Buy Louisville KY Real EstatePosted by Jonathan Karlen on Wednesday, August 31st, 2011 at 10:55pm.
People are always looking for the right indicators to know when to do a deal to make money. In today’s market, there couldn’t be more indicators if someone was holding a gun to your head telling you to do a deal – and do it NOW!
If you read the USA Today newspaper on Friday September 21, you will see in the MONEY section many articles touching on what I’ve stated here on this site in my Fed Cuts Interest Rates a Half Point article that I wrote three days earlier on September 18.
On the front page, it says that the US Dollar has fallen sharply in value and is now at a record low against the Euro, and the Canadian Dollar has more value than the US dollar for the first time in nearly 30 years. This means that if you go outside the country, you have less purchasing power (and conversely, people in other countries can come here and buy things “cheap”). Indicator: BUY
Fed cut interest rates by 1/2 a point. This makes money more available to lend and a lower payment for persons buying homes, or using their existing home equity to purchase real estate. But it also raises concerns that inflation is looming around the corner. This means, if you buy Louisville real estate now, you can lock in a long term low interest rate now, and then when interest rates spike, and more people need to rent – you can rent out your real estate purchase because rental demand will have increased. Indicator: BUY
If you look at other indicators for possible inflation:
Energy costs: Light sweet crude oil closed at a record high of $83.32 per barrel. Indicator: BUY
Treasury Securities: Rates on 30 year mortgages are influenced by the yield on 10-year Treasury securities. With the current inflation concerns, investors are shying away from those securities – and are demanding higher yields. With investors demanding higher yields, mortgage rates have to rise. Indicator: BUY
Employment: Unemployment is low at 4.6%. This indicates a tightening labor market, and an increase in wages as a result. Indicator: BUY
Home inventory for the Louisville KY market is still quite high – and even though sales are starting to outpace listings, it will take some time for the inventory to get down to strengthen the real estate market. Indicator: BUY
I can go on and on. From job growth, to events coming to this area (like the Ryder Cup in 2008, and the World Equestrian Games to be held for the first time in America in 2010 at the Kentucky Horse Park, etc, etc).
Don’t miss the boat – now is the time to buy Louisville KY Real Estate.
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