Home sales in May surged from the previous month, with a 14% increase, hitting 1,343 transactions from 1,177 in April. Compared to last year, sales were down less than 1% as the May 2024 numbers were slightly higher with 1,352 sales.
Single-family sales in May saw a 2% decrease, with 1,242 homes sold compared to 1,273 last year. Townhouse and condo sales jumped ahead 28%, from 79 units in 2024 to 101 this year. Townhouses and condos represented just over 8% of the market.
For the year, sales remained up just over 1% with 5,091 sales through the first five months compared to 5,034 sales in 2024.
New construction sales surged to the third highest level in 58 months and the fourth highest total since late 2009. With 144 sales in May, this represented a 21% year-over-year increase, compared to 119 last year. Month-over-month, new construction sales dipped from the previous 6-year high of 148 sales in April by 3%.
“Sales are staying relatively steady which is on par with a typical year,” said Todd Hyatt, president of Bluegrass Realtors®. “The market is slowly returning to historical norms; however, we could see some uptick in sales as data is showing growth in activity.”
Pending sales continued trending up for the third consecutive month as homes under contract jumped 10% year-over-year with 1,425 in May compared to 1,299 last year. May also marked the fifth straight month-over-month increases, climbing 4% from 1,374 in April. May’s pending sales were at the highest levels seen in 3 years.
Buyers received positive market news in May as new listings hit a four-month stretch of year-over-year increases with a 1% jump in May compared to last year. In total, 1,781 properties hit the market in 2025 compared to 1,776 in 2024. The number of properties coming online did fall from last month’s 1,860 new listings, however, year-to-date, new listings remain up 5% with 7,908 homes being added to the market versus 7,517 last year.
The jump in new listing helped May record the 19th consecutive month of year-over-year growth in available housing inventory. With 3,665 homes listed for sale in 2025, compared to 2,992 last year, this represented at 23% increase. With the May jump, inventory remained above the 3,000 mark for a full year and marked the highest May inventory total since 2020. Inventory rose just over 3% from April’s total of 3,551.
“Upward pressure on inventory growth will certainly help buyers,” stated Hyatt. “And, although we are seeing steady increases in inventory, it’s not growing enough relative to sales to truly get us back to an even market. We are still technically in a seller’s market as demand also remains elevated.”
Unsold inventory hit the lowest level of the year with 2.7 months available; the third consecutive month-over-moth drop and reflecting a 10% decrease from April. Compared to a year ago, months of inventory jumped 23% from 2.2 months in 2024. May marked the 37th consecutive month of year-over-year inventory growth.
The number of days that homes are taking to sell in May dropped to the lowest level since October 2024. The average days on market (DOM) dropped to 43 days, a 14% decrease from 50 days last month. Compared to May last year, the number of days is up 13% when it was 38 days. May marked the ninth consecutive month of year-over-year gains. The median DOM climbed to 13 days in May, up from 10 days in 2024 but a drop from 16 days in April.
“Homes are remaining on the market a little longer today than they were at this time last year,” added Hyatt. “However, the spike in demand is driving that lower as we move through the year. Along with the increased market activity, prices continue to rise as they have for many years now.”
May not only set a monthly record with the median sale at $298,100 but also hit an all-time monthly high for home prices. The monthly total is an 8% increase over the $276,000 median in 2024 and a 9% bump from the previous month. The data now shows 75 consecutive months of year-over-year price appreciation. For the year, median prices are up 4%, reaching $278,000 for the first five months of the year.
Single-family home prices in May rose 8% to $299,700, compared to $278,000 last year, while townhouse and condo prices jumped 16% to $289,000 from $250,000 in 2024.
Total real estate sales volume rose over 8%, year-over-year, to over $467 million from $432 million in 2024. Year-to-date sales volume is up 6% with over $1.6 billion in real estate transactions.
The average interest rate rose in May, from the previous month, to 6.82%, or about 1% higher, however, from last year, rates dropped 3%, down from 7.06%. At their most recent meeting, and fourth consecutive, the Federal Reserve voted to leave rates unchanged. It is predicted that mortgage rates will stay steady, around 7%, through the summer.
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.