2004 resale housing market

Post by **dangerboy** » Mon Feb 07, 2005 2:28 pm

The Star has it's annual report on the resale market for single family homes. Just like past years, home values are rising fastest in the trendier urban neighborhoods and inner suburbs along the State Line Road corridor. There were double-digit increases for Downtown, Hyde Park, Brookside, SKC, Old Northeast KC, Northland, and NE Joco.

A couple of interesting notes... The explosive new home construction in the Northland may be depressing prices in the resale market there. Also, the Downtown boom might be doing the same for Midtown. Downtown condos have nearly doubled in price over the last two years.

Zip code breakdown (PDF): http://www.kansascity.com/multimedia/ka ... prices.pdf

Star article: http://www.kansascity.com/mld/kansascity/10834859.htm

DanCa · Post by **DanCa** » Mon Feb 07, 2005 3:04 pm

I noticed how places like Lenexa weren't even gaining value. Maybe people are finally catching on that more urban neighborhoods are more desireable.

Post by **KCMax** » Mon Feb 07, 2005 3:44 pm

What is kind of troubling about this is that downtown is pricing itself out for people like me. I really want to live downtown, but I can't afford much of what is available. Seems like supply is not meeting demand.

There are homes worth $30,000!!?!?!?!

Where exactly is KC Downtown according to these zipcodes? What homes are there - not the lofts, the housing neighborhoods? I don't know the residential neighborhoods in KC very well. Again, this would be a good time for someone to post a part of the website that gives info on area neighborhoods, like location and photos.

KCK · Post by **KCK** » Mon Feb 07, 2005 4:30 pm

Its easy to see why KCK attracts a lot of lower income people with average resale housing costs lower than all the other counties and less than half that of Johnson County specifically.

Post by **dangerboy** » Mon Feb 07, 2005 4:52 pm

Downtown is "officially" the area from the Missouri River south to 31st Street, and from the state line east to 71 Hwy and/or Cleveland Ave. The best neighborhood map available comes from the Downtown Council has been posted on here dozens of times: http://downtownkc.org/images/life_dtmap.jpg

Keep in mind that this is resale, not new construction.

There IS new construction in the starter home price range. For example, The Metropolitan has studios from $80k and one bedrooms from $90k. That's a really damn good deal considering how much the value is likely to go up if you turn around and sell it in a few years. http://www.metropolitancondo.com/

Highlander · Post by **Highlander** » Mon Feb 07, 2005 4:58 pm

DeadManWalking wrote:Its easy to see why KCK attracts a lot of lower income people with average resale housing costs lower than all the other counties and less than half that of Johnson County specifically.

Note that Wyandotte County had the highest average home appreciation of all counties. Now who would have predicted that?

Post by **KCMax** » Mon Feb 07, 2005 5:14 pm

There IS new construction in the starter home price range. For example, The Metropolitan has studios from $80k and one bedrooms from $90k.

Yea, but what about something with more than 2 bedrooms that doesn't cost $300,000?

Post by **dangerboy** » Mon Feb 07, 2005 5:30 pm

KCMax wrote:
There IS new construction in the starter home price range. For example, The Metropolitan has studios from $80k and one bedrooms from $90k.
Yea, but what about something with more than 2 bedrooms that doesn't cost $300,000?

You won't find many downtown condos with more than 2 bedrooms in any price range. There is only one on the market right now, a 3 bedroom at The View for $289,000.

Post by **KCMax** » Mon Feb 07, 2005 6:04 pm

This is what I mean about supply not meeting demand. My girlfriend and I want to live downtown, but we want more than two bedrooms. And we also don't want to pay more than $200,000. So for now, we'll live in JoCo.

moderne · Post by **moderne** » Mon Feb 07, 2005 7:18 pm

The 3 bedroom at the view is now 2 bedroom plus office. What was the small third bedroom now has a wide doorless passage to the great room.
I dont think you're going to find any type of new construction anywhere in the metro with 3 bedrooms for under 200K. Maybe a pressboard palace in Gardner or Grain Valley.

KCK · Post by **KCK** » Mon Feb 07, 2005 8:01 pm

Highlander wrote:
DeadManWalking wrote:Its easy to see why KCK attracts a lot of lower income people with average resale housing costs lower than all the other counties and less than half that of Johnson County specifically.
Note that Wyandotte County had the highest average home appreciation of all counties. Now who would have predicted that?

Nice observation, but truth be told, the raise in value is a farce. The mayor and UG wanted to somehow collect more property taxes, so they increase the value of homes in KCK a lot. For example my father purchased his home for $25,000 in 2003 and the house at the time had a value of $30,000. In 2004 without any improvements, the UG suddenly says his house is worth $60,000. His property taxes doubled and the worst part is that if he tries to sell the house he could never get the appraised value. The UG royally fucked him over.

Post by **KCMax** » Mon Feb 07, 2005 8:19 pm

I dont think you're going to find any type of new construction anywhere in the metro with 3 bedrooms for under 200K.

We don't want new necessarily, and we found a 3 br in Roeland Park for $150k.

KCLofts · Post by **KCLofts** » Mon Feb 07, 2005 8:21 pm

KCMax wrote:This is what I mean about supply not meeting demand. My girlfriend and I want to live downtown, but we want more than two bedrooms. And we also don't want to pay more than $200,000. So for now, we'll live in JoCo.

And I'd like a new Ferrari for $10,000, but that's not going to happen either.

In the case of a 3 bedroom condo downtown for under $200K, its not technically a supply and demand problem. The supply is, and always will be zero because there is pretty much no way that it is financially feasible.

Your combination of three wants/needs are exclusive. You could:

1. Find a 3 bedroom, $200K house not in downtown.
2. Find a 3 bedroom condo downtown for $500K+.
3. Find a 1 (maybe 2) bedroom condo downtown for under $200K.

Post by **KCMax** » Mon Feb 07, 2005 8:29 pm

Well, then I guess I'm not living downtown unfortunately. And I would bet most Kansas Citians will think like me.

Does that make me a suburbun snob just because I don't like those options?

KCLofts · Post by **KCLofts** » Mon Feb 07, 2005 8:58 pm

DeadManWalking wrote:Nice observation, but truth be told, the raise in value is a farce. The mayor and UG wanted to somehow collect more property taxes, so they increase the value of homes in KCK a lot. For example my father purchased his home for $25,000 in 2003 and the house at the time had a value of $30,000. In 2004 without any improvements, the UG suddenly says his house is worth $60,000. His property taxes doubled and the worst part is that if he tries to sell the house he could never get the appraised value. The UG royally fucked him over.

The report in the Star is based on actual sales prices, not assessed values.

Assessed values don't really mean anything (except for taxing purposes), because they are never right.

KCLofts · Post by **KCLofts** » Mon Feb 07, 2005 9:06 pm

KCMax wrote:Well, then I guess I'm not living downtown unfortunately. And I would bet most Kansas Citians will think like me.

Does that make me a suburbun snob just because I don't like those options?

Not at all. The reality is that there is nothing downtown that will meet your needs. Your only option, given your requirements, is to look elsewhere.

KCK · Post by **KCK** » Tue Feb 08, 2005 6:09 am

moderne wrote: I dont think you're going to find any type of new construction anywhere in the metro with 3 bedrooms for under 200K. Maybe a pressboard palace in Gardner or Grain Valley.

Actually western KCK has a ton of nice new houses under 200K, in a very good school district.

tat2kc · Post by **tat2kc** » Tue Feb 08, 2005 9:16 am

I also have found downtown lofts/condos to be a bit out of my price range, as a teacher. So, we are looking at homes in hyde park, midtown, and historic northeast. Still in the urban core, but more for the money. I am very disappointed that we have not found the loft/condo we want in the CBD. We aren't moving till may or june, so perhaps something will come up by then.

If we can't live in the CBD, the second choice is to move within walking distance of the BRT line. Third choice is anywhere else north of brush creek.

We did look in KCK, and found a few homes we really like, especially in the Westheights and St. Peter's area. Then we looked at the property tax rates. Wow! Very very high. Great homes for the money, but when you add in the property taxes, the cost really balloons.

moderne · Post by **moderne** » Tue Feb 08, 2005 11:27 am

There is a nice 3 bedroom, 1 car attached garage with some nice arts and crafts woodwork at the northeast corner of 44th and Holly. They are asking 169,000.

Post by **staubio** » Tue Feb 08, 2005 11:32 am

tat2kc wrote:I also have found downtown lofts/condos to be a bit out of my price range, as a teacher. So, we are looking at homes in hyde park, midtown, and historic northeast. Still in the urban core, but more for the money. I am very disappointed that we have not found the loft/condo we want in the CBD. We aren't moving till may or june, so perhaps something will come up by then.

If we can't live in the CBD, the second choice is to move within walking distance of the BRT line. Third choice is anywhere else north of brush creek.

We did look in KCK, and found a few homes we really like, especially in the Westheights and St. Peter's area. Then we looked at the property tax rates. Wow! Very very high. Great homes for the money, but when you add in the property taxes, the cost really balloons.

Your criteria pretty much matches mine. CBD first, but it is just beyond the reach of what I can afford comfortably. I ultimately want to move from the West Plaza to a place with better transit access, preferably on the BRT line. If BRT is creating this much demand along the corridor, imagine what a real fixed route transit system would create.