Now that 2016 has begun, it’s time to take a look back and see how the Louisville real estate market performed last year. Overall, the traction we saw across the market in the 3rd quarter report continued through the year-end resulting in solid gains across all price segments. Based on the latest data, the number of home sales across the entire market increased 12% to 16,449. Continuing last year’s trend, the high-end segment (homes $400,000 and above) outperformed the broader market by double and posted a 24.5% increase to 1,158 homes sold during the year.
Price appreciation continued across the market with homes across the metro area posting a 4.8% gain over last year, resulting in a median value per square foot of $106.47; a record high for the market. The high-end segment also set a new record with median value per square foot rising 3.3% to $170 psf. These price increases mark the 4th consecutive year of price appreciation, a trend I expect to continue as inventory levels of available homes for sale remain low across the area.
The brisk pace of home sales continued in 2015 with the median days on the market at, or near, their lowest levels in 10 years for the high-end segment and the overall market (79 days and 39 days, respectively). Inventory levels of homes for sale have stayed at historic lows with a 2.3% decrease across the market compared to 2014. However, availability of high-end listings continued throughout the year keeping the sales momentum going with an 11% increase in the number of listings above $400,000 compared to 2014.
The year-end saw a substantial amount of sales activity that has carried over into January and bodes well for another good year for Louisville real estate.Low interest rates (for now) continue to spur activity for those who can qualify for credit which has heavily benefited the higher end of the market. Despite the recent stock market volatility, the indexes remain near all-time highs helping to fuel the wealth effect which disproportionately benefits the high-end as well. I’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 2016? Just leave your contact info below and I’ll reach out to answer any questions for your specific situation.