What if told you there are housing markets in the country where there are more listings than buyers?
With mortgage rates going higher and building beginning to pick up, the real estate picture of Louisville, Kentucky, may be changing.
“It’s exciting as far as it is a bit of an uptick [in] new listings,” said Paula Barmore, president of the Greater Louisville Association of Realtors.
“From a year ago, we’re up 11.4% from May 2021 to May 2022.”
The average home in Louisville, Kentucky, sells for $292,000, according to Realtor.com; homes are on the market an average of 22 days.
As we’ve seen across the country, when mortgage rates rise — as they inevitably will after the Federal Reserve raised interest rates again this week — first-time homebuyers are priced out.
Jerome Powell addressed the housing crisis during his press conference on Wednesday after the rate decision was released.
“I’d say if you are homebuyer — somebody, or a young person looking to buy a home — you need a bit of a reset. We need to get to back to a place where supply and demand are back together and where inflation is down low again, and mortgage rates are low again.”
Ryan Schneider, president and CEO of Anywhere Real Estate, told FOX Business his message to first-time homebuyers is that he’s worried about them.
“It’s not like the rental market isn’t having the same problem. Prices are up for both for sale and for rent. Consumers are pushing, though, getting adjustable rates, [fewer] bedrooms — expectations are being adjusted.”
He also says he’s worried that home prices won’t come down.
“We are under-built. Fifteen years ago, we had 3 million extra homes; now we have 2-3 million [fewer] homes.”
“The red-hot housing market is definitely cooling down — but that’s a good thing, I say, because the pace of growth in prices wasn’t sustainable.”
He says he is rooting for the builders — and also points out the wealthy are not as affected.
“Most of the people at the high end don’t use mortgages. Then we had more supply; now it’s the reverse. Then, lending standards were loose — now, they are less risky.”
Mitch Roschelle, founding partner of Macro Trends Advisors LLC, says, “The red-hot housing market is definitely cooling down — but that’s a good thing, I say, because the pace of growth in prices wasn’t sustainable.”
He added, “Higher mortgage rates, inflation and a slowing economy are to blame — but I don’t see a crash coming.”
Roschelle also said, “Some of the trends we saw emerge over the past two years will continue — the shift away from cities to the suburbs and more rural areas, and the migration from red states to blue ones.”
As for Louisville, I traveled there last month.
There are several communities under construction just an easy 30 minutes from the airport and downtown.
The rich history, the beautiful green pastures and of course horse country are on full display this week on “American Dream Home.”