Louisville Home Sales | All good news in August
Sales were up 21 percent from a year earlier. Inventory is still high, but coming down. Sales are still off from last year’s pace, but the gap is closing. And the number of sales in the pipeline is up.
Keeping things in perspective, last month’s 1,133 sales is nowhere close to 1,521 in August 2007, before the recession hit, but it was the strongest August since that time, even surpassing the tax-credit infused market of 2009.
Here’s the Realtors full press release, including information specific to Jefferson, Oldham and Bullitt counties:
Overall Market Comment:
Members of the Greater Louisville Association of Realtors® replaced July as the year’s second most productive month by boosting sales 8% to end August 2011. August replaced July as the second most productive month of 2011 with 1,133 sold units, compared to 1,048 units in July. For the year, July was moved to 3rd place, behind August (1133 units) and June which recorded 1,137 closed units. The August sales figures also continued a trend noted in July, a trend of outpacing same month figures from 2010. The August 2011 sales were a whopping 21% stronger than August 2010, providing more evidence that Realtors® are steadily surviving in a post Home Buyer Tax Credit market. The average selling price for August 2011 slipped to $169,023, from $179,758 in July 2011, but was nearly even with August 2010’s average sales price of $172,949. Inventory, or the number of homes for sale, declined 2% in August to 9046 from 9,295 in July and 9,213 in June. Inventory remains near a 10 month supply; inventory levels near a 6 month supply are often associated with an in-balance market. Year-to-date sales remain nearly 10% behind last year’s pace, but the upward trend in July and August has closed the gap somewhat.
Overall, GLAR members are encouraged by the summer sales period (June-July-August) and continue to steadily move forward in a post- HBTC market. While economic factors remain weak, predictions are that a low interest rate climate will likely remain in the 4th quarter, a tool Realtors® welcome.
Jefferson County Market Comment:
Realtors® posted 782 closed sales in Jefferson County in August 2011, up nearly 23% from August 2010. The average selling price in the county fell to $168,859, from $173,186 for July 2011, and $171,154 for June 2011. Jefferson County inventory remains near a 9 month supply with 5,723 active units, down slightly from last month, but up 27% from August 2010. Year-to-date sales, in the county, stand at 5,108 units, down 11% from a similar period last year. In summary, the Jefferson County market followed the broader GLAR analysis by breaking the year-to-date trend of lagging behind 2010 and posting an increase in sales volume when matched against the same period last year.
Oldham County Market Comment:
The number of closed sales in August jumped 38% compared to Aug 2010 (when the buyer tax credits were ending), bringing the YTD total up 7% compared to the same time last year. The average and median prices in Aug 2011 vs 2010 were up 12% and 6% respectively, reflecting the sale of some higher priced homes that had not sold in the Spring market. The YTD average and median figures were up a more modest 9% and 4% respectively, and are less volatile than single month data points. The number of sales going under contract was up 5% and the inventory of unsold homes remained slightly higher than last year by 6%. However, this was a 5% decrease in inventory compared to last month. Continued low mortgage rates will be the key factor in the resumption of a balanced market in Oldham County, as it will be with the broader Louisville market.
Bullitt County Market Comment:
Realtors® posted 73 closed sales in Bullitt County in August 2011, down from 80 sales in July 2011, but up nearly 24% from August 2010. The average selling price in the county, for August, was $138,439, a decline of 9% from July 2011, but up 1% from August 2010. Year-to-date sales, in the county, stand at 495 units, down 11% from a similar period in 2010. Supply, or the number of homes on the market, has fallen to 584 units, down 32 units from July 2011, but up nearly 13% from a similar period in 2010.