Louisville Real Estate Sales end with a bang!

It's a celebration!

No one could predict 12 months ago what would happen to Louisville Home Sales during 2013. There were indicators that the housing market was recovering but there was no way to know if it would continue throughout the year. Today as we begin 2014 and look back at the year in real estate, it’s safe to say 2013 outperformed expectations.

In December 2013 alone, the number of homes that sold and closed was up 17.25% compared to one year before. The number of homes going under contract in December compared to the year before was up 5.59%. Most of the other numbers for home sales were up as well, the average days on the market dropped in many parts of the city from 81 days to 69 days. The average selling price went from $166,117 last year up to $ 172,238 in December 2013. It should be noted the median sales price actually dropped from $138,450 in December 2012 to $136,000 in December 2013. (Raw data is contained at the end of this article)

During research for this blog post and for an article in Business First, we determined the average price of homes sold by Louisville real estate agents is actually higher now in many parts of Louisville, than before the recession of 2007. In the Business First article “Year In Review: Rebound In Housing Market”, reporter Kevin Eigelbach correctly pointed to the strong recovery in Louisville home sales for 2013.

I took the research one step further and looked at the number of homes closing each year since 2005. What I found was the rebound is just about complete. The number of homes closed in 2013 is just about equal to 2007, ( just prior to the crash of the real estate market.

So what is this mean to you as a buyer and seller:

For sellers, we know last year there was a shortage early in 2013 of good homes. We also know that a lot of sellers sat on the fence waiting to see if their house would appreciate in value. It’s obvious today home prices have come back in many parts of Louisville. So if you’re seller thinking about putting your home on the market and moving up or downsizing you need to get with us as soon as possible so we can visit the house, determine a market value, suggest some possible staging ideas, and charted course of action.

For buyers, you’ve been given the rare gift of walking into a time machine and heading back to the year 2007. Prices are just about where they were seven years ago.  Accounting for inflation of everything else as well as increase in wages your home buying dollar has been extended beyond expectations. The lower housing prices mean you get a second chance at buying a home and staking out your part of the American dream. Interest rates remain at historic lows and should hover in the low 5% for at least the next couple of months.

There is absolutely no way to determine what will happen in 2014. If interest rates stay low, the economy continues to improve, there are no wars or terrorist attacks on the United States and our elected officials work for the people and not their self-interests 2014 should be great year!

December 2013

December 2012