The price of the median home sold last June was $166,500. This June, that number spiked to $183,000. That’s just shy of a 10 percent gain.
With fewer homes for sale, Louisville home buyers are battling it out to take home the prize. (Twisted pun intended.)
It’s a challenging market for buyers. Sellers, on the other hand, are loving it. Our days on market metric dropped to its lowest level in years — just an average of 42 days.
This is for all properties sold, even those overpriced units that just sit and sit. This time last year, that number was 12 days longer. Quite remarkable when you think about it.
When comparing averages, rather than medians, June’s results are even more dramatic. Going from $205,774 to $230,451 in just 12 quick months, which is a 12 percent gain.
Analyzing the data via our trend-line value to help smooth things out gives us a more reasonable 8.7 percent improvement year-over-year. Even still, this is great news for Louisville homeowners who are used to seeing 4 percent annual appreciation.
Switching gears, let’s see how the Louisville real estate market is performing in terms of units sold.
During June 2016, there were 1,290 homes that exchanged hands, according to the Greater Louisville Association of Louisville database. Fast forward 12 months, and we see an almost 6 percent decline in sales, with just 1,213 properties sold.
This number is just slightly higher than what we saw in May. Digging deeper, we see that in certain parts of the city, home sales surpassed last year (MLS Area 9: Prospect, Anchorage, Glenview), while other areas dropped considerably (MLS Area 2: Butchertown, Highlands, Germantown and MLS Area 7: Jeffersontown, Fern Creek, Hikes Point).
When we tally up home sales for the year, we have a very tight race.
For the first six months of 2016, there were 5,836 properties sold. So far in 2017, that number is 5,772. That’s just about 1 percent under where we were at this point last year.
This is quite good considering the significant shortage in housing inventory.
Finally, now that our summer months are here, we see an increase in our absorption rate (see chart). Even still, we’re a long way from a balanced market, which would be closer to six months of inventory.
Hopefully, this trend will continue with more Louisville homeowners listing their properties in July and August.