November sales trends indicate a small market correction for the gains we have been seeing, although early December numbers indicate there is no slowing down the Louisville residential real estate market, despite winter months being historically slow.
The average days on market is on a downward slide, indicating available houses are not sitting for long. The current average is 65 days, or a little over 2 months. This number reflects the total days on market from a property, from listing to close. And majority of the time on market is spent under contract.
Both the average sale price ($250K) and percent of asking price versus sale price (99%) have seen small drops month over month. However, the annual gains made in both categories have been significant. We will continue to monitor these categories, but low inventory numbers are more than likely going to drive both of these numbers up in December and January.
New inventory and the number of properties sold are the strongest indicators to watch. New properties on market in November is down a staggering 24%, which means our already low inventory is showing no signs of recovery. This is the primary driver behind increased sale prices. And a 12% reduction in houses sold month-over-month is not stopping us from setting records. Currently Louisville is ahead of 2019 total home sales by almost 500 in 2020, making 2020 a much better year for real estate than previously expected.
Trends: Interest rates are slowly starting to increase as the overall economy recovers. We expect this trend to continue into Spring and Summer months. A widespread rollout of a COVID vaccine will also add to the real estate inventory as people that have been on the sidelines waiting to make moves decide to enter this market. As the available inventory increases, we will see a slow shift from a sellers’ market to a buyer’s market. This timetable is tricky, but could happen as early as Summer, or may wait until 2022.