Louisville Home Sales up - Inventory down!
Louisville home sales are up 4.7% over February 2015. The number of active listings on the market is down 20.1% compared to the same time last year. That’s why realtors are finding it tougher and tougher to find homes for anxious buyers. If the lack of inventory continues, home sales could tumble, as buyers get discouraged with the lack of options to choose from.
The absorption rate is much lower than we've seen in years. In case you don't know what the absorption rate is, imagine all homes coming on the market stopped as of this moment. The absorption rate measures the number of buyers in the marketplace, the number of sellers putting their homes on the market and the number of homes going under contract. When combined the absorption rate gives us a good indication of how the home sales market is performing.
There are several scales but the one we look at closely says that if there is a six-month supply of homes or more it's a buyers market. If there is a 5 to 6 month supply of homes it's a neutral market. Finally anything less than a five month supply of homes and were looking at a sellers market. As of this writing, the absorption rate was 3.43 month supply of homes that's a firm sellers market! Compare that to just a year ago where the absorption rate was a 4.83 month supply. Not quite a neutral market but certainly not anywhere near as hot as the market is right now!
For sellers, the good news is that homes priced right, in good condition and staged properly are selling in a matter of days. We’ve seen a number of our listings sell for more than 10 thousand dollars over list price. Of course those homes still have to appraise for the new value but our sellers are still thrilled. The number of homes will increase starting in the next 4 weeks, but right now there is a real need for homes.
If you’re thinking about selling in the near future Please review:
- Click here to view our Marketing Book.
- Our 150 Step Plan To Sell Your Home Fast And For More Money!
- Selling your home tips!
For buyers this is the time to reach out to your agent to refine your home search. You will need to be ready to visit a home the first day it’s on the market because as the old saying goes “Good homes go fast”.
That’s why we have a team of 17 agents ready to help you at a moments notice.
If you're planning on buying a home in the next several months here are some suggestions:
- Make a list of the key items that make up your dream home, things like price location and amenities. Do you want a fireplace, wood floors, finished basement, garage, fenced in back yard and the list goes on and on.
- Contact a real estate agent (hopefully one of ours) and meet him/her at their office to review your list.
- Ask the agent for a recommendation for mortgage lender. Typically a good agent has a list of lenders they have worked with and know the lender can get the job done. You would be surprised how many lenders drop the ball.
- Make sure the agent can get you into a home at a moments notice. If the agent is busy you may loose your dream home. Make sure the agent has other team members that can help so your never left on the curb waiting to see a home.
- Also read So What Makes Us Number 1.
- Tips For Buying a Home this Year
- 19 Video Tips to Help You Avoid Making a Mistake When Buying a Home!