Lexington real estate shatters sales records, prices increase in 2020 despite COVID
Buoyed by near record-low interest rates, real estate transactions in Fayette and surrounding counties topped $3 billion in 2020, a new record.
The number of Central Kentucky sales was also up compared to 2019 with 15,309 sales in 2020 compared to 14,153 the year prior, according to Lexington-Bluegrass Association of Realtors.
That’s an 8 percent increase.
Total sales were $3.5 billion, up 19 percent from 2019. It was the first year that total sales topped $3 billion.
December was also the 22nd straight month of increasing home prices.
In Fayette County, the median home price in December 2019 was $203, 985. In December 2020, the median home price was $229,000, a 12 percent increase.
“Last year was phenomenal for real estate in terms of overall transactions,”said Kristy Gooch, president of LBAR. “It served as a catalyst for the economy when many other industries weren’t so fortunate. It also shows how much demand there is for housing in our region.”
The available inventory of homes for sale is also low, driving up demand, real estate officials said.
December recorded a drop of 50 percent in total homes on the market with 1,633 residential properties for sale across all 26 counties in LBAR’s jurisdiction. Those 26 counties are in Central Kentucky.
Last year at this time there were 3,235 homes on the market.
Lack of inventory has created a seller’s market, Gooch said.
“The market we are experiencing now is churning faster than a typical spring or summer,” said Gooch.
“Activity is at peak levels as many homes are getting multiple offers and going under contract the moment it is listed for sale,” she said. “Buyers, especially those looking to move-up and first-timers, are anxiously waiting for listings that fit their criteria to become available and are snapping them up, it seems, almost instantly.”
Federal interest rates on mortgages have remained low during the pandemic, helping spur the market. Economists have forecasted modest increases in mortgage rates this year but interest rates will likely remain low.
Another key factor driving home sales is the need for more space as coronavirus restrictions have forced many families to work and go to school from home, national economists have said.
Central Kentucky’s robust housing market follows national trends.
Across the country, home sales topped more than 5.64 million units, the highest level it has been since 2006, according to data from the National Association of Realtors.
This story was originally published January 27, 2021 at 10:34 AM.
