UPDATED: March 10th, 2010

How is the Lawrence Kansas real estate market?

Graph: Homes & Properties Placed Under Contract - by Month, for Years 2002 - 2010

Is the Lawrence, Kansas real estate market improving?

The number of sales contracts signed in February 2010 unexpectedly fell from January 2010 (the first time this has happened, in at least, 9 years), making February 2010 just slightly better than February 2009 (2009 was the worst February for new sales contracts in recent history). Although the federal home buyer tax credit was both, extended through April 2010 and expanded to include some existing home owners, tighter mortgage lending practices appear to be making it more difficult for buyers to secure the financing needed to purchase a home. Additionally, the tax credit may have encouraged some buyers to purchase a home last year and effectively stole those transactions from this buying season. The drop in February contract numbers has added some concern that we may continue to have a soft market during the Spring 2010 season. Based on historical Spring sales trends, most agents are still anticipating a boost in sales contracts over the next 3 months, but I am telling my sellers to be prepared for a noticeable drop in contracts once the tax credit expires at the end of April 2010 (The drop could be similar to what was seen in November of 2009, when the tax credit was originally scheduled to expire). I am still encouraging both home sellers and qualified home buyers to do their very best to make deals while market conditions remain favorable for both and the future remains very unclear. Sellers are enjoying a boost from the tax credit to what appears to be a very weak real estate market (without this subsidy). Buyers are enjoying the price protection the tax credit offers to their investment, in addition to historically low interest rates. More information on the home buyers tax credit can be found on my home buyers tax credit FAQ page or by calling me at (785)550-2585.

Are home prices in Lawrence, Kansas going up or down?

Local mortgage lender Bob Buchanan at Wells Fargo anticipates mortgage interest rate increases of 1% or more as soon as March 2010. Buyers should note that small increases in interest rates can dramatically reduce the afforadibility of a home, but interest rates in the anticipated %6 to %6.5 range are still considered historical low. To find out how changes in interest rates affect your monthly payments use a mortgage calculator.

Congress is also considering laws to increase both the down-payment requirements and minimum credit scores needed to qualify for a home loan. If enacted, these rules will prevent or delay many first time home buyers from achieveing their dreams of home ownership. It is unknown what effect, if any, these changes could have on home prices here in Lawrence, KS. I'm happy to provide buyers looking for a loan with referrals to great local lenders who still offer low 3.5% down FHA loans with great rates, just give me a call at (785)550-2585.

Is this the right time to sell my Lawrence home?

How to read this chart:

1. The x axis of the chart is the sales price in thousands of dollars. Find the group of bars above the price that equals or slightly exceeds the asking price of the target home. This set of active listing statistics will be the most closely related to your target propery based on asking price.
2. The BLUE bar indicates how many homes are listed and active in the same price range as your home.
3. The GREEN line indicates the average number of homes sold in your price range each month (averaged over the last 12 months).
4. The RED line indicates how many months it would take to sell all the inventory in that price group (active inventory divided by average number of sales each month).

A SHORT RED BAR is GOOD for you if you are a SELLER.
A TALL GREEN BAR is BAD for you if you are a BUYER.
For BUYERS, a TALL BLUE BAR means you have more options to choose from.
For SELLERS, a SHORT BLUE BAR means you have less competition.
OPTTIMAL SELLING CONDITIONS = SHORT BLUE & RED BAR / TALL GREEN BAR.
OPTIMAL BUYING CONDITIONS = TALL BLUE & RED BAR / SHORT GREEN BAR.

Data compiled from Lawrence MLS 2002 - 2010
Updated Feb.09, 2010