December 2021 Real Estate Market Update – Greater Louisville
| 2021 Home Sales Up 4.8% with Average Price Up 9.3% and 10.9% Less Inventory |
The Greater Louisville Association of Realtors (GLAR) reported annual sales volume up 4.8% versus 2020. Sales this December were 1.7% lower than last December, with 1607 units versus 1635 units.
The average price was up 9.7% annually, representing close to a $35,000 increase for homes in the average price range. In Jefferson County, the average price was $277,860 and the median was $230,500. For all MLS areas, the inventory of available properties was 10.9% lower than at the same time last year.
GLAR President Paula Barmore commented that, “Our members finished 2021 with sales up about 5% and prices up about 9%. We remain firmly in a sellers’ market with less than one month of inventory and an average time of the market of just 3 weeks.” She added that, “Many homes are still selling in the first couple of days, but there are some listings that remain for sale for a couple of months.”
Lawrence Yun, the Chief Economist for the National Association of Realtors (NAR) noted that, “Determined buyers were able to land housing before mortgage rates rise in the coming months. Locking in a constant and firm mortgage payment motivated many consumers who grew weary of escalating rents over the last year.” Yun forecasts the 30-year fixed mortgage rate to be 3.7% by the end of 2022. He is also forecasting a tapering of the appreciation rate, with a target close to 3% by the end of 2022.
Click here for GLAR real estate market statistics.
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