Real estate markets vary from state to state. As the New Year begins to settle in, many are left wondering what 2016 will be like for each state's real estate. In Louisville, Kentucky, many home buyers are ready purchase, but are left wondering if there will be enough prospects to choose from.
Thanks to Insider Louisville, there are many "easy-to-see" trends that are happening in Louisville real estate, which could potentially foretell what's in store for the state in 2016.
Housing Inventory
As it turns out, Louisville is seeing a massive drop in housing inventory, which means home buyers are left with limited choices for a prospective new home.
Back in summer 2011, Louisville housing inventory reached its peak, and it doesn't look like it's going to get any better, since it's been going down since. Check out a graph of the Louisville Absorption Rate here.
According to the publication, "If no new properties were to come onto the market (not gonna happen) and our sales maintained their current rate (plausible), we would have zero homes on the market in 3.16 months! This is well below a healthy market absorption rate of six months."
However, there is still hope. New listing might start hitting the market just as soon as the weather starts warming up, but only time will tell when that will actually be.
Buying Power
Even with several well-priced homes on the market, buyers will still need the finances to purchase a home. And without a stable employment to supply an income, buyers will still have difficulty in getting a new home.
Although unemployment rates in Louisville are experiencing a steady decline, it will still be difficult for employed prospective buyers to save up enough money for a down payment if they don't obtain an increase in salaries.
Mortgage Rates
One of the factors that have been posing some sort of difficulty on the real estate industry was the hike of mortgage rates at the end of 2015.
However, the increase in interest rate has only been so small that it wouldn't make such a huge impact other than hindering apprehensive buyers from jumping into the purchase instantly.
