Lawrence Board of Realtors® Press Release
October 8, 2007--Lawrence
Residential Real Estate Market
Lawrence Holds Steady Amid National “Turbulence”
LAWRENCE, KS – Despite national media reports about home foreclosure rates and scant loan opportunities for potential home buyers and owners, the Lawrence Board of REALTORS® would like to assure the public the Lawrence Home Market remains in good shape as 2007 enters its final three months.
“It’s still a good time to buy or sell a home in Lawrence and Douglas County,” said Mary Jones, President of the Lawrence Board of REALTORS®. “All real estate is local. Therefore, the Lawrence real estate market differs from the other U.S. and Kansas home markets, just as they vary from Lawrence.” Lance Ford, Branch Manager of Countrywide Home Loans, states: “It’s clear Americans are watching real estate values and mortgage rates and are preparing to shop for the right property. The range of programs and options available to qualified buyers is as good as ever, including many 100% financing alternatives.”
Further, regarding the local home lending market, Chris Forbes, Branch Manager, First Horizon Home Loans, explained, “We have money to loan, and we are making 100% loans. The changes in our field in recent months primarily affected the sub-prime and alternative loans that most lenders in Lawrence did very few of. Fixed rate loans – the primary product here in the Midwest – are readily available to consumers at very good interest rates.”
Statistics bear these statements out. Locally, the number of homes sold, days these homes were on the market and the average prices of homes sold compare closely between year-to-date 2006 and the same period for 2007.
Lawrence Area
2006 Avg. Days on Market 133
2007 Avg. Days on Market 122
2006 Avg. Home Sales Price $196,010
YTD ’07 Avg Home Sales Price $190,970 (a 2.57% decrease from 2006)
2006 Number of Homes Sold 1019
YTD ’07 Number of Homes Sold 963 (a 5.5% decrease from 2006)
According to the National Association of REALTORS® (NAR), sales of existing homes nationally will be 6 million units in 2007, a 15 percent decrease from the 2005 sales peak.
The NAR also reports that sub-prime loans comprise only 9 percent of all home loans but account for 53 percent of all foreclosures. Kansas is not among the top 10 states in either the number of foreclosed homes in 2007 or rate of foreclosures.
Finally, the NAR projects favorable economic conditions in 2008 regarding job, wage and corporate profit growth. These factors should positively impact the residential real estate market nationally.
Closer to home, Jones says the last quarter of 2007 marks a good time for buyers to seek their next home.
“We have a lot of inventory, but we also have some great values here in Lawrence,” she said. “Our real estate market is alive and well, and home selling and buying continue to be an important and viable activity in our area.”
Lawrence Board of Realtors