By Laura Wagner
Northeast News
Jan. 19, 2011

Home foreclosures are predicted to increase this month, according to a recent RealtyTrac report.

Currently, there are 4,322 foreclosed homes listed in Kansas City with an average sale price of $118,887.

In Jackson County, one in every 387 housing units is in foreclosure.

RealtyTrac said the increase in foreclosures is inevitable now that the paperwork and bank foreclosure methods have been addressed.

All homes that should have completed the foreclosure process in December 2010, but were postponed due to the investigation into bank practice methods, will now take place in January 2011. Nationwide, 257,747 homes went through foreclosure in December.

Will Kansas City buck the national trend for foreclosures?

“The beginning of 2011 should be the end of it,” said real estate agent Bob Robinson of Chartwell Realty. “I am already seeing activity. There are a lot of bargains out there and investors want that. Now is a great time to buy.”

For homes in the Northeast, Robinson said they have an “incredible value” with a lot to offer.

“We have a diverse demographic. The neighborhood associations, Scarritt Renaissance and everything Adam [Scarritt-Renaissance Neighborhood President] are doing over there is exciting,” he said.

“A snapshot of today’s market shows a large resale home inventory, lower home values, and fewer qualified buyers,” said Eric Bellamaganya, urban living specialist and realtor with Innovative Realty. “However, one must keep in mind that real estate is local, so some neighborhoods are weathering the storm better than others.

“The Historic Northeast has a huge housing inventory at great values that make home ownership a reality for many.

“We have a unique opportunity to market ourselves as one of KC’s most affordable residential districts offering convenience of location and a good quality of life. The Historic Northeast is a wonderful place to raise a family and we have plenty of homes to fill.”

Walter H. Guth, Ph. D., an historic homes specialist and realtor with Prudential Kansas City Realty said as long as there’s high unemployment, people will lose their homes.

“Unemployment is higher for minorities, so minority and mixed areas, like urban core areas, are hit first, hardest and longest,” Guth said. “I don’t see a significant turnaround for blue-collar areas especially soon.”

While there was government discussion about moratoriums on bank foreclosures in October 2010, President Obama came out against stopping them altogether.

Mayor of Kansas City Mark Funkhouser publicly decried the foreclosure process in a press release and said, “Kansas City families are hurting. Nationally, there have been enough questions raised about foreclosure procedures that a temporary moratorium is more than justified.

“I urge the attorney general to give Missourians some time to get back on their feet and negotiate in good faith with their lenders.”

Attorney General of Missouri Chris Koster responded to the request saying he would not impose a moratorium on bank foreclosures in Kansas City or the state because doing so would cause economic harm to the area.

City Councilwoman for the 4th District, Cindy Circo, said, “We had assistance from federal government funding in 2010 to help address this problem. We have no more support coming in 2011.

“The city has a list of credible not-for-profits able to provide help to homeowners on the City Channel (2). Homeowners can also dial 211 to get verified not-for-profit financial help.”

On a lighter note, increased sales prices for homes were seen in several cities near the metro area. Independence saw an average sale price for homes increase 10.33 percent to $104,404; Grain Valley saw an increase of 20.83 percent to $167,162, and Belton home sales increased 12.70 percent to $110,388 on average.

“I have a gut feeling that things are turning around now for real estate in Kansas City in general,” Guth said. “It will be a slow trend upwards, though. Some of the best forecasters say it won’t be until 2014 that we return to a normal real estate market.”

Bellamaganya stressed that real estate is a local issue.

“While things will negatively impact the market, each market is different and will react in its own unique way,” he said.

For Robinson, 2011 is a year of change.

“People are ready to invest,” Robinson said. “In five years people may look back and wish they had bought now.”