Today’s real estate market update comes to you from Whistler, Canada, where Sandie and I recently ventured to conquer our fears on the ski slopes. But while the snowy landscape in Canada may be cold, some areas of our market back home in Louisville and Southern Indiana have been rather hot. So before telling you more about our trip to Canada, let’s start off with a look at the latest market statistics.
As you may remember, one of the ways we track our market is by examining what’s called the “absorption rate.” This rate measures the number of months it would take for our market to run out of listings, assuming no homes were listed during that time.
A normal absorption rate is between five and six months, while anything above that constitutes a buyer’s market, and anything below that range indicates a seller’s market. In our area, homes priced under $400,000 are in a firm seller’s market at the moment. Above this price point, though, things begin to slow down. In fact, homes above $500,000 are in a firm buyer’s market. This means that anyone looking to purchase a higher-priced home may have the opportunity to find a real deal. So now is the time to start shopping.
Also, a recent price expectation survey found home appreciation rates are projected to continue to rise through 2022. Daren Blomquist, Senior VP at ATTOM Data Solutions has said that, “It is the most profitable time to sell a home in more than 10 years, yet homeowners are staying put longer than we’ve ever seen.”
Meanwhile, mortgage rates continue to rise and are hovering above 4%. And projections for the rest of the year show rates will only continue to go up. We could see a 5% interest rate by the end of the year. Locally, in our Kentucky and Southern Indiana markets, the number of people putting their homes on the market is still slow. It’s a great time to sell and purchase a new home, as inventory has been decreasing month over month since 2011.
With our market report out of the way, it’s time to talk more about the ski trip Sandie and I took. Skiing has always been a fear of mine, but, to my surprise, I did very well for my first time. You can see highlights from this ski trip, including shots of Sandy and I taking on the slope, in the video above.
As I found out, conquering this fear of mine wasn’t as hard as I imagined. And it actually led me to an important point, which I’d like to end on now: A lot of people are afraid to list their home, because they think they won’t be able to find another house to buy. But if you can overcome this fear, you’ll find that our current market presents the opportunity to sell your home for a higher price than in the past. You’ll also find that it’s actually a great time to move up and purchase a home in a higher price point.
If you have any other questions, would like more information, or are thinking of buying or selling your home, feel free to give me a call or send me an email. I look forward to hearing from you soon.