It's Fourth of July Weekend! Today marks the halfway point of the year. In last month's update, I was pondering a slow-down in the Lawrence Real Estate Market. Well, has it come to pass? The answer to that question is yes, and no. But mostly NO! No doubt things have leveled off from the Spring mania. Rates continue to rise and economic uncertainty has only increased as well. So far, however, neither of these things has been quite enough to turn the market significantly. Low inventory continues to be the primary driver, and buyers are still finding themselves in multiple offer situations. Competitive and able buyers are winning by going over asking price on new listings. I expect the current situation to continue through the rest of Summer, and quite possibly, the rest of 2022!
Let's look at some stats through the month of June within the city limits of Lawrence:
Homes sales have declined 4.5% through the end of June compared to 2021
Average Home Sales Price in 2022 is $331,000
Median Home Sales Price in 2022 is $297,000, pulling down below $300,000 since going over that threshold earlier this year
Median Days-on-Market is at 3 Days
List-to-Sale Price Ratio is 102%
Total Listings are down 8% in 2022 vs 2021
Lawrence tends to see a softening in the market around and after Father's Day. After July 4th, things tend to pick up again heading into the school year. After another "quiet period" from mid-August through Labor Day, we'll find ourselves in the Fall Market. I expect strong seasonal activity and very strong market activity for sellers for the remainder of the year. But, don't expect the Spring's massive price increases to continue as well. Things should be leveling off and will remain leveled off until the Spring Market of 2023!
In fact, expect much of the same for at least the next 2 years. Maybe longer. Barring any unforeseen major catastrophes, this will be the pattern for the local real estate market going forward. I sometimes come across the opinion that goes something like this: "We're going to wait for the market to turn around and prices to go down, and THEN we'll buy!" Sadly, this sentiment is almost certain to backfire. This buyer actually only has two choices: Pull the trigger now and pay the market value today, or delay and pay more in the future. There is no guarantee whatsoever that real estate prices will correct any time soon.
Stay tuned to R+K Real Estate for great new content, updates, advice, opinions and more in 2022. We plan to continue our advance of transparency, consumer advocacy, and empowering our clients with alternate business models designed to provide high levels or real estate service with drastically reduced commissions!
-Ryan Desch, Broker/Owner R+K Real Estate Solutions