Predictions for the Lawrence KS Real Estate Market in 2025
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Are you hoping to purchase a home in 2025 in the Lawrence area? We know that purchasing a home or investing in real estate is a big life decision and with the volatility of the real estate market in the last few years, you may be apprehensive. Realtor Jackie Giroux is here to help you find the right home or the right real estate at the right price and we want you to be confident when you invest in your future. To help you make your real estate decisions, we have taken a closer look at predictions for the Lawrence, KS real estate market in 2025 that may impact your decision.
Here is what we found.
What Is the Forecast for the Lawrence Real Estate Market in 2025?
The real estate market in Lawrence, Kansas, has been dynamic in recent years, and if you hope to buy, sell, or invest, you may be wondering what the future holds. There are several factors that are expected to shape the real estate market in 2025 — including national economic trends and local market dynamics. Recent tariffs on imported building materials and potential legislation impacting housing materials may also play a role in which direction the real estate market goes in the next year and beyond.
While predicting the future with certainty is impossible, current market data and analysis provides valuable insights into what we might expect for the Lawrence real estate scene in the next 365 days. Despite an anticipated slight decline of 0.9% in single-family home sales in the early part of 2025, Lawrence is still expected to see a total of 1,080 home sales, according to the Wichita State Center for Real Estate. The median home sale price in Lawrence was an estimated $340,000 as of January 2025 according to data provided by the Lawrence Board of Realtors, showing a 25.9% increase compared to the previous year. That data also showed a 19.5% increase in closed listings in January 2025 compared to the last year.
Will Home Loan Interest Rates Go Down in 2025?
Prediction — Yes. A slight decrease in home loan interest rates is expected in 2025. The Mortgage Bankers Association (MBA) forecasts the average 30-year fixed-rate to drop just below 6% by the end of the year, down from the current average of around 6.8% (as of early March 2025). This roughly 0.8 percentage point decrease could improve affordability for homebuyers. The anticipated drop is influenced by expectations of moderating inflation and potential adjustments to Federal Reserve policy.
Will Home Sales Increase in 2025?
Prediction — Yes. Despite initial predictions, the National Association of Realtors (NAR) forecasts a 7% to 12% increase in existing-home sales nationwide in 2025. It is expected that a national increase in real estate sales would be mirrored in the Lawrence area — but is subject to local economic factors. This suggests stronger market activity driven by factors like pent-up demand and improving economic conditions.
Will Home Prices Go Down in 2025?
Prediction — No. Home prices in the Lawrence area are not expected to go down in 2025. However — the rate of appreciation is predicted to slow down to an estimated 3.4% this year, a significant decrease from the average annual increase of 11.3% that the market saw between 2021 and 2023.
Will Commercial Real Estate Prices Go Down in 2025?
Prediction — It is difficult to definitively say if commercial real estate prices will go down in Lawrence in 2025 without additional data. If you look on a larger scale, the national trends suggest a moderate recovery in commercial real estate investment activity in 2025 that we hope to see translate to the Lawrence area.
READ MORE: Is It Better to Buy a Home or Build a Home?
The predictions for the Lawrence, KS real estate market in 2025 suggest a market that is adjusting to a brand-new economy. While home sales are anticipated to see a modest increase, the rapid price growth of recent years is expected to be more moderate in the next year. If you're attempting to navigate the Lawrence real estate market in 2025 — whether you're looking to buy or sell — having a realtor on your side with knowledge of the local area and real estate market is crucial.
Contact Realtor Jackie Giroux today for help in achieving your real estate goals in the Lawrence area!
