Despite continued low inventory, home sales in the Louisville MSA in 2017 are on pace to break last year’s numbers.
The number of homes sold from Jan. 1 to Nov. 30 of this year were up 2.2 percent, or 359 more homes sold, compared to the same period in 2016.
Dave Parks, president of the Greater Louisville Association of Realtors, said he expected the year to end with home sales being up 2.5 percent over the prior year.
Housing inventory remains low, particularly when it comes to starter homes, according to GLAR. Despite this, Parks said the Louisville MSA would likely continue to see home sales rise in 2018.
“It’s not like there are no homes to sell,” Parks said. “They are [just] selling quickly.”
Parks said he sold a home in the $250,000 range five hours after it hit the market. Anything priced between $100,000 to $300,000 is moving quickly, he said, as long as it’s priced right and move-in ready.
In his experience as a real estate agent, Parks said he’s found that home buyers will look at anywhere from three homes and no more to 15 in the search for the right house. Buyers are then able to narrow down what they want and what they don’t, so once the right house hits the market they can make an offer.
“You have to go find the house that fits your needs the best that is available,” he said.
People are continuing to buy in the Louisville area, in part, because of continuing low-interest rates and affordable home prices, Parks said. While some of those are repeat home buyers, others are first-timers.
A recent report found that Louisville-Jefferson County ranked fourth out of 45 large cities when it comes to the percentage of millennials (residents age 20 to 36) who own homes. It ranks only behind Minneapolis-St Paul, Detroit and St. Louis.
More than 38 percent of millennials in Louisville-Jefferson County are homeowners, the report states, and the average home value among millennials is $158,974. Louisville-Jefferson County also ranks fourth in terms of home value compared with the other 44 cities.
“We are still one of the more affordable cities in the country for millennials,” Parks said, noting that next year, 35 percent of homes sold are expected to be sold to millennials.
Notably, the report also estimates that it would take nine years for a millennial to save up money for a 20 percent down payment on a house.
“Young adults used to account for a much larger portion of homeowners than they do today — the prevalence of college, mounting student loan debt, and an increasingly tight housing market are slowly pushing back the age of first-time home buyers,” the report concludes. “Yet, some Millennials — particularly those in areas with low housing costs — manage to save up and take the plunge, though often for less expensive homes.”
Below are some additional statistics from the Louisville MSA: