Kentucky Housing Market: September 2024 Analysis
The Kentucky housing market in September 2024 presents a complex landscape with varying trends across different metrics. The Median Sales Price for homes in the state stands at $268,900, reflecting a modest year-over-year increase of 2.1%. This suggests a steady appreciation in home values, albeit at a slower pace compared to previous years.
In contrast, the Median List Price has seen a smaller rise of 0.7% year-over-year, reaching $273,400. This indicates that sellers are adjusting their expectations in response to market conditions. The median Price Per Square Foot has surged significantly by 18.4% to $194, while the Median List Price per square foot has increased even more dramatically by 32.6% to $202. These figures highlight a strong demand for space, potentially driven by buyers seeking larger homes or more amenities.
Despite these price increases, the number of Homes Sold has decreased by 1.5% year-over-year, totaling 3,768 units. This decline in sales volume may be attributed to affordability challenges or a shift in buyer preferences. However, Pending Sales have risen by 2.7% to 4,326, indicating a healthy pipeline of transactions that could close in the coming months.
New Listings have increased by 1.6% year-over-year, reaching 4,713, while inventory has grown significantly by 17.1% to 11,175. This expansion in inventory, coupled with a 50% increase in Months of Supply to 3.0 months, suggests that the market is gradually moving towards a more balanced state, providing buyers with more options and potentially easing upward pressure on prices.
The Median Days on Market have increased by 5.0% to 37 days, indicating that homes are taking slightly longer to sell. This could be a result of the increased inventory or changing buyer dynamics. The average sale to list ratio has seen a marginal decline of 0.1%, now at 97.6%, suggesting that buyers are negotiating slightly more favorable terms.
The percentage of Homes Sold above list price has decreased by 3.7% to 19.1%, reflecting a cooling in competitive bidding situations. Additionally, Price Drops have increased by 3.9% to 30.9%, indicating that sellers are becoming more flexible with their pricing strategies to attract buyers.
Finally, the percentage of homes going off the market within two weeks has decreased by 5.6% to 38.3%, further illustrating a shift towards a more balanced market where buyers have more time to make decisions.
Overall, the Kentucky housing market in September 2024 is characterized by rising prices per square foot, increased inventory, and a slight cooling in sales activity. These trends suggest a market in transition, with potential opportunities for both buyers and sellers as they navigate the evolving landscape.
