This year has flown in the face of conventional wisdom. Well, at least as far as Louisville real estate is concerned.
Despite the fact that housing inventory is at all-time low levels, home sales have thrived. From January through October last year, there were 9,801 properties sold. In 2016, with far fewer homes to choose from, buyers have purchased 10,271 homes during the same timespan. That’s really quite remarkable.
This while sale prices have been rising at a record pace.
It’s understandable that increased competition creates competitive bidding situations, which forces prices up. This is how supply and demand works. What’s unusual is these higher prices aren’t stopping buyers from buying. Demand is clearly there.
On Louisville Homes Blog, there are housing reports for each of Louisville’s MLS areas. Reviewing these provides some additional insights in where and, in particular, what price ranges home sales are the strongest.
Let’s take a look at some summary findings.
Louisville Homes Sold: January through October 2016
|2015||2016||Change||Avg. Sale Price 10/16|
|Downtown Louisville: MLS Area 0||99||117||18.18%||$257,567|
|Old Louisville: MLS Area 1||686||657||-4.23%||$65,267|
|Highlands: MLS Area 2||955||999||4.61%||$216,787|
|St. Matthews: MLS Area 3||800||810||1.25%||$283,836|
|Pleasure Ridge Park: MLS Area 4||733||754||2.86%||$101,111|
|Fairdale: MLS Area 5||885||928||4.86%||$127,211|
|Okolona: MLS Area 6||1560||1698||8.85%||$159,069|
|Jeffersontown: MLS Area 7||1595||1614||1.19%||$207,197|
|Middletown: MLS Area 8||1178||1108||-5.94%||$289,139|
|Prospect: MLS Area 9||1238||1194||-3.55%||$300,852|
There are a few outliers. Area 0, largely luxury lofts and condos, even with the higher ticket price had the largest gains in 2016. Old Louisville experienced the reverse as sales dropped, this with the least expensive homes in the city.
But then there are strong increases in Area 5, and especially, Area 6, where close to 9 percent more homes were sold this year than last. The most expensive areas in our city — Areas 8 and 9 — saw home sales decline.
How does this affect the city as a whole?
The median sales price in all of Jefferson County last October was $155,000. This year, it’s 8.1 percent higher, at $167,500. That’s huge.
When examining the trend-line values for the same period, there was a more reliable 7.5 percent gain. One thing is certain, it’s a good time to be homeowner.