You’d never know it by the headlines, but the market here in Lex is really picking up. Maybe it is interest rates being low. Maybe people were waiting until after the election. Maybe we are all desensitized to the economy. Maybe there are just fewer agents this year to take care of all the sales. I don’t know what did it, but every agent I know is pretty busy. I know I have really picked up in the past few weeks.
Now I know everybody expects a realtor to always say now is a good time to buy or sell. I usually avoid riding that wagon since I know people take it with a grain of salt. BUT, now really is a good time to do something.
My thinking on this is that right now is near the bottom…….at least locally. I think that years from now we will look back and see that THIS would have been a good time to make a move. Prices are all about supply and demand. New construction has been way way down in the Bluegrass for a couple of years. There is less on the market right now than in the recent past. (So there is what is happening in the Supply Side.) Interest Rates are extremely low. People ARE coming out. Sales are happening. (There is the Demand Side.) Put all that together and it sure sounds like times are improving!
Oh yeah. Don’t be alarmed when you see in the paper that sales in 2008 were down from 2007. As a consumer, what you care most about is supply and demand, which shows in how many months of inventory there is. Right now, there is about a 5-6 month supply of houses under $250,000. Over that, there is more. 6 months is considered a balanced market. As long as supply and demand are in balance, prices are stable. Realtors are the ones that are the losers when sales slip.
I hope I have explained all this in a way that sheds some Truth and reality to the old “Now’s a great time to buy” pitch.