Nov 20 2007
Market Analysis
The National Association of Realtors Research Division recently released its annual “Price Analysis for the Louisville Metro Region”. Although I do not agree with all the report states, I felt obliged to provide this information to the consumers out there that might actually care.
Here are a few snipits from the report:
“Home prices in the Greater Louisville Metro Region never encountered a boom in home prices like other parts of the country, yet prices here have been essentially flat in recent quarters. Home prices are very affordable compared with many other areas. With job gains continuing at a respectable pace, home prices likely will increase, though not at a frenzied pace. A sharp reduction in new home construction will help control the overall inventory situation. Resetting loans and the rising number of foreclosures related to the subprime fallout are clearly negative factors, but the impact will be offset by the fundamentals of the healthy local economy.”
“The outlook is positive. Homebuilders having drastically cut production will help minimize prolonged oversupply conditions. Further production cuts by builders, which is encouraged, will help the market to more quickly return to a healthy state. On the demand side, job gains have added to the number of potential homebuyers. Historical relationships imply roughly one additional homeowner for every two additional new jobs. Since the peak of the housing market two years ago, the local market added 13,800 net new jobs. A rise in home sales and a strengthening in home prices appear immiment.”
For a copy of the entire report please click on the following link:
http://www.louisvillerealtors.com/pdf/louisville-price-analysis.pdf