Kansas City is an excellent place to live and work. It is a vibrant city with heaps of culture, a thriving downtown district and enough employers to handle everyone. However, we have also been caught in the financial difficulties of the past five years, so as good as it might be, we haven’t come through completely unscathed.
As with many American cities, growth is slow in coming but it’s definitely on its way. With foreclosures down across the board and inventory running much lower than the highs of 2010, things are looking good for sellers.
The shortage of buyers is still keeping the market, and prices in check.
The median household income in Kansas City is $44,682, which is slightly lower than the surrounding area. The median household income for the whole county is $45,944 compared to the national median of $50,935. While not a lot of difference, it has a bearing on real estate prices.
The median age of people living in Kansas City is 34.6 years, with fewer families than average living here. There are 25.81% of households that are married families with children. The county average for households married with children is 26.28%.
Residential Real Estate
June saw an increase in properties sold, but a decrease in the prices they sold for. We saw 105,000 homes sold throughout the metro area in June, compared to 92,000 in June 2011.
The median sales price was $72,860, which is down 4.2% over this time last year. Average home prices around KC is $170,406, which is up only 0.1% on this time last month.
Commercial Real Estate
The commercial real estate market in Kansas City is similar to that of residential, except we have seen a slight rise in asking prices. Currently, office space costs around $86.25 per square foot which is an increase of 1.1% over last quarter. Spread over the year, that price is down 5.8% from the high of February 2008 when prices peaked at $98.94 per square foot.
Industrial property isn’t faring so well, with a 4.8% decrease in the footage price year on year. It’s currently sitting at $49.60 per square foot. The recent peak was in June 2007, when it hit $60.38 per square foot.
The average asking price for retail property in Kansas City is $104.74 per square foot for the month of June. That’s down 4.5% from the previous June. The previous high was in November 2008, when prices hit $122.04 per square foot.
The Kansas City real estate market is surviving, not thriving. The fall in inventory has got things moving again and sales are being made. As with every other city in the country, the recovery will be slow and steady, but it will come.
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