This market update is coming to you from a resort in Cancun, where we are taking a few moments to enjoy ourselves. I’ve been accused in the past of not taking time to relax and enjoy life, so I’m doing exactly that. Before I get to what else I’m doing here in Cancun, let’s talk about something more important: the current state of the Louisville real estate market.
Home sales in Louisville are doing very well. They are up 4.6% compared to November of 2015. The number of homes going under contract is also up 8.3% from 2015. However, here’s the problem. The number of listings on the market, as of last month, is down 22.2% from last year. That’s a problem because buyers can’t find homes.
Since 2011, inventory has dropped dramatically, bottoming out in January of last year. We expect January of 2017 to bring an even lower level of inventory. If you’ve been thinking of selling, this may be the perfect time. With the supply and demand where it’s at right now, you’re not likely to get a much better deal any time soon.
We just started tracking homes by price range, and according to the latest market report., the absorption rate (a measure of inventory) is different for each price range. It’s low in the lower price ranges, but as you move up into the $500,000 and above range, the inventory skyrockets. The buyer traffic is there, but the inventory just isn’t. This is probably part of the reason we have seen interest rates start to tick up slightly. According to the experts, rates are expected to rise a bit more through 2017, hovering in the 4.2 to 4.4 range.
So, back to Cancun. We are here at a mastermind conference with some great agents from around the country and our friends at Vyral Marketing. Vyral and their CEO. Frank Klesitz did a great job setting this up. We were able to pick some of the brains of the top people in this business and have a good time doing it. Our excursions included scuba diving in the second largest barrier reef in the world, exploring an underwater cave, and seeing ancient Mayan architecture. Check out some of the places we visited in our video above.
If you have any questions for us or you’re looking to buy or sell in Louisville, don’t hesitate to give us a call or send us an email. We look forward to hearing from you.