LOUISVILLE, Ky. — If you drive around Louisville or surrounding areas, you are bound to see a for sale sign.
Zillow currently has 1,269 houses or townhomes listed for sale in Louisville. Both buyers and sellers will tell you interest rates have been too high over the past few years.
Now, the feds are looking to cut rates once again.
Currently, rates are around 6.5%, but with cuts expected in September, the feds are looking to drop them close to 6%. That's a far cry from their 8% high just two years ago.
So, does that make it a buyers or sellers market?
"With interest rates dropping, I'd say it's a buyer's market," Louisville realtor Drake Delap said. "It's going to increase the pool of buyers, the further that interest rates go down, the more people want to buy."
He says historically when interest rates are lower, you can expect a bigger number of buyers.
An important aspect to remember is home prices. Although rates are expected to drop, that doesn't mean home prices will follow.
When interest rates decrease, the demand for buyers increases. This can causes home prices to be set competitively.
"While you're waiting for the right interest rate, ultimately those home prices are continuing to go up over time. So I wouldn't recommend waiting for the perfect rates because I don't know that there is one," Delap said.
A mortgage broker with Mortgage Network says while refinancing can be tempting, it's important to analyze your options before you refinance your home, so don't just do it.
He said for many buyers, inventory is the problem, not rates.
All of this on the heels of Jefferson County Public Schools announcing lower property tax rates for the 2024-2025 fiscal year.
The new cut lowers rates from 76.8 cents to 73.5 cents. That means, a homeowner would pay roughly $735 in school tax on a $100,000 home assessment.
Delap says it's important to keep your eye on the housing market.