Chart of Louisville home sales and home values for Jefferson County Louisville KY

Home prices dipped in July as home sales set the highest mark since June, 2007.

July was a record month for home sales in Louisville as 1,102 properties were sold. This is a 13-percent gain over last month and a whopping 29.5-percent increase over July, 2012.

The total number of homes sold is also the highest since June, 2007. Wow.

Heading into the new year, I think most experts thought 2013 was going to see improvement in the Louisville real estate market. I’m not sure many predicted this kind of success.

What we saw during June was very encouraging, especially the rise in home values. That kind of spike was very dramatic and also quite rare.

It’s reasonable to see how prices have returned to Earth in July, especially in light of the record sales.

The median home sale price for the month was $151,448, which is a 8.2-percent decline from June. This value was $144,590 last July.

More importantly, our home value trend-line is making slow and steady progress in the right direction. Achieving a 4 percent or greater home appreciation for the year is a necessary step to full recovery.

And, this looks highly probable with an early look at Louisville home appreciation numbers.