August 2016 Housing Market in Louisville
The Greater Louisville Association of Realtors® reported year to date (“YTD”) sales up 5.9% compared to the same time last year. Sales in August 2016 were up 2.9% vs August 2015, with 1,622 homes and condos sold. The median price was up 3.9% YTD and the average price was 2.3% higher YTD.
In Jefferson County, the average price in August 2016 was $207,520 and the median was $170,000. For all MLS areas, the inventory of available properties was 19.2% lower than at the same time last year. In Jefferson County the inventory of homes and condos for sale was 21.1% lower than August 2015.
GLAR President Greg Taylor commented that, “The number of homes placed under contract in August 2016 increased 1.9% vs August 2015, which is above the national statistic of 1.3%.” He added that, “Our members are continuing to see quick sales of homes under $250k, at the same time that showings of higher end homes have slowed a bit.”
The National Association of Realtors® (NAR) Chief Economist Lawrence Yun commented last week that, “Amidst tight inventory conditions that have lingered the entire summer, contract activity last month was able to pick up at least modestly in a majority of areas. More home shoppers having success is good news for the housing market heading into the fall but, buyers still have few choices and little time before deciding to make an offer on a home available for sale.”
The National Association of Home Builders (NAHB) Chairman Ed Brady recently remarked that, “While labor shortages and regulatory burdens remain…lot shortages are preventing our builders from responding to growing demand for housing.” Although Louisville does not have a lot shortage per se, the price of land and rising development costs mean that most new subdivisions will not feature new homes for first time buyers.