State of The Market Here in Louisville

[Rob Bergeron]

Hello All,

I have a slow day today, so I figured I'd give you a short synopsis of how our market is looking. 

Investors never really stop, so I still see a lot of multifamily properties flying off the market. With interest rates expected to be increased three times in the next calendar year I'd expect investors to make some moves quickly to lock in the current rates and/or refiing their current properties if they haven't already. Single family properties have had quite the slowdown on the MLS. This isn't especially uncommon with the holidays being here and leases not typically ending at this time of year. Last week we had fifty-five less properties hit the market compared to the same week in 2020 (GLAR). Listings overall are down .02% relative to last year. Now is a great time to shop single family homes with demand being lower from traditional buyers. I'd expect demand to pick back up in the middle of January. Last year we had 11.1% appreciation across the board. I believe this year will end up being over 13.5% appreciation. Inflation is going to skew the numbers quite a bit next year. Real estate is such a phe-nomenal hedge against inflation. Imagine if you owned ten $100,000 homes, you'd have likely appreciated $1.35 million this year. Real estate truly is one of the simplest tickets to wealth.

The major businesses that buoy our markets growth continue to be Amazon, Humana, Yum Brands, The Bourbon Industry, and The USPS World Hub. Louisville is emerging as an exciting spot for crypto and data analysis companies, two industries that will see substantial growth moving forward.

Property taxes remain steady at 1.1%. I'm seeing my investors beginning to look farther outside of Jefferson County with outside competition coming into the market. 

I'd like to think I've got an idea of what is going on in the market, if you have any questions, I'd be happy to answer or reach out to the people who would know. If you have any cool nuggets about the market, please share! I hope you have a fantastic holidays!