Kentucky to the rescue: the real estate boom in Louisville
2018 in America has brought many changes in every area, both at an institutional level and at an economic level. Among all, however, stands out in the real estate world, a small town in Kentucky, which has talked a lot about itself and that continues to be the subject of study by many economists.
Let's find out why.
The city in question is Louisville, a charming reality, founded in 1778 and still represents the largest city in the Commonwealth of Kentucky. One of the oldest cities in the west of the Appalachians, today it has become the hub of the real estate world.
If you are interested in looking for a property in Kentucky, know that you are not the only one!
The first part of 2018 was marked by a unique and particular phenomenon.
House prices continued to rise faster than a thermometer in Africa.
Indeed, from January 1 until June 30, the Louisville brick market recorded an average increase of 6%.
It has gone from $ 200 to $ 217.100 in six months, with an increase in demand of 50% compared to 2017.
What is this strong departure from the previous year?
The shortage is undoubtedly given by the lack of an inventory of available properties (less than 7% compared to the last half of 2017).
The number of apartments sold from 1 January to 30 June was 8,515 compared to 8,000 in 2017. Exactly 2.2% less.
Stock shortage is a double-edged sword. Without doubt it is a positive factor for sellers, who bring a strong economic advantage to the entire real estate system. While a negative aspect is undoubtedly related to potential buyers who, wanting to get a property in Kentucky, find themselves a much more limited range of choices and at much higher prices.
If you are interested, you should hurry, because the market, as well as growing, tends, due to lack of stocks, to reduce the available properties.
And interest rates?
Also in this case they increased in an exonential manner, and the loans adjusted to a fixed rate at 30 years at about 4.6%.
The market is still solid in the most other segment, with properties ranging between 500,000 and 999,999 dollars. Growth, even if limited, was also felt for buildings with a value above this range (up 41%).
One wonders how long this real estate boom can last.
The statistical data foretell a continuous trend that could only subside towards the end of 2019. We just have to wait!
Let's find out why.
The city in question is Louisville, a charming reality, founded in 1778 and still represents the largest city in the Commonwealth of Kentucky. One of the oldest cities in the west of the Appalachians, today it has become the hub of the real estate world.
If you are interested in looking for a property in Kentucky, know that you are not the only one!
The first part of 2018 was marked by a unique and particular phenomenon.
House prices continued to rise faster than a thermometer in Africa.
Indeed, from January 1 until June 30, the Louisville brick market recorded an average increase of 6%.
It has gone from $ 200 to $ 217.100 in six months, with an increase in demand of 50% compared to 2017.
What is this strong departure from the previous year?
The shortage is undoubtedly given by the lack of an inventory of available properties (less than 7% compared to the last half of 2017).
The number of apartments sold from 1 January to 30 June was 8,515 compared to 8,000 in 2017. Exactly 2.2% less.
Stock shortage is a double-edged sword. Without doubt it is a positive factor for sellers, who bring a strong economic advantage to the entire real estate system. While a negative aspect is undoubtedly related to potential buyers who, wanting to get a property in Kentucky, find themselves a much more limited range of choices and at much higher prices.
If you are interested, you should hurry, because the market, as well as growing, tends, due to lack of stocks, to reduce the available properties.
And interest rates?
Also in this case they increased in an exonential manner, and the loans adjusted to a fixed rate at 30 years at about 4.6%.
The market is still solid in the most other segment, with properties ranging between 500,000 and 999,999 dollars. Growth, even if limited, was also felt for buildings with a value above this range (up 41%).
One wonders how long this real estate boom can last.
The statistical data foretell a continuous trend that could only subside towards the end of 2019. We just have to wait!
