housing market

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

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Louisville Home Sales Up 12.9%

The Greater Louisville Association of Realtors® (GLAR) reported April 2016 sales up 4.9% with 1,437 homes and condos sold versus 1,370 last April. Year-to-date, compared with January-April 2015, home sales were up 12.9%. The median price for all areas in January-April 2016 was up 3.4% compared last year, and the average price was consistent with last year. In Jefferson County, the average price in April 2016 was $186,887 and the median was $151,500. For all MLS areas, the inventory of available properties was 21.8% 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 25.6% lower than April 2015.

GLAR President Greg Taylor commented that, “The strong sellers’ market is continuing in Louisville with inventory down over 25% in Jefferson county compared to this time last year. Sellers whose homes are in move-in condition typically receive multiple offers. The median price year-to-date has advanced 3-4% with both low inventory and low mortgage rates.”

The national existing homes sales report for April 2016 is not yet available, but Lawrence Yun, Chief Economist for the National Association of Realtors® commented that March’s pending sales increase signaled a solid beginning to the spring buying season. “Despite supply deficiencies in plenty of areas, contract activity was fairly strong in a majority of markets in March,” he said. “This spring’s surprisingly low mortgage rates are easing some of the affordability pressures potential buyers are experiencing.”

April 2016 Stat Release

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

Sept 2015 Home Sales up 12.7% YTD

The Greater Louisville Association of Realtors® (GLAR) reported year-to-date sales up 12.7% with 12,442 homes and condos sold versus 11,035 at the same time last year. Sales were up 17.7% in September 2015 (1,444 units) compared to September 2014 (1,227 units). The median price for all areas in September 2015 was up 1.3% compared to September 2014, and the year-to-date statistics show a 5.8% increase in values. In Jefferson County, the average price was $182,053 and the median was $145,000. For all MLS areas, the inventory of available properties was 18.5% lower than at the same time last year.

GLAR President Greg Taylor commented that, “Activity typically slows in the fall months, but we are seeing follow-through from strong summer sales. We are also experiencing continuation of a sellers’ market inside the Watterson Expressway.”

At the national level, Lawrence Yun, Chief Economist for the National Association of Realtors® (NAR) commented that, “Pending homes sales have leveled off since mid-summer; however, contract activity is still higher than a year ago.” He also remarked that adapting to the new CFPB mortgage rules could delay some sales this fall.

CLICK HERE for September 2015 Stats Report

August 2015 Home Sales up 11.6%

The Greater Louisville Association of Realtors® (“GLAR”) reported year-to-date sales up 11.6% with 10,951 homes and condos sold versus 9,808 at the same time last year. Sales were up 0.9% in August 2015 (1,532 units) compared to August 2014 (1,518 units). Prices in August 2015 were up 3% compared to August 2014, and the year-to-date statistics show a 6.4% increase in values. In Jefferson County, the average price was $200,058 and the median was $158,000. For all MLS areas, the inventory of available properties was 20.5% lower than the same time last year.

GLAR President Paula Colvin commented that, “Inventory shortages are still contributing to a strong seller’s market in some areas inside the Watterson Expressway. Properties located further out, and at higher price points, are selling at a more normal pace.

“At the national level, Lawrence Yun, Chief Economist for the National Association of Realtors® commented last week that, “Demand for buying has drastically improved this year and is propelling home sale to a pace not seen since 2007. As local job markets continue to expand, the pool of homebuyers will increase.”

Click here for August 2015 Stats

May 2015 Home Sales up 9.3% Year-to-Date

The Greater Louisville Association of Realtors® (“GLAR”) reported year-to-date sales up 9.3% with 5,764 homes and condos sold versus 5,273 at the same time last year. Sales were up 4.7% in May 2015 (1,469 units) compared to May 2014 (1,403 units), and the median selling price in all Multiple Listing Service (“MLS”) areas was up 11.5% compared to the same month last year. The median price (year-to-date) in Jefferson County was up 5.4% ($145,000) and the average (year-to-date) was up 8.6% ($184.064). For all MLS areas, the inventory of available properties was 17.4% lower than the same time last year.

GLAR President Paula Colvin commented that, “members continue to report a strong seller’s market in many areas due to the lack of inventory, and prices are rising accordingly. Additionally, Germantown has joined the Highlands, Crescent Hill & St Matthews as an area with extremely low inventory.” At the national level, Lawrence Yun, Chief Economist for the National Association of Realtors® (“NAR”) commented on May 21, 2015 stating that, “supply in many markets is very tight, which in turn is leading to bidding wars, faster price growth and properties selling at a quicker pace. To put it in perspective, roughly 40% of properties sold last month went at or above asking price, the highest since NAR began tracking this monthly data in 2012.”

View the May 2015 Statistics Here

How to make the best purchase offer in a seller’s market

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You’ve worked with a Realtor® to scour the listings, toured what feels like a million houses and finally found it: the house you want to call home. The next step is to make your purchase offer, and if you are like most people, the prospect can be quite intimidating. In a seller’s market, there can be even more pressure on the buyer to submit an impressive bid. So how can you make sure that the offer you submit is the one that is accepted?

In a seller’s market, home prices are a bit higher and inventory is lower. This means you are more likely competing with multiple bidders. In a competitive market like this, sellers need every advantage they can get, and working with a Realtor® to make the best purchase offer is a smart move. And, believe it or not, the bid with the highest price is not always the one that wins.

Of course sellers want to get the best price for their home, but that isn’t always the deciding factor. Eliminating or reducing the number of contingencies with your bid, through things like pre-offer inspections, can also help make your offer stronger. The bid that causes the least amount of hassle for the seller is the one that will probably win.

That doesn’t mean, however, that you should just submit a below market offer with no contingencies. This is not the time to make a lowball offer. When you are going up against more than one potential buyer, it’s the time to put your best foot forward. This might be your one chance to convince the owner to sell their home to you, so it’s all the more important to submit your best possible purchase offer.

If you can pay cash for your home, chances are your bid will be accepted. Sellers’ appreciate all-cash offers as they usually mean a quick, streamlined purchase. Financing issues, such as delays in mortgage approval or getting funds moved from the buyer’s bank account, are the primary causes of delays in the closing process. If a seller can avoid a lengthy or complicated process by choosing an all-cash buyer they likely will.

For most people, however, a cash offer isn’t a possibility, and you’ll need to qualify for some variety of mortgage financing. If this is your situation, get preapproved for a mortgage before you begin the search process. With loan preapproval, you’ll be able to make a solid commitment to buy, and your offer will be more appealing to the seller.

And of course, the most important thing that you can do to give yourself an advantage is to hire a Realtor®. Realtors® have real insights and unparalleled knowledge of your local market and can help you navigate the complicated home buying process.   Click here for more.