Home sales virtually unchanged in October
Kentucky home sales in October remained statistically unchanged over October 2017 numbers. October 2018 sales reached 4,415 units compared to 4,432 sold one year ago. Year-to-date sales stand at 44,706. This is down just over one percent over 2017 numbers when sales stood at 45,248 units.
Similarly, pending home sales declined slightly nationwide in October in all regions but the Northeast, according to the National Association of Realtors®. The Pending Home Sales Index, a forward-looking indicator based on contract signings, decreased 2.6 percent to 102.1 in October, down from 104.8 in September. However, year-over-year contract signings dropped 6.7 percent, making this the tenth straight month of annual decreases.
Lawrence Yun, NAR chief economist, said that ten straight months of decline certainly isn’t favorable news for the housing sector. “The recent rise in mortgage rates have reduced the pool of eligible homebuyers,” he said.
Yun notes that a similar period of decline occurred during the 2013 Taper Tantrum when interest rates jumped from 3.5 percent to 4.5 percent. After 11 months – November 2013 to September 2014 – sales finally rebounded when rates decreased. “But this time, interest rates are not going down, in fact, they are probably going to increase even further,” Yun noted.
“As we near the end of the year, Kentucky housing market sales numbers are closely mirroring those of 2017,” said Steve Cline, president of Kentucky REALTORS®. “It seems as though emergent influencers on the national economy will dictate whether we end 2018 slightly down or with just a small bump up in units sold.”
Home prices in Kentucky were up for the third straight month in October. The Commonwealth saw a two percent jump to a median price of $132,023, up from $129,781 in 2017.
Kentucky’s housing inventory rebounded over last month’s decrease and jumped four percent in October. The 4.5 months of supply in Octobers best 2017’s supply of 4.31 months. For the year, inventory remains virtually unchanged versus the same period in 2017, showing 4.1 months through October.
Kentucky saw a decrease in the amount of time properties stayed on the market in October. At 104 days, this is level bests the 108-day average reached in October 2017.