Kentucky REALTOR® News
- Kentucky home sales inch up for the second time in 2018
- August 30, 2018
Days on market reach lowest on record for the state
Home sales rose in July for only the second time this year, reaching 5,072 transactions, a 1.4 percent increase over the 5,000 sold in July 2017. For the year, home sales are trailing 2017 by almost 2 percent, with 30,354 transactions through the first seven months of the year (30,950 sales were recorded in the same period for 2017).
Nationally, home sales have fallen for five straight months, decreasing less than one percent from June 2018 to July 2018, but are 1.5 percent below a year ago. The forecast from Lawrence Yun, NAR chief economist, is that home sales may decrease one percent for 2018 and then rise 2 percent in 2019. Across the state, total home sales may end lower than in 2017, however, this year should stand as the second highest on record.
“The market has been hard to predict in 2018,” said Steve Cline, president of Kentucky REALTORS®. “We are seeing ups and downs in overall sales and the trends aren’t following the national patterns. The dynamics at play are low inventory and mortgage rates, coupled with a strong economy and high housing demand, making it tough to gauge what will happen from month to month.”
Home prices in Kentucky fell in July by 4.8 percent to a median of $133,814, down from $140,514 in 2017. This was the first year-over-year price drop since May 2017. Nationally, median home prices were up 4.5 percent to $269,600, which is double the state’s median price.
Kentucky’s housing inventory slipped in July year-over-year after seeing the first annual increase last month. The 3.82 months of supply in July was down 2.1 percent versus July 2017, but was more than the 3.47 months of supply available in June. For the year, inventory is down 2.6 percent versus the same period in 2017, showing 4.14 months over the first seven months of the year. Nationally, housing inventory remained at a 4.3-month supply.
"Properties priced correctly are being scooped up fast,” said Cline. “The market is still hot in most areas of the state, making it difficult for would-be buyers to move on a house before it’s gone.”
In fact, July saw a 15.9 percent decline in the amount of time properties stayed on the market. At 95 days, this is the first month on record that homes have averaged fewer than 100 days on the market in Kentucky. Nationally, properties typically stayed on the market for 27 days in July, a 10 percent drop from a year prior. Across the country, 55 percent of homes were on the market for less than one month.
“Because Kentucky has a low cost of ownership, many people are looking to purchase instead of rent,” continued Cline. “With a lower than usual supply of homes on the market, demand has been pushed higher and in July, it seems lower priced homes outside the metro areas made up the bulk of transactions as an overall price decline was reflected across the state.”
Median prices were up in the three largest areas of the state – Louisville, Lexington and Northern Kentucky.
Looking forward, Yun has said that rising inventory levels, if new home construction can finally start picking up, would help slow price appreciation, help aspiring first-time buyers and be good for the long-term health of the nation’s housing market.
Kentucky REALTORS® is one of the largest and most influential associations in Kentucky. Founded in 1922, Kentucky REALTORS® represents more than 11,000 REALTORS® who are involved in all aspects of real estate, including residential and commercial real estate brokers, sales agents, developers, builders, property managers, office managers, appraisers and auctioneers.
To view housing statistics for the state, as reported to Kentucky REALTORS®, visit housingstats.kyrealtors.com.
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- Kentucky's unemployment report for July 2018 released
- August 20, 2018
Kentucky’s seasonally adjusted preliminary July 2018 unemployment rate was 4.3 percent, according to the Kentucky Center for Statistics (KYSTATS), an agency of the Kentucky Education and Workforce Development Cabinet. The unemployment rate for July 2018 was up from the 4.2 percent reported for June 2018.
The preliminary July 2018 jobless rate was down 0.7 percentage points from the 5 percent recorded for the state in July 2017.
The U.S. seasonally adjusted jobless rate for July 2018 was 3.9 percent, down 0.1 percentage point from the 4 percent reported for June 2018, according to the U.S. Department of Labor. Read More
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- Home sales experiencing a decline in Kentucky
- August 8, 2018
Prices and inventory on the rise throughout the state
June home sales were at the lowest level for the month since 2014, with the number of transactions decreasing 5.4 percent compared to a year ago (5,504 in 2017 versus 5,207 in 2018). Even with the decline, total home sales for the first half of 2018 are still on track to be the second highest ever for Kentucky. Through June, home sales reached 25,253, only 2.7 percent (or 697 total homes) below the same period in 2017 when 25,950 homes sales were recorded.
Across the country, sales were down slightly for the month, with the National Association of REALTORS® (NAR) reporting a decrease of 2.2 percent when compared to June 2017.
Lawrence Yun, NAR chief economist, said closings, on the national front, fell on an annual basis for the fourth straight month as there continues to be a mismatch between the growing homebuyer demand in most of the country in relation to the actual pace of home sales, which are declining. He continued by saying the root cause is without a doubt the severe housing shortage with available properties going under contract very fast. This dynamic is, in turn, keeping home price growth elevated, pricing out would-be buyers and ultimately slowing sales.
The state’s housing inventory rose year-over-year for the first time in 2018, with 3.47 months of supply in June, slightly higher than it was in May 2018 and in June 2017. For the year, however, inventory is down 2.6 percent versus the same period in 2017. Nationally, housing inventory is 0.5 percent above a year ago, which is the first year-over-year increase since June 2015. Inventory levels across the U.S. stand at a 4.3 month supply.
“Properties are not staying around on the market very long,” said Steve Cline, the 2018 president of Kentucky REALTORS®. “Even though the inventory shortage didn’t show a statistical decline in Kentucky, homebuyer demand continues to strengthen in many markets and there just aren’t enough homes currently available to satisfy the demand, especially in the more affordable price ranges.”
This is evident when looking at the days on market (DOM), which shows how many days a home has been actively listed for sale. In Kentucky, days on market has dropped to just under 115 days for the first six months of the year, down 6.5 percent over 2017 when it was at 123 days. In June, DOM dropped to 107 days, from 115 in June 2017, a decrease of 7 percent. On the national level, the amount of time a property stayed on the market is surprisingly low, with NAR reporting 26 days in June, down from 28 days a year ago. Fifty-eight percent on homes sold in June across the country were on the market less than a month.
“The current level of homes available in Kentucky is far from what’s needed to satisfy demand levels,” added Cline. “And given the fact that the growing economy is bringing more potential buyers into the market and new home construction is still below where it needs to be, this demand is driving up prices in many parts of the state.”
The state’s median home price jumped to $144,271 in June, an 8 percent increase over June 2017 and 7.8 percent over the previous month. June marked only the second month (July 2017) where the median price exceeded the $140K threshold. For the year, the median home price increased to $131,433, up 6.4 percent from the first six months in 2017 when prices were $123,497. Nationally, the median home price in June reached $276,900, an all-time high, and up 5.2 percent from the same time last year when prices were $263,300. June marked the 76th straight month of year-over-year gains.
“Even with the upward momentum of prices for homes in Kentucky, they are still affordable when compared to the national picture,” said Cline. “In addition, reports are showing that a national trend of increasing supply may be playing out and if this proves to be true, prospective buyers will begin to see more choices and a softer price growth as we move forward.”
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- CRS: Zero to Sixty Home Sales a Year
- August 1, 2018
Hosted by Kentucky REALTOR® Institute
Instructor: Dale Carlton
Monday, September 24
The Galt House, Louisville, KY
8:30am - 5pm (registration opens at 7:30am)
8 CRS Hours
8 GRI Elective Hours
6 CE Elective Hours
6 PLE Elective Hours
Convention attendees receive a discount and can sign up for this course when registering for the event.
Do you dream of selling 60 homes or more per year, but aren't sure where to begin? Whether you are looking to jumpstart your business or just starting out, the RRC One Day Course, Zero to 60 Home Sales a Year (and Beyond) will help you accelerate your home sales and create a continuous flow of business. Learn new marketing methods that will help you position yourself as the REALTOR® of choice in your area.
Upon the successful completion of this course, you will be able to:
- Develop an effective plan to sell 60 homes (or more) a year
- Create a continuous stream of referrals
- Build an effective team to support your plan
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