Housing Sales expected to Rebound After Rough May

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The full effects of COVID-19 were evident in May, according to data from the Greater Louisville Association of Realtors. Compared with May 2019, the number of homes sold fell nearly 26 percent, from 1,744 sales to 1,291.

However, sales for the year to date are off just 6.48 percent.

Prices are up, rising by 3.9 percent over a year ago.  Here in Jefferson County, the average price for homes sold in May was $247,465.

One issue driving prices is a lack of housing inventory. In all MLS areas, inventory of available homes is 20.6 percent lower than at the same time a year ago.

Here’s GLAR President Kathryn Sotelo’s comment:  “The 26% drop in closings last month versus May 2019 was expected as those closings resulted from offers written just after the stay at home guidelines were put in place.”

Buyers are certainly looking for new homes. Home showings are 12% above the same time a year ago.Sotelo expects June’s sales may be down from 2019, but said demand that’s been building will start to be seen.

“June closings may be down slightly compared to last year, but the pent up demand will probably close the gap in sales as long as new listings are added to the market.”

Mortgage rates at or near 3% are likely to continue to drive buyers.