The overall housing inventory jumped in April reaching 2,085 available residential properties on the market, an increase of 3% over the 2,025 properties available last year.
Unsold inventory dropped to 1.3 months in April, a 7% drop over last year when it was 1.4 months. New real estate listings in Central and Southern Kentucky kept the months of inventory suppressed. New listings to the market were down 6% compared to a year ago, with 1,808 residential properties came online this year versus 1,916 last year, but up 3% when compared to the 1,757 new listings from March.
“Sales leveled off in April due in large part to the accelerated rise in interest rates,” said Rusty Underwood, president of the Lexington-Bluegrass Association of Realtors®. “Factored into that is the home price growth that the region has seen over the past several years and some buyers have moved back to the sidelines.”
Real estate sales were essentially even, reaching 1,420 in April compared to 1,425 last year. The last two April’s have been record highs for the month, indicating that a strong market is still at play in the region.
Single-family home sales dropped about 1% while townhouse/condo sales rose by 5% for the month. Townhouses/condos made up just under 6% of the total market in April.
Fayette County saw a 9% decrease in April sales, while the largest growth counties by activity were Scott, Laurel, Woodford and Anderson Counties, most of which saw double-digit increases.
The average rate for a 30-year, conventional, fixed-rate mortgage landed at 4.98% in April, the highest rate in 12 years. According to Freddie Mac, rates closed at 5.1% in April 2010. A year ago, the rate was around 3.1%.
“Since April, rates have continued to rise as the Federal Reserve tries to combat inflation,” stated Underwood. “With rates predicted to stay at or above 5% and the Fed signaling for another jump in coming weeks, some buyers may balk at the new rates, but we don’t expect any significant decline in demand through the summer.”
So far, activity in the market to view properties has remained fairly steady with only a 3% decline in April over last year. There were 26,272 appointments to view properties in 2022 compared to 27,111 in 2021 with 4% fewer showable listings. Property viewings in April, however, were up 4% from the previous month and the highest monthly total over the previous year.
Median prices rose to new all-time highs in April reaching $245,000, up 16% over last year when the median was $212,000. Single-family home prices increased 15% to $247,000 while townhouse/condo prices climbed 13%, reaching $225,000.
Of the top 12 most active counties in Bluegrass REALTORS®’s 30-county region, nine saw double-digit price growth for the month. Jessamine closed with the highest median price at $348,900 with Fayette at $297,450. The highest percent change in the 12 most active counties were Garrard and Laurel at 72% and 46% respectively.
Due to new high in median prices and a steady sales total, April’s total volume jumped to over $404 million in residential real estate sold, the first time sales eclipsed the $400 million mark in April. This represents an 18% increase when compared to last year’s total of over $344 million.
Pending sales slowed 8% in April, hitting 1,530 homes under contract, compared to 1,668 last year. Despite the drop in pending sales, homes only stayed on the market for an average of 25 days, down 19% from last year’s 31 days. The 25 days in April is the lowest on record for the month. Two years ago, in March 2020, homes stayed on the market for an average of 47 days.
“The previous two years during the pandemic where rates were at all-time lows appears to be over,” stated Underwood. “National predictions indicate a return to pre-pandemic home sales activity, which would mean home price appreciation more in line with historical averages. This is an unusual market; however, the region will see homes continue to sell quickly because demand remains strong. The good news is there will be more homes hitting the market as we move through the summer.”
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.