LOUISVILLE, Ky., March 7, 2013 /PRNewswire/ -- The Louisville Real Estate Market continues to show positive signs of significant improvement. While the area did not face the full brunt of the economic downturn of 2008-2009, the local market was still forced to correct itself after the short-lived real estate boom. As we begin 2013, the market continues the upward trends of the past several years, reviving the market.
Beginning in 2011, there were new signs that the Louisville market was stabilizing and the number of real estate transfers between private parties began to climb. This can be attributed to ultra-low interest rates, made possible by the Federal Reserve's monetary easing policy and targeted bond purchases. Buyers were drawn into the promise of long-term savings on interest while benefiting from lower total payments.
This injection of capital into the housing market from the Fed also led to banks loosening mortgage lending rules to the extent that regulations would allow. This helped to increase the total number of buyers actively looking at purchasing a home in the Louisville area.
Louisville's local economy has played a substantial role in boosting the housing market in the area. Fortunately, Louisville's job market is relatively stable and supported by key industries that look to remain viable in our current economic climate. These industries include the healthcare industry, the overnight shipping business and an abundance of small businesses working together in a tight-knit community.
Adding up these and other factors, the real estate market in Louisville has recovered into a hybrid buyer's / seller's market, and this has reintroduced a measure of health into the market for the beginning of 2013.
Consider these year-to-year statistical comparisons:
2011 vs. 2012**
- The total sales in the Greater Louisville Area was just over 11,500 in 2011, and 13,500 in 2012
- The average sales price was just under $160,000 in 2011, and just over $167,000 in 2012
- The average total days on the market was 147 in 2011, and 139 in 2012
2012 vs. 2013, Year to date
- The total sales in the Greater Louisville Area was just over 1,450 in 2012, and just under 1650 in 2013
- The average total days on the market was 167 in 2012, and 141 in 2013
These statistics for the Louisville area show positive year-over-year growth, and that trend may continue throughout the year. In the near term, this will give home buyers and home sellers opportunities that have not existed for many years.
A few challenges are affecting the market and will need to be addressed to fully realize the benefits that are available. One challenge is the incredible lack of desirable housing inventory in the Greater Louisville Area. Sellers have been slow to react to the market changes in this regard and are missing a chance to catch the attention of motivated home buyers. Unless sellers with nice homes in good locations come to the market quickly, they may miss a selling opportunity that may not be available in the near future.
Another challenge faced by this market is the fact the many home buyers are convinced that they are in a pure buyer's market and can dictate terms to sellers. This is far from the case in the Louisville market, especially in areas of town such as Prospect and St. Matthews. Home buyers need to gain access to the current market statistics for the area in which they are purchasing so that they can react according to actual market trends. Many buyers have been surprised to discover the tough competition they face for the best homes.
Time will tell how the real estate market in Louisville fares for the remainder of this year, and beyond. With our present positive trends of growth in the area, we should enjoy a continued improvement in the market for the foreseeable future. Home buyers and home sellers both should educate themselves about the positive and negative aspects of the market, and act decisively when the opportunity arises.
About the Author: Joe Hayden is the team owner of the Joe Hayden Real Estate Team - Your Louisville Real Estate Experts!
**Courtesy of MetroSearch, Inc. 2011-2013. These statistics are believed to be correct, but must be verified.
SOURCE Joe Hayden Real Estate Team