The aggregate volume in pending home sales contracts for the state of Kentucky reached a record high last month. $2.2 billion in transactions were under contract in April 2021. This is up 47% over the $1.5 billion in pending sales volume for both April 2020 and 2019. Home sales numbers continue to be up year-over-year, but the meteoric rise in volume is largely due to the higher prices that the current housing market is commanding.
Kentucky metro area house prices are forecasted to track the national market over the next twelve months. Currently, the market is tracking the overall U.S. market. Compared to 12-months ago, Kentucky’s housing market has strengthened. Current local economic conditions support an estimated 6.8% increase in house prices over the next twelve months. Based on the housing market vitality of the nine metro housing markets which comprise it, Kentucky’s housing market ranks twenty-ninth amongst all states and D.C. The three-month outlook is neutral.
Two out of five Kentucky REALTORS®anticipate an increase in inventory in the next twelve months, according to the April 2021 edition of the HousingIQ Survey of Kentucky REALTORS®. Over one in four of the 318 REALTORS® from across Kentucky, expect houses to stay on market for longer over the next twelve months. "With the success of the COVID-19 vaccine rollout and optimism about the recovery, previously reluctant sellers are returning”, explained Vidur Dhanda, author of the survey. “As buyers become more certain about their financial situation, demand will continue to stay strong, although, higher interest rates and overall affordability issues will moderate price growth.”
- 48% of respondents expect an increase in sales volume
- 40% expect increased sales to first-time buyers
- 50% expect increased sales to investors
- 54% anticipate increased interest from single-family rental investors
- 56% of respondents expect more houses to sell above the asking price
- 43% anticipate greater foot traffic
- 32% expect houses to sell faster