An Update on the Louisville Market

Our market is fantastic as far as home sellers are concerned. Homes are selling about a month faster than they did last year.

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It’s almost summertime here in Louisville. I hope everyone won a bunch of money at the Derby recently. Today I’d like to discuss a quick market recap. I’ve got the latest numbers from April 2017 and I’m going to compare them with what we saw in April 2016. 

Our market is doing great as you may have heard, but there is a growing problem. I’m talking about the lack of inventory for buyers to choose from. This isn’t a problem for sellers, but it makes things much more difficult for buyers. 

We sold 1,500 homes in April 2016, but only sold 1,380 this April. The average sale price has shot up from $186,000 to $202,000 in the last year as well.

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Our active listings are at a historically low level.

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We are seeing big changes in the average days on market, which is down from 82 in April 2016 to just 58 days right now. Homes are moving a whole lot faster, even if there haven’t been as many of them.

The absorption rate, or how long it would take to just sell off the current inventory if nothing else came on the market, is down to about 2.5 months this year from 3.36 months in April 2016.

Our active listings are at a historically low level. We only had 4,800 last April, but now that number has dropped even further to 3,800.

Interest rates are up from last year but are holding stable for now. They’re right around 4.5% right now for a 30-year fixed rate, which is up about 1% from last year. If you need more information about where rates are today, we’d love to connect you with our preferred lender.

If you have any questions for me, give me a call or send me an email. I would love to hear from you.

Quote of the month: “There is only one small letter between the words can and can’t. That one letter will totally change your life.” -Fireball.

How’d Our Market Do In February?

Another great month is on the books for our real estate market. According to the statistics, now is a great time to be both a buyer and a seller.

Buying a Louisville home? Get a full Home Search 

Selling your Louisville home? Get a free Home Value Report

The numbers are in for February 2017, and it was another great month for our market. Today I want to compare last month’s statistics with those from February 2016 to get a broader sense of where things stand. 

We sold almost 1,100 homes this February, which is about the same amount we sold in February 2016. From February 2016 to February 2017, our average sale price rose from $172,000 to $190,000. Our average days on market dropped from 93 days in February 2016 to 76 days in February 2017.

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February was another great month for our market.

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During that same time, our absorption rate (or however many months it would take to sell off our current inventory) dropped from 3.3 months to 2.45 months. Our number of active listings also dropped from 4,600 in February 2016 to 3,600 in February 2017. 

That last statistic is important to note because that drop in active listings is what’s driving the market as far as pricing goes. There is a lot of demand and not a lot of inventory, which makes now a great time to sell your house.

Interest rates have also gone up a little bit. Last February, they were in the 3.5% range. This February,  they were closer to 4%. This increase is something we’ve been anticipating, and rates may continue to rise as the year progresses. This makes now not only a great time to sell, but also to buy. 

Now that the statistics are out of the way, it’s time for my quote of the day:

“Press on. Nothing in the world can take the place of persistence.”

That’s from Ray Kroc, one of the co-founders of McDonald’s. 

Our office is growing, so if you know any agents that would be interested in joining our team, please don’t hesitate to refer them to us. If you have any questions about our market or are looking to buy or sell a home, feel free to give me a call or shoot me an email. I look forward to hearing from you!

What Happened in the January 2017 Real Estate Market?

How does the January 2017 real estate market compare to the January 2016 market? We’ll go over the latest numbers today. 

Buying a Louisville home? Get a full Home Search 

Selling your Louisville home? Get a free Home Value Report

The numbers are in for January 2017, so we thought we would compare them to the market stats from January of 2016. 

So far, 2017 is off to a great start. As you know, 2016 was the best year we ever had thanks to you. Now, how is the market doing? 

This January, there were 972 home sales; in January of 2016, there were 949 home sales. The average sales price went up as well, jumping from $188,000 in 2016 to $197,000. The average days on market dropped from 92 days in 2016 to 74 days in January of 2017.

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2017 is off to a fantastic start!

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If we look at the absorption rate, which is the number of months it would take to sell all of our current inventory, you’ll see that inventory dropped from 3.51 months in January of 2016 to 2.6 months this January. 

The number of active listings also dropped, from 4,800 last January to 3,800 this January. That means there aren’t as many homes coming on the market. Since inventory is already low, now is a great time to sell your home. 

Of course, everyone is talking about interest rates. According to Statewide Mortgage, our preferred lender, this January the average interest rate was at 3.75% with a 4.7% APR. In January of 2016, interest rates were at 3.65% with a 4.7% APR. 

As you can see, 2017 is off to a great start. Before I go, I’d like to share the quote of the day:  

“Teamwork makes the dream work.” 

I’m not sure who originally said that, but one of my employees, Tracy, shared that one with me. Thanks, Tracy! 

If you have any other questions about our current real estate market, give me a call or send me an email. I would be happy to help you!