Real Estate Market Trends Archives - Cami Jones Collaborative

Insights Into the 2021 Kansas City Real Estate Market

Thanks in large part to the COVID-19 pandemic, 2020 saw a year of unprecedented growth for the real estate market, and Kansas City was no exception. Over the last ten years, Kansas City has become one of the hottest cities for homebuyers in the country.Heading into 2020, experts predicted that it would be a rather unremarkable year for the real estate market, featuring relatively flat growth of housing prices, increased mortgage rates, and limited inventory for first-time homebuyers.Needless to say, the worldwide pandemic completely flipped the real estate climate on its head. In March and April of 2020, unsure of what would happen next, people opted to refinance their homes after rates hit record lows.In nearly every major city in the United States, housing prices soared due to increased demand and limited inventory.Seeing as how what happened in 2020, in terms of real estate trends, was completely unexpected, experts have used what we learned in 2020 to, hopefully, more accurately predict real estate trends in 2021.So what does this mean for Kansas City?

The Current State of the Real Estate Market in Kansas City

Kansas City, Missouri (KCMO), is the largest city in the state of Missouri and Kansas City, Kansas (KCK), is the third-largest city in the state of Kansas. The entirety of KC straddles the Kansas and Missouri state border.Kansas City has grown exponentially over the past decade or so, making it one of the most popular places to live in America, and it is also considered to be one of the top markets for real estate investments and rental properties in the country. Demand for rental properties is high, as is the quality of life in KC, making the region a popular destination for real estate investors looking to capitalize on the surge of homebuyers and renters.The average rent in KCMO is around $1,032 per month, a number that has steadily increased over the past few years. Renter-occupied properties in Kansas City account for almost half of the total occupied housing units in the region. Kansas City has proved time and time again that it is a safe, secure, affordable place to live for renters, and it is also an excellent opportunity for real estate investors to grow their portfolios.Active listings in Kansas City are down by almost 50% year-over-year (YOY). Average home sale prices have increased by around 15% over the last year. It’s becoming increasingly difficult to locate homes, which is why many KC residents are opting to rent their homes instead of own them.The following are some of the more interesting statistics regarding the real estate market in KCMO, heading into 2021.

The value of homes in KC has grown by 10.8% YOY and is expected to grow by another 11% over the next year.
The value of homes in KC has grown by just over 50% over the last five years.
The median price for a single-family home in Kansas City is $215,000.
The median home price, in general, is $250,000.
The median home price per square foot is around $120.
There are 217 neighborhoods in Kansas City. The most expensive of which is KCI – 2nd Creek and the most inexpensive is Ruskin Heights.

The real estate market in KC has been supported by a diverse economy and a government that is pro-business.Recommended Read The Best Neighborhoods in Kansas City

Job Market and Education Opportunities

As of October 2020, unemployment rates in Kansas City are down to just 4.5%. Over the past few years, employment in the management, business, sales, office, production, and transportation industries has either matched or outpaced the national averages.It is expected to continue to do so over the next few years as well. KCMO’s and KCK’s combined gross domestic product (GDP) is approaching $139 billion. It has grown by more than 38% over the past decade.The largest unemployment sectors in Kansas City include education, health, business, retail, trade, manufacturing, and construction.Several major companies, including American Century Investments, Commerce Bancshares, Garmin, Hallmark Cards, Interstate Bakeries, and YRC Worldwide, have headquarters based in the Kansas City Metro area.Large companies like Amazon Flex, CarMax, and Hostess have been leading providers of new jobs for Kansas City residents over the last few years.Major universities in the Kansas City metro area include the University of Kansas (located in Lawrence, Kansas), the University of Missouri-Kansas City, and the University of Central Missouri (located in Warrensburg, Missouri).Nearly 93% of Kansas City metro residents have at least graduated from high school, and nearly 38% of residents hold at least a bachelor’s degree.The KC metro area is also home to some of the top public school districts in the nation, including the Blue Valley Unified School District, Olathe Public Schools, and Shawnee Mission School District all located in Johnson County.

Why Johnson County Is Considered One of the Best in the Country

In 2020, Johnson County was ranked as one of the top five best counties to live in the United States. There’s a good reason for that… a lot of reasons actually.As mentioned earlier, Overland Park and Olathe, two of the largest cities in the state of Kansas were ranked as being two of the happiest and safest places to live in the country.As of 2020, Johnson County is home to nearly 600,000 residents that are spread across seventeen different cities, including Olathe, Overland Park, Shawnee, Lenexa, Leawood, Prairie Village, Gardner, Mission, and Merriam.While Kansas City itself is not a part of Johnson County, JOCO makes up a significant portion of the Kansas City metropolitan area. Overland Park is the second-most populous city in Kansas (after KC of course) and the county seat is located in Olathe.Despite the COVID-19 pandemic, the real estate market and property values in Johnson Country are continuing to rise.In 2020, the average selling price of single-family homes was $394,000. That number is expected to crack $400,000 dollars relatively soon. Nearly 70% of JOCO residents own their homes, and the median rent price is $1,109 per month.Johnson County is home to several unified school districts (chief among them being the Blue Valley and Olathe School Districts) and colleges/universities. It features campuses for the Universities of Kansas and Kansas State.Johnson County Community College (JCCC) is one of the largest and most highly-regarded community colleges in the nation. Nearly 20,000 students are enrolled there.JOCO is home to several parks, coffee shops, restaurants, and bars, and the weather is very balanced. The summers are very hot, and the winters are very frigid.

A Little Bit About the Population of Kansas City

KCMO itself is home to around 500,000 people, while the entirety of the KC metro area houses over 2 million residents.As surprising as it is, the population of Kansas City is growing at a faster rate than other large cities in the midwest, namely St. Louis, Missouri, and Cincinnati and Cleveland, Ohio.The greater Kansas City area is the 38th most populated metropolitan area in the United States. Recent reports claim that over 50% of Kansas City’s population growth is attributable to the people moving to the city from all over the country.According to population experts, the population of the KC metro area is expected to grow by another 400,000 residents by the year 2040.Due to the population growth taking place in KC, as well as the popular homebuying destination it has become, the real estate market has become increasingly competitive and is expected to continue to do so in the years to come.

Moving to Kansas City Soon? Use This Ultimate Relocation Checklist!

An Excellent Place to Live

The Kansas City housing market is ripe with opportunities, but what is the quality of life like? The Kansas City metro area, particularly cities like Overland Park and Olathe, KS, are ranked as being two of the happiest and safest cities in America.Forbes has designated Kansas City as one of the best places to live in for business, careers, job growth, and education, and the cost of living is around 3% below the national average.KCMO is also one of the least congested metropolitan cities in the United States, and it has some of the shortest commute times.Four major highways, I-70, I-49, I-35, and I-29, all pass through KC, and the Kansas City International Airport (KCI) is served by major airlines like Air Canada, American, Delta, Southwest, and United.There is a sense of pride that permeates throughout Kansas City. The locals are proud to call this region their home. Spots like the Power & Light District in downtown KCMO are popular destinations for both tourists and locals alike.The city is famous for its delicious Kansas City-style barbecue and is home to major league sports teams like the Kansas City Chiefs (NFL), the Kansas City Royals (MLB), and Sporting Kansas City (MLS).

Moving to Kansas City Soon? Check out these featured listings!

Cami Jones Homes’s Relocation Experts Can Help!

At Cami Jones Collaborative, when we say we know Kansas City, we really mean it! We have been lending our knowledge and expertise to both experienced and first-time homebuyers relocating to Kansas City for years.We can help you get to know the intricacies of the area and will assist you with all the minute details associated with the buying process. Get in touch with our relocation specialists by calling (913) 521-8883!

Take a look at our buying, selling, and relocation services!

6 HOT Johnson County Neighborhoods

The spring housing market is upon us, and we wanted to call attention to 5 hot Johnson County neighborhoods. What makes a neighborhood hot? Typically, it’s a combination of location, desirable schools, close to amenities, sense of community. These factors result in low inventory and sales prices at or above asking!The Kansas City metropolitan area boasts so many unique and hot areas, and it ultimately depends on the lifestyle you’re seeking.If you’re an urban dweller, then you might consider Union Hill, River Market or Quality Hill. There are dozens of loft and condominium options and newly revitalized neighborhoods.Want something more family-friendly, but still close to the action? Prairie Village, Brookside and Waldo have long been popular options and were some of the city’s first suburban, planned neighborhoods.If it’s new construction you’re after, you’ll likely have to look further south (South Overland Park/Olathe), east (Lee’s Summit), west (Lenexa and Shawnee) or even north (Highlands of Weatherby). No matter what your family is looking for, our real estate experts can help!Today, we are going to take a look at some of the most coveted neighborhoods in Johnson County, Kansas. If you are interested in learning more about these and different areas of Kansas City, click below and take a look at our Full Neighborhood Guide![vcex_button url=”https://www.camijoneshomes.com/the-best-neighborhoods-in-kansas-city/” size=”medium” align=”center”]See Full Neighborhood Guide[/vcex_button]

1. Mills Farm (South Overland Park)

Located at 159th and King Street (in between Switzer and Quivira), Mills Farm is a very popular community. Homes start in the 500’s (The Meadows) and go to 2M+ (The Estates/Enclave).Mills Farm’s convenient location provides easy access to both I-435 and I-35. The development is in the Award Winning Blue Valley School District with great restaurants and entertainment opportunities nearby.The homes here are absolute stunners and many have features that you wouldn’t find in most single-family homes like outdoor kitchens or putting greens!Homebuilders who built in Mills Farm (include but are not limited to):

Larson Homes
Willis Construction
Harrington
Lambie-Geer
Starr Homes
John Gray Homes

2. Lions Gate (South Overland Park)

Lions Gate is located at approximately 143rd and Nall and extends south to 151st St. It is also in the Blue Valley School District and features a beautiful clubhouse on the lake and over 40 acres of private community green space.Nicklaus Golf Club at Lions Gate offers a Nicklaus-designed, 18-hole course, tennis, swimming with fine dining options. The neighborhood is minutes from the awesome gym at Blue Valley Recreation Center!Top KC Builders who built homes in Lionsgate include (but not are not limited to):

Bodine-Ashner
Ashner Construction
Harrington Development
Rick Standard
Gianni
Dusselier & Marks
Thomson-Sailors

3. Deer Valley (South Overland Park)

Deer Valley has many amenities that today’s families are looking for: Great schools, a two-acre lake, asphalt trails, a 20-acre Streamway Park, a pool complete with a cabana!The neighborhood is located off 159th Street, between Switzer and Quivira. (It’s situated next to Mills Farm.) The median list price is just under $500,000. Deer Valley also has super easy access to 69 Hwy.People in this neighborhood enjoy dogs, home improvement & DIY, walking, parenting school-age kids, volunteering, and dinner parties.

4. Hallbrook (Leawood)

Hallbrook has long been one of the most elegant and prestigious addresses in Johnson County. The subdivision is located West of Stateline Road and North of 119th Street.Hallbrook has a rich heritage that dating back to 1927 when Joyce C. Hall, founder of Hallmark Cards, decided that his family would live on this (then) remote, wooded expanse of land.At that time Mr. Hall purchased 730+ acres of land and most of that land has now been developed into the Hallbrook that is there today.Hallbrook Farms opened its last tract of residential land and is constructing a new residential area, known as Hallbrook East Village. Finished homes will range from the $700,000s to $1.3M+.The area has a rich history that dates back to 1927 when Joyce C. Hall, founder of Hallmark Cards, Inc., settled his family on this wooded expanse of land. Today, it is home to the award-winning, private Hallbrook Country Club.

5. Highlands Creek (Leawood)

This neighborhood sits between Roe Avenue and Nall, just south of 143rd Street. The median list price is $1.2M. Highlands Creek is minutes away from Town Center, One Nineteen and Park Place for shopping and dining. The schools include are fantastic and include: Overland Trail elementary and middle schools and Blue Valley North High School.According to Nextdoor, people in this neighborhood enjoy gardening and landscaping, home improvement and DIY, dogs, the Kansas City Chiefs, parenting school-age kids, and the Kansas City Royals – that’s a pretty solid list if you ask us!

6. Mission Hills

The northern half of Mission Hills, north of 63rd Street, informally called “old Mission Hills” and is dominated by luxurious houses on large lots. There are two private country clubs in this area: the Mission Hills Country Club and the Kansas City Country Club.The southern half, consisting of developments Belinder Hills, Indian Hills, and Sagamore Hills, contains affluent residences and the private Indian Hills Country Club.Both sides of this area offer something special. Whether you like newer construction or a home with a little history, Mission Hills is a great place to settle in.We’ve profiled some hot neighborhoods in south Johnson County…but the city is full of jewels! Finding the right place for your home is a big decision and can be a bit challenging – especially if you are new to the city – so, let us help you.Click below to view our current listings or call us at (913) 521-8809 and tell us what you are looking for in your next home![vcex_button url=”https://www.camijoneshomes.com/homes-for-sale-featured/” size=”medium” align=”center”]View Featured Listings[/vcex_button]

How to Buy a Second Home and Rent the First to Someone Else

If you’ve spent years working to build equity in your home, it can feel a little strange when the time comes to move on. While living in a new home that better meets your needs is a good thing, it can feel odd selling something that you’ve sacrificed so much to make your own. It turns out, however, that your first home is an opportunity to generate passive income and you don’t have to sell it off to someone else. It could even pay the mortgage on your second. Here is a look how to buy a second home and rent the first along with some pros and cons.

The Pros Of Renting Out Your First Home And Living In Your Second

Many people are ready to buy a second home but want to know if selling their first is the best move, or if they’d be better off renting it out. There are numerous advantages to renting out your first home and buying a second.

Build Your Assets

When you sell your old house and buy another, you don’t increase your total assets. In fact, the transaction costs involved might mean that you have less money than you did before. As the seller, you must pay agent fees, which can be as high as three percent of the value of the property.Renting out your first property lets you avoid this hit to your net worth while building up your assets at the same time. You can often get a mortgage for as little as 3.5 percent, so as long as your old property is generating more than your interest payments to the bank, you’re building wealth.

Get Tax Advantages

Another perk of renting out your first property is the tax advantage. You can subtract depreciation of your first property from your taxable income, lowering your overall tax bill and freeing up more money to spend and invest. Deductions also include the maintenance costs on the property that you rent out.

Get A Leg Up On Your Real Estate Investment Journey

Making money from real estate investments can be a slow process, but the earlier you start, the better. Converting your first home into an income-generating asset teaches you about the rules of the game and how to make money.You learn all about setting rents, finding good tenants, and working with agents. Over time, you gain experience in the market, enabling you to find better opportunities in the future.

The Cons Of Renting Out Your First Home

It’s not all good news, though. There are some serious downsides to renting out your first property that might impact your decision.

Tax Time Gets Complicated

As you likely know, most people pay their income taxes through their employer. If, however, you are renting out your first property, you may be entitled to additional deductions. Calculating your total taxable income is, therefore, more complicated, requires more planning (and perhaps even an accountant).

You Have To Act as Property Manager and Landlord

Looking after a property isn’t easy. Not only do you have to deal with tenants coming and going, but you also have to respond to occasional emergencies such as plumbing issues or a leaky roof. Being a landlord can end up taking up a large chunk of your time.If you want to avoid all the work involved in renting out your first house, you’ll have to pay an agency to manage it on your behalf, and they won’t do it for free.

The Running Costs

While real estate generates additional income, it also requires regular upkeep and maintenance.Providing this can get expensive and something can hamper your overall returns. Ideally, you want to spend less than one percent of the value of the property per year on keeping everything in good condition to avoid eating into your profit.

How to Buy a Second Home and Rent the First

So what do you need to do if you want to buy a second home and live in the first? Let’s take a look.

Look at Your Finances

The first thing you’ll need to do is sort out your finances to ensure that you can afford to take out the mortgage on the second property. Remember, because you’re not selling your first property, you can’t put your equity from that home into the second. Thus, you’ll have to take out a large mortgage on a substantial chunk of the value unless you have lots of cash lying around.Buying a second property is usually more complicated than buying the first. Income requirements are often more stringent, and you often face higher interest rates because of the perceived risk.

Put Down The Downpayment

The next thing you’ll need to do is put down the down payment.In most transactions for second homes, you’ll need a downpayment equivalent to around 20 percent of the asking price of the property. You can opt to put down less than this if you want, however, you’ll end up paying higher interest rates and spend longer paying off the loan.

Find A Second Property That Meets Your Needs

Finding your first property was challenging enough, but finding a second property can be even more so. You want to find somewhere that is essentially just as good as your first property and offers quality schools, a good neighborhood and has a low crime rate. After all, you want to be able to stay long enough to start making money on your first house.

Decide How You’ll Manage Your First Property

Finally, you’ll want to decide how you’re going to manage your new property. We touched on this earlier, but you can either do all the legwork yourself or pay an agency to do it for you. In the former case, you’ll pay with your time; and in the latter, with your money.

Get the Right Licenses

Make sure you have all of the federal and state-required licenses for renting your home. It isn’t as simple as letting someone just stay in there and throw you cash every month.Once you have everything squared away, the process of buying a second property is similar to the process of buying your first. If you can pull it off, it can be an excellent way to earn additional passive income from your assets.If you are looking to purchase a second home in the Kansas City area, contact the Cami Jones Collaborative team by calling 913-521-8809. We will help you find the perfect place at the perfect price.

Your luxury listing specialists!

You may have seen Cami’s listing in south Overland Park that is a finalist in the HGTV Ultimate House Hunt 2017 contest! (Hurry- online voting ends July 18, click here to vote! You’ll want to scroll down to the “Eat-in Kitchen with Dual Dining Areas” entry.) If this gorgeous home has piqued your interest…we want to share our current luxury property and estate listings with you.Our team of experts serves buyers and sellers at all price points; from the first-time home buyer to those looking for the finest luxury properties in the area. Our team members provide the same stellar customer service and attention to detail for each and every one of our clients.These exceptional homes represent the finest in luxury and craftsmanship.

Finding out your home’s value

We’ve helped many sellers and buyers throughout the years. One common thread seems to be the thoughts you have before making the decision to sell. Obviously, you put great thought into where your next home will be, but first things first, you have to put your current one on the market. What can you expect to get for your property? Do you have a sense for what similar properties are going for in and around your neighborhood? Do you know what the market trends are for your area?We can help! We make it super easy for you to learn these things, and arm yourself with information that makes you a more informed seller. What do you need to do?

To begin, you can request a personalized Neighborhood Market Trends Report. It only takes about 10 seconds! Here is the link to request that report.
Next, you can request a Professional Home Value Estimate. Again, super easy, and only takes a few seconds. Here is the link to request that.

It’s important to note that the above referenced report is an estimate based on the information you provide to us. Once you meet with one of the professionals on the Jones-Plattner & Associates team, we’ll be able to take into account things like upgrades, custom finishes, lot nuances, etc.We’re here to serve you. Please let us know what’s on your mind, and we’ll get you an answer as quickly as we can! We look forward to serving you and showing you why it pays to go with #JPA!*Information presented on this site and webpage is deemed reliable but is not guaranteed and should be independently verified by the users of the site. The providers of this website and associated content make no warranty, either expressed or implied, as to the accuracy of the data contained within or obtained from this Web Page. By utilizing this report you agree to the TERMS OF USE

Residents receive notices of valuation from Johnson County Appraiser’s Office

Notices of valuation have been hitting Johnson County mailboxes this week. Did you get yours? If so, you likely noticed that property values jumped 7.9% on average, accounting for the biggest increase since 2012. A home’s appraised value is used to determine the amount homeowners pay in yearly property taxes to Johnson County and to their city of residence.An increase of 7.9% (residents in Spring Hill, KS saw a 16.49% jump!) can be credited in part to a robust housing market. As we’ve noted in previous blog posts, the market is HOT and sellers are often receiving multiple full price, cash-in-hand offers on Day 1. Inventory is low.Homeowners are given the opportunity to appeal their home’s appraised value, and must do so through the county no later than March 29, 2017. You would do this if you think the stated appraised value is more than you would reasonably get if you sold your property today. Click here to visit the county’s site and learn how to submit an appeal. For even more info, see the state’s website “The Property Tax Appeals Process in Kansas.”

What is “lack of inventory” and what does it mean to you?

The lack of available real estate inventory poses a challenge but it can be a good thing, depending on what side of the transaction you find yourself! The Kansas City real estate market has been very hot, often resulting in multiple offers on Day 1, and many sellers find themselves receiving OVER asking price with no contingencies attached. A hot market is typically good news for sellers: inventory is low, and competition is high.On the flip side, homebuyers will be up against a lot of other people vying for the same piece of property, and up against a short supply of existing homes. Also, first-time buyers in high-demand areas may find that their best offer is beaten out by cash buyers and investors. Use an experienced real estate agent (like any one of us on the Cami Jones Collaborative!) to help you get a handle on the market and look over what’s available. You will need to decide where you can or can’t (or aren’t willing to) compromise. Remember, finishes and appliances and paint colors are easy to change, location isn’t. (Read our previous post for tips on buying!)As a buyer, you’ll want to get your financing lined up so you don’t waste any time in a hot market. Once you find the house…be ready to pull the trigger with your offer! And be ready to offer without contingencies. In a hot market, sellers will likely take the cleanest offer: the one with no contingencies, the one with the most money down and the one offering the quickest (or most preferable) closing date.Above all, be flexible and be patient! Your dream house awaits, it’s just a matter of time. Good luck! Call us today and let us help you sell and find your next home!