Why is the Louisville real estate market so competitive right now? Inventory is low and buyer demand is high; I’ll explain what that means for you today.
About four weeks ago, I had a quadruple bypass. Even though I am relaxing and taking it easy here in Sarasota, I am still thinking about the Louisville real estate market.
Existing home sales are the highest they have been since 2007. In fact, in the Kentucky area, home sales are up 3.6% month over month and 3.1% year over year. As you know, anything between five and six months of inventory is considered a balanced market. If there are more than six months of inventory, then you are in a buyer’s market. With less than five months of inventory, we are in a firm seller’s market.
In fact, if you are looking for a home priced between $100,000 and $300,000, the absorption rate is between one and two months. That is simply unheard of! Now is a great time to sell faster and for more money.
Even with amazing buyer demand, a lot of people don’t know that you can buy a home with less than 3% down. Most people think you need 10% to 20% down. Even current homeowners think they need 20% down to move up into a higher price point. Sandie Sokoler has been in the mortgage industry for 40 years and she can tell you that you only need 3% down and a 680 credit score with Fannie Mae.
Housing inventory around the country continues to drop. We can expect more homes on the market in April, May, and June, which is peak buyer’s season. If you want to sell your home, now is actually a better time to be on the market because you will have less competition.
The fear of rising interest rates is driving buyer activity right now. Rates have come down a bit and they are projected to hover between 4.25% and 4.75% for the remainder of the year.
We expect the market to get even hotter as 2017 continues, especially with some of the reforms coming down from Washington. If you are thinking about buying or selling, now is the time to get out there.
Before you put your house on the market, send me an email. I will send you a copy of our selling guide called “150 Steps to Selling Faster and for More Money” for free and with no obligation. If you have any other questions, please don’t hesitate to reach out to me. I am always here to help you!