What a Difference A Year Makes -- or Not!

Shortage COntinues

I posted a blog a year ago about homes being in short supply in the Louisville market. Back then, the experts thought the the shortage might continue for a few more years, and it has!

A healthy market (meaning one where there's a good balance of Buyers and Sellers) would have between 5,000 and 6,000 homes for sale in the market served by the Louisville Board of Realtors.  This would usually translate to between 5 and 6 months of "inventory" (meaning if we kept selling houses at the current rate and no more were listed, we would run out in 5-6 months).  Today, we have a little over 2,900, which is just over 2.2 months!

Back in 2010, we had over 10,000 homes on the market, and since the financial crash was fresh in everyone's minds (and also the Lenders'), nobdody was buying!  Builders couldn't get credit to construct new homes, and there wouldn't have been buyers for them if they had.  

So what's different now?

  1. A lot of people improved their existing homes and refinanced at post-crash interest rates, which were as low as 3% for a little while.  These people seem to be staying put in their recently-remodeled homes!
  2. Many people are afraid that if they list their home and it sells, they won't be able to find another one.  This is sort of a self-fulfilling prophecy, as their reluctance to list further tightens the market.
  3. A significant number of people in the building trades left the industry altogether and found different jobs when construction stopped a few years ago.  Today, those trades are in short supply, which restricts builders' ability to put up new homes.  Also, new construction costs are usually in excess of $150/foot, while existing homes could be purchased at lower costs.

However, we can help you make that move you want to make!  When multiple offers are common, there is an art to making offers which will be the most attractive to the Seller -- and it's not all about money!

Also, if you're "moving on up" to a higher-priced home, there is less competition for homes above roughly $350,000, so you can sell your existing home at a high price and probably pay proportionately less for the home you will buy.

Success in this market is all about hiring the right agent, so please give us a call and let's talk about how our clients are successfully moving in this challenging environment!

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