The most expensive locations tend to be the most recession proof, are in the highest demand, and tend to appreciate better than average. This holds true for the bluegrass state too.
I just ran the numbers for five of Louisville's most popular counties to see how they were weathering the recession which I just learned began in December 2007. I used the beginning of 2005 as my basis so the net gains and losses posted below are in relation to where the market was in January of '05.
The quick facts are:
County Net
Bullitt County 0
The quick facts are:
County Net
Bullitt County 0
Jefferson County +4%
Oldham County +2%
Shelby County -1%
Spencer County -14%
If you would like to see a chart click on the county for a pop up graph.
One note about my methodology. The "West End" of Louisville is a basket case so I have omitted it from my Jefferson County numbers, along with Old Louisville, because it was expedient. I'll eventually do a post on it but I think this gives a more realistic portrayal of it's market. Shively and other western neighborhoods that are to the south of the Algonquin Parkway are included. I also omitted houses less than 5 years old from the sales data in all the counties. I did this for several reasons but some of the main ones are as follows: gives a better representation of appreciation, builders often don't list new houses on the MLS so many would be missed anyway, houses tend to depreciate rapidly in the first five years and then tend to 'sink or float'.
Oldham County +2%
Shelby County -1%
Spencer County -14%
If you would like to see a chart click on the county for a pop up graph.
One note about my methodology. The "West End" of Louisville is a basket case so I have omitted it from my Jefferson County numbers, along with Old Louisville, because it was expedient. I'll eventually do a post on it but I think this gives a more realistic portrayal of it's market. Shively and other western neighborhoods that are to the south of the Algonquin Parkway are included. I also omitted houses less than 5 years old from the sales data in all the counties. I did this for several reasons but some of the main ones are as follows: gives a better representation of appreciation, builders often don't list new houses on the MLS so many would be missed anyway, houses tend to depreciate rapidly in the first five years and then tend to 'sink or float'.
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