Just for fun, take an inventory of all the leaf removal tools cluttering your garage.Bet you’ve got a half-dozen rakes of different sizes and materials, maybe a blower or two in various states of
A Quick Guide To Understanding The Louisville Housing Market
You hear it on the news all the time: ”It’s a buyer’s market,” “It’s a seller’s market,” or “The housing market is on the rebound.” And while you probably get the gist of what these folks are talking about, having a deeper understanding of the Louisville housing market and how it works can help you immensely during the home-buying or selling process.
Let’s start with the basics
The housing market refers to the general market of houses being bought and sold between buyers and sellers. These houses are either bought or sold directly by owners or indirectly through brokers. Like any market, the housing market is governed by the law of supply and demand. When demand is high and supply is low, the market appreciates. When demand is low and supply is high, the market depreciates.
How inventory affects value
In the real estate industry, we think of supply and demand in terms of available inventory. You can measure inventory by answering the following question: At the current pace of sales, how long would it take all of the houses available on the market to be sold? As inventories rise, home prices tend to decline. This is because as inventories rise, so does the competition amongst sellers, which drives prices down.
The difference between a buyer’s and seller’s market
A buyer’s market in Kentucky is associated with longer inventory periods. As homes sit on the market in Louisville for longer and longer, sellers become more and more flexible with their prices. This is great for buyers, as they usually end up getting a good deal (hence the term “buyer’s market”). In contrast, a seller’s market is associated with shorter inventory periods. Homes sell rapidly, giving sellers a lot of pricing power (hence, it’s a “seller’s market”).
Keep in mind that, as with other markets, the Kentucky housing market is cyclical: There are periods of rapid appreciation followed by periods of stabilization or depreciation. By studying the market, you can learn to foresee such trends in Louisville.
For more info on the particulars of your housing market, call or text me anytime at 502.553.3277.
Have an amazing day!
Rob is a proud resident of the St. Matthews community. When not involved in his day to day real estate business, he enjoys time with his wife, Sarah, his daughter, Claire, and two of the goofiest dogs....
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