In 2011, Ford announced plans to hire 1,800 people, in addition to the 1,100 already employed there, to build the redesigned 2013 Escape in Louisville, KY. The result was nearly 17,000 applications. According to USA Today, first priority went to Ford employees previously laid-off in Louisville, and then to those who were laid-off from other Ford plants around the country.
Just before Thanksgiving, 2011, people began relocating to Louisville in droves to work for Ford. In my conversation with a couple who relocated here from Minneapolis, there were several hundred who immediately began looking for permanent homes in and around Louisville. There was also a roughly equal number of relocating families who found temporary housing in the form of 6 or 12 month leases.
Basic high school business courses teach us the law of supply and demand. Well, the incoming families took a small amount of inventory (properties for sale) off the market. In my opinion, each Ford relocation that bought a home caused an average of three more sales. If you think about it, the sellers of the homes to each Ford relocation were either moving to another home, out to another town, or into a less desirable situation. In my unscientific observation, the first sale created a domino effect of three more transactions.
Over the last twelve months, inventory has continued to drop. Buying transactions continue to increase. So, with more demand and less supply, we can expect higher property values.
So it is with celebration that we welcome the addition of another 1,300 workers to help meet demand for the Escape. Add this to the hundreds of workers in leases, and the Real Estate Market is looking bright in Greater Louisville.
There are many other factors affecting our market, but if you are still waiting for the time to move, that time is now.