Every music lover is familiar with one of the most famous missed opportunities around—Decca Records "passing" on the Beatles. Saying that guitar bands had no future, the executives at Decca solidified their infamy in an embarrassing manner. This is considered a missed opportunity, because the Beatles were an obviously talented and popular band (even in their infancy). They went on to provide substantial profits for EMI, Capitol Records, and countless others. Decca Records was eventually shuttered and relegated to the footnotes of music history, having passed on a record label goldmine.
There are many similarities between this woeful story of missed opportunity and the present-day Louisville Real Estate Market. The players are different, but the stakes in many ways are the same.
Consider the following 2011 and 2012 statistics from MetroSearch, Inc—the service that manages the Multiple Listing Service (MLS) for the Greater Louisville Association of Realtors®. These statistics are a reflection of the condition and health of our real estate market.
Reviewing these statistics for the entire Greater Louisville Area, you can easily see that 2012 topped 2011 in quite a few major categories. Ones of particular importance to home buyers and home sellers in the area are the total number of sales, the average sold price and the relationship between the listing price and the selling price. As direct indicators of the health of our market, home buyers and home sellers ought to consider these when making decisions.
Comparing the beginning 2012 to the beginning of 2013, we see a continuation of this upward trends, showing a strengthening of our real estate market. This activity is very real and represents positive signs that our market is experiencing a period of stabilization and growth.
Now, what the heck does all of this have to do with missed opportunities, the Beatles and Decca Records? To see it clearly, you have to put on my shoes for a moment and consider the Louisville market through the eyes of an active, experienced real estate agent. I am fortunate to have on my team a great group of talented agents who work with a huge variety of buyer and seller clients throughout the Greater Louisville Area and surrounding counties.
Working as the Joe Hayden Real Estate Team, we are blessed to be able to help so many people navigate the local real estate waters. Because we engage and interact with the market every day, we have a front row seat to the challenges faced by the general public and we are able to give competent guidance to those wishing to participate in the real estate market.
To make my analogy, in many ways our current real estate market is the Beatles and local potential home sellers are Decca Records. We find ourselves facing great opportunity in our market, but home sellers are at risk of missing this unique opportunity. Why is this happening? I personally credit the mass-media resources that promote economic doom and gloom as a way to gain viewers or to sell newspapers. In addition, many home buyers and sellers were taken advantage of in one way or another during the real estate boom of the mid-2000's. This left a bad taste in the mouth of real estate consumers and the general public that has been tough to overcome.
The reality is that we have a stronger economy in the Louisville area today than what may be obvious to the casual observer. With a wide variety of major industries that are surviving, and even thriving, in our new economy, including the healthcare industry, Louisville has bounced back much quicker than other areas of the country. This, coupled with ultra-low interest rates and affordable housing, has helped to revive and breathe new life into our local real estate market. In addition, the sharp increase in multiple-offer negotiations that we have witnessed has also supported this observation.
What is interesting, not only from discussions with my real estate team, but also from conversations with many other real estate professionals in the area, is that we appear to be experiencing a significant shortage of quality homes for sale in our local market. Home buyers are starved for good homes and are motivated to buy right away when they find them. Potential home sellers appear to be waiting out the market or holding on for a future improvement prior to attempting to sell their home.
Reviewing the stats, it is easy to see that there is an opportunity to sell, especially if you have a quality home in a good location, that has not existed for several years. Home sellers are risking a missed opportunity of a revived market and as such may regret not making their move now. I encourage anyone who is even remotely contemplating selling their home, especially if it is in great condition in a good location, to review the market statistics, consider the lack of desirable inventory and to remember Decca Records as they decide which path to choose.
This positive real estate market in Louisville may not last with the fluctuations in the broad economy and the variety of challenges faced by home buyers and sellers. You do not want to be looking back on a great market and wishing you had taken action!
About the Author: Joe Hayden is the team owner of the Joe Hayden Real Estate Team - Your Louisville Real Estate Experts! Affiliated with Keller Williams Realty - Louisville East.