Wednesday, October 28, 2009

How Much is My Home Worth?

Appreciation of Single Family Homes in Louisville, Kentucky

October 28, 2009

The chart to the right shows what single family homes have averaged since 1971 comparing the number of sales to the total dollar volume in sales to the average home price and the average percent of change. With information taken from the Louisville Board of Realtors Multiple Listing Service, this shows how the Louisville area has changed over the past 30+ years and the stability of the market in this area.

In 1972, the average home cost $25, 144. During the 1980's the Louisville market showed double digit appreciation. In order to get inflation under control, President Reagan raised interest rates into the double digits. In 1982 homes in Louisville went down -5.14% due to these sky high interest rates. The average home price this year was $53, 092.

Through the rest of the 1980's, 1990's, and beginning of the 2000's; the area along with the country saw over 23 years of appreciation. Homes appreciated anywhere from 1.81% to 10.41% during these years. With over two decades of appreciation and just a handful of years showing depreciation; WHY wouldn't you invest in real estate?

Current Look: In 2008, the market showed a decline of -5.90%; down but not as bad as other areas of the country. Since we are at the end of 2009, this year has thus far shown a decline of -2.03%. The Louisville market has gone down more, BUT seeing as the decline was less than the year before this is telling me that we must be coming out of the economic slump. The tax credits have helped to spur the market & will continue too up until their expiration in April 2010. The market won't be down forever. Louisville's history proves that real estate is a great long term investment. Buy NOW!

No comments:

Post a Comment