Looking back over the real estate market in Louisville, Kentucky for the past 12 months I must say it has actually been an exceptional year! Personally, this has by far been my best year in terms of # transactions & sales volume since entering real estate in 2008. While overall the market is not where it was in the early 2000's, it did prove to be a positive year in terms of moving forward towards a healthier market for the years ahead.
Here's the year 2012 in review for the Louisville, KY:
$215,079 Average List Price
96.2% Sales Price vs. List Price
12,573 Total Units Sold
+7.1% Average Sales Price ($168,633)
-19 Average Days on Market (97 days to 78 days)
-35.5% Inventory (10.7 to 6.9) - "6" is considered a "balanced market"
44.74% Sales in $100k - $175k price range
As you can see ALL the statistics are positive in relative terms and are indicative of a market moving in the right direction. Lower inventory with the constant demand from buyers due to continued lower interest rates is what has caused prices to increase and days on market to drop...Supply vs. Demand.
Looking forward into 2013:
While we will continue to see a market infected with foreclosures and short sales for the next few years, I can say with confidence that the overall market in Louisville, KY is headed in the right direction moving forward. I expect even a better year for the # of transactions/sales volume, along with a slight increase in PRICES & APPRECIATION. It will be interesting to see if the Fed will continue to keep interest rates low and how that will affect buying trends.
I truly belive NOW is the time to get into the game while home are still at affordable prices and rates are historically low. Eventually, whether its this year or over the next few, both prices & rates will increase meaning a postive gain in equity in your property. Real estate is still proving to be a smart investment and a cornerstone of building equity & security.
Happy New Years...may this be the best year yet for you & your family!