The Issue: You can find many sources to give you an estimate on the price of your home or some one else’s. While this is important information, it may not be enough to help you decide whether you should sell or buy now or wait awhile, because a price estimate can’t answer the question “What’s the market doing?”
The Data: In order to make that first basic decision, the one that comes before the “what’s my home worth?”, you will need real-time analysis of how your market is performing, and what is anticipated. One of the most reputable companies that provide that essential information is Altos Research. I have published below their findings for the Louisville Kentucky market below, and you will see there are 3 data pieces which, read together, indicate strongly that as of April 9, 2012, the Louisville housing market is improving for sellers:
- The median list price is trending strongly upward
- The asking price per square foot is trending strongly upward
- The average number of days on market is trending sharply downward
This is still not champagne time for sellers – 177 days on market is agonizing, but at least its going down.
Another 2 factors to to consider:
- The housing market tends to improve in the Spring/Summer months
- If the banks flood the market with a new round of short sales, as has been predicted, this would tend to drive prices down.
The Bottom Line: So while this last factor may be the one to slow down the improvement for sellers, it probably won’t be enough, in my opinion, to drive prices down in our Louisville market for non-short sale homes which are not located in short sale or REO prone neighborhoods.
Update: This post has been updated. See this post.
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