Thursday, May 21, 2020
Report: Kansas City Real Estate Scene Confronts Historic Risk Amid Coronavirus
Local real estate pros desperately hope to salvage some of the "selling season" now that the COVID-19 reopen is underway; sadly consumers and biz might not cooperate.
Accordingly, this upbeat report offers a glimmer of hope for local housing markets along with a few hidden warnings about the sketchy proposition of taking on new debt.
Current Real Estate Market Trends in Kansas City
Admittedly, most of this missive is just hype but here's just a bit of reality and the money line:
"The Home Builders Association of Greater Kansas City (HCHBA) said the industry was “disrupted” in March, but local Kansas City data in April 2020 appeared to remain strong.
"Although residential activity has been somewhat stable, there is no question that the pandemic has been hitting the commercial sector the hardest. Commercial real estate, which encompasses the hard-hit hotel and retail sectors, potentially poses the biggest risk for investors. So far this year, the commercial real estate market has fallen almost 28%, with hotels & resorts and retail spaces down 48% and 40%, respectively. This business drop-off will take significant time to correct. The commercial real estate recovery is likely to be more “gradual” than “V-shaped” as economies embark on phased re-openings. However, business volatility can be seen as an opportunity for investors with a higher appetite for risk."
Developing . . .