Okay, so the title is a little mis-leading… In a perfect market they would be giving homes away, but if you look at it practically this is as close to an ideal buyer’s market as we are going to get. If you would have told me a year ago that I would one day be thinking that buyers were flat missing the most perfect real estate market in the memorable past, I would have just laughed. Who could possibly imagine?
Think about it… Basic supply and demand principals say prices will need to be adjusted in favor of the buyer for quite a number of homes due to the significant inventory of homes for sale. And this is actually happening. As always, the homes that have been correctly updated, in desirable locations, and priced fairly are going to hold value, but this is not the norm in our current market. It is more likely that you are going to find a home that needs some basic updating, and you can use that as a negotiating point.
Unfortunately, we have been inundated by media resources that seem to think promoting doom and gloom is the way to report a story. The story that is not being told is the fact all real estate markets are isolated and local. Louisville, KY is very, very different from San Diego, CA. There is little comparison. We have endured several market setbacks, including a high foreclosure rate, a significant increase in homes for sale, changing mortgage rules that make it harder to get money, and a few local economic issues, but for the most part we are still far from the negativity portrayed in the media.
My professional opinion is that we are going to see a few more years of a “soft” real estate market as we emerge from the mortgage lending debacle that hurt so many homeowners. During this time, buyers are going to be afforded very favorable conditions for committing to joining the ranks of homeownership. At some point in time our market is going to begin to appreciate at a much faster rate. Unless new mortgage products become available to allow buyers to keep pace with the market, it will be a challenge to exercise the same purchasing power now available.
What does all of this mean? Simple… If you have had any inkling of a thought of buying a home in the Louisville, KY area it is time to act. You need to get your finances in order, and give serious consideration to speaking with a professional financial adviser, especially if you are a first time home buyer. The cost is nothing compared to the confidence, knowledge, and peace of mind you will have when starting the process of buying a home. Here are a few more tips for buyers in this market.
You need to speak with a mortgage professional who can guide you through the murky waters of the current lending industry. No matter what you have heard, there are still a huge variety of mortgage products that can fit all manners of incomes and credit scores. In addition, there are down payment assistance programs and other alternative financing options that can sweeten the deal for the buyer.
You need to find yourself a competent, professional, Realtor (okay, I’ll volunteer for the job ;). You need a quarterback who can guide you through the transaction, protect your interests, introduce you to real estate vendors that can help you with all of the various facets of the transaction, and educate you completely about this market.
But most of all you need to, as Nike says, just do it! You need to take action now because you may need to save money for a down payment, work on your credit scores, or pay down other debts. In the meantime, you can visit this link to begin to view all Louisville, KY homes for sale, and then give me a call so we can begin to make plans for you to take advantage of this perfect market!