Timing is everything in life. Whether you are a buyer or a seller, the timing may be right for you this spring in Louisville real estate and around the country. Over the past couple years, we’ve talked about it being a “buyer’s market,” but things are equalizing these days.
There are currently about seven months’ worth of available home in the area, where six months’ worth means things are equal. The supply of homes is going down overall, though there will always be homes available. As a prospective buyer, a smaller supply means that what is on the market might not meet your criteria or be what you like. If you are looking for a home near the median price of $133,463, half million dollar homes might be fun to drool over, but are not realistic housing matches for you.
In the world of real estate sales (and everything else), buyers want to buy low while sellers hope to sell high. Once the market has reached equilibrium, both groups have a better idea of what to expect. Sellers don’t expect to make a killing on an overpriced house as they did a few years back, but buyers don’t anticipate scooping up a great house “dirt cheap.” Equilibrium means more fairness for both sides.
As reported in the Courier Journal, Greater Louisville Association of Realtors said that homes sales were up 14% from April from last year, while 21% more homes are pending. This trend is playing out on the national level too, as early spring activity may indicate that the housing market is moving toward recovery in some markets. Warmer-than-usual winters around the country opened the spring buying season earlier than normal too. Real estate analysts are asking if this pattern will hold.
What makes it a good time to buy or sell Louisville real estate?
Price: The median price is rising while remaining in the ball park for buyers. Sellers who price their homes right are getting more for their homes, while buyers still can shop in an affordable range. Sellers measure this by how close the selling price is to the final asking price.
Multiple offers: Another sign of a vigorous market is the multiple offers many sellers are seeing on their homes. Area Realtors are noticing that this is happening more these days on homes that are in good condition and priced right. As noted in another recent article in the CJ, this type of bidding war has not happened in nearly 10 years among buyers, aside from investors who vied for bank-owned homes to rehab and sell.
Mortgage Rates: Mortgage rates for the past year have been fairly low, but the current national average rate for 30 year mortgages is 3.39% Buyers with good credit can buy more house because with low mortgage rates, the monthly payment will be far less than when the rates are higher.
The current market puts both buyers and sellers on their toes. Sellers need to make sure their homes are in position to sell quickly, and buyers need to be prepared to pay more for what they want.
Need some help making sense of all this? I can help you buy or sell property in Butchertown or other great Louisville locations. I’m Mollie Younger from the Younger Group where We Know Louisville. Give me a call and get started today!
By the way, you might want to take a look at few of our old blogs on this subject of buying ir selling in the current market.