After 2015 came up just shy of the all-time record for Louisville home sales, experts were left wondering if this total could be topped. The primary reason was (and continues to be) our anemic inventory levels.
You see, as of December 2015, the absorption rate for home sales was dipping toward a paltry three months. A “healthy” market, where both buyers and sellers are on roughly even footing, is considered six months.
Given our incredibly low inventory, it was considered overly optimistic to think 2016 could best the previous year. Fast forward to today, and we see that this optimism was not misplaced.
From January through November 2015, there had been 10,548 properties sold in Jefferson County. This year we’re up 5.58 percent with 11,137 units sold. All while Louisville homebuyers had far fewer choices! With only 304 homes needed to top our all-time record, it’s all but assured that 2016 is a record year for Louisville real estate.
For the month, November saw 920 homes trade hands. This is up a whopping 23.2 percent from the last year’s poor performance. Saying more about last year’s dip than this year’s gain, November’s tally is certainly enough to bring the sales trophy home for the year.
The price of the median home sold for the month was $165,000. Compared to November 2015, this is more than 10 percent higher than one year ago. Comparing trend-line values, we see this number drop to 7.58 percent, but this is still a record of sorts considering Louisville’s typical annual home appreciation is closer to 4 percent.
Now the question becomes, “How long can our market maintain this pace?”
With the absorption rate at 2.67 for November, there’s a dire need for more listings. Appropriately priced homes in good shape sell very quickly while overpriced properties or homes located in the flood plain continue to stay on the market. With interest rates still at historically low levels, it will be interesting to see how this plays out in 2017.