COVID hasn’t been able to stop Lexington’s real estate market. Find out what you need to know about buying and selling right now.
Year-to-date, real estate sales are just 1 percent short of where they were in 2019!
The spring real estate season finally arrived but waited until the summer to finally heat up. After two consecutive months of year-over-year declines in home sales due to the ongoing pandemic, June real estate closed transactions jumped by 7 percent to 1,408 total residential sales, compared to 1,322 in 2019. This marks the fifth highest month on record for total real estate sales.
Year-to-date, real estate sales are just 1 percent short of where they were in 2019, with 6,564 sales in 2020 compared to 6,624 sales last year.
The increase in total sales follows back to back months of record numbers of pending sales. June saw transactions under contract increase 24 percent over last year and reach a new all-time high with 1,703 pending sales.
“The pandemic certainly hasn’t cut into the demand for housing in Central Kentucky,” said Greg Buchanan, president of the Lexington-Bluegrass Association of REALTORS® (LBAR). “It was predicted, as we moved through the quarantine, that the market would rebound quickly and the selling season would be pushed back a few months. That is certainly playing out locally as buyers are out in full force, however, inventory is suffering more now because of the demand level.”
Inventory levels throughout the region were low before the crisis hit and the shortage has only intensified over the past several months.
Total residential housing inventory dropped to an all-time low with 2,276 available residential properties, a 41 percent decrease from a year ago and down 7 percent from the previous month. June’s inventory level marks the seventh consecutive month, starting in December, of record lows and the fifth straight month of levels falling below the 3,000-unit mark.
“Our market needs a more robust supply of homes to meet the needs of buyers who want to purchase real estate in the Central Kentucky region,” stated Buchanan. “Sellers who may have temporarily put their plans on hold, or who didn’t think it was the right time, should strongly consider listing during the summer months. All the right conditions exist to make it an ideal time to sell.”
After a slower than usual start to the spring season for buyer traffic, mainly due to the uncertainty brought on by the pandemic, housing demand has surged over the previous two months. Appointments for available homes experienced consecutive record-breaking months in May and June. Showings jumped 21 percent in June from last year, reaching 24,181 appointments, and was 6 percent higher than May, the previous record month.
Buchanan added, “Pent-up demand is going to be a big driver of the market through the coming months. Buyers are locking in record low interest rates and those will remain for the foreseeable future. Builders are putting up homes but the demand is pushing those timelines out to over a year in some cases. What the market needs is for existing homes to be listed to alleviate the supply problem we are currently facing.”
As the region’s leading advocate for homeownership, Lexington-Bluegrass Association of REALTORS® (LBAR) understands the value and joy of owning a home. LBAR represents more than 3,500 REALTORS® located in 26 counties. Visit www.lbar.com for up to the minute real estate listings and buying and selling resources.