All Forum Posts by: David Riehle

Kansas City's real estate market has been experiencing a shift in Q1 of 2023. The inventory has increased, prices have softened, and mortgage rates have been swinging, all of which has impacted the market in various ways. Let's dive into the data to understand what's going on.

Firstly, pending sales are down 14% from 9,569 to 8,179, which is lower than pre-pandemic numbers.

Closed sales have decreased from 8,217 to 6,575, a 17.8% decline. Sales continue to decrease as home prices continue to increase, and interest rates start to stabilize. As a result, the market has become more competitive for buyers, making it challenging to find homes.

However, there's good news for buyers as inventory has increased by 13.5% from last year, standing at 4,478 homes for sale compared to 3,947 homes for sale at the same time last year. Although this is still lower than the 7,187 homes for sale in Q1 of 2020, the increase in inventory is a promising sign for buyers as the market is starting to shift.

With a 40% increase in inventory, we are up to 1.4 months of supply. A balanced market would have 2 months of supply. The inventory is still relatively low, which means that it's still a seller's market. However, the increase in inventory is a sign that there may be more opportunities for buyers to make offers in the coming months.

Regarding home prices, they've increased 1.4% compared to last year, and 24% compared to 2020, with an average sales price of $321,263. In 2022, it was $316,935, and $244,405 in 2020. The percent of the original list price received at the sale is down from Q1, as the decrease in supply is compressing sales prices. Sellers can expect to receive 97.6% of their asking price.

Mortgage rates have been swinging, and with fewer buyers competing for homes, price growth has continued to soften. The lack of inventory has kept prices from continuing to fall. We still have high demand, and any relief in interest rates could cause a dramatic increase in contract signing.

In conclusion, Kansas City's real estate market is experiencing a shift in Q1 of 2023. Inventory has increased, and prices have softened, making it a good time for buyers to make offers. However, the market is still relatively competitive for buyers, with inventory remaining low. Keep an eye out for any changes in mortgage rates as they could have a significant impact on the market.

Kansas City, Missouri, has become a hotspot for real estate investors in recent years. With its affordable housing market and growing economy, many investors are looking to purchase and rehab single-family homes (SFH) in the area. In this blog post, we will take a closer look at one such investment and calculate its return on investment (ROI).

The subject property was purchased on market in Kansas City for $172,500. The property required some rehab work, which cost $10,000. Carpet, backdoor replacement, and window glass replacement. Additionally, the investor incurred $500 in carrying costs. The total investment in the property was $181,500. Because of the repairs needed, this limited the number of buyers for this particle property.

After rehabbing the property, the investor sold it for $215,000. The property was placed under contract for 1 day on market, with a 45 day close. Total hold time was 90 days. The investor paid $15,050 in closing costs/commission. The property was sold without any financial concessions.

With these numbers in mind, let's calculate the ROI of the investment. First, we'll calculate the gross income, which is the total revenue generated from the sale of the property:

Gross Income = Sale Price - Closing Costs Gross Income = $215,000 - $15,050 Gross Income = $199,950

Next, we'll calculate the net income, which takes into account the total investment and all associated costs:

Net Income = Gross Income - Total Investment Net Income = $199,950 - $181,500 Net Income = $18,450

Finally, we'll calculate the ROI as a percentage:

ROI =($18,450 / $181,500) x 100 ROI = 10.16%

IRR= 47%

The ROI for this investment is 10.16%. This is a solid return on investment, especially considering the relatively short timeline of the investment (90 days) and the fact that the property was sold without any financial concessions. It's clear that there is still a high demand for affordable SFH in Kansas City that may need minor repairs, and this investment is a great example of how investors can capitalize on that demand.

In conclusion, investing in real estate can be a great way to generate income and build wealth, and Kansas City is a great market for those looking to invest in affordable SFH.

great advice, especially for a me, new agent that just moved to a new market. Providing value, and coming from a place of contributions will go along way in winning over clients.

Always nice to have it rented, before the remodel is complete. Another great project!

The growth in Tucson has been extremely exciting. The home values have just been skyrocketing and the rental market is as strong as ever.