Ok, I am still developing a market index for Louisville. (Actually, the index is done, I am just gathering data to make it relevant). However, I wanted to share the February numbers with everyone.
February was not a good month for Louisville home sales. I'd like to blame it on the weather (snow and tornadoes <--only in Kentucky do these happen in the same week!!), but it still seems like buyers are just being too cautious.
802 Home owners managed to sell their homes or condos. Ignoring January, this was the lowest total since January 2005. This total is over 20% lower than 1032 homes and condos sold in February 2007. Inventory levels came down a little and are now at 11.6 months, but this is still higher than any point last year.
On the bright side, the average selling price in Louisville is up 2% over last February. Additionally, most experts are predicting that rates will remain unchanged or decline slightly over the next 30 -90 days. Note to Buyers - this does not mean you should sit around and wait for a drop. Click here and here for additional thoughts.
March is shaping up to be slow as well. I predict that we will not be down 20% again, but expect 10%. House prices will continue to hold. Home builders are going to be a key factor over the next few months. They need to show patience as the peak building season approaches or the additional flood of homes will drive prices down.
Whether you are ready to buy or sell a home in Louisville, Shepherdsville, Mt. Washington, or anywhere else in the metro area, please contact me..
I am here to help.
Showing posts with label Oldham County Home Buyers. Show all posts
Showing posts with label Oldham County Home Buyers. Show all posts
Sunday, March 9, 2008
Thursday, February 28, 2008
Louisville Home buyers, Get off of the fence!
This is follow-up to a previous post. I’ve read and heard comments that buyers are afraid to purchase a home because they are afraid that they will miss a better deal. This is simply not a good strategy. Buying a home is not like waiting to buy a TV on Black Friday. There are too many variables beyond your control. In fact, even if you get a better price by waiting, you may get a worse deal.
Consider this scenario,
Last week, a property came onto the MLS for $160,000 that a buyer was interested in. If the buyer had made a reasonable offer (97% is reasonable in Louisville), he or she could have possibly purchased the home for $155,200. At the time, average interest rates were 5.82% according to Bankrate. Monthly Principal and Interest payments for this purchase would be $912.62. However, if the buyer had waited until this week, the 30-year average rate rose to 6.08% and the payment is now $938.50! To get back to $912.62, the buyer would have to get the house for approximately $150,900! This is far more unlikely.
So, now what? Should you wait and see what happens next week? The answer is a resounding NO. According to this week’s survey of 250 experts by mortgage-x.com, 37.9% believe rates will increase slightly and 41.4% believe they will fall slightly over the next 30 days. A virtual coin-flip. Stop denying yourself a home that you want out of fear of missing a better deal! If you find a home, purchase it and start earning equity. This is something that you can control!
If you are looking for a home in Louisville, Shepherdsville, or anywhere else in the Metro Area...
I am here to help
Consider this scenario,
Last week, a property came onto the MLS for $160,000 that a buyer was interested in. If the buyer had made a reasonable offer (97% is reasonable in Louisville), he or she could have possibly purchased the home for $155,200. At the time, average interest rates were 5.82% according to Bankrate. Monthly Principal and Interest payments for this purchase would be $912.62. However, if the buyer had waited until this week, the 30-year average rate rose to 6.08% and the payment is now $938.50! To get back to $912.62, the buyer would have to get the house for approximately $150,900! This is far more unlikely.
So, now what? Should you wait and see what happens next week? The answer is a resounding NO. According to this week’s survey of 250 experts by mortgage-x.com, 37.9% believe rates will increase slightly and 41.4% believe they will fall slightly over the next 30 days. A virtual coin-flip. Stop denying yourself a home that you want out of fear of missing a better deal! If you find a home, purchase it and start earning equity. This is something that you can control!
If you are looking for a home in Louisville, Shepherdsville, or anywhere else in the Metro Area...
I am here to help
Tuesday, February 26, 2008
Buy a home in Louisville, NOW!
As I mentioned on my website, now is a great time to buy a house in Louisville. However, judging from the sales numbers in January, many of you are missing out. Inventory levels are high, interest rates are still low, and sellers are willing to work with you. For home buyers, especially first-time home buyers, in Louisville, this is a dream scenario.
High inventory levels exist in every part of the Louisville area. Whether you are looking in Shepherdsville, Taylorsville, Crestwood, or anywhere in between, you can find a home with the features that you want and don’t have to make compromises. With today’s gas prices, you can save $300-$500 / year just by living 5 miles closer to work.
Interest rates have increased slightly over the last 2 weeks, but are still low. Considering that the median home in Louisville costs $162,000, the difference between a 30-year 6.00% loan and a 6.50% loan is $632 per year. Keep in mind that mortgage interest rates are not tied to the prime lending rate or Federal Funds rate. In fact, as we are seeing right now, mortgage rates tend to move opposite of these indicators. So, don’t think that because the Federal Reserve might lower rates again, that mortgage rates will go down further.
Price is not the only factor to negotiate when buying a home in Louisville. Most homes for sale in Jefferson, Bullitt, and Oldham counties are priced fairly and the average selling price is about 97% of the listing price. However, buyers are still able to save thousands because sellers are willing to help with closing costs, willing to make repairs or pay for upgrades, and / or willing to purchase a Home Warranty. These concessions are potentially worth thousands of dollars to you.
Now is the time to buy. As mentioned above, you can save over $1,000 just because of the number and location of homes for sale and current interest rates. The additional benefits of a home warranty and other enticements can be far more valuable. If you want to search for properties on the MLS, click here. When you are ready to buy….
I am here to help.
High inventory levels exist in every part of the Louisville area. Whether you are looking in Shepherdsville, Taylorsville, Crestwood, or anywhere in between, you can find a home with the features that you want and don’t have to make compromises. With today’s gas prices, you can save $300-$500 / year just by living 5 miles closer to work.
Interest rates have increased slightly over the last 2 weeks, but are still low. Considering that the median home in Louisville costs $162,000, the difference between a 30-year 6.00% loan and a 6.50% loan is $632 per year. Keep in mind that mortgage interest rates are not tied to the prime lending rate or Federal Funds rate. In fact, as we are seeing right now, mortgage rates tend to move opposite of these indicators. So, don’t think that because the Federal Reserve might lower rates again, that mortgage rates will go down further.
Price is not the only factor to negotiate when buying a home in Louisville. Most homes for sale in Jefferson, Bullitt, and Oldham counties are priced fairly and the average selling price is about 97% of the listing price. However, buyers are still able to save thousands because sellers are willing to help with closing costs, willing to make repairs or pay for upgrades, and / or willing to purchase a Home Warranty. These concessions are potentially worth thousands of dollars to you.
Now is the time to buy. As mentioned above, you can save over $1,000 just because of the number and location of homes for sale and current interest rates. The additional benefits of a home warranty and other enticements can be far more valuable. If you want to search for properties on the MLS, click here. When you are ready to buy….
I am here to help.
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