Louisville Homes Values Increase – Louisville Homes Rate of Sales DecreasePosted by Jonathan Karlen on Friday, September 2nd, 2011 at 2:30pm.
Louisville homes values increased. The number of Louisville homes sales decreased.
Which is pretty much on par and consistent with how the Louisville real estate market has continued to fair within an overview of a national real estate market perspective.
Delving more deeply into those 2 conclusions, you can see the following:
If you compare the Louisville homes values in January 2007 to January 2008, the median price is approximately $133,800 and indicates a 3% increase from the previous year (which is actually “good” considering many other depressed markets across the country). Some persons see that as a cause for celebration. In reality, its probably more reason to support the conservative optimist viewpoint.
On the other side of the coin, if you compare the number of Louisville homes sales in January 2007 to January 2008, you will see a 16% decline during that time frame – with 802 sales taking place. Some persons will see that as a cause for alarm. In reality, its probably not that surprising. Inventory is high right now. And even though we saw a general decline from the 11,000 mark of Louisville homes for sale on the MLS that was there a few months ago – the 10,000 mark that we are currently dealing with still represents an oversupply of inventory.
But wait – if you say there is an oversupply of inventory, doesn’t that mean that prices should drop? not increase?
Its just like pulling a thread on a sweater. It just keeps going and going the deeper you look at things.
Yes, generally speaking supply and demand applies. But, there are additional circumstances that are putting a curve on things.
There is a lot of inventory. Much of it overpriced, for what values should be. [Too many people watching those "Flip this House" TV shows out in California and elsewhere that see people getting 200% appreciation for their home in 3 years, and what not.] This has left SOME persons artificially skewing what they think the appreciation should be for their Louisville home. And then add in some real estate agents feeling the pinch overall for the local real estate market, and they go ahead and take the listing to try and pick up some business. And this type of behavior is leading results toward a bad end result for everyone involved.
The house doesn’t sell because its overpriced relative to its competition, and the overall condition of the home is lacking relative to its comparables as well.
So, yes, while the initial numbers on the surface may cause you to jump to an incorrect conclusion regarding value. In actuality, the Louisville homes that are being priced appropriately are moving. And they are moving at a higher value than they were a year ago at this time.
And now, moving from a local Louisville real estate market perspective to a national view point….
Many persons feel that the national market hasn’t seen the worst of it yet. The huge over valuations (that are now a part of this correction within the market), are still needing further adjustment – down. This will continue to put the pinch on home owners in depreciating market areas, and home builders that cause a ripple effect through that local economy because they won’t be wanting to expand building new spec homes until some of the values stabilize and the market picks up in those areas. Which in turn causes the economy to slow down ever further. etc, etc. Its quite a vicious little cycle. But it all gets back to those hot, sizzling markets rampantly appreciating out of control.
Once its all said and done, hopefully persons will try and keep their markets in check.Final thoughts: Its a great time to buy Louisville homes. The Louisville real estate market has a perception of being soft, in keeping with the trends of the national market. But real estate IS LOCAL! Time to jump in, and take advantage of other persons perceptions that things are bad. And pick up a deal in the process.
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