The 2017 Louisville home buying season is underway and despite a lack of inventory home sales are higher than expected! The number of homes sold in March 2017 was up a whopping 11.2% over last year at the same time. Considering the fact there are 18.4% fewer homes on the market, that’s an amazing accomplishment.
Still, the lack of inventory continues to slow down home buying season in Louisville and other parts of the country. But much like the weather, there are signs of change around the corner. Sellers are in the process of preparing their homes to put on the market. Our phone lines are busy with potential sellers getting ready to sell.
One of the big concerns for sellers is not being able to find a home to buy. As of this writing the absorption rate (a way to determine market activity) is at a 2.54 months’ supply. Remember, anything less than a five-month supply is considered to be a sellers’ market. Find the breakdown of absorption rate pricing below, you’ll find that in some cases the absorption rate is as low as a 1.2-month supply.
But the good news is, if you own a home in the $200,000-$400,00 price point and plan to move up in price the search should be a lot easier. Inventory levels are higher and deals are easier to find. The reason for the lack of homes in the Louisville area is because the following:
- Baby boomers are trying to downsize
- Boomerang buyers (people who lost their homes due to foreclosure or short sale between 2007 at 2012) are back in the market looking for homes by.
- Twenty plus year-olds are now in the market looking to buy their first home
- People from outside the United States are looking to find their first home.
- Let’s not forget the families that are growing and need a bigger house.
Put it all together and you have the perfect storm for a need of homes. The motivation for people looking to buy a home comes down to rising interest rates (people want find the next home and lock in before rates go higher), rising prices (receive price increases of more than 3% a year in some areas of Kentuckiana) will and the belief that the economy is doing well. That could all change if war breaks out in the Middle East or another part of the world, but even then, life will go on here in the United States.
The smart move is to align myself with a mortgage company that will give you a pre-approval letter, also ask that mortgage company to verify that you have the down payment in the bank with an additional letter (this extra step gives you a leg up against another buyer who has not gone through this second process). Additionally work with a team of agents who can get you into a new listing within a matter of an hour (that’s why we have 17 agent standing by) Additionally make sure your setup on the latest MLS system with your realtor so you’re getting very latest updates at least once a day. Make sure your agent knows about the escalation clause with the If you decide to buy a house that has interest from more than one buyer.
Buying or Selling, as the market heats we are available to help you 24/7. Call 502-376-5483.