2014MarketReport

This Harrods Creek estate recently closed, making it the first sale above $1MM in 2015. Listed and sold by Chuck Pence, Jon Mand and John Lenihan.
With December in the books, it’s time to review the Louisville real estate market’s performance in 2014. Overall, the market has remained healthy and even recovered some lost ground during the second half of the year. Across all price ranges and areas covered by our MLS, the number of home sales decreased slightly to 14,640, a decline of 1.9% from 2013. However, the high-end segment (homes $400,000 and above) has continued to improve and saw a 7.6% increase to 930 homes sold during the year.

Pricing remained consistent with our 3rd quarter report with the overall market posting a 3.1% increase with a median value per square foot of $101.58. The high-end segment tracked similar price appreciation withmedian values per square foot rising 3.5% to $166 psf. These price increases mark the 3rd consecutive year of price appreciation and both surpass the high water marks of 2007 in nominal dollars, although inflation-adjusted returns are still lagging.

The pace of home sales continues to move briskly with the median days on the market at their lowest levels in 10 years for the high-end segment and the overall market (65 days and 50 days, respectively). Inventory levels of homes for sale were down 4.3% for the overall market contributing to slight decline in sales, but a steady influx of new, high-end listings has buoyed that segment with a 10% increase in the number of listings above $400,000compared to 2013.

We saw good momentum in the high-end segment in December that has carried over so far into January and bodes well for another good year for Louisville real estate. Low interest rates continue to spur activity for those who can qualify for credit which has heavily benefited the higher end of the market. We’ll be keeping a close eye on activity, prices and trends as the year unfolds and will be back with more updates.

Wondering what all of this means for your home? Thinking of buying or selling in 2015? Just leave your contact info below and we’ll reach out to give you a personal analysis for your property.