Kentuckiana sees home prices continue to increase, sales decrease

LOUISVILLE, Ky. (WDRB) -- You might have heard that the housing market has started to cool off, but experts say Kentuckiana is not quite there.

Both southern Indiana and the Louisville area have seen sales decrease, but prices increased, according to each area's most recent reports compared to the previous month.

The Greater Louisville Association of Realtors said in June the average home sale price was $312,860 in June 2022 and $284,989 in June 2021.

The Association also said the number of homes sold decreased from 1,951 in June 2021 to 1,623 in June 2022.

It was a similar situation for Indiana, according to the Indiana Association of Realtors most recent data report for July.

In July, the average price of a home increased from $257,139 in 2021 to $282,427 in 2022. In July, closed sales decreased from 9,603 in 2021 to 8,614 in 2022.

But selling over asking price and receiving several offers in multiple days is still a reality for some sellers, like Jaslyn Seese in Jeffersonville, Indiana.

"We listed on a Thursday, it was a multiple offer situation by Saturday and it sold by Saturday," Seese said.

Bill Burns, a broker for ReMax FIRST in Jeffersonville, said the area is still seeing higher prices because inventory is still not where it needs to be.

"Our supply is low so prices will maintain," Burns said. "We're still forecasting an increase in our prices."

Burns said the Louisville market is still seeing multiple offers on homes compared southern Indiana.

"If the home is in a great location, good repair, price is right, you might still see 10 or 12 offers on a house," he said.

But Burns said overall demand from buyers in Kentuckiana is not what it was this time last year, crediting part of the reason to inflation.

"When you go to the gas station, the grocery store, and you're digging deeper in your wallet, it makes you think twice about making change and you just want to get comfortable to see where things are going so I think people just paused and stepped back and said 'hey let's just see what's going to happen with the economy," he said.

One thing buyers can expect returning to normal is sellers contributing to closing costs again.

"Case-by-case, sellers are paying closing costs, they're getting inspections," Burns said. "Few more contingencies to the offer so it's normalizing."

As for buyers who bought homes significantly over the asking price, and might be concerned about the value dropping, Burns said it should be okay.

"Supply is low so prices should maintain, we're still forecasting increase in prices, not as fast as what they were doing," he said. "I don't think we're going to see any value lost. There are some instances out there were people in multiple offer situations and may have really wanted a home so overbuild maybe over what they should have, but I think those cases are isolated."