Throughout 2024, the Louisville real estate market demonstrated steady momentum, buoyed by an economy that continued to show moderate growth and a relatively stable interest rate environment. These macroeconomic conditions helped foster both buyer confidence and seller motivation, resulting in an uptick in inventory amid persistent demand. Although some residual uncertainties from previous market cycles linger, the overall climate has encouraged a wave of enthusiastic buyers to step off the sidelines. Sellers, in turn, have been prompted to list, gradually loosening the tight inventory constraints that previously defined the market. Looking ahead, anticipated lower tax and regulatory burdens, coupled with the likely appreciation of equity market values due to these factors, are poised to bolster the confidence of high-end home buyers and sustain the market’s upward momentum. Let’s take a closer look at how these factors played out across the different segments of Louisville’s residential market throughout 2024.
THE OVERALL MARKET
Driven by a balanced yet active climate, Louisville’s overall market posted a 2.7% increase in the number of homes sold. This uptick in demand pushed the median price per square foot up by 6.7%, underscoring ongoing buyer interest and competition. In contrast to the inventory crunch seen in previous years, active listings rose by 8.9%—a welcome boost that provided buyers with more options. The average days on market edged up by 7.9%, indicating that properties still moved briskly by historical standards, but allowed slightly more breathing room for buyers. With 1.9 months of inventory available, supply remains very tight, but less so than in the height of the recent seller’s market in 2021 when inventory dipped as low as 3.4 weeks. Overall, the upticks in inventory, sales activity, and pricing were still not enough to offset an overall decline in the total market value as last year finished at $4.88B, or 10.7% below the high-water mark of $5.45B set in 2021.
THE HIGH-END MARKET
The high-end market (homes priced $500,000 and above) experienced significant vitality in 2024. The number of homes sold jumped by 15.1%, reflecting both continued inflationary pressure and shifting lifestyle preferences among buyers as more transactions crossed the $500k threshold. Despite this surge in sales, the median price per square foot showed a more measured 2.1% increase—suggesting buyers are gravitating toward properties that deliver clear value. Active listings in this price range climbed by 22.8%, offering greater selection for discerning purchasers. Meanwhile, the average days on market rose by 14.3%, reflecting a slightly more deliberate buying cycle. At 3.2 months of inventory, this segment leans closer to balanced conditions, yet still tilts in favor of sellers.
THE $1M+ MARKET
Louisville’s $1M+ market logged an impressive 15.3% increase in the number of homes sold with 234 transactions closed in 2024. High-net-worth buyers continued to exhibit a strong appetite for premium properties, contributing to an 8.4% rise in the median price per square foot. Notably, this segment closed the year with 5.1 months of inventory, the highest supply among Louisville’s submarkets, giving affluent buyers some luxury of time and choice when navigating their options. Nevertheless, these conditions remain favorable for sellers, as solid demand continues to sustain price appreciation.
As we close the books on 2024, Louisville’s residential real estate market stands as a testament to the region’s economic resilience and enduring appeal for its high quality of life and relatively modest cost of living. Moderate interest rates, improving inventory levels, and sustained buyer activity have collectively shaped the year’s performance. Whether you’re considering a move up the property ladder, looking for the perfect luxury residence, or contemplating an investment in the premium market, staying informed and adaptable will be the key to success. If you’re curious about how these market conditions impact your plans, reach out to discuss how our team can help you navigate the opportunities that lie ahead.
Click to download the 2024 Year-In Review Louisville Market Report