Right now I’m in New York City filming a commercial with Barbara Corcoran, and I’m excited to be able to take you behind the scenes to get an exclusive look at the shoot.
First, though, I have some of the latest numbers from our Louisville/Southern Indiana market to share with you. Year over year, home prices have increased 7.2%. Not all appraisers are allowing that 7.2% increase, however. The value of your home also depends on which part of our market you live in. Over the last five years, home values have appreciated by 21%.
According to Dr. Frank Nothaft, the chief economist for CoreLogic, “The number of homes for sale has remained very low. Job growth lowered the unemployment rate to 4.1% by last year’s end—the lowest level in 17 years. Rising income and consumer confidence have increased the number of prospective homebuyers.”
On top of that, home values are expected to continue to appreciate in the near future. This has a lot of potential buyers ready to jump off the fence and purchase.
Daren Blomquist, the senior vice president of ATTOM Data Solutions, says “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, buyers are looking at the potential increase in mortgage rates and wondering where they’ll find their next home. They’re well aware that this is a race against the clock because by the end of the year, interest rates are expected to reach almost 5%. Remember that, historically, a 30-year fixed-rate mortgage of 5% is still very low. In fact, the mortgage rate has been greater than 5% in 38 of the last 46 years, according to First American.
If you’re a buyer, odds are good that you can find a deal in the luxury market. There are a lot of new homes in the luxury market, and they’re not selling. In fact, new single-family luxury listings are up 130%. Homes listed in higher prices ranges also spend a longer time on the market, so their owners may accept a lower purchase price.
Now, starting at 2:32 in the video, you can see the behind-the-scenes production of our new commercial with Barbara Corcoran. Barbara and I have known each other for years, so this was like being with an old friend. My wife Sandy also makes an appearance.
At 5:13, you can see the finished product. Be on the lookout for this commercial airing in our area within the next month.
In the meantime, if you have any questions about our Louisville/Southern Indiana market or you’re thinking of buying or selling a home soon, don’t hesitate to give me a call or send me an email. I’d be happy to help you.