LEXINGTON, Ky. (LEX 18) — LEXINGTON, Ky. (LEX 18) -- Bluegrass Realtors released its latest report on the housing market which shows that as of the end of September home inventory levels are at the highest of the year.
But home inventory levels are still down year-over-year. The organization's 2023 president, Kelly Nisbet, says this is a strong trend. She says, "Real estate is local so your percentages are local, but the trend with the low inventory, the appreciation, and your days on market is definitely a national trend." Housing inventory in the 30 Kentucky counties that Bluegrass Realtors represents are down 70% compared to a decade ago.
Nisbet explains that the market needs new listings to meet demand. She says there are several reasons why inventory could be declining, including more people wanting to keep their interest rates. Nisbet says, "It’s really hard for people thinking about wanting to move up, downsize, coming off of that phenomenal interest rate." Home sales struggled in September, dropping nearly 20% from the year before. In Fayette County home values have risen, which could also impact trends. Bluegrass Realtors reports that in September, the median home price rose to $333,000. But the number of homes sold in that month dropped to 295 from 391 in 2022.
Re/Max business growth coach and realtor John Groft explains, "Listings are down, prices are up, that causes a supply and demand, and buyers are struggling right now to try to find a place to purchase." Groft has been a realtor in Fayette County for more than two decades. In that time, he's seen trends in the housing market make significant changes. Taking a look at what's happening now - he still advised clients to assess their needs considering the location, the condition, the layout and the price of the home.
He says, "We've gotta be really cautious of those four factors and educate our buyers on if they can go through that process, they may or may not have found their house based upon those four conditions." Nisbet says it may take a while for inventory levels to come back up. Factors like infrastructure, available land, and new developments can play a role. She believes homeownership is still worth going for right now.
She says, "Homeownership is the American dream, start it. If you're looking to sell your home make sure you're pricing it correctly, and when you price it correctly and put it on the market it's gonna sell." These realtors say now is still a good time to buy and sell, but they recommend consulting a professional for the best options.
