Welcome back! We're finally back on track after a long pause there with the County. Our GC and PM were working with the powers that be to ensure the rehab was squared away, as they enforced a structural engineer inspection requirement without providing clear guidance on what that entailed. Thanks to Derek's persistence, and the team at Blue Barn, we're back in action working through insulation, drywall and paint. With the long delay, rehab completion has shifted right to March. Once complete, we'll hire on our PMC, source an appraisal, make a determination on cash-out refinancing (as far as when -- now or later), lease to our new tenants, and jump back on the prowl for our next project.

We've been out of the loop, so this week we'll shake off the cobwebs and dive back into market trends and the latest with interest rates -- in our target market, KCK/KCMO, and across the country.

Stoked you're here,

Alex

PROJECT UPDATE

PREVIOUSLY

THE SKINNY

MARKET PULSE & THE "SO WHAT?"

• Mortgage Rate Predictions for 2023 Forbes (28 Jan) Perhaps the worst is in the rear view, with the past two months yielding a steady decline in rates, leading experts to believe rates will level off. Rates are sitting at 6.15%, a significant decrease from November's peak at 7.08%. With experts predicting rates to drop to 5-6%, the inflation-bound guise of stability continues to drive market volatility. Read more, here.

• Mortgage Rates Trend Down Freddie Mac (26 Jan) With mortgage rates decreasing, home purchase demand is on the rise, after a months-long freeze that gripped the housing market. Ample demand remains, fueled by first-time homebuyers. As rates come down, slim inventory continues to be a challenge. More buyers than sellers will result in inflated home prices in some markets, similar to what we saw last year. Read more, here.

• Housing Market Predictions: The Forecast for the Next 5 Years Bankrate (5 Jan) YoY median home prices are up 3.5 % to $370k with new homes averaging $470k, an increase in 14%, with supply remaining historically low. Home prices are predicted to see little to no change in 2023, with markets in California seeing declines as high as 10%, and single-digit annual appreciation over the next 5 years. With a new norm of 5-7% interest rates, and inventory low, it will continue to be a sellers market until 2028. Read more, here.

• The MOST POPULAR Real Estate Market is... Kansas City Suburbs & Nick Massa Real Estate Group (7 Jan) Zillow announced that the KCK suburb, Prairie Village is the most popular RE market in the entire country, with non-luxury homes appreciating faster here than non-luxury, a vast contrast from the rest of the nation. I was surprised too! I stumbled upon Nick Massa and his channel, and what a great resource for insights into our target market. An absolute go-to moving forward. Watch his video on YouTube, here.

HOW ARE WE DOING? 

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