LOUISVILLE, Ky. (WDRB) – Louisville-area home prices are up by nearly 13% so far in 2021, the biggest year-to-year jump in at least a decade, according to figures released Thursday by the Greater Louisville Association of Realtors.
Real estate agents say the price surge is another reflection of the extremely unbalanced market, in which lots of buyers are competing for a historically paltry number of listed homes.
Cheap mortgage rates have allowed renters to enter the home-sale market and buyers writ-large to bid up prices for the few available choices.
“It is the perfect storm, if you will – the combination of lower interest rates with very low inventory,” said agent Judie Parks of Berkshire Hathaway Home Services, the president of the Greater Louisville Association of Realtors.
The median sale handled by GLAR members was $219,900 for January-May 2021, a 12.8% jump from the same five-month period in 2020.
That’s by far the biggest year-to-year jump in at least a decade, according to GLAR statistics.
Louisville home prices are historically well below the national average, and that’s still the case, as prices are escalating nationally.
The national median home price was $341,600 in April, a 19% increase from a year earlier, according to the National Association of Realtors.
Parks added that the lack of residential construction is a contributing factor to the shortage of homes for sale. While newly built homes often aren't listed on the market, they provide outlet to ease demand for existing homes.
Parks said from her personal experience, more home sellers may have come forward in the last two weeks, but not enough to shift the market.
"I think that when the mask mandate completely got lifted, and people were coming back to work -- I think a lot more sellers got more comfortable listing their home, so I have noticed an uptick," she said. "It's not significant."