Last year at this time, the median home price of homes sold in Louisville, KY was $131,500. For October 2011, it was $129,900. Not a big drop by the looks of it.
But that's why pictures communicate so much better than mere numbers.
The 12-month trend line has been steadily sliding since last December. The trend line is important because it takes out some of the volatility and gives a more accurate image of how house prices have truly moved. For a city where 4% annual appreciation is as expected as a horse race on the first Saturday in May, these dropping home values have shocked many homeowners.
Yes, the foreclosure crisis has even hit us here in the Derby City.
What's important to realize is that even if your home has none of the short sale or foreclosure attributes, those nearby that do are hurting your home's value nonetheless.
On the flip side, it's great for home buyers (especially anyone still renting) to take advantage of these lower prices. Don't we all shop the sales for Christmas? Why should purchasing a home at a discount not be just as enticing?
I think that some Louisvillians have finally woken up to this reality as home sales in Louisville is up over the previous year for the fourth consecutive month. There were just 551 homes sold in Jefferson County in October, 2010 compared to 638 in October, 2011, about a 16-percent increase. These improvements in the real estate market are a welcome change but 2011 still trails the previous year by a large margin. There will need to be more than 1266 homes sold in November and December in order for 2011 to best the previous year, which isn't likely.
For specific data about your MLS area, visit the LHB Housing Reports.
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