Posts tagged with Home Sales
The Lawrence real estate community hit a significant milestone in March. It was the 12th straight month that the Lawrence real estate market has posted year-over-year sales gains.
According to the new report from the Lawrence Board of Realtors, there were 76 homes sales in March, up nearly 29 percent from the 59 sales made in March 2012.
Those numbers helped make for a strong first quarter. During the first three months of the year, 159 homes sales were recorded in the city, a 24 percent increase from the same time period a year ago.
It was about this time last year that the real estate market started making an upward climb, but back then the market was being fueled, in part, by sellers lowering their pricing expectations.
Now, the numbers indicate homes prices are on the rise as well. The median sale price on Lawrence homes in the first quarter was $165,000, up about 7 percent from the same period a year ago. Average sale prices should be taken with a grain of salt, because they are pretty dependent on the particular types of home being sold at the time. But still it is a number still worth watching.
Another number showing signs of a rebound is the average number of days a home sits on the market before it sells. The median days on market in March dropped to 68 days, down from 94 during March of 2012.
Several Realtors report the number is dropping because many homes have sold in just a matter of days. That must be the forces of supply and demand kicking in, because the supply of homes for sale on the Lawrence market is now at a two-year low.
The report found the number of active listings in Lawrence fell to 408, down from 578 in March 2012 and from 615 in March 2011.
All in all, local real estate agents seem to be genuinely pleased with the numbers.
“We need more new-construction homes and resale home listings to satisfy the demand,” said John Esau, president of the Lawrence Board of Realtors and an agent with Keller Williams Realty. “It has been a long time since we could say that.”
Now, we’ll wait and see how the rest of the important spring and summer buying season plays out. We'll see whether local agents can expand upon their streak of consecutive months of sales increases. But the report indicated that sales were going well in April. Real estate agents had written contracts for 123 homes sales in April, up from 98 in April 2012.
Let me take care of a quick housekeeping matter here. (My wife’s ears just perked up. She would tell you my idea of housekeeping is making sure I put a chip clip on the bag of Doritos I keep next to my La-Z-Boy.) Town Talk will be off for the next couple of days. It will return on Tuesday.
Feel free to find me on Friday. I’ll be parking cars as part of a Eudora 4-H project at the Lawrence Auto Swap Meet at the Douglas County Fairgrounds. (It runs Friday through Sunday.) Then you can help me find a fender for a ‘66 T-Bird.
You can also try to find me on Monday, if you want. I would look in a dog house. That’s where I 'm usually forced to keep house in the days following the swap meet.
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.
Home sales up in January; new numbers on county’s property tax base; median home values fall sharply in Baldwin, Eudora, rural areas; weekly land transfers
The signs of spring are starting to show up: morning sunlight and chirping birds, an article in the newspaper about crabgrass prevention, and me looking for my hidey-hole when my wife starts talking about the spring cleaning of the garage.
Of course, one other sign of spring soon will be the banners, balloons, pyrotechnic displays and whatever else real estate agents are using these days to attract attention to the large number of spring open houses. So, with that, how about some real estate news today? There are a few new reports of interest out.
• Lawrence home sales in January continued to show signs of improvement. A new report from the Lawrence Board of Realtors found home sales in January were up 44 percent compared to January 2012, rising to 36 from 25. It continues a multimonth streak of sales increases on a year-over-year basis, which has given real estate professionals cautious optimism that a recovery is starting to take hold in Lawrence.
One of the more interesting numbers in the report is that there has been a significant decline in the number of homes on the market, which real estate agents say is a sign the market is starting to get more balanced between buyers and sellers. In January, there were 380 homes on the market, down from 460 during the same period a year ago.
The number of days a home is sitting on the market, though, hasn’t yet started to show that trend. The median days on market: 81, up from 72 a year ago.
• The Douglas County Appraiser’s office has new information out about the county’s real estate tax base. It appears Douglas County and the city of Lawrence once will again will avoid a major hit to their property tax bases.
The numbers aren’t final yet because property owners can still file appeals related to their properties’ assessed values, but the appraiser’s office shows a decline of 0.29 percent for 2013. The total assessed valuation — remember, assessed value is the taxable value, not the market value — checks in at $1.024 billion in 2013, down from $1.027 billion in 2012.
The county is not used to declines but it has avoided the 5 percent or more declines in values that many other markets across the country have experienced.
Just for some historical perspective, I looked up some past numbers. Since 2008, the county’s tax base has grown just 1.3 percent during the tough economic times. Since 2003, the county’s tax base has grown 36.7 percent. To put an even finer point on how the last decade has been a tale of two halves, the numbers show that in the last half of the decade, the county’s tax base has grown by less than 2 percent total. For the first half of the decade, the numbers show that from 2003 to 2008, the tax base grew by 35.8 percent. In case you are wondering, the rate of inflation for that time period was about 17 percent, according to the Consumer Price Index.
The housing bubble was fun for governments who rely on property tax dollars. Now, the question they’re all still trying to figure out: What is the new normal?
• The appraiser’s office hasn’t provided a report that shows the assessed valuation by community yet, but normally Lawrence tracks closely with the overall county total — since Lawrence has most of the county’s tax base within its boundaries.
But there may be real questions about what happens to the tax base in some of the smaller communities and townships in Douglas County.
The appraiser’s office has put together a report estimating the median market values for residential property in each city in the county. The report shows significant drops everywhere but Lawrence. The median value in Lawrence in 2013 is $159,625, down 0.6 percent from the median of 2012.
That’s nothing compared with what the report shows for the other areas of Douglas County. Here’s a look:
• Eudora: the median market value has dropped 10.2 percent to $125,600, down from $140,000. • Baldwin City: Down 7.4 percent to $132,700 from $143,400. • Lecompton: Down 16.6 percent to $83,950 from $100,670 • Rural Douglas County: Down 22.8 percent to $153,400 from $198,805.
I haven’t had a chance to talk to the appraiser yet about these numbers, but it seems to indicate the real estate market outside of Lawrence hasn’t held up as well as the market inside of Lawrence.
• Finally, I have fallen behind on our weekly updates of land transfers and property sales as recorded by the Douglas County Register of Deeds. Click here to see listings for the last couple of weeks.