Tre Pryor's 2013 Louisville Kentucky Real Estate Year in Review

By
Real Estate Agent with REMAX Champions
Photo of one of Crescent Hill homes Louisville
Homes in this portion of Louisville saw the biggest increase in value last year. Can you guess where? If you answered, Crescent Hill, pat yourself on the back.

It's that time again, for the annual Year in Review article that sums up what happened in Louisville real estate for 2013. We'll cover the highs, the lows and everything in between. Are you ready?

Let's go!

Steady growth for Louisville home sales

For most of the year, we've been trumpeting the sale increases over the previous year. It's felt like we've really made progress. And, that's true to a certain extent, especially in certain portions of Louisville.

But looking at the total home sales in Louisville from January through November and comparing that to previous years yields a picture that's not quite as glowing.

Chart of Louisville home sales from January through November of 2013.
Sold, steady improvement in home sales marks Louisville real estate a success. Will 2014 continue this trend?

Sure, every single month bested the previous year, August just barely with 1.8% while July crushed it by 29.5%.

For the year, we're up 14.7%, which is wonderful, but when you put in graph form it doesn't appear as impressive. But who am I to complain.

Louisville real estate is on pace to match 2004 in home sales, with an outside chance to catch the 2007 mark, if December comes on strong.

It'll be interesting to see if the new year brings us back to the high watermark year of 2005, as many are hoping.

Louisville property values show some wild variations

Map of Greater Louisville Association of Realtors MLS Areas for Louisville KY
Click to enlarge this map to get a better feel how our MLS areas are defined.

It's been somewhat surprising, to me at least, is that different portions of Louisville have seen far different results in terms of home appreciation. The most reliable way to compare values is utilizing a trend-line, but that does create a latency effect. Even still, it's preferable to the wide market swings inherent in single month comparisons.

Let's look at all the MLS areas combined. The 12-month trend-line value for homes sold in Jefferson County for period ending November, 2013 is $141,696. For period ending November 2012 it was just $135,941. That's a 4.2% improvement. Solid.

Then breaking it down by MLS areas and we get a different, more complex picture.

Chart of Louisville property value changes by MLS area.
Even though Area 0 sported a $35,401 decrease, their sample size is so small, it should not mean much. Area 3's $22,610 gain is impressive though with over 700 properties sold in the data. No area in Louisville is currently more desirable.

Small gains in Louisville new construction sales

We've been on top of of the Louisville new construction trends. Data for building permits is not in the public domain.

According to sold homes where age is zero (which represents a property that no one has lived in) there were 667 new construction properties sold thus far in 2013. Comparing that to the 601 sold during 2012, we are realizing a modest gain in Louisville new construction sales.

Louisville property values remained the same

One benefit of living through the housing recession is that government officials feel the pressure not to add additional burdens to their constituency. So for 2013, property taxes in Louisville did not increase.

In fact, this marks the third year in a row where Jefferson County property taxes did not increase. I, for one, am thankful for small favors.

 

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