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Tight Inventory Translates to Quick Home Sales

The Greater Louisville Association of Realtors® (GLAR) reported year-to-date (YTD) sales up 6.6% compared the same time last year. Sales in September 2016 were up 7.7%, vs September 2015, with 1,600 homes and condos sold. The median price was up 4.8% YTD and the average was 3.0% higher YTD.

In Jefferson County, the average price in September 2016 was $205,975 and the median was $167,000. For all MLS areas, the inventory of available properties was 22.5% lower than at the same time last year. In Jefferson County the inventory of homes and condos for sale was 23.7% lower than September 2015.

GLAR President Allison Bartholomew commented that, “The tight inventory of starter homes continued during September, translating into quick sales. At the same time, activity at the higher end was at a more moderate pace. Our members are looking forward to a healthy fall market with reasonable gains in sales and prices.”

The National Association of Realtors® (NAR) Chief Economist, Lawrence Yun, commented recently that, “Healthy labor markets in most of the country should be creating a sustained demand for home purchases. However, there’s no question that after peaking in June, sales in a majority of the country have inched backwards because inventory isn’t picking up to tame price growth and replace what’s being quickly sold.”

The National Association of Home Builders (NAHB) Chairman Ed Brady recently remarked that, “As household incomes rise, builders in many markets across the nation are reporting that they are seeing more serious buyers, a positive sign that the housing market continues to move forward.” He added that, “The single-family market continues to make gradual gains and we expect this upward momentum will build throughout the remainder of the year and into 2017.”

September 2016 Housing Stats Report

May Stats Show Home Sales Up 11.5%, Inventory Down

The Greater Louisville Association of Realtors® (GLAR) reported May 2016 sales up 4.1% with 1,573 homes and condos sold versus 1,510 last May. Year-to-date, compared with January-May 2015, home sales were up 11.5%. The median price for all areas in January-May 2016 was up 3.3% compared last year, and the average price was up 0.7% versus last year. In Jefferson County, the average price in May 2016 was $208,469 and the median was $169,000. For all MLS areas, the inventory of available properties was 23.6% lower than at the same time last year. In Jefferson County, the decreased inventory of homes and condos for sale was even more pronounced at 27.6% lower than May 2015.

GLAR President Greg Taylor commented that, “The limited inventory of homes for sale is not just limited to Jefferson County. Bullitt and Oldham County inventory is also down 21% and 25% respectively. Continued low mortgage rates are keeping affordability intact; however, our members are seeing rising prices in neighborhoods that attract first-time buyers due to the low inventory.”

Lawrence Yun, Chief Economist for the National Association of Realtors® commented that, “Except for the West, where supply shortages and stark price growth are hampering buyers the most, sales are meaningfully higher than a year ago in much of the country.” He continued by saying, “Looking ahead, with demand holding steady and supply levels still far from sufficient, the market for entry-level and mid-priced homes will likely continue to be the most competitive heading into the summer months.”

May 2016 Stat Report

2015 Home Sales up 12%

The Greater Louisville Association of Realtors® (“GLAR”) reported annual sales up 12% with 16,279 homes and condos sold versus 14,540 last year. Sales were also up 12.5% in December 2015 (1,258 units) compared to December 2014 (1,118 units). The median price for all areas in 2015 was up 5.8% compared to 2014, and the average price was up 6.2%. In Jefferson County, the average price in 2015 was $190,764 and the median was $152,500. For all MLS areas, the inventory of available properties was 21% lower than at the same time last year.

GLAR President Greg Taylor commented that, “GLAR members are adapting to the new CFPB rules implemented in October and finished the year with strong December sales results.” At the national level, Lawrence Yun, Chief Economist for the National Association of Realtors® commented that, “Home prices rising too sharply in several markets, mixed signs of an economy losing momentum and waning supply levels have acted as headwinds in recent months despite low mortgage rates and solid job gains. While feedback from Realtors® continues to suggest healthy levels of buyer interest, available listings that are move-in ready and in affordable price ranges remain hard to come by for many would-be buyers.”

2015 Home Sales Release

Oct. 2015 Housing in Greater Louisville

The Greater Louisville Association of Realtors® (GLAR) reported year-to-date sales up 12.2% with 13,896 homes and condos sold versus 12,383 at the same time last year. Sales were up 5.1% in October 2015 (1,416 units) compared to October 2014 (1,347 units). The median price for all areas in October 2015 was up 6.3% compared to October 2014, and the year-to-date statistics continue to show a 5.8% increase in values. In Jefferson County, the average price was $189,428 and the median was $155,000. For all MLS areas, the inventory of available properties was 17.3% lower than at the same time last year.

GLAR President Greg Taylor commented that, “Continued low inventory in Louisville means that accurately priced, move-in ready homes are selling quickly.” At the national level, Lawrence Yun, Chief Economist for the National Association of Realtors® commented that despite persistently low mortgage rates and a healthier job market, the first-time homebuyer rate remains suppressed. In the recent survey of Home Buyers & Sellers, debt was cited as the primary reason for the delay in home ownership. However, 64% of first time buyers said their primary reason to purchase a home was a “desire to own,” compared to a figure of 53% last year, which could be a positive indicator heading into 2016.

Click here for October 2015 Stats

July 2015 Home Sales up 13%

The Greater Louisville Association of Realtors® (“GLAR”) reported year-to-date sales up 13% with 9,373 homes and condos sold versus 8,290 at the same time last year. Sales were up 14.2% in July 2015 (1,707 units) compared to July 2014 (1,494 units). Prices in July 2015 were comparable to July 2014, but the year-to-date statistics show a 7% increase in values. In Jefferson County, the average price was $188,703 and the median was $158,500. For all MLS areas, the inventory of available properties was 19% lower than at the same time last year.

GLAR President Paula Colvin commented that, “GLAR members still see a sellers’ market for starter and move up homes. The market for higher priced properties is more in balance.”

At the national level the pending homes sales figure was up 3.2% in June, representing the highest pace of sales since February 2007. Lawrence Yun, Chief Economist for the National Association of Realtors® (“NAR”) commented that, “Buyers have come back in force…This wave of demand is being fueled by a year-plus of steady job growth and an improving economy that’s giving more households the financial wherewithal and incentive to buy.

Click here for July 2015 Housing Stats

Drones taking real estate marketing to new heights

Real estate agents across the country have been waiting for the Federal Aviation Administration to release guidelines permitting the use of drones for commercial purposes, such as marketing real estate. Last month, the FAA released its proposed rules, which would allow realty professionals to use drones to aid their clients in marketing and selling properties.

Unmanned aerial vehicles, more commonly known as drones, are aircrafts without a human pilot aboard. The applications for this new technology are varied and numerous. Property managers are interested in drones’ property inspection applications while real estate agents hope to use drones to capture videos and pictures that help visualize and market clients’ residential and commercial properties.

New drone technologies can help real estate agents market homes and properties in ways that were cost-prohibitive in the past. Aerial photography and video could someday be an added value that Realtors® provide for all of their clients, creating eye-catching listings that stand out to potential buyers.”

The new rules provide guidance on the various permits and registrations operators will need to obtain, when and where the drones can be used and the requirements for reporting accidents or injuries. It will likely take two years for the rules to be finalized and go into effect.

Some of the requirements included in the proposed rule are:

  • Commercial drones’ flights would be restricted to 500 feet in altitude, 100 miles per hour of speed and daylight hours.
  • All flights would need to be within visual line of sight of the person operating the drone.
  • Operators of commercial drones would be required to pass an aeronautical knowledge test be issued a permit to fly, which must be renewed every two years. This would be different from receiving a pilot’s license. While drones are exciting new technology, until the rules are finalized the Greater Louisville Association of REALTORS reminds sellers that real estate professionals cannot use drones to aid in the selling and marketing of properties. Currently, using drones to market and sell either residential or commercial property can result in heavy fines for agents. But when the rules are finalized, drones will hopefully become an exciting, new tool to help sellers make their property even more attractive to buyers.

For more information and updates, as they become available, please visit www.realtor.org/drones.

September Home Sales Down 3.9% Year-to-Date with Continued Modest Price Appreciation

Members of the Greater Louisville Association of Realtors® (“GLAR”) recorded 12.7% fewer home sales in September 2014 (1198 units) than in September 2013 (1373 units). Year-to-date, GLAR members have sold 3.9% fewer homes compared to this time last year. The year-to-date figure of -3.9% is more illustrative of the overall market than the more variable monthly figure of -12.7%. The year-to-date average price in Jefferson and surrounding counties was up 2.9% to $180,824 compared to $175,710 last year. In all areas, the year-to-date median price was $147,000 versus $144,900 one year ago (up 1.4%). The inventory of homes is still relatively tight with 9.3% fewer homes for sale than this time last year.

Newly installed GLAR President Paula Colvin noted that, “Members experienced a decent pace of sales in September, with a 10.8% increase in the number of contracts signed compared to last September.”

At the national level, NAR’s Chief Economist Lawrence Yun reported that, “Contract signings are holding steady. Fewer distressed sales and less investor activity is likely behind the modest decline in closings.” Fannie Mae’s Chief Economist Doug Duncan added that, “The results of the past few months show that consumer optimism remains cautious and we’ll likely continue to see bumps on the housing recovery path.”

 

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