Louisville, KY Real Estate Market Statistics

Today, the Jefferson County Property Valuation Administrator’s Office (PVA) published an extremely detailed statistical analysis of the Louisville real estate market. You can download and read the analysis at your leisure here.

I am going to keep my comments on the market analysis relatively brief as I feel it speaks for itself, but I do want to re-emphasize a point I continually make to my clients…Louisville, KY is an isolated real estate market that, in general, fares much better than the rest of the Nation. Regardless of what you hear on the radio, see on the news, or read in the papers, Louisville’s market continues to hold it’s ground as the rest of the Nation faces significant real estate setbacks.

Now, that being said, our unique market has unique challenges. The first and foremost is the tremendous number of homes available on the market today. We are averaging 40% more homes on the market than in years past. This over-supply has stagnated prices, overwhelmed buyers, and forced sellers to make additional updates and concessions to sell.

My professional opinion remains that while Louisville is much better off than the rest of the Nation in terms of our real estate market, we still must continue to work together to find solutions, educate buyers and sellers, remain honest and realistic with our expectations, and be prepared for several more years of a less-than-stellar marketplace. It will remain a great time to buy a home, but will present challenges to sellers, especially those who are financially burdened through job loss, or a poor mortgage product.

I recommend that all buyers take advantage of this market, with the great interest rates still offered and the tremendous number of homes available. I also strongly recommend that all buyers consult a professional financial adviser prior to purchasing a home and work with that person to maximize your credit scores. You will also need to consult with a competent mortgage professional for the latest information regarding lending products. Keep in mind that there are numerous ways to finance a home, so be patient, be prepared to do a little research, and don’t be afraid to negotiate. In addition, it is imperative that you seek out and secure competent, professional representation from a real estate agent to guide you through the process of buying a home.

As for sellers, I recommend that you give serious consideration to not selling your home at this time. Unless you must move due to financial distress, a job, or any other pressing reason, I would consider holding out until the market improves to get a much better return on your investment. If you decide to sell, I strongly recommend securing the services of a competent, professional real estate agent to guide you through the transaction, plus to seek the services of a professional home stager. A properly updated, staged, and marketed home is far more likely to sell in this market than not. You must be prepared to make that commitment.

I will be happy to recommend the professional services of local vendors to help you buy or sell a home. In addition, I can provide both buyers and sellers with competent, professional representation designed to meet all of your real estate needs. Contact me at any time for further details…

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3 Responses to Louisville, KY Real Estate Market Statistics

  1. The glut of foreclosed and HUD homes has increased the inventory, but a great many of these homes are not in a condition to be sold to individuals who are not willing to do a major amount of cosmetic makeovers.

    On top that number, the new construction that is unsold pushes the inventory even higher.

    Don’t necessarily agree with the sentiment that people should hold off on selling their homes as there are options to lower their sales price to what the market will bear yet still retain the equity they would have if the market had not slowed.

    Great article as always Joe.

  2. Thanks for the comment, Jay!

    Excellent points about the driving forces behind the significant increase in inventory. I think these issues caught everyone by surprise, especially local developers.

    As for considering not selling, I’m just suggesting ways the inventory can be reduced in a controlled manner. The distressed sellers don’t have a choice and are flooding the market, plus flattening pricing for the rest, but there are those who would be better served overall financially by weathering the storm in their current home.

    An argument can also be made that in a particular individual situation, selling your home at a discount, taking the equity hit, and absorbing the additional property acquisition costs could be much better in the long run if your location and style of home changed in such a way that you realized higher returns.

    All great reasons to seek competent financial advice, plus to find a knowledgeable real estate agent to help guide you through these challenging times.

    The main point is, while the market is actually faring much better than the rest of the Nation as a whole, we still have a lot of work to do in our backyard and everyone able to play a positive role, should.

  3. Pingback: Buyers Letting the Perfect Market Pass Them By | Expert Real Estate Louisville, KY

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