What Do the Latest Numbers Say About Our Louisville Market?

08/10/17 • -1 min

Louisville, KY Real Estate Podcast with JP Pirtle

Our Louisville market is hot right now, and here are the latest statistics to show how far we’ve come since July of last year.

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Selling your Louisville home? Get a free Home Value Report

Right now, our market is as hot as the weather. It continues to amaze me, and I don’t think I’ve ever seen it quite like this. How has the market changed since last July? Let’s go over a few statistics.

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Our market is as hot as the weather.

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From July 2016 to July 2017:

The number of active houses decreased from 5,218 to 4,430. This lack of inventory is driving a lot of the demand out there.
The absorption rate decreased from 3.63 months to 2.93 months.
The average sale price increased from $213,000 to $220,000.
The average days on market decreased from 64 days to 47 days.
The number of homes sold decreased slightly from 1,690 to 1,650.
Interest rates stayed about the same at roughly 4%.

If you have any questions about these latest numbers, the current state of our Louisville market, or any other real estate topic, don’t hesitate to give us a call. We’d be happy to help you.

Quote of the month: “If you’re not shorthanded, you’re overstaffed.” - Sam Walton

Our Louisville market is hot right now, and here are the latest statistics to show how far we’ve come since July of last year.

Buying a Louisville home? Get a full Home Search

Selling your Louisville home? Get a free Home Value Report

“

Our market is as hot as the weather.

”

From July 2016 to July 2017:

The number of active houses decreased from 5,218 to 4,430. This lack of inventory is driving a lot of the demand out there.
The absorption rate decreased from 3.63 months to 2.93 months.
The average sale price increased from $213,000 to $220,000.
The average days on market decreased from 64 days to 47 days.
The number of homes sold decreased slightly from 1,690 to 1,650.
Interest rates stayed about the same at roughly 4%.

If you have any questions about these latest numbers, the current state of our Louisville market, or any other real estate topic, don’t hesitate to give us a call. We’d be happy to help you.

Quote of the month: “If you’re not shorthanded, you’re overstaffed.” - Sam Walton

Previous Episode

How Is the Louisville Market Changing?

The Louisville market has improved considerably in the last year. Here are the areas we paid special attention to.

Buying a Louisville home? Get a full Home Search

Selling your Louisville home? Get a free Home Value Report

The market continues to be strong in Louisville. To get more perspective, we’re going to look at the numbers we saw this June and compare them to the numbers we saw in June 2016. Let’s get to it.

Inventory remains extremely low. Last year, the 5,000 homes we had on the market represented a huge need for more inventory, but it has since dropped even further. Right now, there are only about 4,300 homes on the market. Our absorption rate has dropped from 3.5 to under three months.

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Homes are selling faster and for more money on average.

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The average sale price has increased from $207,000 last June to $223,000 right now. That’s more good news for everybody. Not only are homes selling for more money on average, they’re selling faster too. Last year, homes were selling in an average of just 61 days. That number has since dropped to 52.

Interest rates are at about the same level they were last year, but they have dropped slightly. Right now, our partners at Statewide Mortgage say you’re looking at a 4.125% rate on average.

Quote of the month: “When you get right down to the root of the meaning of the word ‘succeed’, you find that it simply means to follow through.” - F.W. Nichol

There’s our market recap for June 2017. If you have any questions about it or would like more information, give us a call or send us an email. We look forward to hearing from you.

Next Episode

How Can Escalation Clauses Help You Beat out the Competition?

Because of the hot competition we’re seeing lately in the market, escalation clauses have become much more common.

Buying a Louisville home? Get a full Home Search

Selling your Louisville home? Get a free Home Value Report

Recently, we’ve been seeing a lot of escalation clauses in our market. But, what is in an escalation clause?

An escalation clause is a buyer’s best and final offer. People have been making these kinds of offers for years, but recently they have become a lot more important. This is largely thanks to our being in seller’s market where competition is hot.

Buyers right now don’t want to lose out on the right home, but they also don’t want to have to make excessively high offers.

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Setting a limit will help ensure that a buyer doesn’t pay a ridiculous amount.

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An escalation clause allows buyers to stipulate that they will pay up to a certain amount limit in order to beat out other offers. As an example, an escalation clause might state that a buyer will pay up to $1,000 over any other offer that is made.

This cap means that buyers don’t need to be as worried about overpaying. Setting a limit will help ensure that a buyer doesn’t pay a ridiculous amount.

Buyers must also be careful, though, to compare offers by the net sale price. In your escalation clause, ask to see the best and highest offer.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.