photo by: Abobe Stock

This photo illustration depicts a range of housing prices.

Even a small drop in mortgage interest rates helped fuel an increase in Lawrence home sales in July, according to the latest report from the Lawrence Board of Realtors.

That may be a sign that the local home market may have a strong second half of the year, as mortgage rates have fallen even further recently and as national real estate observers expect lower rates still as the year winds down.

Lawrence home sales increased by 17.3% in July, compared with the same period a year ago, and ended the month with 88 total sales. That’s a big reversal from June, when sales fell by 28% and created questions about whether the Lawrence market was set for its fourth consecutive year of declines.

Another year of declines can’t be ruled out entirely, but the July results now have the year-to-date totals up 3.8% from a year ago.

The increase in July sales came as interest rates on 30-year mortgages dropped slightly. The national average stood at just less than 7% at the beginning of the month and ended July at about 6.75%, according to information from the Federal Reserve. Rates are now at about 6.5%, and markets are widely expecting the Federal Reserve to cut its prime lending rate in the coming weeks, which normally pushes mortgage rates down.

Rising home sales, though, aren’t likely to help with increasing home prices. The median selling price of homes in Lawrence was up 8.3% in July, and the year-to-date average is now up 5% from a year ago. The median selling price for the year stands at $315,000.

A larger supply of homes on the market is thought to be the most likely way to slow the rate of rising home prices. More homes were on the market in July than a year ago. The month ended with 174 active listings, up from 120 at the same time a year ago.

However, that greater supply hasn’t done much to tame prices. The 8.3% rise in prices in July was basically unchanged from a year ago, when home prices that month posted a 7.9% increase. Year-to-date, the signs of moderating home prices are even harder to find. The 5% increase in the median selling price is significantly greater than the 1.4% increase that was evident at this time in 2023.

The combination of a rising number of home sales and higher average selling prices is producing a solid year for the local real estate industry. The total dollar value of homes sold year to date in Lawrence ended July at $190.7 million. That’s up 8.4%, or about $15 million in total, from the same period a year ago.

As for home buyers, they are getting slight relief from the rapid pace of the Lawrence real estate market. The median number of days a home sits on the market before selling in 2024 is now six days, up slightly from four days at this point last year.