Year-over-year October home sales dropped by 14%, the largest decline since the pandemic began. Even though closings only reached 4,515, that still bested the number of closings in October 2019 (4,476) which is just before the pandemic began affecting businesses in the U.S. 2021 year-to-date closings reached 47,803 which is 4.7% above the mark set in October of 2020 (45,649).
Pending sales in October were down about 11%, indicating that the housing market is continuing its gradual slowdown into November. “Now is a great time to think about selling if you have been putting it off”, said Charles Hinckley, President of Kentucky REALTORS®. “Inventory is rising which means there is more opportunity for consumers to find that new perfect fit for them.”
Kentucky metro area house prices are forecasted to underperform the national market over the next twelve months. Currently, the market is underperforming the overall U.S. market. Compared to 12-months ago, Kentucky’s housing market has strengthened. Current local economic conditions support an estimated 13.3% 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 thirty-fourth amongst all states and D.C.
Kentucky Housing Market To Hold Steady
Although economic concerns are tempering homebuyer enthusiasm, anticipated increases in home purchases by corporate investors will help hold the housing market steady in Kentucky, according to the October 2021 edition of the HousingIQ Survey of Kentucky REALTORS®.
Increased interest from investors will help offset any drop in demand from individual buyers as 40 percent of the survey respondents reported that potential buyers are holding back due to concerns about the economy. More than half, or 54 percent of the responding REALTORS® from across Kentucky, expect an increase in sales to investors in the next year.
Despite increased demand from investors being a positive for the market, less than half, or 43 percent of the Kentucky REALTORS®, expect house prices to rise.
- 43% expect house prices to increase
- 47% expect greater price-cutting
- 30% expect more houses to sell below the asking price
- 60% expect houses to stay on the market longer
- 48% anticipate an increase in the pace of new construction
- 42% anticipate an increase in the pace of new listings