Each year I update the data required to determine, where is the best bang for your buck in Louisville real estate. I began this practice back in 2014. I’ve added a couple of new Louisville real estate areas to the mix but what has been most striking was the contrast between the most expensive areas and the best values.
Except, this year that’s not the case.
The most eye-popping thing this year is the huge increases we see in so many of these areas. Heck, 9 out of the 24 areas covered saw double-digit increases in the sold price per square foot. My goodness!
When I did this story back in 2015 there were just three.
The trend started last year with increased home values across Louisville and has kept its strength into 2017. Average home appreciation according to government statistics typically runs about 4% for Louisville, Kentucky. Current numbers are blowing those averages out of the water.
Enough talk, let’s get to the chart!
Most Expensive Louisville Real Estate
Since its beginning, Norton Commons was a different animal. Louisville’s only planned community has experienced an unrivaled success. It was the only neighborhood not to take a hit during the housing recession. Instead, it just keeps marching along!
At $232.12 per square foot, Norton Commons is certainly not cheap. The community’s marketing pieces tout “More life per square foot” and it’s clear the public is buying.
Coming in second in our survey is, as many might expect, is Anchorage. At $197.54, compared to Norton Commons it’s practically a bargain, right? Well… I’ll leave that to your judgment.
In the third spot, beating out the likes of Glenview and the highly-regarded Highlands is St. Matthews with $178.95. Those cute, little Cape Cod homes continue to have suitors. Having the most central location in Louisville doesn’t hurt a bit either.
Best Bang for Your Buck in Louisville Real Estate
Now that we’ve talked about the most expensive properties, let’s talk about the best values in Louisville real estate.
No one is going to catch Portland. Even though the sold price per square foot increased an incredible 32.55% in the past year, it remains the most inexpensive real estate in Louisville at just $23.66/sq. ft. The area certainly has some major issues for those who might want to call it home. Could some investors tackle a massive development project to get the ball rolling? Anything is possible.
The next most affordable area in Louisville in 2017 is Shively at $78.82. There are portions of Shively that remain excellent communities and at that price are wonderful bargains.
The following areas came in third through fifth with their corresponding values all under $100/square foot: Newburg ($86.19), Valley Station ($96.47), and Fairdale ($97.41).
Price Per Square Foot Changes from 2016 to 2017
Here you can see how all the areas in our report did in the past year. At the bottom, you can see that the average for all these areas was $132.85 sold price per square foot as of 9/3/2017.
2016 2017 change Portland 17.85 23.66 32.55% Shively 69.48 78.82 13.44% Newburg 71.11 86.19 21.21% Valley Station 91.01 96.47 6.00% Fairdale 91.85 97.41 6.05% PRP 88.80 100.95 13.68% Okolona 92.68 104.57 12.83% Highview 110.68 120.03 8.45% Jeffersontown 118.52 124.88 5.37% Fern Creek 110.61 127.25 15.04% Hikes Point 121.17 127.30 5.06% Lyndon 116.68 132.19 13.29% Germantown 114.25 133.41 16.77% Clifton 121.43 136.06 12.05% Middletown 129.29 137.89 6.65% Springhurst 136.59 142.33 4.20% Lake Forest 146.72 148.05 0.91% Prospect 150.63 150.77 0.09% Glenview 162.50 168.38 3.62% Highlands 164.00 170.80 4.15% Crescent Hill 157.77 172.35 9.24% St. Matthews 166.59 178.95 7.42% Anchorage 187.56 197.54 5.32% Norton Commons 223.84 232.12 3.70% 123.40 132.85 7.66%
Notes and Methodology
- Data was taken from the GLAR database. There are times when a home may be included as part of a given municipality for United States Postal Service reasons but the home is not truly part of that city. Neighborhood values can also be two or more choices. Therefore, results of this report are not guaranteed but are deemed reliable.
- The average is only for the areas surveyed in this report. They do not reflect the city of Louisville or all Jefferson County home values.
Tre Pryor’s Observations
Looking at this year’s results, here’s what stands out to me.
- Far and away, buyer demand is largely focused at the low end of the price range. Despite what you might hear coming out of certain media sources, while high-end, luxury homes are still selling, they are not what is driving our real estate market.
- Which brings us to this next point: New construction at the low-end of the market is in sorely needed. See how much these areas prices have spiked?
- Prospect only increasing by .09% is surprising. Price correction plays a partial role. As does the ultra-high prices selling far below asking price but even with those factors, I would expect at least a 4% gain.
- Springhurst at $142.33 represents an amazing value for this location, in my opinion. At the same time, $172.35 in Crescent Hill appears to be on the high side.
- I need to remind everyone that we’re looking at large areas, some with 500+ sales in the past year. If you’d like a report for a smaller area or even your own home’s value, please contact me. I’m always happy to help!