The Louisville real estate market is in uncharted waters. Intense competition, multiple offers and rapid sales now seem to be the norm.
Home inventory is down to 50% compared to this time last year at another record low of 1,550 active listings, or just under a 1 month supply of homes. For context, during normal conditions the number of listings hovers around 6,000 or a six month supply. The good news is that sales are up nearly 20%. Supply continues to shrink as buyers snap up homes with historically low mortgage rates. Meanwhile, many sellers remain on the sidelines waiting for COVID impacts to settle, the market to adjust, decisions around work-from-options, and other factors. As a result, prices were up 10%.
The Greater Louisville Association of Realtors President said, "We are experiencing an unprecedented market with extremely low inventory combined with very low interest rates. It's a great market for sellers, but I don't think things will change for buyers for another 18 to 24 months. The Chief Economist for the National Association of Realtors® noted that "We are also seeing record low inventory nationally, with the average time on the market around 20 days and prices up nearly 15% from last year."