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Louisvillle Residential Real Estate Market Update

First Half of 2018 Louisville Market Review

The first half of the 2018 Louisville real estate market was marked by home prices continuing to rise faster than a porch thermometer on a sweltering July afternoon. From January 1 through June 30, the average sale price across the Louisville market was up 5.8% to $217,101 (from $205,194 for the same period in 2017). The median price was $177,500 vs. $169,900 a year ago. For the month of June, that average sale price was a staggering $237,458 (five years ago in June 2013 the average sale price was $195,411).

Rising home prices continue to be driven by a shortage of inventory. For the entire Louisville MLS (multiple listing service), the inventory of available properties was 7% lower than for the first half of 2017. The total number of homes sold from January 1 through June 30, 2018 was 8,516 vs. 8,706 or 2.2% less than the same period in 2017. The inventory situation may be improving slightly according to the industry association the Greater Louisville Association of Realtors (GLAR). 

Interest rates have risen modestly and mortgage rates have followed suit with a recent 30-year fixed rate at approximately 4.5% according to Bankrate.com (this compares to about 4% for this time in 2017). Most analysts expect rates to continue to rise gradually through at least the end of 2019.

In its mid-year market analysis, GLAR reported more than 4,000 properties for sale at present compared to 3,000 just a few months ago. As has been the case for the last few years, move-in ready homes under $250,000 continue to set the pace and are selling quickly, often in multiple offer situations.

The high-end market also continues to be robust with 347 sales of properties between $500,000 and $999,999 in 2018 vs. 320 for the same period in 2017. Sales of properties priced at $1 million plus also showed limited growth with 41 sales in 2018 vs. 37 in 2017.

The question on most consumers’ minds seems to be: How long can this bull real estate market...

Louisville Residential Real Estate Market Update

Like most people, when the new year rolls around, I like to take a little time out and reflect on the year that was, and the year that is ahead of us.  With real estate, I’m a little hesitant trying to predict what will happen in our local market over the next 12 months.  But I can certainly take a look at what has happened, not only last year, but maybe even stretching a little further back than 2014.

For the entire Louisville MLS, which includes several neighboring counties adjoining Jefferson, such as Shelby and Oldham counties, 2014 was the third year in a row that saw a rise in the number of units sold when compared to the preceding 12 months.

From a recent low of 11,720 units sold in 2011, each of the next three years saw a few more sales to reach this past year’s total of 16,082 sold properties.

MLS Units 2014

I have seen different numbers being reported, with some outlets even saying that the MLS saw a decline in the number of homes sold between 2014 and 2013.  So to clear up any confusion and to be fully transparent, all of the numbers that I used for these graphs were pulled directly from the MLS, and included all single family homes along with multi-family properties, rentals and vacant land or lots.

I chose to use all the categories of residential sales, and not focus on single family homes only because I wanted this short article to be general in nature, and to be all inclusive since I don’t know which types of properties each reader might find most interesting.  When I turned the tables and focused on how well Kentucky Select Properties has fared as a Brokerage over the past few years, I used the exact same criteria.

As Kentucky Select Properties celebrated its 10th Anniversary (thank you!) this year,...

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