In June, Demand Outpaces Supply in Greater Louisville Real Estate Market as Home Prices Continue to Rise
Demand Outpaces Supply in Greater Louisville Real Estate Market as Home Prices Continue to Rise
Louisville, KY – Existing-home sales in Greater Louisville continued to decline during the month of June according to the Greater Louisville Association of REALTORS® (GLAR).
Total existing home sales, including single-family homes, condominiums, and townhomes, decreased 21.4% from 1742 in June 2022 to 1370 in June 2023.
Insufficient supply continues to result in price growth. The median home sale price in June was $280,000, up 4.1% from $269,000 in June 2022. The average home sale price was $336,082, up 7.6% from $312,455 in June 2022.
“Persistent and inadequate supply levels are putting immense pressure on the housing market with the lack of supply presenting a real challenge for buyers,” said GLAR President Kimberly Sickles. “We are still seeing continued price growth due to inventory levels.”
Total housing inventory increased 0.8% to 2099 at the end of June from 2082 in June 2022.
Demand continues to remain much stronger than supply. In June, months’ supply of homes in the Greater Louisville market increased 30.8% to 1.7, from 1.3 in June 2022. Typically, a balanced real estate market offers between six and nine months of supply. Nationally, there was a 3-month supply of housing inventory, according to the National Association of REALTORS® (NAR).
“Home sales fell but home prices have held firm in most parts of the country,” said NAR Chief Economist Lawrence Yun. “The national median home price in June was slightly less than the record high of nearly $414,000 in June of last year. Limited supply is still leading to multiple-offer situations, with one-third of homes getting sold above the list price in the latest month.”
According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.78% as of July 20, down from 6.96% the previous week and up from 5.54% a year earlier.
Homes continue to sell rapidly and almost at listing price, reflecting strong demand. The average cumulative days on the market were 32 days in June, a 60% increase compared to a year earlier. The average percentage of list price received in June decreased 0.9% to 99.8% compared to 100.7% in June 2022.
June Local Housing Statistical Reports by County:
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