THOUGHTS ABOUT A SELLER'S MARKET
Talk to any real estate agent, loan office or a home buyer in our Northern Kentucky market and you'll hear the same phrase "there is no inventory". As experts we also know when there is no inventory the market turns to a "seller's market".
Since there is so little inventory in Ft Thomas I'm seeing homes sell in hours after listing. Often these are not perfect homes. I have a daughter looking for a home and we saw one last week that sold the same day.
It had no off street parking, only two bedrooms on the second floor - a problem with kids, a corner lot that ran straight downhill on one side, a tiny yard, every step in the house rendered a squeak in the floor, the front porch while lovely was pulling away from the house on the hill side, the kitchen was teeny tiny, there was evidence of structural repair. This house went up for $100,000 more than it sold for a year prior, and not one iota of work was done.
I am seeing houses sell at ridiculous prices, even for this much desired area. So, the seller's market makes it a great time to sell, but not such a great time to buy in some sense. I wonder about those buying at prices double what they were a decade ago. Low interest rates making homes more affordable certainly drives higher prices. When rates go up, will we see prices go down?
I don't see how the current trend for higher prices as sustainable. I am all about the supply and demand theory. At the same time I'm concerned folks are paying higher and higher prices for homes while not reaping the higher wages. If they have to sell the newly purchased home in 2 yrs will they lose their shirts? If interest rates are a few points higher in two years is that home affordable, or does it turn into a buyer's market.
Where are all the homes for the market? If you want to sell, now is when you will get top dollar, so why aren't more sellers selling? This is the one thing that stymies me. I believe there are sellers who want to sell but can't or aren't.
For sure one thing we all would love is some more inventory at the moment. In the meantime my daughter has some experts to guide her in not buying the wrong house at the wrong time, or the right house at the wrong time.