Total residential sales in Central Kentucky through August 2021 remained up 6% from 2020, according to the Lexington-Bluegrass Association of Realtors (LBAR).
(CENTRAL KY. MARKET REVIEW) — Real estate prices continue to surge in Central Kentucky as monthly sales totals for residential properties consistently hit record highs. Demand for property remains high as the region grapples with low inventory.
On the commercial side, the market has remained fairly strong over the past 12 months with a return to robust 2019 levels. Historically low interest rates are spurring the growth wave in both the residential and commercial sectors.
“Going into the cooler months, there are many signs that point to a strong real estate market,” said Kristy Gooch, president of the Lexington-Bluegrass Association of Realtors. “Homes are still selling extremely fast. However, the surge of (simultaneous) multiple offers has leveled off as inventory creeps up.”
The time it took to sell homes in Central Kentucky in August was a historic low, an average of 17 days, which is 55% lower than the 38 days it took in 2020. Homes stayed on the market an average of 42 days in 2019.
Housing inventory has been on a slow rise since early summer and rose above the 2,000 unit mark for the first time since January. The number of residential properties jumped 16% from the previous month but is still 20% below a year earlier.
Year-to-date, median prices for all residential sales stood at $221,000 compared to $194,500 in 2020, an increase of 14%.
Total dollar volume of August home transactions exceeded $400 million, an all-time high, compared to just over $354 million last year. For the year, the total sales volume has exceeded $2.6 billion, a 20% increase over 2020 when the total was $2.2 billion.
Lawrence Yun, chief economist for the National Association of Realtors, said at a broad level, home prices are in no danger of a decline due to ongoing tight inventory conditions, but he does expect prices (on the national level) to appreciate at a slower pace by the end of the year.
“I agree with the national prediction,” Gooch said. “Local demand is still very strong, which will keep prices elevated, but double-digit (annual) appreciation shouldn’t be around much longer. We may start to experience a plateau in the fall months since the market finally took a deep breath and began to relax.”
SVN Stone Commercial Real Estate recently worked with the development
owners to fully lease and sell the retail shopping
center and outlots in this 23-acre Kroger Marketplace
development in Georgetown.
The market for commercial property in Central Kentucky has been on an uptick in 2021, buoyed by low interest rates and assisted by population growth, especially in Georgetown.
Taking a look back in time, there were historic levels of commercial real estate growth nationally and regionally in 2019. The positive wave continued into January and February of 2020; …….