Greetings and thanks for reading!
Louisville, KY’s real estate market has seen significant changes over the past year each contributing to placing us in an interesting situation. These changes include a continued increase in the number of homes available for sale on the market, a tangible decrease in the number of potential buyers, and critical adjustments to mortgage lending and underwriting rules. In addition, there has been an overall negative perception of the local economy in media resources.
Presently, these factors have stabilized to a degree, and we have the benefit of now being able to review the actual sales and inventory figures from last year to determine the best way to adjust to the coming year. Below is a glance at several key statistics from the Great Louisville Association of Realtors…
Sales of Single Family Homes – Residential & Condo
Jan. – Nov. 2007 Jan. – Nov. 2008 Diff. % Change
# of Sales —– 13784 10654 ——- - 3130 – 22.71%
Ave. Price –- $174, 485 $166,627 — - $7,858 – 4.50%
Med. Price – $139,900 $135,000 — - $4,900 – 3.50%
As you can readily see, the Louisville real estate market had a large reduction in sales, but the actual sales prices did not suffer to quite the same extent. What the statistics do not show is a breakdown of the various areas and how each fared last year. I can tell you from personally reviewing all of the statistics that there are many areas in Louisville that did not suffer such dramatic sales reductions, and actually saw sales increases and steady price trends. This is good information for sellers, plus it needs to be understood clearly by buyers because if you are buying in one of these areas that are still robust the sense we are in a buyer’s market can cause you to make negotiating and timing mistakes that can cost you money, and maybe cost you the home you desire.
No matter in what area you intend to purchase, because of the fortunate reduction in mortgage interest rates and attractive terms offered by lenders to stimulate the economy buying a home is still a very smart idea. You will most likely benefit from market forces that will not persist into the near future, so it is imperative if you are considering buying to get serious and resolve any hinderances that may prevent you from taking advantage of this market.
In summary, Louisville has seen and survived a very challenging real estate market. We are not clear yet, nor do we know how the broader economic forces will play out this year, but we certainly have not suffered the setbacks and losses of many areas of the Nation. Sellers need to ensure that they have done all in their power to position themselves strongly in the market, and buyers need to get motivated to take advantage of the benefits they are offered by this market. I encourage you to contact me to discuss this information further and to receive personal, professional attention for all of your real estate needs!
