Foreclosures are Down and Rents are Up!

‘Tis the season to be a real estate investor! The market is hot, hot, hot right now, and all signs are pointing to a very merry holiday season for investors. We make it our business to stay on top of the latest economy and housing market news – here’s what we know is going on in these sectors right now:

• Foreclosure volume is way down right now. Just a few years ago, foreclosures in major housing markets reached staggering figures, but that has turned completely around. Since December 2014, foreclosures have decreased by a whopping 21.5%.
• Consumer optimism is high – and growing. As mentioned in a previous post, millennials are accounting for a growing share of of the buying sector. In fact, a 2015 survey by BMO Harris Bank showed that 74% of respondents in the 18-34 age group planned on buying a house within the next five years.
• In another survey, nearly 40% of respondents reported that they felt home prices would keep rising – another testament to the growing consumer optimism regarding the housing market.
• Investors are also staying positive – and responding accordingly by snapping up new properties for investment. Since 2006, the number of single-family rental homes has increased by 35%.
• Another sign that investors believe this is the time to lay claim to new properties? The fact that they’re diversifying their property investments. Just a few years ago, it was all about snagging foreclosures for rock bottom prices. Now, many investors are turning their attention to newly built homes, which attract high quality tenants – and often turn a bigger profit.
• Appreciation rates are on the rise as well, as shown by ever-increasing home prices. The Kansas City housing market in particular looks good, with appreciation rates up more than 5% than this time last year.
• The job market has also been improving. While unemployment claims rose slightly last week, overall this sector has been steadily rebounding as well, with unemployment rates decreasing slowly but surely, and currently standing at 5.0%.
• Rent is on the rise, too. Early in 2015, Kansas City was one of the fastest growing rental markets in the nation, along with other major markets such as Denver, Nashville, and Portland. Even as the year winds down, this status remains the same, as rental rates in KC continue to grow.
• Another contributing factor to rising rents and an expanding rental market is the population boom that is taking place in Kansas City right now. The metropolitan area is currently home to just under 2.1 million people, showing more than a 3% increase over the last year. This trend is expected to continue, with the city predicted to have some 2.25 million area residents by 2020.

As the old song goes, it looks like everything is up to date in Kansas City – and forecast to stay that way. Don’t wait to get in on your share of the investment action – contact us today to learn how we can make your property investment dreams happen!