2020 Real Estate Preview
The real estate market is always changing. Prices rise and fall, as well as interest rates. Conditions favor buyers or sellers. Areas become popular. It is an ever-changing landscape made up of numerous factors. Let’s take a quick look at how the market is at the end of 2019 and the beginning of 2020 in Louisville and surrounding areas.
The past few years has seen a market with a shortage of “affordable housing” available for sale. Listings at below the $200,000 mark, and even more specifically, at $150,000 and below have been in high demand. Buyers have engaged in bidding wars and many of these homes have ended up selling for more than the original listing price. The reason for this is complex and lends itself to an article all its own. What’s in store for affordable housing in 2020? Simply put, we don’t know. Recent months have seen similar numbers of listings than the previous year, however, year over year, listings under $150,000 have actually decreased. Sellers should reasonably expect a favorable market for modestly priced houses in good condition.
The good and the great for potential buyers of these homes are these: Smith & Wilson agents are able to win many of the competitive offer situations for their clients. We have strategies that work! Interest rates are low. Like, really low. This increases your buying power if you are financing a purchase. Here is how:
For a $150,000 home, a payment at 3.625% Will be $684 plus taxes/insurance/PMI
That same home, at 4.5% would have a payment of $760 plus taxes/insurance/PMI (which also increase as purchase price increases). This rate advantage increases as the price of the home increases. *
*These numbers are for example only, to find out how much house you can afford, contact David Setters 502-632-4470
North of the $200,000 mark, listing volume is up! These houses typically do not sell in the blinding speed as lower priced homes. But they are selling and at a faster rate then 2018 as a whole. The market there is a bit more balanced and Smith & Wilson agents will do everything it takes to get your home sold!
We do not have a crystal ball and countless factors will change this landscape over time. Do you have a question for one of our agents? Reach out today!