Home buyers in the Central and Southern Kentucky region are seeing more selection in the housing market over the past several months according to Bluegrass Realtors’ data.
New listings rose 9% compared to last year, the highest September total in four years, with 1,771 homes hitting the market in 2025 compared to 1,629 last year. September marked eight consecutive months of year-over-year increases. Year-to-date, new listings are up 8% with 15,500 homes being added to the market versus 14,351 last year with only January seeing a year-over-year decline.
With a jump in new listings, overall housing inventory pushed higher to 4,283 properties in September, marking a 9% increase compared to the 3,946 available a year ago. Inventory exceeded 4,000 for the third month in a row and was the highest monthly total since February 2020. For 23 consecutive months, inventory has shown year-over-year growth and is up 28% from the start of the year.
Months of inventory (MOI) rose slightly, year-over-year, to 3.7 from 3.6 in September 2024 - a 3% increase. This is the highest level seen since February this year and continued a five-month upward trend of month-over-month increases. September’s MOI showed a 19% jump from the previous month and marked the 41st consecutive month of year-over-year growth.
“We are inching closer to a balanced market with the steady rise in inventory over the past several years,” said Todd Hyatt, president of Bluegrass Realtors®. “These added properties will help alleviate the pressure on buyers to make rushed decisions and allow more time to narrow down choices.”
In September, 1,153 homes were sold across the region, representing a 4% increase compared to the 1,106 transactions that closed last year. September sales were the highest for the month since 2022 but slid 14% from the previous month, which typically happens heading into the colder months.
Single-family sales in September saw a 4% increase, with 1,082 homes sold compared to 1,042 last year. Townhouse and condo sales jumped 16%, from 64 units in 2024 to 74 this year. Townhouses and condos represented just under 7% of the market.
For the year, sales have jumped ahead 5% with 10,364 sales through the first three quarters of the year compared to 9,908 sales in 2024.
New construction sales continued on a hot streak rising 6% with 120 sales in September, compared to 113 last year. Over the first nine months of the year, sales are 8% higher than in 2024 and have increased every month, year-over-year, in 2025.
Looking ahead, pending contracts saw 1,133 homes go under contract, a decrease of less than 1% over the 1,140 pending sales recorded a year earlier. The monthly drop broke a six-month run of annual increases. For the year, pending sales are still up 6% with 11,186 properties that have gone under contract, compared to 10,603 in 2024.
“Demand is still pushing homes to sell at a level higher than last year and on par with years in the recent past,” stated Hyatt. “Buyers are taking a little longer to decide on the property that is right for them and may be causing some variances in homes going under contract. We will see if that trend holds true going forward.”
Homes stayed on the market a bit longer in September, averaging 43 days before going under contract. That’s up from 41 days a year ago, representing a 5% increase. While still relatively quick by historical standards, the longer timeframe reflects a market that is giving buyers more time to consider their options. September marked 13 months of year-over-year gains. The median DOM climbed to 19 days, up from 18 days in 2024. For the year, the average days on market (DOM) was up 21% to 47 days, from 39 days.
Home prices also showed steady growth, with the median price reaching $288,000 for the month, a record high for September. That figure represents a 5% gain compared to the $275,000 median a year earlier and now shows 79 consecutive months of year-over-year price appreciation. September’s median price inched up from $287,500 the previous month.
Single-family home prices in September rose 4% to $290,000, up from $278,950. Townhouse and condo prices dropped to $245,000 from $263,250 in 2024, a 7% decrease.
Total sold volume edged higher, due to higher sales and prices, to $381 million in September, compared to last year’s $357 million, a climb of 7%. Through the first nine months of the year, total volume was up 10% with $3.4 billion sold for the year compared to $3.1 billion in 2024.
“Prices continue to rise steadily, but the appreciation has tempered over the past several months,” stated Hyatt. “With interest rates cooling a bit lately, we may see that momentum pick back up as we move through the colder months.”
The average interest rate dropped in September to 6.35%, the lowest monthly average since this time last year when it hit 6.18%. From the previous month, the rate was 4% lower when it averaged 6.59%. Rates have been adjusting down recently with additional drops expected from the Fed's next meetings in October and December.
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.