As we head toward May, I want to give you a quick update on the latest in the Louisville real estate market. March’s numbers are in, and today we’re comparing them to what we saw in March 2020 at the beginning of the COVID-19 pandemic.
Let’s start with the absorption rate, which is the measure of how long it would take to sell all the available homes on the market. Right now, we’re at 0.95 months, putting us in an extreme seller’s market. This is down significantly from the 2.17 months we had in March 2020.
Even with such low inventory, the number of sold homes (1,536) was up from last year (1,422). The year-to-date home sales are up to 3,929 from last year’s 3,590. We’re still selling a lot of homes, but they’re selling so fast that the market can’t keep up.
Active listings are down significantly from last year as evidenced by our absorption rate. We have 1,522 active homes right now after having 3,280 last March. New listings have remained relatively flat in the same period.
How long is it taking homes to sell? The median days on market is about half of what it was last year. It has dropped from 24 days to just 11 days in March 2021. Homes are going really fast right now. I recently visited a home that had 37 showing requests on its first day on the market.
As far as prices are concerned, the average list price is up from $352,280 to $377,858 and the average sale price is up from $231,147 to $255,290. Prices are continuing to rise by double-digit percentages, but they can’t continue to do that forever. We’re starting to see some more appraisals come in low, and things might be evening out a bit.
To wrap things up, here’s our inspirational quote this month: “Happiness held is the seed, but happiness shared is the flower.” -John Harrigan
If you have any questions for us about these numbers or anything else related to real estate, don’t hesitate to reach out via phone or email. We look forward to hearing from you soon.