Home sales and inventory shortage
So lately everyone has been asking us the same question: why are homes selling so fast?? The answer is fairly simple and it is a trend that we have been seeing for months now in the real estate world. In a nutshell, inventory continues to drop with less homes on the market and more and more people looking to buy but having fewer options. Interest rates continue to remain fairly stable and low, making it easier than ever to get financed to buy a home, all the while making it more appealing to do so! This creates a “Supply and Demand” scenario, allowing homes that are priced correctly at the time they hit the market to many times have multiple offers and sometimes even creating “bidding wars” for certain homes in great locations.
This month, we chose East Louisville to really break down the data and show you what we mean. In the attached pages, you will see that in ONE YEAR, homes priced between $80k-$140k in the east end have dropped in inventory from anywhere between 30% and 48%!!! There are almost 50% fewer homes on the market priced under 100K in this area alone than there were in 2016. In the $200k-$249k range in this same area (a popular price range for the area), there are almost 25% fewer active listings than there were just one year ago. This shortage is creating the supply and demand scenario to occur as list prices and sale prices continue to rise. As seen in the statistics, the average sale price in the east end in April 2016 was $186,000 but in just 12 short months, that rose to over $202,000 in April 2017.