LEXINGTON, Ky. (LEX18) — The Kentucky housing market is poised for steady growth in 2026, offering a more balanced environment for both buyers and sellers as interest rates hover around 6%.
According to online real estate brokerage Redfin, home prices in Kentucky were up 4.6% in November 2025, with more than 3,000 homes sold at an average price of $278,000. The average price for a home is not expected to fluctuate dramatically in the coming year.
"So we expect growth for 2026. Probably not a boom by any means, but stable growth," said Cynthia Trgo, broker and owner of Diamond Real Estate.
Trgo said inflation coming down has helped stabilize the market, but dramatic price changes aren't expected.
"Inflation has been coming down, which absolutely helps as well. But there isn't going to be any kind of dramatic drops or increases. So I don't know if there's a ton of time frame for that this year," Trgo said.
Real estate professionals monitor specific metrics to predict market trends, including days on market, inventory levels, and market activity from both buyers and sellers.
"So we're looking at how many days on market. What our inventory is, and honestly, just the buzz. So you can tell how much the market is going to be just by the sellers and the buyers reaching out and what's about to come on the market," Trgo said.
For potential buyers, the current market conditions offer advantages compared to the competitive environment of recent years.
"You don't have to be as aggressive or as quick to purchase. You have a little bit more time, and I think that's really good for buyers right now," Trgo said.
Kentucky's housing market remains more affordable compared to most states nationwide, making it an attractive option for real estate investment.
"That's the beautiful part of Kentucky. Our market is just so stable, so I expect it to be a really great year for anyone wanting to get involved in real estate, whether you're a buyer or seller," Trgo said.
For those considering entering the market, Trgo recommends starting with a lender who can guide buyers through the process.
