Louisville Real Estate Market Analysis
While the Louisville Kentucky real estate market was spared the big spikes and dips that other cities experienced with the housing boom, Louisville home owners have had their share of difficulties. Property owners are hoping for a housing market upswing.
Real estate sales in Louisville Kentucky were at the peak in 2004, 2005, 2006 and 2007 with over 10,000 houses selling each year during those years. Then in 2008 the year got off to a very slow start, and when spring and summer came, a time when sales tend to pick up, the number of homes sold did not go back up to normal summer sales amounts. Following that by the end of 2009, the number of houses sold per month was only a quarter of the total selling in the summer months of 2007. Then the tax credits started encouraging people to purchase houses again, and the sales came back up. In 2010 and 2011 sales were steady. In 2008, 2009, and 2010 approximately 8000 houses sold each year in Louisville. Even though the market went through ups and downs in number of houses sold, the average house price has remained between $157,705 – $167,065 in all years from 2008-2011. Louisville realty consultants predict 2012 will not be much different regarding the number of homes for sale in Louisville or the average sale price.
There is good news to be reported also. Louisville has consistently been a very affordable place to live compared to the median income of local jobs. And the other positive news is that there are always plenty of houses to choose from. On average, about 11% of the houses for sale in Louisville sell each month, leaving 89% still on the market.
To increase the chance of appealing to buyers, some home sellers are installing new carpet, fresh paint and new light fixtures to set their homes apart from the competition for home buyers. A few years ago when houses sold in fewer days on market, buyers were less picky about the appearance of the house. They would buy a house with outdated colors or plumbing fixtures and then make the changes later. But with so many houses to choose from now, and houses being on the market longer, buyers expect a house that is move in ready. Most real estate advisors agree that updated houses sell faster than similar houses that are outdated. Still, the most crucial element is price and competition which varies by neighborhood. If the supply of homes for sale in Louisville is greater than demand, price will be affected. Therefore when trying to sell a house in a certain area, the amount of inventory and the amount of houses sold in an area should be analyzed frequently and changes made to the price of the house accordingly. Houses that are priced right for the neighborhood will sell in any Louisville real estate market.