Louisville Real Estate News

Lack of Home Inventory Taps the Brakes on Louisville's Real Estate Market

Posted 2017-03-23

The Greater Louisville Association of Realtors® (GLAR) reported sales down 4.5% compared to February 2016. Sales totaled 1,054 this February versus 1,104 last year. Year-to-date (YTD) sales were down just 0.8%, coming off of a strong January. With the lower inventory, the average price YTD was up 8.1%. For all MLS areas, the inventory of available properties was 21% lower than at the same time last year.

GLAR President Allison Bartholomew commented that, "Multiple offer situations for starter and mid-level homes continue to be the norm. Many first time buyers, continue to make offers on more than one home before finding a seller to accept their offer. As was the case last month, homes in higher price ranges are selling at a more normal pace."

The National Association of Realtors'® (NAR) Chief Economist, Lawrence Yun, observed that "Competition is likely to heat up even more heading into the spring for house hunters looking for homes in the lower and mid-market price range." With regard to new construction, the National Association of Home Builders (NAHB) now expects, "solid 10 percent growth in single-family construction in 2017, adding to the gains of 2016." NAHB Chief Economist Robert Dietz, also added that ongoing concerns include, "rising mortgage interest rates as well as a lack of (building) lots and access to labor."

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