In years past, I titled this annual post “Bang for Your Buck by Neighborhood.” I started this concept in 2014 when I wrote for Insider Louisville. And it’s simply incredible to see how far we’ve come in just four years. I mean, stop and think about it. When you are thinking about the best places to buy a house in Louisville, it really starts with your budget.
But before we get to that, let’s cover the geography of the city itself. Louisville actually began on an island—Corn Island—to be exact. From there people came to Portland. It’s on the Kentucky side of the Ohio River and it became a port for early traders heading West. The city spread out from there, both to the East and the South.
As you’d expect, homes built near that epicenter will be our oldest properties. Newer homes will always be found farther from our downtown area. So, keep this in mind as you consider if you’re looking for older homes with charm, versus newer homes with more open-concept floorplans.
Before we get to this year’s stats, you may be interested in seeing last year’s edition. If you’re so inclined, here is Best Bang for Your Buck in Louisville Real Estate 2017.
Best Parts of Louisville
Now, if money was no obstacle, there are certain parts of Louisville you’ll certainly want to consider. First on this list is the city of Anchorage. It’s an amazing small town located in the city of Louisville. With less than 3,000 citizens, it still has a lot to offer. Some of Louisville’s most amazing mansions are in Anchorage. It also has its own police force, fire department, and award-winning schools. Definitely worth a look.
Another amazing part of Louisville is called Glenview. There are several different neighborhoods, each with its own name, located in this part of the city. But the bottom line is that the location is hard to beat, along with the amenities and incredible, stately homes.
A must-see for all house hunters is Norton Commons. It’s Louisville’s only planned community which saw almost no decline during the housing recession that rocked the nation. Smaller lots dissuade some from considering this neighborhood but once you visit in person and see the variety of architecture you might change your mind. Also, there are some great shops and restaurants all within walking distance. It’s a unique environment, that’s for sure!
There are other best places to buy a house in Louisville, but I’m not sure you want to read a 4,000-word article. Please contact me for more specific recommendations.
Best Values in Louisville Real Estate
When looking at the best values in Louisville, there are some variables at play. Obviously, the price is on one spectrum. The other would be desirability. Plotting these on a basic x-y quadrant chart might make sense. But let’s not get too technical.
What I think might be easier is putting the average sold price for a given neighborhood on a map. Just like in recent years, here’s the map I’ve used updated with 2018 data.
Of course, we’re looking at things from a macro view. There are a great many additional Louisville neighborhoods not plotted on this map that also deserve some attention.
Also, don’t forget that you can also discover great values in a given neighborhood. Often these are homes that need updating. If you’re not afraid of getting your hands dirty (or hiring someone else to) then you can build equity quickly with a “fixer.”
Here’s the data from this year’s survey, along with the yearly change.
|Pleasure Ridge Park||$100.95||$108.00||6.98%|
Recent Changes in Home Values
A reoccurring theme that has surfaced in the last couple of years is the rise of the Seller’s Market. Now, as I’ve been writing about here and on TrePryor.com, this isn’t true for all price tiers. There’s still plenty of housing inventory in Louisville for homes $400,000 and up. Keep this in mind as you look at these price changes.
Looking at the high end, it makes sense that Anchorage (-0.17%) and Lake Forest (1.41%) hardly changed the past year. But it doesn’t make as much sense that Glenview rose 11.75%. That’s incredible! Keep in mind our standard yearly appreciation in Louisville is roughly 4%. (Though this year I expect that number to be closer to 5%.)
At the lower end of the price spectrum, Portland where it’s literally “dirt cheap,” rose 24.89%. They’ve still got a long way to go.
Shively (12.29%) and Valley Station (8.37%) both saw big gains. But what’s the deal with Okolona (0.59%)? There are still some great parts of Okolona where homebuyers can get a great deal at the low end, even during a Seller’s Market.
Personally, I would avoid parts of Newburg (-0.24%) where industrialization is playing a role in negatively affecting residential home values. Even real estate investors are downgrading this part of the city.
The answer to this question is like so many others. It depends.
The best places to buy a house in Louisville depend on what you’re looking for and what you’re looking to spend. Your first call should be to an expert local Realtor. Spell out all your details and then be ready to pounce, once the right home is spotted. In this market, it pays to be prepared to buy at a moment’s notice.