The Future of Louisville Real Estate, 2010 Edition

At the turn of every year, we like to look back and reflect on the years past. Here at Louisville Homes Blog, we’re no different. But it’s also important to look forward and see how to best take advantage of the real estate market for your own situation.

Picture of chess match
Looking at the Future of Louisville real estate is much like trying to guess what your chess opponent might do next.

Predicting the future is always a tricky task but there are some very bright minds at the National Association of Realtors (NAR) who make it their job to study the data.

Now, this data isn’t specific to Louisville, KY but we can still learn a few things from it. Here are some of the high points from a recently published NAR article.

National: Existing Homes

Home Sales (millions)4,9135,0115,594
Home Prices$198,100$172,600$178,800
Change (in price)-9.5%-12.9%3.6%

National: New Homes

Home Sales485,000397,000549,000
Home Prices$232,100$211,100$219,000
Change (in price)-6.4%-9.0%4.2%

These national numbers are interesting but don’t translate well for Louisville real estate. Let’s look at data from the Louisville MLS.

Louisville Kentucky: All Homes

Total Home Sales11,36911,651
Average Price$165,746$158,337

So from 2008 to 2009, the total of all home sales went up 2.5%, while prices dropped 4.5%.

If we use National projections for 2010, which I don’t necessarily recommend but it’s a fun exercise, then Louisville should have approximately 13,002 sales and average prices would rise to $164,037 for our market.

There you have the future of Louisville real estate but check back next January to see how close we were.