Buyers are going into the cooler months looking at a larger selection of homes as the number of new listings outpaced last year. Properties coming online jumped ahead year-over-year by 7% in September with 1,573 compared to 1,475 a year ago. New listings onto the market have increased annually since February of this year, or eight consecutive months. Year-to-date, new listings have increased 7%, to 14,042 this year, up from 13,199 in 2023.
Housing inventory continues to rise and, in September, climbed to the highest level in 52 months (May 2020). Total inventory reached 3,640 properties, a 22% increase over the 2,986 homes available last year and up 7% from the previous month. September was the fourth consecutive month with inventory remaining over the 3,000 mark and the 11th consecutive month of year-over-year improvements.
"The recent combination of slower sales and homes staying on the market longer has given buyers more options when they start their home search,” said Randy Newsome, president of Bluegrass Realtors®. “The trend of rising inventory has been going for almost a year, so the hope is that continues to bring the market into more of a balance.”
The average time for a home to sell rose to 41 days in September, up from 35 days in August and 33 days last year. The median DOM, year-over-year, was 18 days, up from 11 days in 2023. Year to date, 39 days was the average time to sell, the same as last year.
Months of inventory (MOI) broke back into the 3’s for the first time since February and has continued to improve since this spring. MOI notched the fourth consecutive month-over-month increase and the 29th consecutive year-over-year rise in September and stood 21% higher than the previous month. September’s housing supply of 3.4 months is 26% higher than last year when it was 2.7 months.
The interest rate in September fell to its lowest level in two years, averaging 6.18% for the month, down more than a percent from last year’s 7.2% and down from last month’s 6.5%. Many forecasts have rates near 6% at the end of this year - and falling to about 5.8% next year. Lawrence Yun, chief economist for the National Association of Realtors® says the new normal is maybe 6% mortgage rate, and the days of 3% and 4% mortgage rates are over - at least in his lifetime.
“Interest rates falling provides more opportunity for buyers to enter the market," stated Newsome. “However, those home buyers should not hit pause on their search if rates jump slightly as home prices are still rising month over month and you could miss out on significant equity gains. Instead, refinance your loan when rates come back down.”
Median home prices reached an all-time high for the month of September and were the fourth highest on record, reaching $275,000. This was up 8% over last year’s mark of $255,000 and marked the 67th consecutive month of year-over-year price appreciation. The monthly median, however, fell 2% from the previous month’s price of $280,000.
Single-family homes hit a median of $278,450, a 9% increase from the previous year’s $255,000, while townhomes/condos rose to $262,500, up 3% from last year’s $255,000.
For the year, overall median prices have risen 8%, reaching $275,000 compared to $254,900 in 2023.
The total volume of real estate sold through the first three quarters of the year was just north of $3.1 billion, up 7% from 2023, with $347 million of that coming in September, a 4% increase over last year’s $333 million.
Overall residential sales slowed in September to 1,074 from 1,124 last year, a decrease of 4% and down 11% from the previous month. Single family sales were down 5% with 1,012 sales this year compared to 1,063 last year. Townhouse/condo sales were steady with 62 sales this year compared to 61 in 2023, an increase of 2%.
For the first nine months of the year, sales remained even with 9,822 homes selling in 2024 compared to 9,849 last year, a difference of only 27 transactions.
New construction sales in September improved by 19% with 113 sales in 2024 compared to 95 last year. September marked the fourth straight month of year-over-year gains. For the year, sales are up 14% on new construction.
Newsome continued, "With interest rates expected to remain lower over the long term, it is anticipated that market activity will increase through the winter and into 2025. Factors such as higher inventory levels, improved housing affordability, job growth, and declining inflation will play a crucial role in this shift.”
In fact, September saw pending sales leap ahead 9% compared to last year, with 1,157 properties under contract versus 1,059 in 2023. Homes under contract in 2024 gained some ground on last year’s number, ending down only 1% with 10,465 contract signings versus 10,612 in 2023.
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.