October Home Prices Increase, Sales Decline


Home sales in Greater Louisville declined for the tenth consecutive month in October because of increasing interest rates and insufficient supply while home prices continue to rise, according to the Greater Louisville Association of REALTORS® (GLAR).

Total existing home sales, including single-family homes, condominiums, and townhomes, decreased 23.7% from 1769 in October 2021 to 1349 in October 2022.

Record demand combined with low supply continues to fuel price growth. The median home sale price in October was $257,500, up 7.3% from $240,000 in October 2021. The average home sale price was $312,659, up 8.1% from $289,112 in October 2021.

“While supply has increased slightly and sales have declined, Louisville still has insufficient inventory to meet consumer demand,” said GLAR President Kimberly Sickles. “Due to current demand and record low inventory, we expect prices to continue to grow.”

Total housing inventory increased 13.4% to 2,447 at the end of October 2022 from 2,158 in October 2021.

Months of supply in the Greater Louisville market remain low but continue an upwards trend. In October, there were 1.7 months of supply, up 30.8% from October 2021 and 13.3% 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 cumulative days on the market were 31 days in October, an 24.0% increase compared to a year earlier and a 10.7% increase compared to the previous month. The average percentage of list price in October decreased slightly (0.6%) to 98.2% compared to October 2021.

According to Freddie Mac, the 30-year fixed-rate mortgage was 6.9% in October, up from 6.11% in August.

NAR Chief Economist Lawrence Yun says the increase in interest rates is impacting markets with more expensive homes and more significant increases in home prices. “More potential homebuyers were squeezed out from qualifying for a mortgage in October as mortgage rates climbed higher,” Yun said. “The impact is greater in expensive areas of the country and in markets that witnessed significant home price gains in recent years.”

Note: The method of collection for GLAR statistical information has changed. Some information may vary slightly compared to earlier reporting periods.


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


OCTOBER 2022 – Local Market Update Reports by County

Breckinridge-County
Bullitt-County
Grayson-County
Hardin-County
Henry-County
Jefferson-County
Meade-County
Nelson-County
Oldham-County
Shelby-County
Spencer-County

CLICK HERE FOR MORE MARKET STATS

The Greater Louisville Association of REALTORS® (GLAR) is the “The Voice for Real Estate” in Greater Louisville. As the local arm of America’s largest trade association, the National Association of REALTORS®, GLAR represents more than 5500 members involved in all aspects of the residential and commercial real estate industries. GLAR advocates to protect homeownership rights and the real estate profession, provides business services, technology, and education for its members, and is the most comprehensive resource for marketplace data for the Greater Louisville area. For more information, visit LouisvilleRealtors.com


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