Home values around Lexington see double-digit spike in last year. Check your zip code
The latest data from Zillow show from May 2021 to May 2022, median home values in several zip codes around Lexington shot up by 20%.
Two important factors can help explain the surge in home values over that year-long period.
First, there’s the record-low inventory of available homes across the country, which according to Zillow, has only recently shown modest signs of improving.
“While inventory is improving, there is still plenty of room to go before it reaches its pre-pandemic trend,” economist Nicole Bachaud wrote for Zillow June 30.
“Still, coupled with relatively strong demand, that will continue to be a driver for sustained high prices even as sales volume is dropping in response to affordability constraints,” Bachaud continued in Zillow’s analysis of the Case-Shiller Home Price Index. “As a result, more buyers will take a step to the sidelines in the coming months, which will help inventory to recover and price growth to slow from its peak, leading the market back to a more balanced stable state in the long run and providing more future opportunities for homeownership for those priced out today.”
The second key factor is rising interest rates, which only recently returned to below 6%, according to Zillow.
The Federal Reserve has signaled it will target inflation by raising interest rates, which will in turn slow economic growth and could lead to a recession, Zillow’s analysis warned.
Which Lexington zip codes saw the biggest jumps in home values?
The sharpest increases in median home value during the last 12-month period occurred in Lexington’s 40517 and 40513 zip codes, according to Zillow data.
For 40517, it spiked by slightly more than 21%, and in 40513 the increase was a little more than 22%.
Looking at the top Lexington zip codes for which median home value data is available, the zip code with the highest median home value was the 40513, where a middle-of-the-road home was valued at $537,033 as of May 2022, the latest data available.
That zip code also had the sharpest percent increase in median home value at exactly 22.23%.
For context, a typical single-family home across most of Lexington’s zip codes is $307,200, and the average percent increase in home values was exactly 19.8%.
In nearby Nicholasville, a bedroom community of Lexington, the median home value sat at $238,597 in May, with the percent increase in typical home values close to 17%.
Turning to the zip codes with some of the lowest median home values, the 40508 zip code (the heart of Lexington’s city center) at $162,911, followed by the 40505 (the east end of Lexington) at $193,792.
Even the zip codes with the lowest growth in value increased by more than 15% over that year-long period.
How has the median home value in your area changed?
You can explore data from May 2021 to May 2022, sourced from the Zillow Home Value Index, with the handy visual below.
Note: This graphic will automatically update as new data become available.
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