The Kentucky housing market in February 2025 presents a complex landscape with varying trends across different metrics. The Median Sales Price remains stable at $263,900, showing no change from the previous year. However, the Median List Price has increased by 2.1% year-over-year, reaching $277,800, indicating a slight upward pressure on asking prices.

In terms of Price Per Square Foot, the median price has risen by 4.0% to $154, while the Median List Price per square foot has decreased by 6.1% to $166. This divergence suggests that while sellers are asking for more per square foot, the actual sales are occurring at a lower rate, potentially reflecting buyer resistance to higher list prices.

The number of Homes Sold has decreased by 8.1% year-over-year, totaling 2,708 transactions. Similarly, Pending Sales have dropped by 8.9%, with 3,851 homes under contract. New Listings have also seen a significant decline of 12.2%, with only 3,721 properties entering the market. Despite these decreases, inventory has increased by 10.4% to 9,807 homes, contributing to a substantial 60.0% rise in Months of Supply, now at 3.6 months. This increase in inventory and supply indicates a shift towards a more balanced market, potentially favoring buyers.

The Median Days on Market have increased by 12.0% to 63 days, suggesting that homes are taking longer to sell compared to the previous year. The average sale to list ratio remains relatively stable at 97.1%, with a slight increase of 0.1% year-over-year. However, the percentage of Homes Sold above list price has decreased by 1.8% to 15.4%, indicating a reduction in competitive bidding situations.

Price Drops have become more common, with 23.4% of listings experiencing reductions, marking a 0.8% increase from last year. Additionally, the percentage of homes going off the market within two weeks has decreased by 6.2% to 35.0%, further highlighting the slower pace of sales.

Overall, the Kentucky housing market in February 2025 reflects a cooling trend with increased inventory and longer selling times, despite stable sales prices. Buyers may find more opportunities as the market shifts towards equilibrium, while sellers may need to adjust expectations in response to changing market dynamics.