Louisville Home Sales on an Upward Swing
Louisville real estate has rebounded from the effects of the housing bust that lowered home prices and triggered a national recession. In fact, in February members of the Greater Louisville Association of Realtors sold 26 percent more houses and condominiums than they did a year ago at this time, and February marked the eighth straight month in a row of higher sales figures.
Just what accounts for the increases in home purchases? Analysts believe that the dual forces of stronger consumer confidence in the economy and the improving job market are propelling the recovery. Certainly, no one is ready to say that the recession is completely behind us. But according to the U.S. Bureau of Labor Statistics, the month of January saw 15,000 more jobs available in Greater Louisville than during the same month of the previous year. As reported in the Courier-Journal, Louisville and Southern Indiana have added jobs each month since last May. This job growth has led prospective home buyers back into the market at a time when they can purchase a home for a price far lower than they would have been able to a few years ago.
Another indicator of the renewed health of the housing market is the number of permits home builders request. When builders anticipate a depressed market, few permits are requested because builders don’t want to sit on inventory they can’t move. This February though, builders requested 5 percent more permits for new construction, and the overall rate of permit requests is now at its highest point since late 2008.
All of this data means that both outside the doors of our homes and inside the offices that help us purchase them, spring has truly sprung! Spring is traditionally the prime home shopping season, so this year prospective buyers are in prime position to make the most of their investment as home prices today are still significantly lower than they were when the housing bubble burst.