Month after month, statistics from real estate sales in the Louisville set all time highs. March was no different. Sales are down almost 4% from the previous year, which is likely due to the severe deficit in inventory. Available homes for sale is down just over 11% from this time last year; and Average home prices and median home prices are roughly $213,000 and $172,000, respectively. These prices are up about 6% from this time last year and roughly $10,000 and $3,000, respectively, from February.
Over half of the houses on the market are selling in less than 30 days, and multiple offer situations are becoming the norm. The starter home market continues to be the most active. Move-in ready homes in this segment are in high demand, attracting a tremendous amount of attention from “would be” buyers.
Lawrence Yun, Chief Economist of the National Association of Realtors® commented that, “Homes are going under contract a week faster than a year ago and to fully satisfy demand, most markets need a substantial increase in new listings.”
New construction continues to be a value for move up homes although construction has been hampered by rainy conditions. Pat Durham, Executive Vice President of the Building Industry Association of Greater Louisville, noted, “Building permits are up year to date 18%, even in the bad weather conditions we have faced this winter, mostly wet, rainy conditions. Permit numbers will only grow stronger as the summer months approach. There is definitely a pent-up backlog for new starts, which are primarily pre-sold homes.”
The good news for real estate agents and buyers in Louisville will be more inventory on the market when the new builds near completion!