February 2020

Thursday, February 27, 2020

2020 is off to a great start with home sales jumping 18.5% over January of 2019. The closings figure reached a record high for the month at 3,153 homes sold, compared to 2,661 in January of 2019.

For the second straight month, overall nationwide sales substantially increased year-over-year, up 9.6% from a year ago (4.98 million in January 2019). Lawrence Yun, NAR’s chief economist, finds the outlook for 2020 home sales promising. “Existing-home sales are off to a strong start at 5.46 million.” Yun said. “The trend line for housing starts is increasing and showing steady improvement, which should ultimately lead to more home sales.”

Jan 2020The median sale price (month-over-month) in Kentucky for January was up 5.1% at $167,000. In 2019, that figure reached 158,950. The median price has been steadily climbing as low-inventory figures in urban markets continues to act as a barrier to buyers making a move. Sellers continue to find the median sale price reaching 98% of the median listing price ($170,000) across the state.

January’s days-on-market (DOM) figure rose just under 5% over last year’s mark to 138 days. Another month-over-month increase comes as a relief to property owners who may have been waiting a bit longer to enter a pending status. With a shortage of homes entering the market, low inventory continues to affect affordability and buyer flexibility.

Sales volume was up significantly in January. A 21% increase in volume means total sales reached $11.15 million, compared to $9.9 million in January of 2019). Lester Sanders, President of Kentucky REALTORS®, says that rising prices are definitely impacting the economy. “With prices steadily climbing, the amount of dollars within the record number of transactions is noteworthy”, he said. “We continue to watch for any signs of a slowdown, but so far it looks like we could continue to see record-breaking statistics as we head into the warmer months.”

Homes available for sale remain under the ideal level of a 6-month supply. The January figure of 4.4 months of inventory is down 13% from last year’s figure of 5.1 months. This market condition is expected to persist through 2020.

Friday, February 7, 2020

Housing market data is a powerful tool for tracking trends and shedding light on how a particular area or market has performed over time. Historically, Kentucky REALTORS® has compiled housing statistics and published market performance data for public consumption. However, one piece that has always been missing was a predictive tool to use data to forecast how the housing market will perform in the future.

As part of its mission to educate and inform the public about Kentucky’s Housing Market, Kentucky REALTORS® has teamed up with data company HousingIQ to create a unique market forecast for the Commonwealth. HousingIQ has developed a platform that looks at various market input data, such as housing data, local labor market conditions, interest rates, and personal consumption, and then uses that information to predict how the average consumer’s financial situation and housing needs might affect the market over the next 12 months.

“It’s a comprehensive look at the myriad of factors that can affect the housing market in a given area”, said Vidur Dhanda, founder of HousingIQ parent company WAIN Street. “Quantifying the vitality of a housing market is a valuable tool for the real estate industry and it’s a great use of our economic data curated from both public and proprietary sources.”

Kentucky REALTORS® President Lester Sanders said this is just another way that the state association can serve both its membership and decision-makers across the state. “We’ve always been able to tell legislators how many homes sold in their district in a given month. Now we are able to convey what the market forecast looks like which can possibly shape policy” Sanders continued. “These decisions will affect the consumer and are tied directly to our advocacy goals.”

Currently in development is a REALTOR® market opinion survey which will take “street-level” knowledge and expertise and quantify REALTOR® confidence. This additional look at the market adds a human factor that transcends a numbers-driven formula.

KYR Director of Communications, Paul Del Rio, who is helping cultivate the partnership with HousingIQ, is hopeful that this will evolve into a powerful tool that is useful to more than just KYR REALTOR® members. “REALTORS® will love having this data to share with their buyers and sellers but the real estate industry affects almost every aspect of life and businesses in the state”, he said. “Lawmakers, small business owners, homebuilders and investors all have a vested interest in how the market performs. We are confident these reports will be a valuable resource to them as well.”

To visit the Housing Market Reports page and access the Housing Market Vitality Report, click this link.

Monday, February 3, 2020

Senator Gerald A. Neal (D), Louisville, has filed a resolution honoring KYR President Lester T. Sanders. The bill was introduced on February 3rd and seeks to honor the Kentucky REALTORS® President, in part, for being the first African American President elected in its 97-year history. You can view the resolution's information at this link.

The resolution, as introduced, is below.

 

20 RS BR 1551

1 A RESOLUTION congratulating Lester Sanders upon being named the first African

2 American President of Kentucky Realtors.

3 WHEREAS, it is appropriate that this body honor those Kentuckians who become

4 leaders in their fields, and who blaze trails that future generations of Kentuckians will

5 proudly follow; and

6 WHEREAS, Lester Sanders is one such Kentuckian, and this august body rightfully

7 honors him on this day; and

8 WHEREAS, Lester Sanders is a proud graduate of Eastern Kentucky University;

9 and 10 WHEREAS, Lester Sanders worked for Semonin Realtors for 29 years and had

11 been named 2019 Realtor of the Year by the Greater Louisville Association of Realtors

12 and Kentucky Realtors; and

13 WHEREAS, Lester Sanders was recently named President of Kentucky Realtors,

14 becoming the first African American president in that organization's illustrious 97-year

15 history; and

16 WHEREAS, noting that Kentucky Realtors will focus on such important issues as

17 supporting local programs focusing on economic development and fair and affordable

18 housing, Lester Sanders vowed to continue to help Kentuckians with the most

19 fundamental decision of their lives: where they will live, work, and raise their families;

20 and 21 WHEREAS, the members honor Lester Sanders on this day upon this historic

22 achievement, and grant him very best wishes as he leads Kentucky Realtors into a new

23 and exciting future;

 

24 NOW, THEREFORE,

25 Be it resolved by the Senate of the General Assembly of the Commonwealth of

26 Kentucky:

27 Section 1. The members of the Senate hereby honor Lester Sanders upon being

1 named the first African American President of Kentucky Realtors.

2 Section 2. When the Senate adjourns this day, it does so in honor of Lester

3 Sanders.

4 Section 3. The Clerk of the Senate is directed to transmit a copy of this

5 Resolution to Senator Gerald A. Neal for delivery.