Current Market Condiitons

CURRENT MARKET CONDITIONS

As of January 20, 2010 there were 8,711 residential listings on the market in the Metropolitan Louisville area. In the past 30 days 529 homes sold. In turn, that gives us a seven month supply of properties on the local market (8711/529=16). That is a 16 month supply of houses on our market. Remember, these are statistic for the entire market.

However, you should note that higher price homes are not fairing that well:

                                                                                             Months

                                                    Current    2010          Marketing         

                                                     Listing      Sales             Time

150,000 – 199,999               1410         45                   31

200,000 – 249,999                 882          34                   26

250,000 – 299,999                625             8                   78

300,000 – 349,999                378          14                   27

350,000 – 399,999                323            6                    54

400,000 – 449,999                147            4                    37

450,000- 499,999                 145              0                     0

500,000 +                                660             7                    94

Real estate economist tells us that over a six month supply of houses on the market indicates a Buyer’s Market.

Especially in these price ranges the sellers must price their house competitively. Last year there were 36,122 listing on our market. Of these homes 11,287 (31%) sold, which means 24,835 properties failed to sell during their listing period. No seller wants to experience this.

January is traditionally a slow sales month, this year with our show it is very slow. . Last year at this date we had only reported 455 sales, but this year we have had 529. This is almost a 9% increase over the same period. At that time there were over 9,000 houses on the market.

According the Greater Louisville Association of Realtors the number of sales increased last year about 2-1/2%.  That is not a notable increase over the poor performance a year before.

A current federal stimulus program gives an $8,000.00 tax credit to first time buyers and one to sellers of $6,000.00. These two programs may encourage some sales, but they will mostly be in the lower priced market. This stimulus is only good through April. Sellers should get their homes on the market now to take advantage of this.

Traditionally sales tend to pick up every from now through June, level off in July, decrease slightly in August and plummet each month through December. Generally the number of listing on the market will increase through May, but with sales picking up each month, the selling time should be quicker, I hope.

Is it a good time to buy?  Probably, interest rates are very low, if you have decent credit scores, they are less than 5%.

With a multitude of house on the market you should be able to negotiate a very good buy. Make sure you get a list of recent comparable sales. Comparable means the same style house, close by, preferably in the same subdivision. If one has a finished basement and another does not, an allowance should be made in the price; as should extra baths, condition, etc.