The WeSellLouisville.com Louisville Real Estate Blog

Is Your Neighborhood Affecting Your Property Value?

IS your neighborhood affecting your property value

It is no great real estate secret that a home in the most popular location or inside the boundaries of the best school district are going to sell for a higher price. Location is a huge facter in what sells homes for premium prices. So what location factors can bring down the value of a home? What is it is about a neighborhood that causes homes to sell for less money?

Realtor.com has put together a list of neighborhood features that bring down property value. Along with the list, they also provided a percentage of just how much each feature negatively effects the value of a home. They came up with this number by looking at home prices next to facilities known to bring down home value and compared them to the median home price for that city. They polled the 100 largest metropolitan areas across the country.

Here are the results that Realtor.com found

Bad School

Brings Down Value 22.2%

Young families looking for homes are going to look for homes zoned for the best schools. Homes zoned for schools with low ratings are not highly sought after. Living inside the boundaries of a poorly performing school brings down property value more than other factors. The median home price of homes inside zip codes with schools rated 1 to 3 out of 10 according to great schools is $155,000.

Strip Club

Brings Down Value 14.7%

This one seems to be expected on this list. Very few people would want to live near an adult themed club, especially a young family. Places like these usually have loud music blaring...

Louisville home sales have hit a road block!

It wasn’t the weather, home prices, lack of buyers or Interest rates that slowed Louisville home sales in February 2017. Plain and simple it was a lack of inventory that caused sales to drop by 6% last month compared to February 2016. Buyers are having trouble finding homes especially in the $100,000 to $349,000 price ranges (see our absorption rate chart below).

Actually, the drop in home sales could have been a lot worse considering there were 20.6% fewer homes on the market last month compared to a year before. That 20.6% drop equates to approximately 1000 homes and when the inventory only totals 3652 homes, a drop of approximately 1000 homes represents a large chunk of potential homes to buyers. Remember, buyers are desperately trying to find a home before interest rates go up again.

There are several reason homes in the $100,000 to $349,000 price range are in short supply:

  1. Boomerang buyers (people who had their home foreclosed on or had to short sale their home between 2007 and 2014 are back in the market looking for homes.
  2. Home builders effected by the recession closed their doors or slowed production to survive. Those home builders are regaining confidence in the economy but many of their suppliers and trades (electricians, plumbers and carpenters) either retired during the recession or found other jobs.
  3. First time home buyers including millennials...

LOUISVILLE Market Trends

Total Properties Listed: 8,913
Month-Over-Month Change: 1.84%
Average Days On Market: 128
Total New Properties Today: 5
Median List Price: $169,999
Month-Over-Month Change: 3.03%