LEXINGTON, Ky (LEX 18) If you’re in the market for an affordable house in Lexington, experts say that you should be patient. The demand for houses in the 100-200 thousand dollar range has gone up, while the number of those available has not.
John Groft said that the factors in today’s housing market are almost unheard of.
"I really haven’t seen this combination where we have a shortage of inventory, we have low-interest rates and we have homes that are selling so quick," said Groft.
He said that the average time for a house on the market in Lexington has been cut in half.
"In 2018 we’re seeing homes selling in about 21 days, which if you look over the history of LBAR, in the past five years those homes have sold in 42 days," he said.
The high demand means different things for buyers versus sellers. For buyers, they may feel rushed to pick a house and not end up with one they completely love.
"But on the seller’s side, you know, they’re kinda excited because they are able to sell their house a little bit quicker and they are getting a little bit more appreciation out of their home," said Groft.
One of the factors for the shortage is on the builder’s side, because they aren’t taking the lower priced jobs as often.
"You see the construction cost is going up so developers and builders factor that into the decision," he said.
Groft’s advice for anyone jumping into the market is to be patient and even though it seems like a seller’s market, there are positives for buyers too because interest rates are extremely low right now.
"They’re around 4.75% so that’s a great opportunity, still, to get a lot of home for your price," said Groft.
Groft said that the demand isn’t necessarily driving up prices. He said that sellers are still selling for their listing price 98% of the time.