Members of the Greater Louisville Association of Realtors® (“GLAR”) recorded 1.1% more home sales in August 2014 (1461 units) than in July 2014 (1445 units), and 7% fewer than August 2013 (1572 units). The year-to-date average price in Jefferson and surrounding counties was up 3.0% to $180,548 compared to $175,233 last year. The year-to-date median price was $146,000 versus $144,900 one year ago. The inventory of homes is still relatively tight with 10.7% fewer active listings for sale than this time last year.
GLAR President Lester Sanders, noted that, “Members experienced a steady pace of closed sales in August, but we did see a slight decline (4-5%) in the number of contracts signed compared to this time last year. As consumer confidence continues to grow the number of buyers and sellers will increase in the market.”
The National Association of Realtors® (“NAR”) Department of Quantitative Research reported that although credit is still tight, consumer confidence is at the highest level in seven years. NAR reported that 59% of loans made this year have been to borrowers with FICO credit scores 740 or higher, compared to only 40% at that high level in the pre-boom years of 2001-04. Additionally, only 2% of loans this year have been made to borrowers with scores less than 620. Even with that tight credit environment, consumer confidence is relatively strong due to the stabilizing housing market, low interest rates and positive stock market returns.