While the Louisville real estate market has been fairly immune to the slowing market nationally, the latest data is now showing that things are starting to soften somewhat in regard to the sale of single family residential homes and condos.
Before we get into the August 2008 numbers, I wanted to recap all of the numbers for this year. So, lets take a look at the data and see what we can make of it:
January 1 – August 31 2007
Homes Sold 10513
Average Sales Price $174,428
Median Sales Price $140,000
January 1 – August 31 2008
Homes Sold 8021
Average Sales Price $170,711
Median Sales Price $137,000
So, as you can see – theres been a fairly stiff decrease in the number of the Homes Sold in Louisville this year of nearly 24%. Interestingly enough though, theres only been a slightly over 2% decrease in the Average Sales Price, and Median Sales Price.
This would indicate that while the total number of homes that are selling has dropped – the prices for which they are selling haven’t been affected too much overall.
So, now lets take a closer look at the August numbers.
August 2007
Homes Sold 1521
Average Selling Price $179,715
Median Selling Price $141,750
Average Days on Market (DOM) 74
August 2008
Homes Sold 965
Average Selling Price $181,472
Median Selling Price $140,000
Average Days on Market (DOM) 90
The total number of sales is down significantly (965 vs. 1521, which equates to an almost 37% decrease in the number of sales) . And the average days on market has increased from 2.5 months to approximately 3 months. But, probably more interesting is that the average selling price actually went up. This would indicate that the higher end properties ($1,000,000+) while being fewer in number for the overall sales, are actually increasing the overall average value for Louisville homes sold.
So, what does this mean for a person looking to buy or sell Louisville real estate? It means that homes are selling, albeit at a slower rate than in the past – BUT it does not mean they are selling for substantially less than they were previously. (Sorry to those out there looking for a slam dunk deal in buying a Louisville home for 20 or 30 cents on the dollar. It just isn’t commonplace here at this point in time.)
For Buyers: Theres lots of inventory to select from. Currently there are over 10,000 homes for sale in the Louisville market. There are homes that represent a good value out there. You just have to dig through them and find the one you want. But – don’t expect to steal it. Prices are holding fairly firm for those houses that are selling.
For Sellers: Lots of inventory (read: competition) and longer market times are the norm. If you want to get your home sold, you need to price it appropriately AND be the nicest within whatever price point you are currently competing. No matter the price range, you will want to be at the lower end of that price range to get your home sold.
August 2008: Louisville Real Estate Market Softens
Before we get into the August 2008 numbers, I wanted to recap all of the numbers for this year. So, lets take a look at the data and see what we can make of it:
January 1 – August 31 2007
Homes Sold 10513
Average Sales Price $174,428
Median Sales Price $140,000
January 1 – August 31 2008
Homes Sold 8021
Average Sales Price $170,711
Median Sales Price $137,000
So, as you can see – theres been a fairly stiff decrease in the number of the Homes Sold in Louisville this year of nearly 24%. Interestingly enough though, theres only been a slightly over 2% decrease in the Average Sales Price, and Median Sales Price.
This would indicate that while the total number of homes that are selling has dropped – the prices for which they are selling haven’t been affected too much overall.
So, now lets take a closer look at the August numbers.
August 2007
Homes Sold 1521
Average Selling Price $179,715
Median Selling Price $141,750
Average Days on Market (DOM) 74
August 2008
Homes Sold 965
Average Selling Price $181,472
Median Selling Price $140,000
Average Days on Market (DOM) 90
The total number of sales is down significantly (965 vs. 1521, which equates to an almost 37% decrease in the number of sales) . And the average days on market has increased from 2.5 months to approximately 3 months. But, probably more interesting is that the average selling price actually went up. This would indicate that the higher end properties ($1,000,000+) while being fewer in number for the overall sales, are actually increasing the overall average value for Louisville homes sold.
So, what does this mean for a person looking to buy or sell Louisville real estate? It means that homes are selling, albeit at a slower rate than in the past – BUT it does not mean they are selling for substantially less than they were previously. (Sorry to those out there looking for a slam dunk deal in buying a Louisville home for 20 or 30 cents on the dollar. It just isn’t commonplace here at this point in time.)
For Buyers: Theres lots of inventory to select from. Currently there are over 10,000 homes for sale in the Louisville market. There are homes that represent a good value out there. You just have to dig through them and find the one you want. But – don’t expect to steal it. Prices are holding fairly firm for those houses that are selling.
For Sellers: Lots of inventory (read: competition) and longer market times are the norm. If you want to get your home sold, you need to price it appropriately AND be the nicest within whatever price point you are currently competing. No matter the price range, you will want to be at the lower end of that price range to get your home sold.