Though Danville, KY is "Simply The Nicest Town," (as the water tower on Hustonville Road proudly boasts), it can be a challenging market to navigate when it comes to buying and selling homes. Unlike our nearby cohorts, Lexington and Louisville, where sellers receive multiple 'over-asking-price' offers the first day they list, the demand for affordable housing in Danville isn't always enough to keep up with the supply -- and vice-versa.
According to the Central Kentucky Association of Realtors, there were 533 homes listed for sale from Jan. 2018 to Dec. 2019 in Boyle County. Of that, 441 actually sold, (meaning 92 never sold), and the average number of days on the market it took those homes to sell was 128 days. That means, on average, homes sat on the market for approximately 4 months before they saw a new owner. Though this may seem like a long time if you're used to the faster pace of a larger market, local sellers will be glad to know this timeframe has actually shortened since the 2017-18 year, when average time on the market was 6 months.
What does this tell us about the current state of the local market?
These statistics prove that the market, though somewhat slow, is steady and improving; and there is an increased demand from just a year ago for buyers to find a place to call home. What the statistics also tell us, is that there simply aren't enough homes in existence in the price range local buyers want. We need new construction going up in the $170,000 range, which may or may not even be possible from a builder standpoint. So what do we do? That's a question that can only be answered as the future of the housing market unfolds.
Let's look at the numbers. From Jan. 2018 to Dec. 2019, the average LIST price of homes that eventually sold was $484,354. But the average SALES price of those homes that sold was $170,236. Moreover, the average list price of the 92 homes that did not sell in this past year was $278,326. In other words, homes were going on the market in the $400,000s, (meaning inventory in that price range exists), but the buyer demand for the lower priced homes was outpacing them. This created a more competitive market for homes selling in the $160-$200,000 range, and left a surplus of homes at higher price points up for grabs.
What does this tell us about local buyers' needs?
There is a demand for houses in the $170,000 range, and fewer buyers for those homes as you approach $280,000 and above. Another interesting tidbit is that the majority of homes that sold this year had three to four bedrooms. So, it's clear that Danvillians need ample space for growing families, but they need it affordably.
What does this mean local sellers' can expect when they list their home?
If you're not willing to price your home in line with market value, you may be wasting your time. The statistics speak loudly to what our local market will support, and choosing to pave your own path through the marketplace may just cause you to end up with an "unsold" listing. If you own a home valued over $170,000, don't be surprised if it sits on the market for up to at least 4 months prior to a sale; and you may even need to be willing to negotiate on price, if that fits into your bottom-line profit goal. If not, just be willing to wait!
The first step to ensuring you list your home in line with market value: hire a knowledgable Realtor. We have access to exclusive licensee-only databases that allow us to pull comps and view the values of your neighbors' homes. We also know how to accurately estimate improvement value of updates and renovations you've done in relation to comparable properties. Not to mention, most of us are marketing/staging/selling pros and know how to get feet through your front door. Best of all? We can represent YOU in the transaction to ensure you get the highest possible price for your home the market will support.
For honest real estate advice or assistance navigating the local Danville market, contact me anytime at amandafrenchclark@gmail.com or 502-419-8934!
Photo Credit: Central Kentucky Association of Realtors, www.ckar.net.
