WHY YOU SHOULD BUY A HOME IN LOUISVILLE RIGHT NOW

In our previous blog, we discussed that we are currently in a seller’s market in Louisville, that doesn’t mean that it is a bad time for buyers to purchase a home. Actually, there are several reasons why buyers should consider purchasing a home in this market. Here are a few reasons to consider purchasing a home: 

Low Interest Rates- Currently, interest rates are at a historical low. On average, many buyers are being offered somewhere around a 3.25% interest rate. Experts are saying that it is not expected for interest rates to increase for a while (Badgett, 2016).

Home Prices Are on The Increasing- Right now, we are seeing a steady increase in home prices in Louisville. Over time, it may be more difficult to purchase a home. Home prices are increasing quicker than incomes and salary growth (Olick, 2016).

Renting is Still More Expensive- Experts say that the only time renting would be cheaper is if interest rates climbed up to 6.5% (Vasel, 2015). Also, always remember that when you are renting, you are paying someone else’s mortgage! You could be paying your own mortgage and building equity.

Pride in Ownership- Renting is so different from buying a home. Getting to a point that you are financially stable enough to purchase a home is a big accomplishment. When you buy a home, you feel such a sense of pride.

Tax Advantages-You can still itemize mortgage interest as a deduction on your schedule B.  Lessening your tax bite is always beneficial.  For those that qualify, a Mortgage Credit Certificate (MCC) is also an option.  The longer you rent and not own, the more tax deduction that you miss.

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BE A PROACTIVE BUYER IN LOUISVILLE REAL ESTATE MARKET

In our previous blog, we discuss the current Louisville real estate market conditions. Although homes may be flying off the market in Louisville, that doesn’t always mean it is a bad time to buy a home. If you are going to purchase a home in Louisville this summer, you need to be a proactive buyer. You may be asking yourself, ‘what do you mean by a proactive buyer?’ Here are a few ways to get the home you want:

Hire a Buyer Specialist in Louisville- When you work with a buyer specialist, you are working with a real estate agent that is concerned about your best interest as a home buyer. If you were to work with the listing agent of the home you want to purchase, sometimes your best interest isn’t a major priority. Listing agents have to be concerned have to be concerned with the sellers' best interest as well. The listing agent will share their commission with the buyer specialist.  The buyer does not pay commission.  In this case, both parties are represented. Sellers of the house actually pay the buyer’s agent their commission once the home closes.

Make Sure Your Buyer’s Specialist is a Full-Time Agent- In a market like this, you need a full-time real estate agent! If you find a house you love, you need an agent that makes your home purchase their priority.  Real estate agents that only work part-time typically have other careers and obligations. This makes it hard to get to see houses in a timely fashion. When an agent is a full-time agent, their days and evenings are devoted to real estate.

Get Pre-Approved for a Loan- Most sellers want you to have a pre-approval letter before you even view their home. Even more, you need a pre-approval letter so that you know the price range you can afford. This is obviously imperative before beginning your home search.

Look at Houses You Can Afford- Right now, you won’t be able to submit low offers to sellers that have houses in good condition. Demand is too high for lowball offers. Prepare yourself to offer full price for a house that is in good condition. With this said, viewing homes that are in the range that you can afford is key to being a proactive buyer. This way, you aren’t wasting your time and you are more likely to be able to buy a home sooner.

Act Fast- If you see a home you like, you need to view it right away. It is best to set up a search for homes that match your criteria. These homes can be sent directly to your email as soon as they hit the market. Our website offers a property tracker that allows you to save your search and send an automatic email.

What is the benefit for you to purchase in Louisville hot market? Our upcoming blog will explain more.

For more information regarding the real estate market, call the Hollinden Team at 502-429-3866.

CURRENT REAL ESTATE MARKET CONDITIONS IN LOUISVILLE

Are you currently in the market to purchase a home in Louisville? If so, right now is probably a pretty frustrating time. Specifically, buyers looking for a home in the $180,000 to $230,000 range have probably experienced some issues buying a home. The Hollinden Team, calls this price range the ‘sweet spot’ for the real estate market. This a lot of people. For those not in the market to buy a home and don’t know much about the current market conditions, here are a few issues that are making it very problematic to find a home in the today's market:

Lack of Inventory in Louisville Real Estate Market- This is why it is so hard to find a home in Louisville right now. In July of 2015, there were  729 MORE houses on the market in Louisville than July 2016. The absorption rate decreased quite a bit this year as well. There were 3.92 months of supply in July of 2015 versus 2.85 months of supply in July 2016!

Homes Not Lasting On the Louisville Market- Lack of inventory has not stopped buyers from purchasing houses in Louisville. Only 121 more houses were sold in July of 2015 versus July of 2016.  Remember, there were 729 more homes on the market last July versus July 2016. A year ago, you could see five homes and think for a few days about whether or not you wanted to put in an offer. The market wasn’t even close to being as hot then as it is in July of 2016. In today’s market, you barely have a few HOURS to think about whether or not you like the home. In fact, you probably won’t have time to see the home you like because some homes are selling within hours of going on the market! Currently, if you see a home you like, call your real estate agent and view it right away!

Multiple Offer Situation- If you are able to put in an offer for a home, you may run into a multiple offer situation. Multiple offer situations can be difficult, as you really don’t know what other buyers will be offering. If you are in a multiple offer situation, anticipate offering full price or over full price.

Homes Are Overpriced- Because there is a lack of inventory, we would consider our current market conditions a seller’s market. With this said, some sellers are selling their home for more than it is worth. The issue is that some buyers are becoming desperate to find a home that they pay whatever the seller is asking. This leads to homes not being appraised for the same price as the sales price. Sometimes, the seller may reduce the price of the home to match the appraised value. However, sometimes the buyers are expected to come up with the remainder of the money. Often, this is when real estate transactions fall through. Keep in mind, this is not ALWAYS the case. Some sellers do list their home at a realistic price. Your real estate agent will be able to determine whether or not it is an appropriate price for the house.

Although the issues listed may have some questioning purchasing a home right now, there are several ways to be a proactive buyer in the current real estate market. Also, believe it or not, there are actually reasons why you SHOULD buy a house in a fast, hot market. Stay tuned for our next blog to find out more. 

For more information regarding the real estate market, call the Hollinden team at 502-429-3866.