In May Louisville Home Sales Decrease as Prices Rise

Louisville, KY – Existing-home sales in Greater Louisville declined for the seventeenth consecutive month in May but by a smaller margin, according to the Greater Louisville Association of REALTORS® (GLAR).  

Total existing home sales, including single-family homes, condominiums, and townhomes, decreased 14.8% from 1596 in May 2022 to 1359 in May 2023. 
 
Insufficient supply continues to result in price growth. The median home sale price in May was $265,000, up 1.9% from $260,000 in May 2022. The average home sale price was $311,281, up 3.7% from $300,203 in May 2022.  
 
“The Greater Louisville housing market continues to experience strong demand coupled with very low existing inventory,” said GLAR President Kimberly Sickles. “Higher interest rates are also impacting sales but not as much as in coastal, more expensive markets.”
 
Total housing inventory increased 13.2% to 1867 at the end of May from 1650 in May 2022. 
 
Demand remains much stronger than supply. In May, months’ supply of homes in the Greater Louisville market increased 50.0% to 1.5, from 1.0 in May 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). 
 
NAR Chief Economist Lawrence Yun addressed how supply impacts home sales. 
“Newly constructed homes are selling at a pace reminiscent of pre-pandemic times because of abundant inventory in that sector,” Yun said. “However, existing-home sales activity is down sizably due to the current supply being roughly half the level of 2019.” 
 
According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.69% as of June 15, down from 6.71% the previous week but up from 5.78% a year earlier.  
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Homes continue to sell rapidly and almost at listing price, reflecting strong demand. The average cumulative days on the market were 37 days in May, a 68.2% increase compared to a year earlier and a 7.5% decrease compared to the previous month. The average percentage of list price received in May increased 1.8% to 99.0% compared to 100.8% in May 2022.

May Local Housing Statistical Reports by County: