Photo of a home in Crescent Hill, Louisville KY | Credit Tre Pryor

Medium-priced homes in Louisville are in extremely high demand.

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.

Charts of Louisville home sales and Louisville home prices for the 12 month period ending October 2016.

Home sales in October landed spot on the previous year, while prices climb higher.

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

20152016ChangeAvg. Sale Price 10/16
Downtown Louisville: MLS Area 09911718.18%$257,567
Old Louisville: MLS Area 1686657-4.23%$65,267
Highlands: MLS Area 29559994.61%$216,787
St. Matthews: MLS Area 38008101.25%$283,836
Pleasure Ridge Park: MLS Area 47337542.86%$101,111
Fairdale: MLS Area 58859284.86%$127,211
Okolona: MLS Area 6156016988.85%$159,069
Jeffersontown: MLS Area 7159516141.19%$207,197
Middletown: MLS Area 811781108-5.94%$289,139
Prospect: MLS Area 912381194-3.55%$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.