Lexington home sales down, but prices remain high. Here’s the latest market outlook
Overall home sales in Lexington fell dramatically this year, with the latest available data from Bluegrass Realtors showing a dip greater than 20% from September 2021 to September 2022.
Despite a slowdown in sales and increased inventory, home prices remain high in Fayette County, although there is some downward pressure on prices.
As of September 2022, the median price point for a home was $291,000. That’s a 14% increase from where those same midpoint prices stood one year before, then at $255,000.
More broadly, across Bluegrass Realtors’ 30-county membership area, median home prices pushed to a new all-time monthly high, reaching $242,000. That represents an increase of 10% over last year, when the median was $220,000, according to Bluegrass Realtors.
September marked the 43rd consecutive month of year-over-year price growth, the analysis said. Still, September’s median price was 3% lower than the median price in August.
Home prices generally decline during the colder months of the year, with peak house-hunting season arriving in the spring and summer months.
Broadly speaking, single-family home prices in Lexington stood at $243,000, while townhouses and condominiums were $230,000 across much of Central Kentucky, according to Bluegrass Realtors data.
More recent data from the brokerage site Redfin put Lexington’s median home sale price at $277,000 as of Oct. 17, the latest date available.
Note: This graphic will automatically update as new data become available.
“The market seems to have settled into a more typical pace from a historical perspective,” Bluegrass Realtors President Rusty Underwood said in a news release announcing the findings. “As long as rates stay elevated, we will continue to see a slower rate of sales compared to the previous two or three years. Once the pressures of inflation cool off, homes will start to move a little more quickly as buyers become more motivated again.”
More homes up for sale in Lexington, but are they affordable?
The number of homes available for sale has risen consistently since early this year, according to Bluegrass Realtors. September in particular saw the number of homes on market jump to 3,188, representing a 6% increase over last year’s amount, 3,015.
Still, despite more homes on the market, the total number of sales has fallen far behind total home sales in 2021, signaling prices may still be too high for most Lexington homebuyers.
Home sales here hit their annual peak in May, with 860 homes sold, according to data from Redfin. That’s significantly behind the 917 homes that sold in May of 2021.
Redfin data show home sales hit another peak in August at 776 sales before rapidly falling down to 342 sales in October, which could reflect a seasonal downturn in sales.
Note: This graphic will automatically update as new data become available.
Still, these housing market dynamics could benefit some homebuyers who aren’t as constrained by price, Underwood noted.
“As a way to curb inflation, the federal government is raising the interest rate,” Underwood said, noting average 30-year mortgage rates are now above 7%.
“The result of doing this has pushed some potential buyers out of the market and caused some current homeowners, who may have otherwise listed their home, to stay put so they don’t lose their current rate. On the flip side, reports show first-time homebuyers are making a comeback after sitting out for several years despite higher home prices,” Underwood said.
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