Today, Sandie and I are out about 35 miles from Las Vegas in majestic Red Rock Canyon for a beautiful backdrop to talk real estate.
The Louisville market is red hot right now, but problems remain with buyers not being able to find homes. We track inventory with an absorption rate to determine how many months of supply the market has, with anything above six months said to be a buyer's market and anything below five months said to be a seller's market. Five to six months of inventory is said to be a balanced market.
As you can see from the slide in the video above, the absorption rate for homes in the $50,000 to $400,000 price range is a little disturbing for homebuyers because there are so few homes available.
In fact, the $150,000 to $200,000 price range has just 1.2 months of inventory. The market is so hot that we're seeing multiple offers on a home in a single day.
On the other hand, there is a 13.4-month supply of homes in the $700,000 and above price range, making it a firm buyer's market. Home prices have continued to rise over the last year; many areas of Louisville have seen prices increase by 5.47%, bringing home prices just about back to where they were prior to the bubble bursting in 2007.
This continues to be a reason homebuyers are clamoring to buy a home now; prices are projected to keep rising until 2021. If you bought a $250,000 home this January, it would be expected to rise in value by $42,898 by 2022. Even though mortgage interest rates rose slightly this month, the projection is still low, so it's still a perfect time to buy a home.
We expect the market to get hotter and hotter throughout 2017. Of course, that depends on what we see from the interest rates, but things are looking good so far.
Now back to the beautiful part—Red Rock Canyon. The color of this canyon is something spectacular that we just don't have back in Louisville. While in Las Vegas, we also got a chance to check out Topgolf. In the video above, you can take a look at my silky smooth golf swing and Sandie's less successful attempt. The Las Vegas Topgolf is a multi-level facility and it even has a pool with a bar. It's very impressive.
Thanks for joining us today! If you're thinking about selling your house, now is the time to do it, so give me a call or send me an email today. I look forward to helping you!