The real estate market in Louisville, Kentucky is thriving like in many other parts of the country. However, the market has its challenges that are affecting either property buyers or property sellers. This article highlights on the city’s real estate market outlook, putting more emphasis on the Louisville homes for sale. The idea is to update both property buyers and sellers on how the market is now and what they should expect in the near future.
- The Is A Shortage of Homes for Sale in the City
For those planning to buy homes in the city, it is worth noting that the number of Louisville houses for sale is very low and the trend is expected to continue in the near future. This is because the number of new properties constructed in the city is on the decline due to the high cost of building and lack of land. Consequently, the scarcity of inventory has pushed the demand upward and the market is currently in favor of the sellers.
- Home Buyers Should Be Prepared For Higher Prices.
Those planning to buy homes in Louisville should do so now because prices are not coming down anytime soon. If anything, home prices in the city are expected to continue rising if the current trend is something to go by. For instance, the average selling price for homes in January 2017 was $194108. This is a major increase compared to the January 2016 and January 2015 average prices, which were $187392 and $166740 respectively. This shows that homes selling prices have increased by about 16 percent in just two years. Based on this trend, it is evident that homes are going to cost more in the near future.
- There Is Plenty of Inventory in the Market for Pricey Homes
Home sellers in the city have responded rapidly to the rising demand for home by increasing their asking prices. Consequently, there is a plenty inventory of expensive homes with the asking price above $500000. This means that those desperate to own a home in Louisville can still get their dream home, as long they are ready to dig deep into their pockets.
- Buying a Home on Mortgage Is Now More Expensive Than Before
Those planning to buy properties in Louisville on borrowed capital should be prepared to pay more money when repaying the loans. This is because mortgage rates have been increasing gradually and the trend is expected to continue in the near future. However, the increase in mortgage rates in the city has not reached the alarming stage and home buyers have nothing to worry about. Nevertheless, those planning to buy homes for sale Louisville can save some money if they do it now when mortgage rates are still low.
- More Laws Have Been Introduced To Regulate the Market
The local authorities in Louisville have introduced more laws to regulate the real estate market in the city. Some of the newly introduced laws that are effective from March 2017 include the requirement by landlords to register all their properties located in Louisville Metro with the city’s Metro Government. Failure to obey these laws results in fines that are calculated on a daily basis per unit property. This means that those planning to buy rental homes in the city should make sure they are conversant with new laws established to regulate the real estate market.