July Greater Louisville Home Sales Decrease, Prices Continue to Rise
Greater Louisville Home Sales Decrease again in July, Prices Continue to Rise
Louisville, KY – Home sales in Greater Louisville declined for the seventh consecutive month in July while prices continued to increase due to demand outpacing supply, according to the Greater Louisville Association of REALTORS® (GLAR).
Total existing home sales, including single-family homes, condominiums, and townhomes, decreased 14.1% from 1878 in July 2021 to 1613 in July 2022. Closed single-family home sales totaled 1,415 in July, a 14.6% decrease compared to July 2021, while sales of condominiums dropped 9.9% to 173.
Record demand combined with low supply continues to fuel price growth. The median home sale price in July was $260,000, up 4.0% from $249,900 in July 2021. The average home sale price was $309,882, up 6.5% from $290,877 in July 2021.
Total housing inventory increased 9.8% to 2,424 at the end of July 2022 from 2,208 in July 2021.
Months of supply in the Greater Louisville market remained low in July but continued their upwards trajectory. In July, there were 1.6 months of supply, up 23.1% from July 2021 and compared to the previous month. Typically, a balanced real estate market offers between six and nine months of supply. Nationally, there was a 3.3-month supply of housing inventory, according to the National Association of REALTORS® (NAR).
Homes continue to sell rapidly and almost at listing price, reflecting strong demand. The average days on the market were again 20 days in July, a 4.8% increase compared to a year earlier but equal to the previous month. The average percentage of list price in July was 99.5%, a negligible 1.0% decrease compared to July 2021.
“Generally, the Louisville market offers more moderately priced homes than coastal, larger areas and is not as impacted by higher interest rates and market shifts,” said GLAR President Paula Barmore. “While home prices continue to rise as sales decrease, mirroring national trends, local prices are rising by lower margins.”
According to Freddie Mac, the 30-year fixed-rate mortgage was 5.3% in July down from 5.7% in June.
NAR Chief Economist Lawrence Yun expects home sales nationally to stabilize after mortgage interest rates peaked in June, boosting consumer purchasing power. “We’re witnessing a housing recession in terms of declining home sales and home building,” Yun said. “However, it’s not a recession in home prices. Inventory remains tight and prices continue to rise nationally with nearly 40% of homes still commanding the full list price.”
Note: The method of collection for GLAR statistical information++ has changed. Some information may vary slightly compared to earlier reporting periods.
July Local Statistic Reports by County: