Last year I linked to the the Kansas City’s Star’s report on housing appreciation in the Kansas City metro area. By in large there was modest appreciation and some depreciation…but not enough to worry about in most places.
This year’s interactive map shows a different story. Read the entire story here. (NOTE:If the Kansas City Star holds true they will not have this map up indefinitely. So it’s possible the link will lead you to nowhere after a couple weeks. If they do you can purchase a zip code map for Kansas City by clicking Zip Code Map.) Now let’s put the numbers under the microscope and see what we see. Especially for those out-of-staters that read this Kansas City real estate investing blog. You need to have the full story interpreted.
Everyday I get would be real estate investors calling from around the country. Especially California. They are always wanting to flip houses and/or buy the lower priced houses in the city so they can get “good cash flow.”
The houses they like to target are generally located in the following zip codes:
64130 -23.4% -19.6%
64132 -12.8% -12.4%
64134 -14.6% – 9.3%
Next to the zip codes above is the “appreciation” rate for those areas in the last year, followed by the Kansas City Star’s explanation of the appreciation rates for all years dating back to 2003.
Now lets look at the zip codes where I’ve had my last 10 transactions since December:
66204 + 1.4% +11.7% (1 unit)
64083 + 6.0% N/A (3 units)
66106 -10.5% +0.7% (We got a steal on a rehab)
64064 + 6.0% +17.4% (2 units)
Gardner – not listed though I suspect close to Olathe’s 66062 at +7.6% +43.2%
Hey, out-of-state investors. Do you see what I’ve been talking about for the last 3 years?
While much of the country suffers through a housing correction not seen in many’s recent memory here in Kansas City the real estate investor can still find opportunity. Yes, we have areas that are suffering greatly. They are not areas that I’ve endorsed anyway. Successful real estate investing takes study, analysis and local knowledge.
And that is true whether you are investing in real estate around Los Angeles, Sacramento, Washington, DC, New York or right here in ole KC.