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The Hollinden Team Louisville KY Real Estate Blog

Drastic Price Reduction in Glenmary Estates

The seller wants this house sold and had reduced the price $22,000.  It was custom built 4 years ago with only the finest materials.  Seller has $545,000 invested and has reduced the price to $375,000.  This home is in pristine condition as it was only lived in for 10 months.

This has the most open floor plan of any house in Louisville at this price point!  You can see the complete description of 10610 Fairmount Falls Way in Louisville KY.

The kitchen has custom built cabinets with granite countertops. The custom built fireplace is a work of art. The master bath suite was engineered for a woman with lots of clothes. There is no carpet upstaris; it is all hardwood and ceramic tile.

Be sure to contact Tim Hollinden with The Hollinden Team for more information on this or other homes in Glenmary.  This was a great home that sold in 21 days.


Louisville KY Absorption Rate

In our last blog, we talked about Absorption Rate and what it means.  As a Louisville REALTOR, I can feel that we are in a buyer’s market, but what about analyzing this?
In the last 60 days, there has been 1104 single family homes closed in Jefferson County, KY.  This would give us an absorption rate of 552/month.  This equates to a 10.6 month supply of homes if sales continue at this rate and no new homes are put on the market.  By anyone’s definition, this is a buyer’s market.
Condo sales in the last 60 days have totaled 161 in Jefferson County.  We have an Absorption Rate of 80.5 per month.  Using our calculator, we come up with an 18.8 month supply.  WOW!
Focusing on a particular area is important as the old adage of “Real Estate is local” certainly applies.  The Highlands has always been a desirable area in Louisville with an eclectic feel.  The shops are great and you can bike or walk and save wear and tear on your car.  The single family home absorption rate of 61.5/month is compared to condos at 10.5/month.  The bottom line is that we have an 8.7 month supply of SFR’s, and a 14.7 month supply of condos.  Still a buyer’s market, but much higher Absorption Rate than the entire market in Jefferson County.
If you have any questions about absorption rates in other areas or surrounding counties, feel free to contact us.


Absorption Rate in Louisville KY

You may have heard about absorption rates in real estate and wondered how this applied to the Greater Louisville KY area. First we need to define Absorption Rate and how Absorption Rate is calculated.

Absorption Rate is the rate at which homes are absorbed into the market. It could also be expressed as the number of months or weeks that it will take to clear the current inventory of real estate listings. A low Absorption Rate would indicate that homes are slow to sell and therefore, slowly absorbed into the market. A high Absorption Rate would be the opposite. The bottom line is that we are weighing supply and demand in the current housing market.

To calculate the Absorption Rate, we would to determine how many active and pending listings are available in a certain area, price range, etc. We use “pendings” as well, because they have not truly closed or “sold” yet. We then need to know how many completed sales were in the last month (or some other time frame). Now we divide the listings available, by the listings sold last month.

In the Fern Creek area, we sold 194 homes in the first 3 months of the year.  We have an Absorption Rate of 64.67/month in that time period.  Sometimes, Absorption Rate is expressed in months of supply.  We had 846 homes to sell at the end of March giving us a 13.1 month supply.  (846 homes/64.67 Absorption Rate)  This example would be a low Absorption Rate.  Keep in mind that this equation does not allow for new homes entering the market.

What about Seller’s market versus Buyer’s market? The old rule of thumb is that we have a seller’s market when we have a high Absorption Rate of 1-4 months. A buyer’s market is from a low Absorption Rate of 7 or more months.

It is easy to get lost in figures. It is best to refine the market numbers to county, market areas, price ranges, type of homes, etc.  In the Louisville KY market, the Absorption Rate in Area 4 may vary widely from Area 8. Condo sales in Louisville versus stand-alone homes will be much different with condos having a much lower Absorption Rate.  Another look at absorption would be price specific. A $500,000 listing will be on the market for much longer than a $100,000 listing due to the increased number of potential buyers.

If you know of someone that needs to buy or sell a home in the Louisville KY area, feel free to contact us at 502-429-3866 or just send The Hollinden Team a note.


Keller Williams at the Louisville KY Derby Bed Races

The three local Keller Williams Real Estate offices combined forces for the annual Kentucky Derby Bed Race on May 2nd.  This was the first time that Keller Williams has competed even though the race has been conducted here in Louisville, KY since 1990.  This is the first time that the races were held at the KFC Yum! Center.

These races are termed a “zany affair” and they certainly fit the description.   We started in the “Dormitory” under the Second Street Bridge.  At that point, we were able to see our competition up close and enjoy the camaraderie.  The competitiveness here is good natured to say the least.  The Keller Williams bed had its safety inspection about 4:30.   I wonder if this was analogous to a “Home Inspection in Louisville”?  The Keller Williams Home bed passed the inspection with no repairs needed.

The weather was tough with rain and temps in the mid-50s. At 5:00 we started the procession through the Yum! Center garage and staged just outside the court. At 6:15, we made one pass around the race course as the crowd admired our handiwork and the announcer described our bed. Our Keller Williams bed had a foam house complete with a red roof.

The theme this year was about Super Heroes and the SuperFest. The Keller Williams team wore red t-shirts emblazoned with “SUPER REALTORS” and a KW in the center where an “S” would be for Superman. We all wore capes as well.  (For all of those not in the know, Red and Black are Keller Williams colors.)

We had a great first lap being the first to pass through the “cross”, but things did not go as well in the second lap.  Unfortunately, we did get first place in the contest, but we had a lot of fun. We were the only Louisville Real Estate firm in attendance and invite the other REALTORS for next year’s event. We are looking forward to next year and WINNING!

The Hollinden Team were pleased to be a part of this community event taking lots of pictures and letting the community know more about Keller Williams Real Estate Offices.