Kentucky Real Estate Market Insights for July 2024
Kentucky Housing Market Analysis - July 2024
The Kentucky housing market in July 2024 presents a mixed bag of trends, reflecting both growth and challenges. The data indicates several key metrics that are crucial for understanding the current state of the market.
Median Sales Price
The median sales price in Kentucky has experienced a slight decline of 0.02% year-over-year (YoY), settling at $267,300. This minor decrease suggests a stabilization in home prices, which could be indicative of a balanced market where supply and demand are relatively aligned.
Median List Price
The median list price has seen a more significant decrease of 4% YoY, now at $270,000. This decline in list prices may be a response to the market's cooling off, as sellers adjust their expectations to attract buyers in a competitive environment.
Price Per Square Foot
The median price per square foot has increased by 3% YoY, reaching $155. This rise indicates that while overall home prices may be stabilizing or decreasing, the value of the space within homes is appreciating. Similarly, the median list price per square foot has risen by 8% YoY to $161, suggesting that sellers are recognizing the increased value of their properties on a per-square-foot basis.
Sales and Listings
The number of homes sold in July 2024 stands at 4,448, marking a 10% increase YoY. This uptick in sales volume indicates strong buyer activity and a healthy demand for homes in Kentucky. Pending sales, however, have remained flat with no change YoY, totaling 4,692. This stagnation in pending sales could suggest a potential slowdown in future sales activity.
New listings have also increased by 10% YoY, reaching 5,314. This rise in new listings contributes to the growing inventory, which has surged by 19% YoY to 10,548 homes. The increase in inventory and new listings provides buyers with more options, potentially easing the competitive pressure seen in previous months.
Market Supply
The months of supply, a critical indicator of market balance, has increased by 20% YoY to 2.4 months. This metric suggests that the market is moving towards a more balanced state, where neither buyers nor sellers have a distinct advantage. A months of supply figure between 4 to 6 months is typically considered balanced, so the current figure indicates a slight tilt towards a seller's market, but with increasing inventory, this could shift further.
Days on Market
The median days on market has increased by 6% YoY, now standing at 35 days. This longer time on market suggests that homes are not selling as quickly as they were a year ago, possibly due to the increased inventory and more cautious buyer behavior.
Sale to List Price Ratio
The average sale to list price ratio remains steady at 0.98, with no change YoY. This ratio indicates that, on average, homes are selling for 98% of their list price, reflecting a slight discounting trend but still close to the asking price.
Price Adjustments
The percentage of homes sold above list price has decreased by 5% YoY to 23%. This decline suggests that fewer buyers are willing to pay above the asking price, likely due to the increased inventory and more options available. Additionally, the percentage of price drops has remained unchanged YoY at 31.87%, indicating that sellers are still adjusting their prices to meet market conditions.
Off-Market Activity
The percentage of homes going off-market within two weeks has decreased by 7% YoY to 43%. This reduction indicates that homes are taking longer to sell, aligning with the increased median days on market and suggesting a more deliberate and less frenzied buying process.
In summary, the Kentucky housing market in July 2024 shows signs of stabilization with a slight decline in median sales prices and list prices, increased inventory, and longer days on market. These trends suggest a shift towards a more balanced market, providing opportunities for both buyers and sellers to navigate the real estate landscape with more options and less urgency.
