Record demand combined with low supply continues to fuel price growth. The median home sale price in October was $257,500, up 7.3% from $240,000 in October 2021. The average home sale price was $312,659, up 8.1% from $289,112 in October 2021.
“While supply has increased slightly and sales have declined, Louisville still has the insufficient inventory to meet consumer demand,” said GLAR President Kimberly Sickles. “Due to current demand and record low inventory, we expect prices to continue to grow.”
Total housing inventory increased 13.4% to 2,447 at the end of October 2022 from 2,158 in October 2021.
Months of supply in the Greater Louisville market remain low but continue an upward trend. In October, there were 1.7 months of supply, up 30.8% from October 2021 and 13.3% compared to the previous month.
Typically, a balanced real estate market offers between six and nine months of supply. Nationally, there was a 3.3-month supply of housing inventory, according to the National Association of REALTORS (NAR).
Homes continue to sell rapidly and almost at the listing price, reflecting strong demand. The average cumulative days on the market were 31 days in October, an 24.0% increase compared to a year earlier and a 10.7% increase compared to the previous month. The average percentage of list price in October decreased slightly (0.6%) to 98.2% compared to October 2021.
According to Freddie Mac, the 30-year fixed rate mortgage was 6.9% in October, up from 6.11% in August.
NAR Chief Economist Lawrence Yun says the increase in interest rates is impacting markets with more expensive homes and more significant increases in home prices. “More potential homebuyers were squeezed out from qualifying for a mortgage in October as mortgage rates climbed higher,” Yun said. “The impact is greater in expensive areas of the country and in markets that witnessed significant home price gains in recent years.”
Note: The method of collection for GLAR statistical information has changed. Some information may vary slightly compared to earlier reporting periods.
October Local Housing Statistical Reports by County:
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