This issue reports the 2016 total year sales results for residential real estate in the market area covered by the Greater Louisville Association of Realtors.
Sales were strong in 2016 with volume totaling 17,698 transactions, which is 8.3% greater than the 16,337 sales number reported for 2015.
The average selling price of these transactions also was a gain over prior year. In 2016 the average selling price for homes and condos was $196,876, a 3.0% gain over 2015’s average of $191,119.
Perhaps the bigger story throughout 2016 was the continual decline in inventory. In December the year finished with 16.3% fewer listings for buyers to choose from than the number for sale in December of 2015, 5,360 versus 6,405 one year earlier. We are certain there are many reasons for this, but we have not read a good explanation from any source as to why fewer local owners are putting their homes on the market.
Thus, December’s monthly absorption rate stood at 4.0 months. This means that if no more houses were added to the market, all inventory would be sold in only four months at the present rate of sales. Less than six months is considered to be a seller’s market, given the low amount of homes available to purchase.
On the other hand, mortgage rates continue to be historically low, so if you can find a house, it still is a great time to buy!
- 2016 sales ended up 8.3% versus prior year with sales totaling 17,698 for January-December 2016 versus 16,337 sales for January-December 2015
- Average selling price also finished ahead (+3.0%) at $196,876 for January-December 2016 versus $191,119 for January-December 2015
- December’s average cumulative number of days on market (CDOM) is 69, nine days fewer than that reported for December 2015 (78)
- Monthly inventory total for December 2016 is 16.3% less than the inventory total for December 2015
- December’s absorption rate is 4.0 months
17,698 — Number of residential properties (single family & condo/patio homes) sold during January-December 2016 vs. 16,337 sold during January-December 2015
$196,876 — Average selling price of above properties in January-December 2016 versus $191,119 for January-December 2015
69 — Average number of cumulative days on the market in December 2016 vs. 78 in December 2015
16.3% — Fewer listings on the market in December 2016 (5,360) vs. 6,405 for December 2015
4.0 — The monthly absorption rate, which is defined as the number of months it would take
for all listings to sell if no more homes were put on the market. More than six months is considered a buyer’s market, and less than six months is considered a seller’s market.
3.0 — Number of listings that did not sell for every one sale that did occur in December 2016
Based on information from the Greater Louisville Association of Realtors Multiple Listing Service. Information is deemed reliable but not guaranteed.