October 2019

Monday, October 28, 2019

 

Sept 2019The pace for home sales in Kentucky continues to pick up steam entering the fall season. September’s year-to-date home sales figure stands at 40,999 units. This is a 1.9% increase over the 2018 year-to-date figure of 40,214. A very strong September market experienced by counties in central and southern Kentucky has pushed this figure into year-end record territory. The Lexington-Bluegrass Association of REALTORS® experienced a 17% increase in year-over-year sales last month. As a whole, the Commonwealth saw 4,719 transactions take place in September. This is up 5.4% from last year’s figure of 4,463 marking the second-highest September sales number on record.

Unlike Kentucky, existing-home sales across the nation fell 2.2% from August to a seasonally adjusted annual rate of 5.38 million in September. Despite the decline, overall sales are up 3.9% from a year ago (5.18 million in September 2018). Lawrence Yun, NAR’s chief economist, said that despite historically low mortgage rates, sales have not commensurately increased, in part due to a low level of new housing options. “We must continue to beat the drum for more inventory,” said Yun, who has called for additional home construction for over a year. “Home prices are rising too rapidly because of the housing shortage, and this lack of inventory is preventing home sales growth potential.”

The median home price in Kentucky inched up from the previous month but is 4.7% over September of 2018 at $143,653. This is the fifth consecutive month of year-over-year increases. Year-to-date that figure stands at $138,403, which is 3.7% higher than last year’s mark of $133,317.

Sept 2019 YTDSeptember’s days-on-market (DOM) figure plummeted over 13% to 97 days. This is down from 110 days in September of 2018 and marked the first time that number has dropped below 108. The decrease in the amount of time it is taking for homes in the Bluegrass to go under contract is indicative of the shortage of homes on the market currently being experienced in Kentucky.

Rip Phillips, President of Kentucky REALTORS®, says that most markets in Kentucky bucked the national trend and saw an increase in sales this month. “Kentucky’s economy is really humming right now. Low unemployment coupled with confidence in the future is allowing the REALTOR® community to help Kentuckians with the great wealth-building activity of purchasing a home.”, he said.

The inventory number for the state has held below 4 months for seven consecutive months in 2019. The September figure of 3.89 months is up just 2 weeks from last month’s number but is almost 14% over the September 2018 figure of 4.42 months. Most economists believe a balanced housing market offers a 6-month inventory level.

Thursday, October 3, 2019

Five years ago (August 2015) homes in the Commonwealth took an average of 139 days to go under contract. This past August, homes stayed on the market an average of just 96 days. That is the shortest timeframe for August on record. 5,329 homes were sold in August compared to 5,485 homes in August of last year, a 3% decrease. Year-to-date figures are trending higher, however. So far in 2019, 36,251 homes have sold which is an increase of 1.4% over 2018’s August YTD figure of 35,751. To date, 2019 is ahead of 2017’s record-year pace of 35,814 homes sold.

stats 1Nationally, pending home sales increased in August, a welcome rebound after a prior month of declines, according to the National Association of Realtors®. “It is very encouraging that buyers are responding to exceptionally low interest rates,” said Lawrence Yun, NAR chief economist. “The notable sales slump in the West region over recent years appears to be over. Rising demand will reaccelerate home price appreciation in the absence of more supply.” The National Association of Realtors® is forecasting home sales to rise 0.6% in 2019 and another 3.4% in 2020.

The median home price in Kentucky was up 5.5% over August of 2018 at $142,233. This is the fourth consecutive month of year-over-year increases. Year-to-date that figure stands at $137,775 which is 3.5% higher than last year’s figure of 132,866.

August’s days-on-market (DOM) figure dropped at 96 days. This marks the first time that number has dropped below 100. This is the second-lowest DOM figure on record behind July of 2018 (95 days).

stats 2Rip Phillips, President of Kentucky REALTORS®, says that the market is rife with opportunities to help solve a housing affordability problem. “Legislators and communities alike can impact the housing shortage issue. From easing zoning and regulatory restrictions to making financing more affordable, REALTORS® are always a part if the discussion to help the consumer fulfill the dream or homeownership”, he said.

The inventory number for the state has held below 4 months for six consecutive months again this year. The August figure of 3.32 is up only slightly from last month’s number and is down over 7% over the August 2018 figure of 3.56 months. Most economists believe a balanced housing market offers a 6-month inventory level.