Posted in: Butchertown, Highlands, Louisville Homes Information, Louisville Information, Mortgage interest rates, Real Estate News, St. Matthews, Author: Younger Group (April 20, 2012)
Consumer confidence is an important component of real estate sales. You’ve seen the ad on TV were the little boy says to his grandfather “I want to have a house just like this someday.” The grandfather, aware of the ups and downs of the real estate market, says, “I hope so, son.” The grandson has the mindset of many people these days.
Any Realtor® working in our city is very confident that there will always be affordable homes in Louisville. We have so much going for us that people can buy with confidence that the economy will remain vital and make them feel good about buying a home here. Now, the rest of the country is catching the confidence that Louisville residents have long felt.
A recent survey by Fannie Mae, the mortgage backer, in March 2012, shows that 73% of the people surveyed want to buy a house now. This figure is up 3% since February 2012. Half expect rents and a third expect housing prices to increase in this time frame as well. Forty four percent of these same respondents were confident that their own finances were getting more stable and will continue to get even better over the next year.
As Doug Duncan, vice president and chief economist of Fannie Mae, said, “Conditions are coming together to encourage people to want to buy homes,” said. “Americans’ rental price expectations for the next year continue to rise, reaching their record high level for our survey this month. With an increasing share of consumers expecting higher mortgage rates and home prices over the next 12 months, some may feel that renting is becoming more costly and that homeownership is a more compelling housing choice.”
People are comfortable enough to make the commitment to become homeowners even though in Louisville as in most other cities, the supply of houses is in excess of a balanced market, where four or five months’ worth are available. They know that it still take longer to sell a home than in the past and that they cannot expect to make a killing on the eventual sale. Still, they want to take the plunge.
Fannie Mae itself, while acknowledging some economic recovery over the past months, asserts that growth has is slowing down. In an article in MarketWatch, Duncan asserted that the increase in consumer spending has outpaced the growth in income. This indicates that consumers are dipping into savings, not spending disposable income.
In a related development, Bankrate reports in its March 22, 2012 edition that mortgage rates, at historic lows for over year, are inching upwards. A payment on a 30 year $165,000 loan was up $13.50 a month. Economists predict that the potential of rising rates may encourage those potential buyers who were waiting till mortgage rates are as low as they can be will decide that the time to buy is now.
If you are ready to join the 73%, give me, Mollie Younger , a call today. I can show you an affordable home in Butchertown, St. Matthews, The Highland, or the other exciting neighborhoods of Louisville. Contact the Younger Group Realty because as our tagline says: We know Louisville.