The local real estate market continues to experience fluctuations that will likely take years to completely stabilize. However, several specific areas in and around Louisville are experiencing signs of recovery and stabilization that are important to note for both home buyers and home sellers. Jeffersontown, Kentucky is one location that is showing positive signs when analyzing real estate statistics.
Take a look at the chart below. It compares the average list price to the average home sales price in Jeffersontown for the four-month period from November 2011 to February 2012. As you can see, the average list price has held relatively steady and the average sales price has actually risen.
Several factors are likely responsible for this increase in sales price. One is pent-up buyer demand — many buyers are anxious to take advantage of historically low interest rates and are tired of waiting for the market to hit bottom. In addition, the winter has been very mild which has led to home buyers getting into their cars and shopping for homes earlier than typically do.
Several other statistics also reveal an increase in activity in the Jeffersontown real estate market worth noting. A great indicator of the “health” of a market is the months of housing inventory available for purchase. This stat looks at the number of homes sold in a month compared to the number of homes available for sale. If the months of inventory remains steady or decreases, that can indicate an active, growing market. Comparing the four-month period above to the previous year’s activity during the same months, Jeffersontown’s months of inventory was 7.6 in the previous year and 7.5 in the most recent months — so it’s holding very steady.
Another indicator of the health of a market is the actual number of homes sold in a given period. For the four-month time period we are using, 97 homes were sold in Jeffersontown in 2010-2011 and 150 homes were sold in 2011-2012, a significant increase in sales.
As always, statistics can paint a broad picture and may not reflect reality in any one individual instance. This is especially true in real estate because so many variables have to be considered when making pricing decisions. Location and condition are critical, and home buyers have to consider the home’s appeal, functionality, and buyers’ and sellers’ personal motivations. From the statistics presented, it does appear that there are positive signs of growth in the Jeffersontown real estate market.
To research the market yourself, you can visit Homes for Sale in Jeffersontown.
(Based on information from Metro Search, Inc. for a period from November 2010 through February 2012.)