There is a shortage of multi-family properties available for sale right now in Johnson County (i.e. duplexes, triplexes, and fourplexes). Why? It’s because multi-family properties are selling fast in Johnson County! As I type this, there are currently only 8 active multi-family listings on the market right now in Johnson County. That’s insane!
To put things into perspective, let’s look at the absorption rate. Absorption rate is a real estate metric that measures how quickly properties are likely to sell once they hit the market. Specifically, dividing the number of properties listed for sale by the number of properties selling per month, you’ll get the absorption rate. Typically, an absorption rate of 6 months is considered a balanced residential real estate market (meaning it’s neither a seller’s nor buyer’s market).
Right now, there is less than a month’s worth of multi-family properties available for sale in the local Multiple Listing Service. I vividly remember buying my first rental property in 2009, when many, many listings were piling up, and not selling for months. Many listings contracts would expire before selling, meaning the properties were leaving the market unsold. People were afraid. Banks weren’t lending. It was awful for sellers. These days, multi-family properties are SELLING FAST in Johnson County. So, what does that mean for you?
If you’re considering selling your Johnson County multi-family property, it’s definitely a great time to start thinking about it. If you’ve been waiting for the “top of the market”, or repairs and tenants are wearing you out, let’s talk about your future real estate plans.
If you’re considering buying, I wouldn’t wait around. Buying a multi-family property as your first home is a great way to start building your rental portfolio (see How to Have No House Payment by Age 30). Many home builders never recovered after the The Great Recession of 2008. As a result, housing supply across the Unites States has been behind for years. To make things worse, the combined cost of material and labor have skyrocketed in recent years. Many properties in Johnson County are still selling below the cost of actually building the same properties today. Bottom line, buying a good rental property in a good area has consistently been a recipe for success in the Johnson County area.
Curious or have questions? Feel free to reach me below. Never any pressure.
Justin Rollheiser – REALTOR®
Keller Williams Realty | Diamond Partners, Inc.
13671 S Mur-Len Rd | Olathe, KS 66062
Direct 913-800-7653
Office 913-322-5878
Comments or Questions?