Louisville Home Sales Drop 36 Percent

The Courier-Journal is reporting that, according to the Greater Louisville Association of Realtors, home sales in the Louisville area dropped by a whopping 36 percent in August compared with last year:

The number of homes sold by members of the Greater Louisville Association of Realtors dropped 36 percent in August from a year earlier, but the median sales price was down only slightly.

Realtors working mostly in Jefferson, Bullitt and Oldham counties sold 965 homes last month, the fewest transactions for August in at least five years.

The median price fell 1.3 percent to $140,000. For the first eight months of the year, the median sales price in Louisville is $137,000, down 2.1 percent from a year earlier.

The price decline is unusual for Louisville, but it’s far smaller than recent price drops in states such as Florida, California and Michigan that have been hit harder by the housing slowdown.

Steve Priest, broker and owner of S.G. Priest Realtors, said the current sales pace is the slowest he’s seen since he became a licensed agent more than 30 years ago.

“A lot of people are nervous about their jobs and the economy,” Priest said this morning in an interview. “It’s going to be a gradual recovery.”

S.G. Priest has offices in St. Matthews and the Iroquois Park area. The company’s sales volume is down less than 10 percent from a year ago, and Priest said homes in the $100,000 to $175,000 price range are selling quicker than more expensive properties.

Anecdotally, houses for sale in the Germantown-Schnitzelburg area where we live still seem to be selling briskly, but we’ve no doubt that the case might be different in other parts of Louisville. Also, it would be interesting to know the breakdown between existing-home sales and new construction sales, which isn’t mentioned in the story nor is available on the GLAR site.

Last but not least, we came across the excellent Broken Sidewalk blog today — thanks for linking to us! If you’re at all interested in development issues in and around Louisville, check it out!

UPDATE, 1:45 PM: The silver lining in the cloud that is the home sales news above is that Louisville still remains a low-risk market for foreclosures, according to this report (in PDF form) from First American Core Logic via the Louisville Homes blog. Louisville ranked 6th out of 10 cities for the lowest risk of foreclosure among the 100 largest market.


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