With double digit home price appreciation rounding out the first quarter of 2024, median prices in March were pushed to the highest point on record. Residential property prices topped out at $269,900 in March, a 12% increase over last year’s $240,900 and the 61st consecutive month of year-over-year price appreciation. The previous record was $269,300 last July. March’s median price was also 2% above the previous month.
Single-family homes hit a peak of $269,950 in March, a 15% increase from the previous year, while townhomes/condos rose 8%, moving up to $243,750 in 2024.
For the year, overall median prices have risen 10%, hitting $265,000 compared to $240,000 in 2023.
The total volume of residential real estate sold in March retreated from slower sales, decreasing 5% to just over $296 million, down from $312 million last year. The March total was 23% higher than the previous month.
"Home prices continue to rise even with a delay in the slowing of interest rates," said Randy Newsome, president of Bluegrass Realtors®. “Sellers are seeing an increase in equity which they realize when they go to sell, but on the flip side, higher prices are still keeping some would be buyers from fully entering the market.”
Interest rates in March averaged 6.82%, up slightly from 6.78% the previous month and 6.54% the previous year. The rate was the highest on record for March since 2002.
The number of new listings that hit the market in March was up 3%, with 1,488 properties in the Central and Southern Kentucky region versus 1,447 last year. New properties coming online were also 17% higher than the previous month’s total of 1,268 homes.
Housing inventory jumped 5% year-over-year with 2,655 homes on the market in March compared to 2,501 last year and up 17% from February. Inventory levels have increased, year-over-year, in each of the first three months of 2024.
With inventory trending up, months of inventory (MOI) tracked higher than the previous year but snapped a four-month streak of staying above 3 months. March showed 2.7 months, a 23% jump over the previous year of 2.2 months but was down from 3.4 months in February. March’s MOI was the highest for the month since 2020.
Newsome continued, "We see several positive trends going into the second quarter of the year. Despite sales not yet rebounding, there are strengthening market signs as we move deeper into the spring. Buyers may benefit by making decisions now before competition heats up in the middle part of the year and prices jump even more.”
Home sales dropped year-over-year in March with 972 total residential sales, down 15% against last year’s 1,143 sales. Compared to the previous month, sales fared better and were up 25% from 780. Single-family home sales stood at 924, marking a 15% drop over the 1,083 sold in 2023. Townhouse/condo sales decreased by 20% to 48, down from 60 in 2023.
For the year, homes sales are down 9% overall with 2,486 transactions in the first quarter of 2024 compared to 2,727 in 2023.
New construction sales slipped year-over-year with a 14% decrease in March with 117 sales versus 136 last year but jumped 27% from 92 the previous month.
Pending sales in March rose 6% with 1,294 properties under contract compared to 1,227 last year and climbed 24% from the previous month’s total of 1,041. The March figure was the highest in 10 months.
Newsome concluded, "Demand is still very prevalent in our region but buyers are cautiously waiting to see where rates will land in the coming months. Refinancing is always an option so waiting for a particular rate or trying to time the market is almost never a good approach. If you’re currently in a position to buy, taking advantage of the equity gains now may pay off later."
Homes stayed on the market longer in March, with the average home taking 50 days to sell, the highest days on market (DOM) total in four years (March 2020 was 61 days). This was an 11% increase over the 45 days last year and 2 days longer than the previous month of 48 days. The median DOM remained rose, year-over-year, to 19 days from 16 days. Year to date, homes are selling at an average of 46 days, even with last year.
As the region’s leading advocate for homeownership, Bluegrass Realtors® understands the value and joy of owning a home. The Association 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.bluegrassrealtors.com for up to the minute real estate listings and buying and selling resources.