Current Market Stats

Here are the current market stats from the Greater Louisville Association of Realtors MLS system. It shows we still have a significant number of houses on the market (over 10,000), but our pace of selling is actually in line with local tradition for the time of year (1140 homes sold). The average selling price is relatively normal, as is the average days on market, and the median home price. The market looks solid against historic markers, we just have a high inventory, plus an increase in loan defaults causing some troubles for sellers.

I recommend being prepared to offer some concessions as a seller (paying some of the buyer's closing costs, or giving other allowances), but I encourage sellers who are not in financial trouble to continue to seek fair market prices for their homes. Buyers should take advantage of the great rates being offered, take their time to find the perfect home, and should strengthen their negotiations with sellers.

Number of Houses Sold This Month 1140	Average Selling Price This Month $173,950
Average Days on the Market This Month 73	Number of Houses on the Market this Month (As of 11/3/2007 10:39:56 PM) 10810
Median Selling Price This Month $137,000

Housing Market Analysis
As of November 3, 2007

		ACTIVE TOTAL
Anchrg/Lyndn/Prospct/UpRvrRd		793
Auburndale/Fairdale/Iroquois Park		729
Brownsboro Rd/CrescentHills/StMatthews		437
Buechel/Highview/Okolona/FernCreek		1178
Bullitt		957
Butchertown/Highlands/Germantwn		539
Carroll		97
Central Downtown District		183
DouglasHls/Hurstbourne/Middletwn/Anchrg		859
Downtwn/Old&WestLouisville/Shively		1371
FernCrk/Hikes Point/Jeffersontown		1040
Hardin		519
Hart/LaRue		87
Henry		294
Indiana		153
Meade		190
Nelson		634
OldhamCo N-I71		632
OldhamCo S-I71		626
Other Counties		750

The State of Real Estate in Louisville, KY

I'm always looking for a good place to throw in a cheap cliche and the current real estate market in Louisville has afforded me another great opportunity; 'may you live in interesting times'. While this is actually an ancient proverbial curse, it seems quite apt to what we are seeing today in the Louisville area.

For years, home owners, Realtors, mortgage lenders, investors, and other participants in the real estate market have enjoyed quite a boom in business and income. Unfortunately, certain aspects of fiscal responsibility were ignored, such as the value of good credit, the importance of access to a cash reserve, and the recognition that buying a home is just not for everyone. This perfect storm brewed under the radar until this past year when we finally reached a point where the housing inventory had increased to near record levels, and the number of previous buyers who were risking, or actually in, default multiplied dramatically.

While Louisville is not alone in this situation, because most major real estate markets remain somewhat isolated from each other we must face our challenges regardless of what happens in the rest of the Nation. As a Realtor, I make my living from helping people buy and sell homes. It is very important to me that the market is positive, that the public has enough confidence in the economy to continue to invest in real estate, and that we take proactive steps to reduce the possibility of further damage to our already fragile market.

What are some solutions to the present challenges brought on by our past actions? From a pure business standpoint, real estate industry professionals must continue to control costs and find better ways to do their jobs to help the consumers save money. In addition, we must educate our customers and clients to ensure that they make the best decisions possible for themselves given their personal and financial status, not what we think is best for us. As I said before, just because you can afford a home doesn't mean you should buy. And finally, we must remain positive and realistic about the market. It is a provable fact that Louisville's real estate market is still as active as in years past, we just have such a large unsold home inventory it masks this knowledge.

I welcome your comments on this topic and look forward to seeing a variety of opinions!