Central and Southern Kentucky’s housing market saw solid momentum in August 2025, with increases across sales, pending sales, listings, inventory, and overall volume, according to the Bluegrass Realtors®’ latest report.
In August, 1,338 homes were sold across the region, representing a 9% increase compared to the 1,230 transactions that closed in August 2024. The uptick in closings signals continued buyer demand, even as the market adapts to higher inventory levels. August sales were the highest for the month since 2022. Compared to the previous month, sales fell 3% as July saw 1,380 sales, the highest month in 2025.
Single-family sales in August saw an 8% increase, with 1,246 homes sold compared to 1,155 last year. Townhouse and condo sales jumped 23%, from 75 units in 2024 to 92 this year. Townhouses and condos represented just over 7% of the market.
For the year, sales have jumped ahead 6% with 9,284 sales through the first eight months of the year compared to 8,804 sales in 2024.
New construction sales continued to outperform last year. In August, there were 119 sales, down slightly from the previous month, but 4% over last year. So far this year, new construction is 9% higher in sales than in 2024.
Looking ahead, pending contracts provide a glimpse into future activity. August saw 1,321 homes go under contract, a 13% increase over the 1,167 pending sales recorded a year earlier. This momentum suggests the market will continue to see solid closing activity moving into the fall season. August’s pending sales total was the highest seen for the month since 2022, although they were down 4% from the previous month. On the year, pending sales are up 8% with 10,188 properties that have gone under contract.
“The steady rise in sales shows that buyers are still eager to find homes in our region, and sellers are seeing strong interest when they price competitively,” said Todd Hyatt, president of Bluegrass Realtors®. “And with more properties coming online, the market will be able to meet some of the pent-up demand.”
New listings marked seven consecutive months of year-over-year increases, climbing 14% compared to last year, the highest August total since 2019. In total, 1,947 properties hit the market in 2025 compared to 1,715 in 2024. The number of new properties coming online also rose 3% from last month’s 1,898 listings, marking a four-month stretch of increases. Year-to-date, new listings are up 12% with 14,251 homes being added to the market versus 12,733 last year.
The boost in listings pushed overall housing inventory to 4,106 properties in August, marking a 10% increase compared to the 3,744 available one year ago. August saw inventory numbers exceed 4,000 for the second month in a row. For 22 consecutive months, inventory has shown year-over-year growth with August hitting the highest monthly total since 2019. From the previous month, inventory was up 3%.
At the same time that inventory was increasing, the months of inventory rose slightly to 3.1 from 3.0 in August 2024 - a 3% gain. This shift reflects a gradual loosening of conditions that had previously been very competitive during the summer months. August continued a four-month upward trend of month-over-month increases with a 7% jump and marked the 40th consecutive month of year-over-year growth.
“Rising inventory is helping bring the market closer to balance which is usually 5 to 6 months. Buyers have more choices, and sellers are still seeing steady demand, which is why sales are climbing alongside the growth in available homes,” stated Hyatt.
Homes stayed on the market a bit longer in August, averaging 42 days before going under contract. That’s up from 35 days a year ago, representing a 20% increase. While still relatively quick by historical standards, the longer timeframe reflects a market that is giving buyers more time to consider their options. August marked one year of year-over-year gains. The median DOM climbed to 17 days in August, up from 13 days in 2024. For the year, the average days on market (DOM) was up 21% to 47 days.
Home prices also showed consistent growth, with the median price reaching $287,500 for the month, a record high for August. That figure represents a 3% gain compared to the $279,000 median in August 2024. Although August’s median price cooled slightly from the previous month, the data now shows 78 consecutive months of year-over-year price appreciation. For the year, median prices are up 5%, reaching $284,900.
Single-family home prices in June rose 4% to $290,400, up from $280,000. Townhouse and condo prices dropped to $248,725 from $260,000 in 2024, a 4% decrease.
The combination of more sales and higher prices pushed total sold volume to $452 million in August and to over $3 billion for the year. Through the first eight months of the year, total volume was up 10% compared to $2.8 billion in 2024. In August, total sales were up 14% from last year’s $399 million.
“This month saw prices rise but a more tempered appreciation,” stated Hyatt. “All other categories were extremely strong and a good sign the market is trying to balance between buyers and sellers with strong demand and a healthy atmosphere through the end of the year.”
The average interest rate dropped in August to the lowest monthly average this year. The 6.59% rate was 2% lower than the July rate of 6.72% but up slightly from last year’s 6.5%. Rates had been dropping slightly since July at the anticipation of a Fed rate cut which happened in September.
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.