Kansas City, Missouri has a unique real estate market.  Just like everywhere in the country, real estate sales and home prices have been dropping steadily over the past year.

However, when you look at the past ten years of real estate values in Kansas City, you see a pretty steady rise from an average home sales price of $92,000 in the year 2000 to an average home sales price of $134,000 in Jan ‘07.  The real estate prices in Kansas City have dropped since then, but only to a low of $126,000 in Jan ‘09, nowhere near the real estate home value prices seen in Kansas City just ten years ago.

Many of Kansas City’s residents enjoy city living in condos, apartments, and lofts.  Lofts are a popular choice in Kansas City real estate.  Lofts provide city living for real estate owners in Kansas City at a portion of the cost of larger condo units.  Lofts usually have more open floor plans than traditional condo units, and resemble studio apartments in layout and design.  But both lofts and condos provide the owner the benefits of real estate ownership.

Loft apartments offer much the same benefit, less space and less of a rent check each month.  Loft units are making a strong showing in completed real estate transactions in the Kansas City real estate market.  Lofts are one option, but many people prefer the extra space (and rooms separated by physical walls) afforded them by full size condo or apartment units.

Existing home sales are seeing a slight rise in Kansas City, as are new home sales.  Unfortunately for some, foreclosed homes and bank-owned real estate is also on the rise.  Foreclosed homes in Kansas City often drag down real estate values of the surrounding properties in the neighborhood.  But for investors, dropping real estate prices in Kansas City make for a good opportunity for flipping, the practice of purchasing undervalued homes, adding value by fixing up the home, and putting it back on the KC real estate market to hopefully sell for a profit.  Kansas City is seeing an influx of property investors, or flippers, hoping to make a profit in this real estate market.

The Kansas City commercial real estate market is following the residential market.  Commercial deals of office and retail leases and commercial properties selling are harder and harder to come by.  Office and retail vacancy rates are on the rise as businesses are consolidating or shuttering their businesses all together.

Commercial property sales in Kansas City are seeing lower and lower CAP rates and cash returns on investment.  The commercial real estate industrial market is seeing higher vacancy rates and lower CAP rates as well.  Many commercial properties currently under construction in Kansas City are being put on hold or canceled all together.