August was a strong month for Louisville real estate, just barely falling short of August 2015, but healthy nonetheless.
In Jefferson County, there were 1,073 properties sold during August. This was down just 13 properties from the year before. The interesting part is which parts of Louisville are thriving and which declined in sales activity.
As is my nature, I like to break things down statistically.
|1||Old Louisville, Portland, Shively||63||10.5%|
|2||Highlands, Butchertown, Germantown||126||29.9%|
|3||St. Matthews, Crescent Hill, Clifton||80||-19.2%|
|4||Pleasure Ridge Park, Valley Station, Shively||77||-11.5%|
|5||Fairdale, Auburndale, Iroquois Park||94||10.6%|
|6||Okolona, Newburg, Highview||197||15.9%|
|7||Jeffersontown, Fern Creek, Hikes Point||163||-18.1%|
|8||Middletown, Anchorage, Hurstbourne||137||0.0%|
|9||Prospect, Glenview, Green Spring||124||-10.1%|
I find this so interesting. Excluding Area 8, every other MLS Area saw real estate transactions either rise or fall by double digits. Either activity was up big (see Highlands real estate) or was struggling to find its way (St. Matthews and its surrounding areas).
Typically these variations aren’t so pronounced.
This is why it’s good to take the longterm view and disregard the spikes that occur from month to month. Even though our summer wasn’t as strong as last year, in total, 2016 is actually ahead of last year in home sales — 7,842 to 7,759, or 1.1 percent.
The change in home values paints an even better picture. For August 2016, the median sales price was $170,500 compared to $158,000. Utilizing the 12-month trailing average, we see current home sale prices are 6.1 percent higher in August than one year ago. For a city that averages 4 percent yearly appreciation, we’re way ahead of schedule.
We should expect this value to decline a bit as we finish off the year, but by all accounts, Louisville real estate is healthy. Just imagine the kind of numbers it could put up if our housing inventory was higher.
All eight months in 2016 have seen our absorption rate fall under three months. A six-month value is considered a balanced market.
New listings peaked in March and have been running just shy of just 1,600 units per month ever since.