Home Sales in Greater Louisville Remain Low Despite August Gains

by Devin Katayama on October 3, 2011

Homes sales in Louisville increased in August when compared to August 2010 numbers,  according to data released by the Greater Louisville Association of Realtors.

August saw over a 20 percent increase in sales when compared to the same month last year, but the housing market in the Louisville region continues to struggle compared to past year’s averages. GLAR numbers should be considered in a larger context and it’s important to look at the broad picture when considering where the market stands, said realtor Greg Fleischaker.

“I can tell you I’m the tallest person in my family and that tells you nothing. But I am. I’m the tallest person in my family, but I have two kids that are thirteen and eleven so it doesn’t tell you much. So it all depends on what you’re comparing it to,” he said.

To put it in a larger context, Fleischaker used data from GLAR and created two graphs. One shows August sales over the past dozen years, which does not tell the whole story, he said.

“August of 2011 actually brought the average up which is even more frightening, right, that our average sales have been so low that this past August actually brought the average up. So yes, we had a relatively good month in August, but that just tells you how bad the first seven months were this year,” said Fleischaker.

Fleischaker created a second graph that shows yearly home sales averages for the past dozen years. He then compared the data and found that before 2010’s epic drop, August 2011 has the worst sales numbers since 2001 when comparing August to the year’s averages.

The average for 2011 thus far is also the lowest it’s been in over a decade. And because summer is over—and summer is considered the high time for sales—it’s likely not to increase dramatically before the end of the year, he said.

Homeowners looking to turn around their home for profit are often misled to believe the market is better than it really is, he said.

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