The housing market has only strengthened over the last few years, especially so during the COVID-19 pandemic. Home values soared, buyer demand jumped, and mortgage rates hit historic lows. All of this contributed to the housing market booming despite being in unprecedented times.
For instance, the real estate trends in Louisville, Kentucky are looking positive. Home prices are soaring and more and more buyers are looking into moving into the city. In other cities like Los Angeles, the same trend can be observed, with more homes being sold in 2021 than any other year in recent times.
If you’re living in or planning to live in Louisville, Kentucky, here are some real estate market news you should watch out for.
Not Enough Homes
In 2021, inventory for homes has reached an all time low. There just aren’t enough homes for interested home buyers! To be more specific, inventory was down nearly 30% in the early months of 2021 compared to the previous year.
Why is this important to note? Well, this means that you won’t have enough choices when house hunting. You’ll have to sacrifice a lot of “wants” and “must-haves” because there just aren’t enough homes for you to choose from. Especially if you’re particular with the location and school district, you’ll have to let go of a few house must-haves because the inventory is limited.
High Home Prices
Because homes listed for sale on the market are limited, home prices have exponentially gone up. Supply does not meet demand, which means there are more home buyers than there are homes, making competition for available homes fierce. To be specific, average home prices grew by nearly 20% compared to last year, easily rising to a national median of $300,000–400,000.
If you’re looking to buy a home in this current market, know your budget. Commit to staying within budget despite seeing beautiful but expensive homes being bought off the market.
Low Mortgage Interest Rates
Despite listed houses being scarce and prices soaring an all time high, there are positive trends you should watch out for. For instance, 2021 brings low mortgage interest rates. In fact, the average rate for a 15-year fixed mortgage dropped to 2.2% in January 2021. This is the lowest it’s been in 30 years. And now economists think interest rates will continue to be around 3% for the rest of 2021, which is still pretty low.
Low interest rates can lead to more affordable homes, however, keep in mind that this may not always be the case. If you’re interested in buying a home in today’s market, don’t focus all of your attention into the low interest rates. Remember, a low interest rate on a house you can’t afford is still a bad deal.
On the other hand, if you’re interested in selling your home, low interest rates mean buyers will be motivated to buy your home sooner rather than later.
Online Real Estate Services Are Expanding
Another trend to watch out for in 2021 are the expansion of online real estate services. Since the pandemic has kept people and businesses indoors, the real estate market had to catch up by offering online real estate services. These include listing sites working aggressively online to sell your home.
Because of this, open houses can be accessed online through virtual walkthroughs. Additionally, with the rise of online real estate services, document-based processes have sped up exponentially. Virtual agents can close home sales online.
Other Buying Options Are More Accessible
Last but not least on our list of real estate trends are the accessibility of other buying options. These include rent-to-own homes and loans for down payments. Although these might look appealing on the surface, you have to keep your budget in mind. And if you’re a seller, you still need to make a profit, so offer rates that will allow you to make a decent sale.
NEED MORE INFO?
If you live in Louisville, Kentucky and are interested in selling your home, we can help here at Rylo Homes. We are a real estate solutions company that specializes in solving your real estate problems for you. We are cash homebuyers in Louisville, Kentucky and will act as your personal guide during your home selling process.
Our goal at Rylo Homes is to improve the overall quality of housing for the residents at Louisville, KY. We buy houses in just about any condition and situation, including foreclosure, late mortgage payments, or fair market value. For more information about our home buying process, give us a call at (502) 317-8553 today.
