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COMMUNITY: HOUSING MARKET STATISTICS
Market Editorial
Our local housing market did not see the precipitous declines in sales and housing prices as did many other markets nationwide. However, we are not immune to the downturned housing market here in Lawrence. We, too, have seen declining numbers. Much of the decline in our local market is apparent in the reduced number of homes that have sold. This downward trend began back in 2005, long before the national “bubble” ever burst, indicating that our local market has slowly changed over time instead of experiencing the sudden collapse that many other markets have experienced. The good news is that the decline that we have seen has begun to level off. The number of homes sold dropped only 8% from 2009 to 2008 compared to a 26% drop from 2008 to 2007. The fourth quarter of 2009 showed a 52% increase in sales volume over the same quarter in 2008, even during some of the worst early winter weather in recent memory.
In 2009, 30-Year Fixed Rate Mortgages were at an all time low and the Housing Affordability Index experienced an all time high. This, combined with the $8000 first-time home buyer tax credit and the $6,500 existing homeowner tax credit, helped the housing market locally and nationally continue to repair itself.
The National Association of Realtors® Chief Economist, Lawrence Yun, believes that “the key to housing market recovery and sustainability is jobs, jobs, jobs.” A lot of what happens to the value of our homes in 2010 depends heavily on what happens in our local economy. The governing bodies of Lawrence and Douglas County have newfound progressive notions when it comes to economic growth. New initiatives are being developed at both the city and county levels that will prove helpful when attracting new businesses as well as in the retention of existing businesses and jobs. Officials at the Lawrence Chamber of Commerce have reported that new businesses looking at Lawrence and Douglas County as a landing place are finding the reception considerably warmer than they have in the recent past. This is great news for our local economy and, specifically, the housing market.
As we march forward into 2010, things are looking up. National measures of consumer confidence appear to be rebounding. Mortgage interest rates should remain favorable and the home buyer tax incentives will continue into the spring. We are optimistic that local companies looking to expand, as well as new companies considering new investments in our community, will continue to find a sincere and committed group of leaders eager and ready to make them feel welcome.
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