I believe that due to lower interest rates that I believe are coming in 2007 the Douglas County Kansas real estate market will see one of its best three years ever in sales. I do not believe it will be a record year but will probably come in at #3 because of the high inventory of homes on the market at the end of 2006.
30 year fixed interest rates for Douglas County range from 5.5% to 6.625% at 10 local lenders as of 12-18-06. The average rate is 5.938%. Throwing out the highest and lowest and averaging the other 8 came out to 5.906%. The most frequent rate quoted was 5.875%. I believe the rates may drop down to at least 5.5%-5.6% as being the most frequent rate quoted during some week in 2007.
The best time to buy Douglas County Kansas real estate is right now which includes Lawrence Kansas homes for sale, Eudora homes for sale, and Baldwin homes for sale (in that order due to county appreciation rates for these cities).
Why now instead of when the interest rates drop a little more? Right now there is a surplus inventory of Douglas County homes on the market that will take about a year to sell off at this past year's sales' rates. With this buyer's market, homes are selling for $5,000-$25,000 below the asking prices. As the interest rates start to drop, more people will buy and decrease that inventory which will drive the sales prices up closer to the asking prices. Therefore, buying a home right now will mean instant $5,000-$25,000 equity when the prices rise.
Again, this is just an educated guess and no guarantees are given but I have just made a personal investment of $204,000 in a property that should receive an instant $40,000-$50,000 instant raise in equity in 2007; probably around August or September when the supply moves close to demand and the market balances.
Douglas County is experiencing probably the best appreciation rates in the state and should see a continuance of this appreciation during 2007.
Keep an eye on this blog as I will post 2007 figures as they come in. Give me a call if you are interested in Lawrence Kansas real estate and for real estate needs elsewhere, I will refer you to a qualified Realtor® who will take excellent care of you.
NOTE: This blog was written in the past about properties on the market at the time of the blog being written and should not be considered as active listings beyond the date of this blog.
