As we move into the summer months of 2023, the Louisville housing market is showing signs of a shifting landscape. Low inventory levels persist across most price ranges, continuing to restrict market activity. Though challenging, this environment brings with it some opportunities. As we dig into this quarter's market report, we'll unpack the implications of this evolving picture.
The Overall Louisville Market
Market activity experienced a stark deceleration, with the number of homes sold in Q2 plummeting by 21.6%. With such a dramatic decrease in supply we would expect significant pricing gains, but the median price per square foot held firm, posting only a modest gain of 1.4%. Active listings for the quarter fell by 12.8%, putting further strain on buyers as the available inventory sunk below even last year's meager levels. Average days on the market swelled by 63.6% due to mispriced listings lingering (it doesn't take many to impact this metric), but with only 1.3 months of inventory, the market continues to be tough for prospective buyers.
High-End Louisville Market (Homes $500,000+)
Even the high-end market was not immune to a little cooling. The number of homes sold in this segment slipped by 6.0% from the previous quarter. However, those homes that did sell commanded a premium, with the median price per square foot leaping an impressive 11.6%. Active listings increased by a notable 10.6%, presenting a relative bright spot in an otherwise tight market which should fuel activity in this segment through the second half of the year. Average days on the market increased 44.4% for the same reason as above (sporadic, mispriced listings that linger), but the high-end market ended the quarter with 2.8 months of inventory, a 12.5% decrease from Q1.
$1M+ Market
The million-dollar market remained stable with the number of homes sold in this tier showing no change year over year, despite a short-term drop in activity at the beginning of the quarter due to interest rate increases. Despite these early headwinds, the activity quickly recovered later in the quarter and the median price per square foot rose a notable 7.3%, demonstrating the sustained allure of premium properties, even amidst a challenging market climate.
As we move forward into the rest of 2023, we anticipate these market shifts will continue to challenge and offer opportunities in equal measure. It remains crucial for sellers to approach their listings with strategic pricing, comprehensive marketing, and professional execution to maximize value. For those thinking of selling, our team is poised to provide expert guidance on how these market dynamics impact your home's value and the implications for your next purchase.
Thinking of selling and curious about how these market conditions impact your home and your next home purchase? Contact us for expert guidance and insight into the current state of the Louisville housing market.
Click to download the 2023 Q2 Louisville Market Report.