times (and cannot obtain a mortgage to buy again,) aging population and increase in work force moving in the area because of jobs increase. A lot of opportunities in owner financing, “subject to” and lease options are available in Kansas City: a large number of older homes are owned by seasoned homeowners and investors, who are looking to relocate or downsize.
If you would like to network with other investors and keep current on the Kansas City Housing Market, please join Laura Al-Amery at the Kansas City Real Estate Mentoring and Networking Group.
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