With all the fear mongering going on these days, you probably didn’t realize that Area 2 is a leader in the regional real estate rebound and that the future is looking bright. For the Greater Louisville Association of Realtors (GLAR), Area 2 includes Cherokee Triangle, Tyler Park, Deer Park, Bonnycastle, Butchertown, Germantown, Irish Hill, The Original Highlands, Strathmoor, Seneca Gardens, Wellington, Audubon Park, Parkway Village, part of the Downtown central business district, and out to Breckenridge Lane at Dupont.
Area 2 Total Sales – 2007-2010
Year # Sales Avg. Price
2007 1108 $188,388
2008 874 $187,853
2009 931 $173,812
2010 856 $188,016
Source: GLAR Sales Summary Statistics
As shown in the chart, the average sales price in Area 2 for 2007 was $188,388. In 2008 it dropped slightly, to $187, 853, then plunged in 2009 to $173,812. The good news is that for 2010 we were back to $188,016. By comparison, Louisville Metro’s steepest decline in average sales price was in Area 1 (Downtown, West Louisville, Shively) down from $62,282 in 2007 to $42,813 in 2010. The only area in Metro Louisville to gain value in average sales price was Area 3 (Crescent Hill, Clifton, St. Matthews) up from $235,349 in 2007 to $242,326 in 2010.
When evaluating this year’s GLAR numbers for Area 2, we need to compare January thru August, year over year (this column is being written in early September). Even without the home buyers tax credit (which drove up sales and prices and ended June 30, 2010), the average price per sale from January through August of this year dropped by only $622, as compared to last year ($183,297 in 2010 and $182,675 in 2011). I look for our market to outperform the final 2010 average price throughout the last quarter of this year.
Area 2 hasn’t fully recovered in all ratings categories, however. When comparing the number of sales, we have dropped considerably since 2007 and have been falling every year. This year, through August, there have been 578 sales, but even here, we are only back to 2004 total sales during the same period (570). The number of yearly sales after 2004 was driven up by the bubble, so our numbers now reflect a realistic and healthy figure during our recovery. Continuous days on the market (CDOM) have increased over the past several years, but this can be good for buyers, both new and those “moving up.”
The bottom line: Area 2 has experienced strong growth in average home price since 2009, but with an increase in CDOM. So if you plan to sell your home and time is of the essence, make sure you give yourself adequate time to complete the sale or you may have to lower your price.
If you are thinking of buying, don’t wait. Longer sale times mean better deals are available which, coupled with unbelievably low interest rates, create a robust buyer’s market.
Finally, to sell your home for the highest price in the quickest amount of time, proper maintenance is mandatory.