If you have recently been searching for ‘Homes for Sale in Louisville’ you may have found yourself asking the question, “Where have all the homes gone?!”
Here are some contributing factors to the current lack of inventory.
SUPPLY VS. DEMAND
Like last year, the housing market has been red hot. Unfortunately right now, there are very few available homes for sale. You may see a house go up for sale and within hours there are multiple showings with multiple offers, then, ‘BAM’ it’s sold quickly!
As of Feb 22, 2021, the number of ‘active local MLS properties’ is only 1102. This includes single-family homes, farm, auctions and condos. Compare that to a year earlier with a count over 3,200 (almost a -65% drop).
Median sales prices have jumped +18% ($180K in Jan. 2020 vs $213K in Jan. 2021) as more buyers may be competing to purchase.
Want to know exactly what homes are available for sale? Rick Shaw Realtors provides buyers with custom ‘MLS portal access’ geared specifically to your home buying needs. Contact us today for a FREE Buyers consultation.
GLOBAL PANDEMIC
Yeah. That’s a big one. Americans have been forced to use their houses more — and differently. Sellers are hesitant about putting their home on the market because of COVID-19 fears. Waiting for that second stimulus check, fewer lockdowns, or more vaccinations rollouts before people decide to buy or sell a home. With places like restaurants, gyms, parks, and even schools being closed for a matter time people are spending time at home more than ever before.
“Stay Safe. Stay Home” Shelter-in-Place, and Non-Essential orders have limited commerce and travel. Working from home has become part of our ‘new norm’ which means they may want a larger home and worried less about their daily commutes.
Migration from cities and larger populated regions to less dense and affordable rural areas may be more appeasing to buyers.
Virtual walkthroughs, fewer overlapping home showings, and not more than one group in an Open House at a time have altered how Buyers shop.
See how Rick Shaw Realtors help prepare clients to deal with COVID restrictions when buying or selling real estate by contacting our office.
REMODELING
Homeowners are remodeling instead of relocating. Over three in four (76%) homeowners in the United States have carried out at least one home improvement project since the start of the COVID pandemic. Remodeling survey conducted from www.porch.com
Talk with any of our agents to see what home projects may bring you the biggest (ROI) return on investment when looking to sell.
INTEREST RATES
Buyers have also seen historically record low mortgage rates enhancing ‘buying power’ to go up in purchase price. A 1% drop on the average for a ’30-YR Fixed Rate Conventional loan’, (Jan. 2020) 3.7% vs 2.7% (Jan. 2021). Existing homeowners have also taken advantage of refinancing.
Rick Shaw Realtors can get you in contact with a local loan officer for a loan pre-qualification process and to learn about today’s rates and programs.
INSTA-SOCIETY
The number of ‘days on market’ listed for sale has cut in half (Jan. 2020) 73 DOM vs. 38 DOM (Jan. 2021).
The convenience of swiping with your fingertips to either view hundreds of house photos online, purchase any package to be delivered to your front doorstep quickly, and DIY-like shows have encouraged the “I want it now and it better be perfect” mentality. This has developed new consumer habits and expectations.
Would you like to know how quickly homes are selling in your neighborhood? Rick Shaw Realtors provides Sellers with FREE Comparable Market Analysis Reports. Contact us today to schedule an appointment.
JOBS
U.S. job losses have all but wrecked the travel and hospitality industries (14.7% unemployment, Apr. 2020). Retailers and lower income service workers struggling. A positive note is unemployment rates are going down (6.3% unemployment, Jan. 2021). Small business owners may be waiting on PPP relief money to help keep employees.
WINTER
Typically this time of year is a little slower for real estate sales. Snow and subfreezing temperatures may be a contributing factor. If Buyers are out shopping now just know they are serious. It means less competition for them!
This season brings more availability for movers, homes close faster as lenders aren’t as backed up, and a chance to see how the home withstands the cold.
Rick Shaw Realtors can help get your home prepared to sell no matter the season. Check out Angie’s article on some practical ideas to arrange your home for the Spring.
NEW CONSTRUCTION
Builders can’t build fast enough to keep up with the demand. Lumber prices have been steadily rising and hit a record high in mid-February 2021, adding thousands of dollars to the cost of a new home and causing some builders to abruptly halt projects. According to National Association of Home Builders, prices are up nearly 80% since April 2020.
These are just some of the factors affecting the current low inventory.
If you are looking to hire professionals, Rick Shaw Realtors has the experience and tools to help you buy or sell a home in today’s ever changing market. You can use our site to search ‘Homes for Sale in Louisville’. We keep a close eye on the Louisville and National real estate market trends. Let us help you achieve your homeownership dreams.
Are you or someone you know considering buying or listing your home visit www.RickShawRealtors.com/contact-us for a FREE consultation or call (502) 245-0525.
Realtors are embracing technology, socially distancing and giving clients more time and leeway. KY real estate agents are considered “essential employees” and are encouraged to follow CDC guidelines to ensure our clients safety. https://www.nar.realtor/coronavirus-a-guide-for-realtors
Article by:
Brent Shaw
REALTOR®️
Rick Shaw Realtors
c 502-693-8603
o 502-245-0525
10222 Shelbyville Rd
Louisville, KY 40223
brent@rickshawrealtors.com
You’ll be ‘carried away’ by our professional service.