Last January, the market was off to a great start with home sales topping out 19% higher than January of 2019. One year (and a pandemic) later, the Kentucky housing market has duplicated that feat. January 2021 home sales were up 19% once again, reaching 3,512. The market is, however, showing signs of slowing as pending sales were down for the first time since April. This is most likely due to a combination of decreased foot-traffic due to cold weather, and a simple lack of properties to consider. Pending sales for January 2021 were 3,212 which was down 4.5% from 3,365 in January of 2020.
Kentucky metro area house prices are forecasted to outperform 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 5.6% 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 twentieth amongst all states and D.C. The three-month outlook is neutral.
Thirty-eight percent of the respondents said individual rental property owners were preferring to sell. “The impact of the eviction moratorium on landlords, especially the mom & pop rental property owners who are left with ever-increasing amounts of unpaid rent and no relief on expenses, is a challenge that we continue to highlight in conversations concerning rent relief,” said KYR CEO, Steve Stevens.
- 49% of respondents expect an increase in sales volume
- 57% expect increased homebuying by Millennials
- 46% expect increased sales to investors
- 39% anticipate increased homebuying by renters
- 32% of respondents expect more houses to sell above the asking price
- 43% anticipate greater foot traffic
- 38% expect houses to sell faster