And just like that, Summer begins to draw to a close! Labor Day is over, and that means the Fall Market is here. Things are awfully interesting, that's for sure. Interest rates are right around 6.0% and the market has slowed a little. In fact, we're on a streak of 5 months of fewer home sales compared to the same month in 2021. That takes us all the way back to February! However, as we've clearly seen all year long, that doesn't exactly translate to a "slow down" in the market. Despite selling fewer homes by 8.5%, total dollar volume is still up 1% for the year. Obviously that's due to an increase in prices, specifically just over 10% for the year. So, the next time someone tells you that the market is favoring buyers, you can educate them with the following stats!
Let's look at some stats through the month of August within the city limits of Lawrence:
- Homes sales have declined 11% YoY in the month of August vs 2021
- Total Transaction Dollar-Volume is also down YoY for August, down 3.8% for a total of $1.56M
- Average YTD Home Sales Price in 2022 is $330,000
- Median YTD Home Sales Price in 2022 is $290,000, staying just under $300K for now
- Both Median and Average YTD Sales Prices decreased from July
- Home sales are down 8.5% YTD vs Last Year; a further decrease from July
- Home Prices are up 10% YTD inside the city limits; an increase of 1% from July
- Median Days-on-Market is at 4 Days
- List-to-Sale Price Ratio is 101.55%
- Total Listings are down 9.5% in 2022 vs 2021
- There are 88 Active Properties in Lawrence as of this writing, a decrease of 34 since my last update
It seems pretty clear from the data that we're still very far from a Buyer's Market. Sellers are still calling the shots today, and that is very unlikely to change anytime soon. Prices continue to increase and sellers are still getting offers in excess of their asking prices. However, the Spring Market shenanigans have let up considerably. Where there would have been 10 offers, there may now only be 1 or 2. And it may take a week or so to get an offer. But, don't get too excited. If you're thinking of buying in this market, you should be prepared to offer a seller what they're asking. And be prepared to act quickly. We still only have about one month of supply. For perspective, a balanced market that wouldn't specifically favor buyers or sellers would be 3-4 months of supply. Homes that are priced correctly and are in good condition will go fast!
Despite all that, I still tell home buyers that Fall represent an opportunity. You're less likely to be competing with so many others. Many renters who failed to land a home in the Spring are out of the market until next year. If you're looking for a great time to buy, it's most certainly now! Go land that dream home while things are a little quiet. Because believe it or not, the Spring Market for 2023 is around the corner!
If you're a seller in this market, the key is patience. Pick the right price, and stick with it! It may take a week or two. Heck it might even take 3 or 4 weeks, but a buyer will come along. There's no reason to panic. And if there's someone in your life stressing you out predicting a coming collapse, rest assured they just need to adjust that tinfoil hat a little. They're sure to be waiting for their predicted doomsday for some time!
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
