What’s a million bucks? Well, if you were talking about real estate in The Highlands of Louisville, KY you would need to know that there wasn’t actually a sale for more than $965,000 during 2012. There were two sales in the million plus range during 2011 and one in 2010. Now, when I say “sale” I am talking about single family homes that sold for at least $1,000,000, closed sometime between January 1 and December 31, and are located in the 40204 and 40205 zip codes. Condos and Townhouses are not included in my numbers.
Now let’s be clear, the fact that a home didn’t sell for a million, doesn’t mean they weren’t for sale. In fact, as of this date there are four homes listed for sale in The Highlands that exceed the million dollar price tag (highest price is just a touch under $4 million), all of which have been on the market for at least 100 days. Of course a million dollar home will take a bit longer to sell than a $150,000 home for a number of reasons, but is it reasonable to think that your million dollar home could sell within 4 months? Sure…if it truly is a million dollar home.
Let’s look at Louisville as a whole. There are currently 47 homes in Jefferson county that are listed at or above a million, however there were only 15 sales over a million dollars in Jefferson County during 2012; a bit lower than the 19 sold in 2011 and 18 in 2010, and the lowest since 2003 by quite a bit (see below):
Year # of Sales in Jefferson County that were $1 million plus
Why so many listings and so few sales? In spite of the obvious challenges that our economy has presented, there are still buyers in the million dollar range. Proof of this can be found in the fact that over the last 3 years the number of sales between $800,000 and $990,000 has gone up by at least 5 sales per year. It would seem that either some of these homeowners started their selling process in the million dollar range and were forced into reality over time with price reductions; OR the million dollar clientele decided that they couldn’t find anything above the million dollar mark that they liked, but could find everything they needed in the lower price range. Either way, there is something to be learned here by buyers and sellers alike.
So what makes a home, a “million dollar home”? For starters I’d say your home needs to look nicer and show better than the $900,000 house for sale down the street. You need to know everything about the housing market around you. You need to know your competition. You need to know your prospective buyers. You need to spend some money making your home ready for market. You need to sell your home using fresh techniques and real estate technology. You need a good Realtor to know all these things for you.
No matter how much your home is worth, when you’re selling your home you need someone with their finger on the pulse of the market and a new set of eyes looking at your home from a buyer’s perspective. No matter what your budget is to buy your first home or your fifth home, the same rule applies: you need someone to make sense of the market and make sure you don’t pay a million dollars for an $800,000 house.
If you or someone you know is thinking about buying or selling, The Thomas Group of Keller Williams Realty Louisville East will be honored to assist you. Call 502.509.9278 or email firstname.lastname@example.org.