New listings hitting the market increased for the fifth consecutive month and active listings are also trending upward. These indicators signal that the recent price surge will soon peak as more options will become available to consumers. Those hesitant to list their homes for fear of not finding a new property to move into may also be spurred into listing by the increasing inventory, thereby boosting the listing count further. Closed sales in July reached 5,393. That figure is down slightly (at 7%) from 5,943 in July 2020. The year-to-date closings figure climbed to 32,485. This is a 9% increase from July of 2020 when that number reached 29,811.
Kentucky metro area house prices are forecasted to track the national market over the next twelve months. Currently, the market is tracking the overall U.S. market. Compared to 12-months ago, Kentucky’s housing market has strengthened. Current local economic conditions support an estimated 6.8% increase in house prices over the next twelve months. Based on the housing market vitality of the nine metro housing markets which comprise it, Kentucky’s housing market ranks twenty-ninth amongst all states and D.C. The three-month outlook is neutral.
Sixty percent of Kentucky REALTORS® expect houses to stay on the market for longer over the next twelve months, according to the July 2021 edition of the HousingIQ Survey of Kentucky REALTORS®. Forty-nine percent of the 292 REALTORS® from across Kentucky expect greater price-cutting by sellers over the next twelve months.
- 36% expect house prices to increase
- 49% expect greater price-cutting
- 46% expect an increase in sales volume
- 60% expect houses to stay on the market longer
- 40% anticipate an increase in the pace of new construction
- 51% expect an increase in new listings with the expiration of the foreclosure moratorium