The Louisville area real estate market showed some signs of stabilizing in October. At 2,325 active listings, home inventory was up slightly vs September yet down an eye popping 46% vs last year. Home inventory may have bottomed out in September & October at a 1.5 month supply of homes. For perspective, a six to eight month supply of homes is considered a balanced market. New listings were up 1% and total homes sold were up 10%. This continues to support a strong seller's market as historically low mortgage rates are driving buyers to the market much faster than sellers are listing their houses. The average property sold in just over a month.
The Greater Louisville Association of Realtors President said, "Sales of starter and move-up homes are still happening at a very brisk pace with just 1.5 months of available inventory. We are also seeing buyers focus on homes that facilitate working from home."
The Chief Economist for the National Association of Realtors® commented that "the national housing market is in a clear V-shaped recovery with sales of new and existing homes hitting their highest mark since 2006." However, he does not see the same risks to the market compared to 2006. "Mortgages are now fully documented, builders are not overbuilding, and many owners own their homes outright or with substantial home equity."