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…