Due to new monthly highs in both total sales and median prices, February’s total volume jumped to over a quarter billion dollars in residential real estate sold. This represents a 19% increase when compared to last year’s total of just over $213 million.
Median prices climbed to new highs for the month reaching $218,000, up 7% over last year when the median was $204,000. Single-family home prices increased 7% to $220,000 while townhouse/condo prices rose 20%, reaching $192,500.
Of the top 10 most active counties in Bluegrass REALTORS®’s 30-county region, eight saw double-digit price growth for the month and only one – Clark County – saw a decline.
Real estate sales broke through the 1,000 threshold for the first time in a February, hitting 1,013, a 12% increase over last year’s total of 901, the previous monthly high.
Single-family home sales increased 13% while townhouse/condo sales jumped 11% for the month. Townhouses/condos made up just over 6% of the total market in February.
All of the growth in sales occurred outside Fayette County in February, with Laurel, Franklin, Montgomery, Anderson and Jessamine Counties leading the way with the most activity, many of which saw double-digit increases.
New construction home sales took a hit and dropped to the lowest monthly total since January 2019. Only 78 sales were reported in February, a 15% percent decrease compared to last year when sales were at 92.
“The spring market, if it continues at the rate we are currently seeing, should be very busy,” said Rusty Underwood, president of Bluegrass REALTORS®. “The tight inventory isn’t stopping buyers as homes are going under contract rapidly. It seems like everything that hits the market is getting scooped up in days, sometimes hours.”
Pending sales jumped 21% in February, hitting 1,192 homes under contract, compared to 987 last year. February marked the seventh month in a row with pending sales increases.
New listings spiked for the month, jumping 26% in February to 1,202 versus 954 in 2021. Compared to the previous month, new listings increased by 12%.
With a bump in new listings, the supply of housing inventory rose to 1.5 months in February, a 7% increase over last year when it was 1.4 months. February’s increase marked the sixth consecutive month, starting in September 2021, with a year-over-year increase in months of inventory.
Homes are still selling fast, with a 9% decrease in days on market, dropping to 32 days in February. Last year, it took 35 days. Two years ago, in February 2020, homes stayed on the market for an average of 60 days.
“The real estate market slowed a bit nationally,” stated Underwood. “Reports showed a decrease in sales, year-over-year, as well as homes under contract. Price increases may be pressing buyers in the market and the slight bump in interest rates isn’t helping the situation. Locally, however, demand isn’t waning. In fact, showings are up.”
Scheduled appointments to view properties in February jumped 20% to the highest level since last October and the highest percentage jump since April 2021. There were 19,238 appointments to view properties in 2022 compared to 16,006 in 2021 with 21% fewer showable listings.
According to Freddie Mac, the average rate for a 30-year, conventional, fixed-rate mortgage was 3.76% in February, up from 3.45% in January and 2.81% last year for the same month. February’s rate was the highest since July 2019 when it averaged 3.77%.
“Most experts predicted months ago that the average 30-year mortgage rate would hit around 4% by the end of the year, but the global tensions, rising oil prices and inflation have all modified targets to be closer to 4.5 to 5% going through the next several months. If rates continue to push higher, we may start to see local home sales affected along with a possible slowdown in price appreciation.”
As the region’s leading advocate for homeownership, Lexington-Bluegrass Association of Realtors® (Bluegrass REALTORS®) understands the value and joy of owning a home. Bluegrass REALTORS® represents more than 4,000 Realtors® located in 30 counties: Anderson, Bath, Bell, Bourbon, Clark, Clay, Elliott, Estill, Fayette, Franklin, Harrison, Jackson, Jessamine, Knox, Laurel, Lee, Madison, McCreary, Menifee, Montgomery, Nicholas, Owsley, Powell, Pulaski, Rowan, Russell, Scott, Wayne, Whitley and Woodford counties. Visit www.lbar.com for up to the minute real estate listings and buying and selling resources.