Louisville Housing Market Reports for March 2011

A variety of factors go into both home values and home sales here in Louisville, KY. As I chart these monthly market reports, it’s occurred to me that one factor I had not considered is something that effects the entire housing market—the number and average costs of new construction.

New home builders build what the market wants. Lately, the market wants smaller, more energy efficient homes. Gone are the days of the McMansions.

Overall home prices haven’t dropped by a huge amount, as inflation will certain push costs higher, but it is a force, especially on our areas with more new construction like Areas 20 & 21.

Note: Below you’ll find our monthly reports for the following Louisville housing markets. These charts display Louisville home sales and Louisville median home values with a trend line. Each chart relates directly to an “area” as defined by the Louisville MLS.

Monthly Reports: Period Ending March 2011

Strong month for Area 2, the first of our monthly market reports, in both median home prices and sales. The value trend-line appears to be steadily moving upward. After a down February, March sales matched the previous year.

March was not a bad month for Area 3 but home prices did level off from the previous month. Home sales only slightly lagged behind the previous year. This is one of the more healthy MLS areas in Louisville.

Another dip in home prices will further move the trend-line lower for this area. Sales activity also continues to trail the previous year with little optimism for much improvement.

Another large drop for the median sale price in Area 7. This one even dipped below the low of October 2010 with more than 80 homes sold. Tough to forecast much optimism seeing numbers like these.

Area 8 fared only slightly better than it’s neighbor to the south. Home values rebounded slightly but the number of homes sold in March was significantly lower than in 2010.

Like Area 3, Area 9 continues to be one of the more vibrant spots in this real estate market. Slow and steady home value improvement continues throughout the past 12 months and sales are good. Still not a home run but runners are in scoring position.

After three down months, home prices bounced back to balance the trend-line. Activity is slow minimal but hopefully Spring will bring out all the buyers who’ve been hibernating through the housing recession.

Area 21 is one the most volatile areas in the Greater Louisville area, for reasons I can’t determine. After two down months, March was again higher and sales activity mirrored the previous year.