The downtown Louisville residential condo market may be heating up following months of lagging sales, due primarily to the pandemic and downtown unrest. But 2021 numbers point towards improving market conditions and positive momentum. The first 6 months of 2021 have seen 5 more sales than the previous 6 months – a 41.7% increase
Thirteen downtown Louisville condo developments saw unit sales over the last 12 months. Of those sales, here are the average sale price and the average sale price per square foot:
*One sale removed $650,000
*One sale removed $620,000
Falls City Lofts – 4 - $323,000; $235.08
The Levy – 3 - $217,166; $175.97
Downtown Louisville Condo Sale Terms
Of the 29 condos sold over the last 12 months, conventional financing was the most prominent financing term at 24 units or 83% of total condo sales. The second largest financing option is cash at 4 units or 14%, then VA at 1 transaction. There were no transactions that were FHA financed.
Average cash transaction - $219,875
Average financed transaction - $340,326
Downtown Louisville Condo Pricing
Downtown Louisville condo prices will vary from building to building and unit to unit. Even within buildings it’s not uncommon to see a significant difference in cost per square foot, for a number of reasons: unit amenities, floor, view, and individual upgrades and finishes. Older buildings are more likely to see a wide range of both sale price and price per square foot. This is because the more established the building is the longer the tenants have had to acquire additional units for expansion and to upgrade the finishes in each unit. Condo improvements can also be more costly than single family residences due to demolition constraints and contractor access to the building and elevators. Condo improvements can often take more time to complete and cost more due to these constraints.
Downtown Louisville Condo Occupancy
Downtown Louisville condos also tend to be owner occupied full time or part time. It is uncommon to see downtown Louisville condos purchased for investment opportunities or flips due to resale value. While downtown Louisville condos hold their value, price appreciation can be limited and varies based on overall market demand at the time of sale. Additionally, investors looking for short-term rental (STR) opportunities often find that use is unwelcome by the condo association bylaws.
Downtown Louisville Condo HOA Fees
Taking some liberties we can assume the average downtown Louisville condo HOA fee is $3,927.27 per year or $327.27 per month (roughly $.23 per ft per month).
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To learn more about Louisville real estate and short term rentals, listen to Jonathan Klunk's interview on ESPN here!