17 Jan 2014
2014 Property Predictions for Georgia, Idaho, Iowa, Kansas and Kentucky
Georgia: Build-to-rent grows in popularity
Bruce Ailion has worked as a broker, property manager, investor and attorney in Metro Atlanta for the past 34 years. From 2009, he also became an equity fund manager and has purchased approximately 150 properties in the REO to rent market. His prediction for 2014:
“The overall value across most markets in Georgia will continue to increase and investors will continue to be a dominant factor in many of the larger markets. There will also be growth and improvement in new homes and building-to-rent is becoming more popular.
Additionally, debt for buy-to-rent investors will become available across a broad range of markets and securitization will continue for the larger debt and equity single family investors.
I would avoid buying any property Class C and below. You should also avoid buying a property just because it’s cheap. Instead, buy the best property you can afford.”
Idaho: Capital attracts state’s population
“The Boise Metro area of Southwest Idaho is continuing to grow and approximately half of the state’s population lives in the metro area around the state capital.
Distressed properties are dropping in the 2 main counties, Ada and Canyon. In Ada,14.43% of the sales were distressed and in Canyon, it was 24.16%. On the other hand, prices for single family homes have been rising – up over $27K for Ada from this time last year and over $20K for Canyon. Inventory is also shrinking – down to an average of 4.7 months’ supply in Ada and 6.1 months in Canyon.
I would suggest investing in the Meridian/Nampa area. Nampa is the second largest city in the state and is centrally located. Additionally, with the construction of the new Ten Mile interchange, growth will continue as the road will relieve congestion and improve access to the 2 cities.”
Iowa: Renovations raise profits
Heather Starr is a licensed Realtor serving central Iowa buyers and sellers. In 2013, she received the Des Moines Area Association of Realtor’s Rookie of the Year Award and the Des Moines Business Record’s Forty Under 40 Award. Her 2014 prediction for Iowa:
“The overall residential market will go up due to low interest rates and favorable economic conditions in Iowa.
I would recommend investing in foreclosures and distressed properties, especially with homes priced under $200K after renovations. The key is picking the right neighborhoods within larger metropolitan areas or smaller towns within commuting distance.
There are also a lot first time home buyers without the skills or cash flow to renovate properties themselves looking for updated homes. However, with fewer foreclosures on the market the competition is tight among investors to land profitable properties.
I would avoid small rural communities beyond a 40-minute commute to a city. Isolated small towns in Iowa are falling victim to loss of industry and dwindling population, decreasing home sales. Farmland is almost always a good investment, but the record breaking demand for tillable ground in Iowa seems to have peaked due to higher input cost and lower commodity prices for farmers.”
Kansas: Increasing competition for buyers and sellers
Joel Weihe is one of the top producers in units sold with Realty World Alliance in Wichita, Kansas. He has more than 20 years of experience in the industry including construction management, property management, buying and flipping properties and consulting. His prediction for Kansas in 2014:
“In Kansas, there are fewer REO’s for sale and the properties that do become available often have multiple offers driving up prices. The Fed keeping interest rates low is also encouraging many investors in the area to take out lines of credit when cash runs low. This makes for plenty of competition and when desirable properties come on the market, they are quickly snatched up.
I would invest in more expensive homes as opposed to the smaller starter homes that were popular in 2012 and 2013. REO’s and rehab projects in middle class neighborhoods will be the best place to invest in 2014. You can make a profit by adding some inexpensive upgrades to the properties to make them stand out.
2014 will also be more about quality than quantity. There will be fewer more expensive properties bought and sold in the investment market which will increase competition for both buyers and sellers.”
Kentucky: Dependable appreciation in Louisville counties
“The housing market is recovering nicely in Kentucky and we’ve seen steady growth in some areas of Louisville this past year. The main factors that will affect the market in 2014 will be whether or not interest rates rise above 5% and the buyer’s perception of how the economy is doing.
If you’re an investor from outside Louisville or are looking to move there, I would recommend investing in areas like St. Matthews, the Highlands and subdivisions in Oldham County. They are proven winners and outperform other parts of Louisville when it comes to appreciation of home prices.”