Members of the Greater Louisville Association of Realtors® posted 860 sales during the month of December 2011. December’s total sales continued a six-month trend of outpacing the same period last year, which posted 847 sales during December 2010. The sales volume trend was notable as it revealed the 2010 Home Buyer Tax Credit produced a surge in activity in the 2nd quarter of 2010, leaving a lean 3rd and 4th quarter in its wake. The average selling price paid for single family and condominium homes in December was $160,402, up $3,499 from November, but down 7% from a year earlier. Average sales prices have retreated from their year-to-date peak of $179,758 posted in July 2011, but remain above the low for 2011 which was posted in March at $152,801.
Inventory, or the number of homes for sale, fell to their lowest level of the year in December, to 7,294 units, from 7,825 in November, 8,373 in October and 8,704 units in September. The number of homes for sale continues to exceed 2010 levels and remains at an 8 month supply; inventory levels near a 6 month supply are often associated with an in-balance market.
Overall, GLAR members end 2011 with 10,975 units sold, a decline of 467 units, or 4% less than 2010. The 2011 average sales price paid was $163,317, a 1.8% decline from 2010’s average of $166,295. In 2011, Metro Louisville home prices retreated from 2010 levels, but the year ended on a positive note with the December average $7,600 greater than March’s low of $152,801.
Year-end market snippets: Cash transactions increased in 2011 to nearly 17% of all sold units closed by GLAR members. Cash sales increased nearly 50% from 2010 and posted their highest numbers of the decade. Conventional sales continued to dominate financing terms in 2011, with FHA and VA a distant second place. The highest priced home sold by a GLAR member in 2011 was an Oldham County property located at 14200 Reserve Cove; the unit closed for $3,000,000 in October 2011. In sum, 10,975 units were sold by GLAR members in 2011, totaling $1,792,398,597. The average list-to-sale ratio was 95%.
Jefferson County Market:
Realtors® posted 612 closed sales in Jefferson County in December, an increase of 6% over December 2010. The December ’11 average selling price posted a gain over November, rising to $160,652 from $156,812. For the month, the average Jefferson County selling price has lost 8% from a similar period last year. The year-end average price paid for a home in Jefferson County was $161,373, 3% less than a similar period last year. The supply of homes on the market in Jefferson County stands at 4,414, down 377 units from November, but up 423 units from December 2010. At the current absorption rate, the county has a 7 month inventory of homes on the market. Year-end sales in the county stand at 7,648 units, down nearly 4% from a similar period last year.
Oldham County Market:
In contrast to slightly lower sales numbers in Jefferson County, the number of closed sales in Oldham County was up 6% in 2011 compared to 2010. The average price statistic in Oldham County was up 8% from $251k in 2010, to $271k in 2011, and the median price was up 2% from $230k in 2010, to $235 in 2011. The median figure is less variable and is not affected as much as the average statistic by the sale of some larger homes that closed in 2011. The number of sales going under contract in Dec 2011 was 56 vs. 40 during Dec 2010, and the inventory of unsold homes remained higher than last year by 17%. Continued low mortgage rates, stable local employment trends and improving consumer confidence will be the key factors that will allow for the absorption of the current inventory of homes and the resumption of a balanced market in Oldham County.
Bullitt County Market:
Realtors® posted 52 closed sales in Bullitt County in December, a decline of 14 units from November, but December ’11 sales were up slightly from a similar period last year which posted 50 closed sales. The average selling price in the county for December was $143,788, up $10,149 from December ’10 and up 4% from November 2011. Bullitt County’s average selling price for 2011 was $139,214, which was nearly even with 2010’s average of $140,793. Year-to-date sales, in the county, stand at 741 units, down 2% from a similar period in 2010. Supply, or the number of homes on the market, has fallen to 507 units, down from 546 units in November, but up nearly 12% from a similar period in 2010.
GLAR Contact Information:
Louise Miller Lisa Stephenson
President Executive Vice President
(502) 214-8000 (502) 894-9860