Today I’m at the 25th Annual Heart Walk in downtown Louisville to raise money for the American Heart Association.
Before I tell you why, let’s review the latest news and numbers from our Louisville and Southern Indiana market.
The big news is that the mortgage interest deduction is being capped in the proposed tax overhaul. As of this report, it’s still up in the air. For now, though, if you own a home worth over $500,000, the mortgage deduction won’t be touched. This could be a very serious problem in states like California, but it should have little to no effect on home sales under $500,000 in the Louisville area. If you own a home worth over $500,000, it’s too early to know how all of this will shake out.
This past October, the number of homes sales dropped 11.1% compared to October 2016. Inventory also dropped 8.8% compared to October of last year. This is making it very difficult for buyers to find homes. We know this for sure because our market’s absorption rate dropped in that same time span from 3.37 months to 2.93 months, and anything less than five months is considered a seller’s market.
How is your family’s net wealth tied to purchasing a home? If you purchased one in January 2017 for $250,000, that same home is estimated to be worth $298,749 by January 2022.
If you’re thinking about selling, know that January appears to be the best time to put your home on the market. Year after year, inventory is at its lowest level during this month, and the number of people looking for homes is up compared to other months. If you can pair your home with a potential buyer during this time, you’ll sell quickly and for top dollar. With interest rates going up next year, it may be the perfect time to put your home on the market and finding a new home that will give you a great deal.
So, why am I at the 25th Annual Heart Walk in downtown Louisville on a Saturday morning?
At the beginning of this year, I had a quadruple bypass surgery, so I have a personal connection to this event and what it stands for. This year saw a record number of people attend. The walkers came in all shapes and sizes, and some even brought their dogs. It was a great event for a great cause.
In total, 108 different companies and 57 community teams participated, and I got to speak with Wave 3 News’ Shannon Cogan, who once again hosted this event, about this experience. It’s true that you never know who is going to need the help of a heart surgeon and the rest of the folks at the American Heart Association.
If you have any questions about our real estate market or you’re thinking of buying or selling a home, feel free to call me anytime. I’d be happy to help you.