Kentucky Housing Market Rebound Complete
COVID-19 had an adverse, albeit short, impact on the Kentucky housing market this spring. Higher pending contracts over the past two months indicated that sales would come roaring back. June would not disappoint. 5,426 closings took place in Kentucky, up a whopping 13% over June of last year. Year-to-date sales climbed to 24,159. This is 1% greater than sales through June of 2019 which peaked at 23,945.
Nationally, total existing-home sales, completed transactions that include single-family homes, townhomes, condominiums and co-ops, jumped 20.7% from May to a seasonally adjusted annual rate of 4.72 million in June. Sales overall, however, dipped year-over-year, down 11.3% from a year ago (5.32 million in June 2019).
“The sales recovery is strong, as buyers were eager to purchase homes and properties that they had been eyeing during the shutdown,” said Lawrence Yun, NAR’s chief economist. “This revitalization looks to be sustainable for many months ahead as long as mortgage rates remain low and job gains continue.”
The median sale price of homes in Kentucky continues to climb. The June median price, up from $183,000 in June 2019, rose 5% to $192,00. The statewide average home price hit $224,195. Sales volume rebounded strongly, up 45% from last month ($837.9 million) to $1.05 billion. That figure also marks an increase of almost 17% from June of 2019. This surge raises the year-to-date sales volume 6.5% ahead of 2019’s figure at $5.1 billion.
The number of homes available on the market hit a record low for the state for the second month in a row. There is now less than 2 months of inventory in Kentucky for the first time since record-keeping began. The figure currently sits at 1.96 months.
“The housing market rebound in June shows that REALTORS® responded admirably to the health and safety recommendations made by experts and state leadership”, said Lester T. Sanders, President of Kentucky REALTORS®. “We stood ready to help Kentucky consumers successfully buy and sell property so the American dream of homeownership and wealth-building could continue. A housing market rebound means a better economic impact and outlook for all Kentuckians”, he said.
Distressed sales (foreclosures or short sales) were down 46% over June of 2019. It remains to be seen whether this figure will climb as forbearances and other programs expire as the year continues.