August Housing Sales up 26%

Louisville Realtors® continue to be encouraged with August closed sales up 26% compared to August 2011. The year ‐to‐date closing figure was also up 15% compared to January‐ August of last year. The number of properties placed into a pending status on the Multiple Listing Service (MLS) during August 2012 was up a 17% compared to the same month last year. Both the average and median prices for August were about 1.5%  compared to August 2011, and the year ‐to‐date average and median prices are up about 3‐4%. In Jefferson County the 2012 year‐to‐date average price remained at $167k and the median price is $137.5k. The inventory of homes and condos currently for sale is about the same as this time last year, with about 4500 for sale in Jefferson County and 7300 total for sale in the Louisville Area multiple listing service.

Record low interest rates continued to fuel purchases by owner‐occupant buyers and investors in August. Recent announcements by the Federal Reserve that they will continue purchases of mortgage backed securities, and that they plan to keep the Fed Funds rate low through mid-2015 may actually cause the pace of sales to moderate as purchasers may not feel a sense of urgency to lock in today’s record low interest rates. However, these Fed actions should keep housing affordability at favorable levels for the coming months.

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