LOUISVILLE, Ky. — The Greater Louisville Association of Realtors (GLAR) reported year-to-date sales volume up 13.1% in June 2021. The pace of growth slowed to 1.2% in June with 1,892 homes and condos sold, versus 1,870 in June 2020. The year-to-date figure remains higher because of the impact of COVID-19 on sales from April to June 2020.
The average price was up 11.8% year-to-date, compared to this time last year. In Jefferson County, the average price was $283,969 and the median was $235,000. For all MLS areas, the inventory of available properties was 38.1% lower than at the same time last year.
“Inventory is still low, but we have seen some improvement with about 1,600 homes and condos for sale versus just 1,000 a few months ago,” said GLAR President Judie Parks. “The prevalence of multiple offers is decreasing, but we are still very much in a sellers’ market.”
Parks said lumber futures are now about one-third compared to a couple of months ago, but local builders are still dealing with higher structural lumber costs.
Responding to the question whether or not we are heading for another housing crash similar to 2008-10, the chief economist for the National Association of Realtors (NAR), Lawrence Yun, said the current housing cycle is “fundamentally different” in two respects. First, there are no risky subprime mortgages. Loan-to-value ratios and debt-to-income ratios are being followed and income documentation is required. The second major difference is housing supply. When the housing bubble burst, there were 2.1 million surplus housing units. By contrast, there was a shortage of 4.8 million units at the end of 2020.
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