Central Ky. home sales down for second straight month. Here’s what buyers should know

Home sales in Central Kentucky dipped for the second month in a row in August, though prices still remained higher than they were a year ago, the latest data from Bluegrass Realtors shows.

According to the association, which represents more than 4,000 members across 30 Kentucky counties, home sales fell 14% from where they were one year ago. Sales in the coverage area in 2022 so far total 1,419, compared to 1,646 in August 2021.

Rusty Underwood, who serves as the group’s president, said what’s happening in the local real estate market represents “more of a return to normalcy.”

Home prices are still increasing, but the rate of appreciation has slowed, he said.

“It’s really been more of a correction back to an average rate of appreciation,” he told the Herald-Leader in an interview Thursday.

According to Bluegrass Realtors, in August, single-family home sales had declined 13% from where they were during the same month last year. There were just 1,333 single-family home sales, compared to a total of 1,534 sales the previous year.

Townhouses and condominiums also saw a sharp drop of 23%, with 86 sales compared to 112 in 2021.

In a news release outlining the findings, Underwood pointed to higher interest rates that have translated to more expensive mortgages for homeowners.

Home values continue to rise in Lexington, even as sales slow. This area is up 22.2%

“After two unprecedented years in real estate where prices and appreciation exploded, some buyers hit pause in their home search as a result of increasing rates, inflation and decreased purchasing power,” he said.

Properties remained on the market for an average of 25 days in August, up from 17 days one year prior.

Though there were fewer sales, median home prices actually rose in August. The data from Bluegrass Realtors show prices hit a new, all-time monthly high of $249,900, an increase of 11% over the previous year, when the median home price was $225,000.

Single-family home prices increased 8% to a median $250,000, while townhouse and condo prices jumped 17%, reaching $210,000.

Looking at Fayette County specifically, real estate data from firm Redfin show the median home sale price here hit $279,000 and rose over the course of August to $319,000 before falling again.

Zooming out to national level, the August report from Realtor.com found listing prices also continued to slow down – for the third month in a row.

“This fall, a more moderate pace of homeselling, more listings to choose from, and softening price growth will provide some breathing room for buyers searching for a home during what is typically the best time to buy a home,” the analysis said.

Asked if prospective buyers who’ve been holding off should reconsider buying, Underwood said if they’re waiting for prices to fall, “I think you’re going to be waiting a long time.”

Still, the data show hesitant homebuyers are waiting for a more robust market correction before they dive in, Underwood said.

“Buyers are being a little bit pickier right now, and for the first time in a couple of years, they can afford to do so,” Underwood said.

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