Having trouble buying a home in Central Kentucky? A listing shortage may be to blame
The number of homes sold in Central Kentucky in March dipped by 13% compared to the same time last year, according to the latest monthly report from Bluegrass Realtors, the area Realtors’ association.
Meanwhile, the median home sale price went up 4% compared to the previous year, going from $234,000 in March 2022 to $242,500 this March.
“The market is in a stretch of suppressed inventory levels that continue to push prices higher,” President of Bluegrass Realtors Kelley Nisbet said in a press release.
Bluegrass Realtors represents agents in 30 Central Kentucky counties, including Anderson, Bath, Bell, Bourbon, Clark, Clay, Elliott, Estill, Fayette, Franklin, Harrison, Jackson, Jessamine, Knox, Laurel, Lee, Madison, McCreary, Menifee, Montgomery, Nicholas, Owsley, Powell, Pulaski, Rowan, Russell, Scott, Wayne, Whitley and Woodford.
The median house price in Fayette County dropped by 2%, from $279,500 to $273,500 as of March of this year, the report notes. However, units sold for 15% less in the county this March compared to last, at 276 units sold this March.
Residential home sales increased in March, but are still down year-over-year, the report says. The number of residential home sales equaled 1,108 compared to 817 the month before.
“Demand is still strong – we just need more homes to accommodate the current pool of potential buyers,” Nisbet said in the release.
A new listing shortage in Central Kentucky
The main problem with the market right now is a listing shortage, Bluegrass Realtors reports. With 1,373 new listings this March, listings dropped by 24% compared to last March’s 1,810.
The demand for homes has remained strong, however.
“Even with sales down and homes staying on the market longer this year than last, people want to live in this region and are jumping on properties that meet their needs,” Nisbet said.
With the significant dip in new listings, the overall number of homes on the market was 2,381 in March, a 17% increase from the previous year.
The average home stayed on the market for 46 days in March, up from last March with an average of 32 days.
Interest rates also saw a growth at 6.54%, a slight uptick from the month before. Nationally, the Federal Reserve continues to increase interest rates, with its latest raise just last week. The raise reached the key rate to 5.1%, the highest in 16 years and five percentage points higher than it was last March.
What should I expect if shopping for a home Lexington?
According to real estate site Redfin, the median home sale price in Lexington sits at $270,500, which is a decrease of 1.6% year-over-year. Redfin also reports homes sold in Lexington usually sit on the market for about 17 days, which is a 10-day decrease compared to last year.
Redfin says the housing market in Lexington is “very competitive.”
The sale-to-list price ratio for the area is at 99%, meaning most houses are selling right around list price, according to Redfin. Its data indicate 30.3% of homes sell above list price and 18.3% of homes sell with price drops.
Correction: This article was updated at 5:08 p.m. Monday, May 8, 2023, to correct Redfin’s data on the sale-to-list price ratio for the Lexington area.
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This story was originally published May 8, 2023 at 12:44 PM.
