Why are Sandy and I are driving up the coast of Maine right now? That’s an interesting story we’re excited to share with you.
First though, a quick update on our Louisville and southern Indiana market. How do things look right now compared to last year?
The absorption rate for the Louisville area is at a 2.96-month supply, which is well below last year’s 3.48-month supply.When it comes to the absorption rate, anything less than five-month supply is said to be a seller’s market.
If the market is so hot, why were the number of homes sold in September down 5.5%? This is because the number of homes on the market is down 9.7%. There’s not enough inventory around. The reason supply is short is because some builders can’t keep up with demand, but that’s just part of the problem. There are more first-time homebuyers looking for homes, and existing home sellers don’t want to move. Why?
To quote Mark Fleming, chief economist at First American, “Existing homeowners’ refusal to list their homes for sale over concerns about finding a home to buy is a critical driver of supply constraint.”
What are the top reasons for the lack of inventory both in Louisville and nationwide?
First of all, sellers are afraid they won’t be able to find another home, so they won’t put theirs on the market. Second, first-time buyer demand is absorbing a large share of available homes. Some sellers also don’t want to move because their existing mortgage rate is lower than the current rate available. Fourth, some sellers have insufficient or negative equity. Finally, foreign buyer demand is absorbing a large share of available homes.
We expect the market in Louisville and southern Indiana to be hot throughout the rest of the year. Interest rates may rise a little bit, but they should stay pretty steady for the next couple months.
Now, the reason we’re driving up the coast of Maine is because…it’s Sandy’s birthday! When I asked her what she’d like to do for it, she said she’d like to go to Acadia State Park and stay at the Bar Harbor Inn.
Our excursion started in Boston, and at each town we stopped in, we tasted the local lobster fare trying to see which was best. We even got a lobster roll from McDonald’s, which wasn’t bad compared to the rest of the competition. When we got to Acadia State Park, we saw some great views and took in a sunset tour by boat. Back down the coast, we found the winner of our “best lobster competition” at a restaurant in Kenny Bump Port called The Clam Shack.
In the video above, we captured many beautiful sights and stops we’d like to share with you. If you’re planning a vacation, you might want to consider touring the coast of Maine. The scenery is spectacular. And don’t forget to sample the lobster along the way!
If you have any real estate questions about our Louisville and southern Indiana market or you’re thinking about buying or selling a home, don’t hesitate to reach out to us. We’d love to help you.