Growing Housing Inventory Signals More Opportunities for Kentuckians
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.
Nationally, total existing-home sales, completed transactions that include single-family homes, townhomes, condominiums, and co-ops, grew 2.0% from June to a seasonally adjusted annual rate of 5.99 million in July. Sales inched up year-over-year, increasing 1.5% from a year ago (5.90 million in July 2020).
"We see inventory beginning to tick up, which will lessen the intensity of multiple offers," said Lawrence Yun, NAR's chief economist. "Much of the home sales growth is still occurring in the upper-end markets, while the mid- to lower-tier areas aren't seeing as much growth because there are still too few starter homes available."
The median sale price of homes in Kentucky surged 12.5% from $200k to reach $225,000. This figure sat at $179,000 just 2 years ago. “We are definitely looking forward to a moderating of the sale price of homes”, said Kentucky REALTORS® C.E.O. Steve Stevens. “While it’s good that consumers are seeing their equity grow, the fact that so many Kentuckians remain priced out of the market is unfortunate.”
Nationally, REALTORS® continue to advocate for property owners as it relates to rental properties. “The eviction relief programs are dispersing money at an alarmingly slow pace”, said Kentucky REALTORS® President Charles Hinckley. There are several reasons for the delay in delivering the money, according to a report published by the Aspen Institute and COVID-19 Defense Projection, including high documentation burdens, long payment timelines, and insufficient infrastructure for rental assistance support. Hinckley continued, “REALTORS® will continue to fight for the rights of all property owners. There is help available and we can all do our part to let our leaders know that processing this aid is paramount to letting Kentuckians remain in their homes while our small business owners receive the funds they need to bring their accounts current.”
Distressed sales in Kentucky remained low in July. There were just 13 last month, down 32% from last year’s figure of 19.