Kentucky's largest city, Louisville, recorded its biggest real estate trends for 2015. Multifamily home/ units have remained the biggest seller to both local and foreign buyers.
Residential real estate prices have hit record high but like in other estates, affordable housing is still a problem, according to Biz Journal.
1. Record home prices: In July 2014, the median home prices were recorded at $150, 000 but fast forward 2015, it has reached $155,000. Since hitting the floor in December 2102, the median prices have since rocketed up by 92 percent.
2. Apartments continued to rev up: This sector has reached an all-time high it was even speculated that there might be a bubble coming to Louisville, according to Biz Journal. It is expected to get better come 2016.
3. Affordable housing problems:This sad fact has not changed. To be able to get off from this slump, Louisville still has a long way to go as "affordable housing stock Louisville has is extremely segregated by geography, with 77 percent of all public housing units located in just two Louisville Metro Council districts: 4 and 6," say Biz Journal. Just because you have a job does not mean you can automatically afford a home.
4. Downtown is finally a thing: Construction has started at Main and Clay, finally. Reed Weinberg, president of Louisville's PRG Commercial Property Advisors, spoke with Biz Journal and according to him, "With those two projects - one being new construction and one a renovation - you will be delivering some amazing Class A rental products to the market that Louisville's never seen. We are way behind other peer cities in downtown housing growth, but seem to have finally turned a corner in 2015. The hope for me is that this new product means new companies with younger, educated workers and new retail other than restaurants will follow."
5. The outskirts of town are hot, especially in the south and east ends: To show off to investors that there is an opportunity to be had, a few big residential deals were capped off this year.
6. Out of town, and institutional buyers are looking for Louisville deals: There is a lot of interest institutional-type investors. Perhaps it is because it is way more expensive in other cities like New York Ciy.
7. The hunt for the next Germantown: And investors are looking at Louisville's way.
It remains to be seen how Louisville real estate will fare in 2016 but the landscape seems promising.
