Median home prices in May reached $278,000, the highest ever on record. This is up 8% from last year’s $257,200 and up 5% over the previous month. May’s median price marked the 63rd consecutive month of year-over-year price appreciation.
Single-family homes matched the median in May at $278,000, a 7% increase from the previous year, while townhomes/condos spiked 19%, moving up to $250,000 in 2024.
For the year, overall median prices have risen 7%, reaching $267,000 compared to $249,900 in 2023.
The total volume of real estate sold through the first five months of the year surpassed just over $1.5 billion with $420 million of that coming in May, a 12% jump over last year and tallied a 25% increase from the previous month.
"Home prices continue to rise and have for more than five years," said Randy Newsome, president of Bluegrass Realtors®. “Buyers who are ready to move into the market but are waiting on the sidelines because of interest rates are missing the opportunity to start building equity. Refinancing is always an option if rates drop but you can’t go back and grab price gains.”
Interest rates in May averaged just over 7%, up slightly from 6.99% the previous month and 6.43% the previous year. The rate was the highest it’s been since November 2023 but did slow moving into June. The Fed has delayed cutting rates as inflation remains higher than desired, however, forecasts say they could drop towards the end of the year.
As buyers grow more comfortable with the current rates, home sales have started to pick up. The number of residential home transactions hit 1,313 in May, a rise of 4% over last year’s 1,260. This is the highest monthly sales total in 20 months when it hit 1,366 in September 2022. May also marked the second consecutive month with year-over-year sales increases, the first stretch with back-to-back months in two years.
Single-family home sales stood at 1,238, marking an 4% jump over the 1,194 sold in 2023. Townhouse/condo sales increased by 14% to 75, up from 66 in 2023.
For the year, homes sales are narrowing the gap, only down 2% overall with 4,959 transactions in the first five months of 2024 compared to 5,033 in 2023.
New construction sales in May slipped 8% year-over-year, with sales showing 119 versus 130 last year. The monthly total was still the third highest in the past year.
Pending sales in May rose 2% with 1,325 properties under contract compared to 1,298 last year and climbed 1% from the previous month’s total of 1,309. The May figure was the highest monthly tally since August 2022 and the third consecutive month with year-over-year increases.
Newsome continued, "Demand in the region has been strong for many years but buyers had made the decision to hold off making a purchase, uncertain of the market. The last few months, with sales and pending transactions growing, has shown they have now returned and are active in the process.”
New listings to the market were up 5% in May, with 1,700 properties in the Central and Southern Kentucky region versus 1,614 last year. New properties coming online were also 4% higher than the previous month’s total of 1,627 homes and the highest total in 20 months. Year-to-date, new listings have increased 6%, jumping from 6,840 in 2023 to 7,270 this year and have increased every month in 2024.
With the increase in listings, the overall available housing inventory in May improved 16% year-over-year with 2,821 homes on the market compared to 2,425 last year and up 5% from April. Inventory levels have increased, year-over-year, for seven consecutive months.
Months of inventory (MOI) at 2.2 is the lowest it’s been for nine months due to the growth in sales recently, however, May’s number is still up 16% from last year’s 1.9 months. In April, MOI tallied 2.4, making it 8% higher than the current month’s number. The month’s MOI was the highest for May since 2020.
Homes sold faster in May than the previous month, with the average time to sell at 38 days this month versus 42 days last month, a decrease of 10%. Compared to last year, homes are selling one day faster in May. The median DOM rose, year-over-year, to 10 days from 8 days. Year to date, homes are selling at an average of 43 days, even with last year.
"The market would welcome even more inventory heading into the summer,” Newsome concluded. “Additional supply could help alleviate some of the price increases the market is experiencing mainly due to the demand that still exists in our region. Additionally, more homes being available offers buyers greater selection when they are actively searching for a property to purchase."
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 38 counties: Anderson, Bath, Bell, Bourbon, Boyle, Casey, Clark, Clay, Elliott, Estill, Fayette, Franklin, Garrard, Harrison, Henry, Jackson, Jessamine, Knox, Laurel, Lee, Lincoln, Madison, McCreary, Menifee, Mercer, Montgomery, Nicholas, Owsley, Powell, Pulaski, Rockcastle, Rowan, Russell, Scott, Shelby, Wayne, Whitley and Woodford counties. Visit www.bluegrassrealtors.com for up-to-the-minute real estate listings and buying and selling resources.