Greater Louisville Housing Market Reflects Growing Inventory and Stable Prices in May 2025
Louisville, KY – The Greater Louisville real estate market continued to show signs of stability in May 2025, according to new data released by the Greater Louisville Association of REALTORS® (GLAR). While closed sales dipped slightly compared to May 2024, increased inventory, steady price growth, and fewer bidding wars indicate a market that is becoming more balanced for both buyers and sellers.
Total existing home sales, including single-family homes, condominiums, and townhomes, reached 1,322 in May 2025—a 5.8% decrease from 1,403 sales in May 2024.
The median home sale price rose to $290,000, reflecting a 1.8% year-over-year increase from $285,000. The average home sale price was $341,573, a modest decrease of 1.1% from $345,215 in the previous year.
Housing inventory continued to expand, with 3,192 homes on the market at the end of May, up 37.6% from 2,320 in May 2024. The months’ supply of inventory increased significantly to 2.7 months, up from 1.9 months a year earlier. Nationally, the supply stood at 3.5 months in May, according to the National Association of REALTORS® (NAR), with six to nine months typically indicating a balanced market.
“We’re seeing the inventory gains we need to help stabilize the market,” said GLAR President Will Fischer. “Buyers now have more options, and while prices are still appreciating, they’re doing so at a steadier pace that’s healthier for the long-term market.”
Homes spent an average of 42 days on the market in May 2025, compared to 37 days a year ago—an increase of 13.5%. Sellers continued to perform well, receiving 99.2% of their list price on average.
“While demand remains strong, today’s environment offers buyers more breathing room and more negotiating power than we saw during the height of the market frenzy,” added Fischer.
Most Recent Local Housing Statistics Reports by County:
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Breckinridge-County
Bullitt-County
Grayson-County
Hardin-County
Henry-County
Jefferson-County
Meade-County
Nelson-County
Oldham-County
Shelby-County
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