Condo Supply

[dangerboy]

People ask about the state of the Downtown condo market a lot on here.  Well here is a bit of data from a real estate agent.  She estimates there is 17 month supply of condos between the river and 75th Street.  That compares with a 7  month supply for single family houses in all of KCMO and only 5 months for Brookside...

http://sarahsnodgrass.com/blog/absorpti ... he-market/

[ComandanteCero]

pretty interesting:

Condos in Kansas City, Missouri (from the River south to about 75th St): Currently, there are 834 condos/lofts for sale. There have been 563 condos/lofts sold in the past 12 months. This tells me that at this rate that condos are selling, it would take us 17 months to sell the 834 condo/lofts that are for sale.

I wonder what the breakdown is between condos for sale downtown vs midtown vs plaza vs south of the plaza.  Hopefully with the opening of the P/L district the rate will increase downtown.

[aknowledgeableperson]

Wonder how many condos exist from south of the Plaza to 75th Street?

[Czar]

The bigger question is how many of these downtown condos are built and how many are still in pipeline

[Angel]

There are currently 92 pending condo contracts right now in that area, too.  So you can add that to the sold.  Although, a lot of those are buildings that aren't finished yet.  An interesting contrast is that in 2006, 820 condos in that same area were sold.

[bahua]

Yeah, but it isn't 2006 anymore.

[ignatius]

A 17 month supply is pretty high and may discourage some development plans, though it's not as bad as the 24-30 month supply in some cities.  The rate of sales should pickup with the interest rates now lower than in the last year.  Downtown will hopefully improve with P&L/arena drawing more people.  If the rates of sales get back to 2006 levels by Spring, the supply would be just above 12 months.

BTW, a 6-month supply is the balancing point of a buyers/sellers market.

[AllThingsKC]

Yeah, but it isn't 2006 anymore.

Why didn't I get that memo?

[aknowledgeableperson]

A 17 month supply is pretty high and may discourage some development plans, though it's not as bad as the 24-30 month supply in some cities. 

And I guess for many on the board all of this is the Funk's fault.  He is the one that has killed the marketplace.

[Czar]

AKP...Do you think the Funk is helping the market?

His primary job is leadership and promoting the City.  He is HORRIBLE at both, the job he wants is to be the "decider" of KCMO.  That job is already taken by Council and the City Manager.

[ShowMeKC]

I just wish people would quit whining about Funk becoming mayor...

[aknowledgeableperson]

The Funk could be all positive and talk all he wants to about urban living but none of that would change what is happening now or in the near future.  If what is happening in KC was unique to the nation then you could blame him but it appears that this market may be doing better than other cities.

Face it, there is little that a mayor can actually control, especially when there are many outside forces controlling what is going on.

[moderne]

Condo values in KC have not appreciated in the last 2-3 years.  Guess that is better, standing still, than actually devaluing as has happened in other cities.  They have yet to sale a single unit at Wornall Park.

[zonk]

I just wish people would quit whining about Funk becoming mayor...

i WISH FUCKY WOULD ACTUALLY DO SOMETHING PRODUCTIVE INSTEAD OF TURNING THIS CITY ON IT'S ASS END!!!!

[bahua]

I think KC's real estate market is in pretty good shape, considering the current state of the national economy. It'll be a while before it turns up again, but it undeniably will. The mayor and the council have little to no control over that, however.

[artistboy]

Condo values in KC have not appreciated in the last 2-3 years.  Guess that is better, standing still, than actually devaluing as has happened in other cities.  They have yet to sale a single unit at Wornall Park.

I disagree. How could resale sales downtown produce profit otherwise?
Watching many projects I've seen "prices" go up... and from my own experience I've experienced a good return in the last three years. I would venture to say I am not alone in this.

I agree with bahue in that the market in KC is good. Going from HOT to stable has some people thinking all is in a terrible slump. There may not be the rush to reserve a place that existed two years ago but current buyers have many options that did not exist a few years ago.

I would expect good things to come in the next two years, and Wornall Park is park is hardly any indicator of the whole market, especially considering the prices, (but it is a nice project).

[moderne]

I know this from experience in my building and DT in general and from over a dozen agents.  Resale if purchased in the last 2-3 years is producing little or negligible profit at best, none in most cases.  What might be considered profit would only cover agents commission.

[dangerboy]

Resale if purchased in the last 2-3 years is producing little or negligible profit at best, none in most cases.  What might be considered profit would only cover agents commission.

This is true across the city and most of the country, not just Downtown KCMO.  Prices are falling in most places, while many people bought with the assumption that rising prices would let them sell at a profit in less than five years.  Flipping is a dying sport.

[ignatius]

Condo supply in other cities...

US Average 13 months
http://money.cnn.com/2007/11/28/news/ec ... 2007112811

Seattle 4.5 months (condos)
http://seattlepi.nwsource.com/local/339982_condo17.html

Orlando 29 months
http://www.depositrecoveryservices.com/ ... chive.html

Palm Beach - 35 months, wow
http://www.palmbeachpost.com/business/c ... _1129.html

Tamps 20 months - homes, condos probably worse
http://www.sptimes.com/2007/11/08/Busin ... ite_.shtml

Miami - 35 months
http://www.startribune.com/417/story/1520813.html

Chicago - sales are slowing but they aren't adding as much supply
http://www.chicagobusiness.com/cgi-bin/ ... 7&seenIt=1

Not been able to find others on news.google.

[KCMax]

I get most of the criticism over Funk, but criticizing him for low condo sales? I'm pretty sure most people consider what the mayor thinks of Kansas City before deciding whether or not to buy a condo downtown.