July Louisville Residential Market Update
Average Sale Price - $274,000 (up 4.18%)
The primary driver of the increase is that we are seeing a higher number of sales in the $400K+ price point. More detail on this under Sold Listings by Price Point.
Keep in mind this number is a combined total of all properties sold on the MLS from $1 to $1,000,000+. It is a good overall number to indicate our market strength and show upward pricing and sales trends.
Number of New Properties - 1,610 (down 7.67%)
A reduction in new properties hitting the market will continue to keep the market in the Seller’s favor.
Our absorption rate, which shows how long the current inventory of properties would last at the current rate of sales, has increased to 1 month - the highest number since January 2021. The higher the absorption rate the higher the number of properties available for sale versus the number of properties being sold.
Overall, new listings are up 1.3% with 11,386 new listings on the market between Jan & June 2021, VS 11,238 new listings in 2020 over the same period.
Number of Properties Sold - 1,030 (down 24.21%)
This is a number we should continue watching as we head into fall and winter, notoriously slow seasons for residential real estate. A continuous drop in this number could start moving momentum into the Buyer’s favor.
The number of listings that went into PENDING status, which means all contingencies have been removed (inspection, appraisal, financing), decreased from 1,872 in May to 1,675 in June. This is the lowest number of pending properties since winter of 20/21 when we averaged 1,364 per month between Nov 2020 and February 2021.
When comparing June 2020 to June 2021, there was an 18% DECREASE in the number of properties marked Pending. Last year there were 2051 versus 1675 this year. However, total listing SOLD YTD is still up 2.7% YOY and up 13.4% YTD at 9,267 houses.
SOLD Listings by Price Point
The largest changes YOY in number of properties sold by price point was actually in the higher end of the price range. Houses OVER $500,000 saw the largest INCREASE at 54.7%, with 435 houses sold Jan thru Jun in 2020 compared to 673 sold in the same time period during 2021.
The second highest price point is $400K - $499K, coming in at a 44.2% INCREASE YTD YOY, a difference of 185 houses sole (604 in 2021 VS 419 in 2020)
The largest REDUCTION at 52.6% goes to the $0 - $30K price point. Followed by the $40K - $50K price point, which saw a YOY sale reduction of 47%.
All price points over $180K have seen strong increases between 14% and 30%. Still a very good showing in our overall strongest price points.
Average Days on Market - 54.02 (down 18.15%)
This is the number of days a property is on market from the time it’s listed until it’s officially closed and has a new owner. Seeing this number decline, or even remain steady, indicates a steady market. A decrease of 18.15% is significant for this category as the needle is not easy to move. This means our market as a whole has fewer properties sitting.
This is the 3rd straight month we’ve seen a decline in this number.
If we begin to see an increase it can indicate properties are sitting longer on the market, which will be an indicator that fewer properties are being sold each month, which will lead to more inventory on hand, indicating a shift towards a Buyer’s market.
Average Sale Price - Percent of Asking - 102% (up .83%)
In the Louisville market we will likely not see a major shift in this number like other markets do. This is a good thing because it keeps sales numbers in line with listing numbers and keeps us from entering a real estate bubble.
However, a showing of 101% indicated 2 things: 1) The Louisville market is still competitive and people are still paying full ask for the listed amount. 2) Sellers are responding to market trends and pricing properties appropriately.
Keep in mind this number is only for properties that have sold and CLOSED, so it is 1 month behind what the market is currently seeing. And that can be a long time in residential real estate.