Louisville Area Home Sales Up 2.3% YTD, Average Price Up 5.0%
The Greater Louisville Association of Realtors® (GLAR) reported sales up 2.34% year-to-date (YTD) for 2017. Sales in October were 1,445 versus 1,545 last October representing a 6.47% decrease. The average price YTD was up 5.02% and the median price was up 5.06%.
In Jefferson County, the average price in October 2017 was $196,908 and the median was $163,000. For all MLS areas, the inventory of available properties was 9.59% lower than at the same time last year. In Jefferson County, the inventory of homes and condos for sale was 7.72% lower than October 2016. Inventory in Oldham and Bullitt Counties was down 0.32% and 7.83%, respectively.
GLAR releases monthly statistics mid-month to allow for the most accurate and comprehensive reporting possible. Local REALTORS report their residential sales totals to GLAR, and publishing the statistics mid-month allows for the activity that takes place late in the month to be counted. This ensures that the totals reported show the truest depiction of the local housing market.
GLAR President Dave Parks commented that, “the inventory of starter homes is still very low, which is good for sellers of those properties. The mid-priced market is consolidating price gains made during the year, and the market for higher priced homes is slower as we head toward the winter months.”
The National Association of Realtors’® Chief Economist, Lawrence Yun, recently observed that “demand exceeds supply in most markets, which is keeping price growth high and essentially eliminating any savings buyers would realize from the decline in mortgage rates from earlier this year. While most of the country, except for the South, did see minor gains in contract signings last month, activity is falling further behind last year’s pace because new listings aren’t keeping up with what’s being sold.”
Pat Durham, the Executive Vice President of the Building Industry Association of Louisville, commented that, “Construction activity for both new and remodeling continues to be strong. Options for builders to build in the “starter home” categories continue to be very difficult, especially considering that the average cost of government regulation in our industry is now over 25% of the cost of a newly constructed home.”