Interest rate fears spur home sales

Douglas County reports increase in housing prices

The threat of higher interest rates shifted Douglas County home buying into high gear.

The number of houses sold during March was up nearly 25 percent from the same period a year ago and more than twice the number sold in February.

According to a report released Wednesday by the Douglas County Appraiser’s Office, 150 houses were sold countywide in March, up from 121 in March 2003 and 74 in February.

In Lawrence, 127 homes were sold, up from 94 a year ago and 56 a month ago.

March marked the first month this year to beat year-ago totals.

Holly Garber, owner of Lawrence-based American Dream Realty, said talk of higher rates was behind the larger-than-usual sales. As rates rise, so do monthly mortgage payments.

“I think the scare about interest rates going up has caused a lot of people to get feisty,” she said. “Clients who you normally would expect to be a little tentative are getting aggressive. People are afraid they’re going to miss out on the low rates.”

The Douglas County numbers mirror a national trend.

Earlier this week, the Commerce Department reported new home sales in March increased by the largest amount in nine months. On Tuesday, the National Association of Realtors reported sales of existing homes rose by 5.7 percent in March, to their second-highest monthly total.

Garber said interest rates — which have increased by about a full percentage point during the past month — were motivating buyers.

“I think the rising rates are going to actually create more sales in the short-term, but probably not for the long term,” Garber said. “A lot of times people just need something to get them to move on a deal, and this is doing it.”

Homes fetched a larger price than they were a year ago, according to the county report. The average selling price in the county increased nearly 3 percent from $168,666 in March 2003 to $173,350 this year.

Here’s a look at the number of area sales, average sale prices, and how they compared to March 2003 totals.¢ Lawrence: 117 sales, up from 89 in March 2003; average price $176,687, up from $167,542 in March 2003.¢ North Lawrence: 10 sales, up from five; $132,444, up from $108,158.¢ Baldwin: Six sales, unchanged; $185,651, up from $150,292.¢ Eudora: 12 sales, unchanged; $171,279, up from $138,617.¢ Lecompton: One sale, up from none; $102,500.¢ Rural: Four sales, down from nine. $183,475, up from $158,164.