Past Market Trend. Back in April I wrote that there were 3 data pieces which, read together, indicate strongly that as of April 9, 2012, the Louisville housing market is improving for sellers:
1. The median list price is trending strongly upward
2. The asking price per square foot is trending strongly upward
3. The average number of days on market is trending sharply downward and predicted that the market would continue to improve for sellers except maybe in short sale and REO prone neighborhoods in Louisville, Kentucky.
Current Market Trend.
Turns out that prediction was accurate. Here’s the latest graph from a National research company showing how the inventory of homes for sale has shrunk in Louisville. This, together with record low interest rates, high rental occupancy rates of between 93-97%, so it is now much cheaper to buy than rent, has lead to an improved market for sellers and buyers are now less able to snap up bargains that were so readiliy available as little as a year ago.
Graph Showing Shrinking Inventory of Homes for Sale in Louisville, Kentucky.
Other Current Data Indicating Buy Signals.
1. Asking price is trending strongly upward
2. Average days on market has dropped since April from 177 to 167, though trending up right now
3. The number of buyers relative to the number of houses available is increasing.
This is still not a Sellers market but it is trending that way, but Sellers are tending to hang on to their homes rather than sell low.
Knowledge is Power – Make an Informed Decision.
To keep current with market trends in the Louisville, Kentucky market, you may follow me on Trulia or visit my blog from time to time at http://metro1realty.com/metro-1-blog