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.
In fact, last January, the market was off to a great start with home sales topping out 19% higher than January of 2019. One year — and a pandemic — later, the Kentucky housing market has duplicated that feat. Home sales were up 19%, reaching 3,512 in just a few months.
For instance, the real estate trends in Lexington, Kentucky are looking positive. Sales in total climbed year-over-year, up 23.7% from a year ago. 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 Lexington, Kentucky, here are some real estate market news you should watch out for.
Low Inventory
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.
Increasing 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.
All-Time 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.
Other Accessible Buying Options
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 Lexington, 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 buy houses in Lexington, 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 Lexington, 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.
