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Homes sales up in February; single-family building permits hold steady; weekly land transfers
If you are like me and continue to set off crimson and blue confetti bombs in the TV room after every Jayhawk victory, you soon may be looking for a new house. So, how about some news and notes from the Lawrence real estate and building industry?
• The city has February’s building permit report out, and the numbers continue to be a tale of two types of construction. Single-family home construction continues to be pretty stagnant, but there are builders staying busy with multifamily construction.
The city issued 10 single-family building permits during the month. For the year, the city has issued 18, which is on pace with what the city did last year. (There were 19 issued during the first two months of 2012.) On the apartment front, though, the city issued permits for 22 new apartments in February, bringing the total number of units to 286. Apartment permits come in bunches though, and all the permits are for one project in the city — the new apartment development just west of Wal-Mart at Sixth and Wakarusa. That project, by the way, is being built by Lawrence-based Highland Construction, which indicates Lawrence’s Stultz family — longtime landlords in the community — are behind the project.
In total, the city issued $6.04 million worth of building permits in February. For the year, the city has issued $22.7 million worth of permits, which is up from $10.47 million a year ago. It’s early, so it is not wise to read too much into those numbers yet, but city officials certainly would love for that pace to continue.
• Sales of single-family homes continue a steady climb, according to a new report from the Lawrence Board of Realtors. Lawrence homes sales in February checked in at 46, up from 44 during February of 2012.
For the year, home sales are up about 20 percent — 82 home sales during the first two months of the year vs. 69 for the same period a year ago. But the bigger story is that February marked the 11th consecutive month that homes sales have been higher than the same month a year earlier. That’s the type of statistic that begins to paint a picture of a rebound. Indeed, I’m hearing from some in the industry that agents are now starting to believe that more homes are needed on the market. That hasn’t been the case for quite some time. If that feeling continues, that’s the sort of sentiment that will fuel a rebound in the single-family construction industry.
In terms of other numbers from the monthly report:
— The number of active listings in Lawrence is down almost 30 percent from a year ago — 371 in February 2013 compared to 510 in February 2012.
— The median selling price for the year is $174,125, up from $145,000 during the same period a year ago. But the sample size this early in the year is so small that those numbers don’t mean much.
— The median days on market is at 99, which is up significantly from 79 days one year ago. That’s the one piece of the report that runs a bit counter to the recovery trend.
• You know the housing market has been slow when homes that are built to sell for prices below their market value were slow to sell. But that had been the case for awhile with the southeast Lawrence affordable housing project being built by Tenants to Homeowners.
In case you have forgotten, Lawrence-based Tenants to Homeowners has started construction on the Prairie Wind affordable housing community right near the corner of 26th and Haskell.
The development is listing brand new four bedroom homes for $125,000 to $130,000. The homes have an appraised value of about $175,000. But Rebecca Buford, executive director of Tenants to Homeowners, told me even those homes were moving very slowly in the Lawrence market for the last year or more.
But there are signs that is changing. Buford said the development has put four houses under contract in the last three weeks.
“It is like a switch was turned on in the last month or so,” Buford said. “I think people have just been scared. And it probably wasn’t a good decision to buy if they didn’t think their job was solid. But I think people are starting to feel better about that.”
The Prairie Wind development is set to have 18 homes when completed. Buford said five houses have already been sold and another seven are under construction, with four of those under contract. She said she hopes to have the project fully built and sold by this time next year.
The development does place income restrictions on who can qualify to buy the below-market rate homes. Buyers must have an income under 80 percent of the median income for the area. For a Lawrence family of four that means an annual income of less than $56,650.
• I have some catching up to do here on our listing of property sales as recorded by the Douglas County Register of Deeds. Click here to see the last few weeks worth of reports. There have not been many commercial sales of note, other than the ones we already have reported in past Town Talks. But here are few that caught my eye.
— Maybe James Naismith’s original rules of basketball will be housed in The Oread hotel. I rather doubt that, but it appears the man who bought the rules to bring back to KU has purchased a condo in the hotel building. The listings show a trust held by David and Suzanne Booth bought an upper story condo in the hotel that sits atop Mount Oread.
— The Midland Railway Historical Association in Baldwin City has purchased a piece of property, 1704 College Street, along the railroad tracks, about a block south of its historic station. No word yet on what the plans may be for that location, but the old-time train company has been busy lately. It launched its first dinner train in January.
— It looks like business must be going well for Biemers BBQ at 2120 W. Ninth St. The property transfers indicate the business has finalized a deal to purchase its restaurant location — which used to be the old Bucky’s hamburger joint — from a group led by Lawrence businessman Doug Compton.
I don’t know about you, but a little BBQ and basketball sounds good right about now.