The first Quarter of 2018 is behind us and the data is all in. Here is the big picture. On the national and region front, inventory, homes on the active market, continues to be low. Market absorption rates have fallen from 15 - 18 months to 9 -10 months. In addition to shortages of homes to sell, the mortgage money market has raised the interest rate on mortgages and it appears that there will be at least two and maybe three additional raises this year. All this occurring while buyer demand for homes increases. This dynamic is a double edged blade. On one side Sellers will be happy to see home prices increase. The other side is that Buyers will be priced out of the market because of higher prices and higher interest rates on home loans.
During the first Quarter of 2018 in Trigg county, 35 Single Family (S/F) homes sold. This compares to 31 sales during the 2017 First Quarter, a 13% increase in unit sales year over year. Total volume value of Q1 sales this year was $7,057,950 while last year it was $4,734,633. This represents a 49% increase. The Average Sale Price in Trigg county during Q1, 2018 was $201,655 while it was $152,730 in Q1, 2017. A 32% increase. Finally, Days on Market for homes sold during the first Quarter of 2018 averaged 135 while last year during the same time the average was 164 days.
In short, Trigg county is off to a great start in the real estate market this year. Concerns for the future have to include a lack of homes to sell (low inventory) and the increases in mortgage money and how the increase will affect the buying ability of first time home buyers and others. Time will tell and as soon as the data is available, I will get it on the blog.
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