Greater Louisville Home Sales Decrease but Demand Remains Stronger than Supply
Louisville, KY – Home sales in Greater Louisville declined for the fourteenth consecutive month in February but
inventory levels remain historically low, according to the Greater Louisville Association of REALTORS® (GLAR).
Total existing home sales, including single-family homes, condominiums, and townhomes, decreased 20.6% from 1172 in February 2022 to 931 in February 2023.
Strong demand combined with low supply continues to result in price growth. The median home sale price in February was $243,000, up 3.4% from $235,000 in February 2022. The average home sale price was $284,779, up 1.1% from $281,729 in February 2022.
“Louisville is one of the most affordable cities in the country and offers employment opportunities, quality of life, and wellness and culture,” said GLAR President Kimberly Sickles. “Despite the increasing prices and lack of sufficient housing supply, we
continue to see strong consumer demand in Greater Louisville.”
Recently, Bankrate ranked Louisville No.15 best metro area for first-time buyers in 2023 based on housing prices in relation to local wages, tightness of the local housing market; the employment picture; and wellness and culture.
Total housing inventory
increased 38.4% to 1851 at the end of February 2023 from 1337 in February 2022.
Demand remains much stronger than supply. In February, months supply of homes in the Greater Louisville market increased 75.0%, from 0.80 in February 2022 to 1.40 in February 2023. Typically, a balanced real estate market offers between six and nine months of supply. Nationally, there was a 2.6-month supply of housing inventory, according to the National Association of REALTORS® (NAR).
NAR Chief Economist Lawrence Yun referred to low inventory and any rate decline resulting in multiple offers nationally. "Inventory levels are still at historic lows,” Yun said. "Consequently, multiple offers are returning on a good number of properties."
According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.60% as of March 16, down from 6.73% the previous week but up from 4.16% a year earlier.
Despite declining sales, homes continue to sell rapidly and almost at listing price, reflecting strong demand. The average cumulative days on the market were 50 days in February, a 35.1% increase compared to a year earlier and a 1.9%% decrease compared to the previous month. The average percentage of list price received in February decreased 1.2% to 97.7% compared to 98.9% in February 2022.
Note: The method of collection for GLAR statistical information changed in 2022. Some information may vary slightly compared to earlier reporting periods.
February Local Housing Statistical Reports by County:
Breckinridge-County
Bullitt-County
Grayson-County
Hardin-County
Henry-County
Jefferson-County
Meade-County
Nelson-County
Oldham-County
Shelby-County
Spencer-County |
