Fayette County Housing Inventory is Shrinking but is Still a Buyer’s Market

Prices continue to climb in the Central Kentucky housing market but inventory still remains fairly high.  We are seeing the inventory in Fayette County begin to near a neutral market and in some price ranges Fayette County has now become a seller’s market.

The last column in the chart below shows the months of inventory of homes for sale in Central Kentucky for the various price ranges.  The  chart that follows shows the same for just Fayette County.  

Inventory of home on the market for July 2012 in Central Kentucky

Prices are up but inventory is still a buyer's market in Central Kenucky for July 2012

 

 

The chart below shows the inventory for homes on the market in Fayette county is trending toward seven months.  Historically six months is the turning point.  If the inventory falls below six then we tend to be in a seller’s market.  For homes priced below $300,000 we are mostly at seven months inventory.

 We are only one month away from being in a neutral market.  This is a considerable change from a year ago when these price ranges mostly ranged between 8 and 13 months inventory.  

So with historically low interest rates and great home values this is the perfect time for buyers to make a move before the market switches to the seller’s advantage.

Home prices in Fayette County rise as inventory shrinks.

Inventory of homes for sale in Fayette county for July 2012 edges toward a seller's market.

 

Home Price Continue to Edge Up and Inventory Drops in Central Kentucky

Could this be the best time to buy and sell in Central Kentucky?  Many people are of that opinion.  

Now is the time to buy!  Could it also be the time to sell?

Line graph emphasizes the market conditions for home buying in Central Kentucky.

 

With interest rates continuing to hover at record low rates and inventory of homes for sale starting to drop this could be the best of times to buy and sell a home in Central Kentucky. 

Home prices climb in June 2012 for central Kentucky

Prices increase for Central Kentucky homes for the second month in 2012.

Buyers can buy homes in most Central Kentucky communities and their payments will be less than if they were to rent the same home.

Sellers can take advantage of the lower inventory and the larger numbers of buyers.  With prices of homes sold  rising for two consecutive months and a large number of buyers finally surfacing this may be the ideal time to sell.  Of course prices could continue to rise and it may   be even better later.  Then again if interest rates were to climb quickly which historically happens after a long recession we could quickly see buyers priced out of the market.  That could lead to a bigger decrease in sales and home prices could take another dip.  

So what do you do?  The old cliche “a bird in the hand is worth two in the bush” is always worth remembering.  The only thing any of us know for sure is what is happening in the present.  

For buyers there is no doubt that now is an ideal time to shop for a home.  Sellers this is a good time to sell and only the future will tell us how good a time.

March 2012 Changes in the Central Kentucky Housing Market

The number of homes sold in Central Kentucky continued to rise in March,

Central Kentucky Sales Prices by County for March 2012

Central Kentucky Sales Prices Rise and Drop Depending on the County

What happened to prices in Central Kentucky for March 2012?

Prices continued to fall the first two months of 2012 in Central Kentucky even though the number of houses sold increased.   The number of homes sold continued to rise in March. In fact according the the Rector Hayden Market Report for April 2012 sales continued to rise and prices finally rose also in some counties.

Don’t get too excited.

 Prices are still lower than they were in 2004 for the Central Kentucky housing market and continue to be three percent lower than they were for 2011.

Some Central Kentucky Counties Post Gains in March 2012, Others Lose.

The best news may be that Fayette, Bourbon and Clark counties all have show a slight gain in 2012.  Unfortunately Jessamine, Madison, Scott and Woodford counties have all shown sharp losses.  

Why are some counties home prices increasing and others dropping?

It is hard to pinpoint why some of the outlying counties have had slight gains and others sharp losses this year.  I first thought maybe it has something to do with a high priced horse farm selling in some of the counties.  However upon looking closely at the sales for all seven counties none of the outlying counties with horse properties had anything sell for more than $600,000.

The rising prices of gas would explain why more people may not want to move out of the outlying counties.   Energy costs can certainly be a reason why home prices may be going up in Fayette County.  Most of the employment is in the urban area and people will save on gas living in Fayette County.  However Bourbon and Clark counties also saw increases in prices and both have significant commutes to Lexington.

The Toyota Plant in Georgetown is the third largest employer in Central Kentucky.  However prices continued to drop substantially in Scott County the location of the Toyota plant.

What is Happening to Housing Prices in Central Kentucky in 2012?

Housing Prices Were Down in Central Kentucky for 2012.

The average price of a home that has sold in 2012 in Central Kentucky was over $10,000 less than the sale price price of homes in 2011.

The average sale price of homes in Central Kentucky so far this year is lower than 2003.

Why Have Prices Dropped?

Why is this?  I think a big part of this has to do with what is selling.  There is a large inventory of homes right now that are bank owned or short sales.  Investors are buying up these homes and renting them or fixing them up and reselling them.

So if you are selling your home these lower prices may not reflect what has happened to your home.  Lexington continues to have hyper local markets.  There are places in Lexington where the prices have actually risen the past few years.  There are other places which have seen a large decline.  As we explore this months Rector Hayden Market Report you will notice that there are also differences from city to city and county to county.

Check out this link to read the earlier market report post for February 2012

Sales Prices in Central Kentucky Homes Continue to Decline

Central Kentucky Market Report for February 2012 – More Surprises

A Review of Housing Sales for  January 2012.

Last month we saw sales for homes in Central Kentucky for the month of January rise above what any of us had expected.  Twice as many homes sold in January of 2012 as did in January 2011.  In fact it was the highest January in sales in five years.

February 2012 –  Surprises in Home Sales in Central Kentucky

Sales of home surprisingly low for February 2012

So what happened in February to home sales in Central Kentucky?   With the springlike weather and the improved sales in January I expected sales for February to continue to improve.

Not so.  Sales took almost a fifty percent drop in Central Kentucky compared to January 2012.  If you look at the chart above you will notice sales have risen from January to February over the past three years.  So this downturn is hard to understand.  I really do not have any idea why this has happened.  In future post I will take a look at more specific information on the sale of homes in specific Central Kentucky counties.

 

A Positive Change in the Lexington Kentucky Housing Market, My Observation

I moved to Lexington three and a half years ago.  When I began showing homes to

A House Not Ready to Sell

buyer clients at that time I was shocked at how poorly most of the homes I visited were presented.  It seemed that most homes were either in very poor condition, needed to be cleared of masses of clutter  or were in just basic need of general maintenance.

Today I showed 12 homes to a new buyer client.  Only one of those twelve homes in Lexington was in poor condition.  All were pretty clean and most were in good to excellent condition.  Some did need a little maintenance and others needed an obvious repair.  

Lexington Home Sellers I want to applaud you for making great strides in getting your homes ready to sell.  Lexington Realtors I want to also congratulate you for helping educate your sellers on what needs to be done to get their homes sold.  Lets continue to work together to improve the housing market and spur on the housing recovery.

 

A well cared for home. 976 Tanbark Road, Lexington Kentucky

January Homes Sales Soar in Central Kentucky, What Happened to the Prices?

As noted in an earlier post January 2012 home sales in Central Kentucky increased almost a hundred percent over January 2011.  With that kind of jump in sales it seems that maybe prices would begin to rise also.

Not so!  Prices for January 2012 were almost 7 percent lower than the average home that sold in Central Kentucky in 2011.  

The inventory is down in Central Kentucky which is expected during the winter months.

Home sales increased almost a hundred percent.

Yet, prices continued to fall significantly.  

It will be most interesting to see what the next few months bring to Central Kentucky home sales.  It certainly seems to be a great time for home buyers.  Is it time for sellers to wait for prices to increase before selling?  Only time will tell.

Lexington KY Home Sales for January 2012, SURPRISE?

Home sales for Central Kentucky for the month of January in 2008, January 2009, January 2010, and January 2011 were respectively:

2008 – about 500

2009 – about 300

2010 – less than 400

2011 – about 350

So what would you expect home sales in Central Kentucky would be for January 2012?  

  • The weather has certainly been much warmer than last year.  
  • Interest rates are the lowest in history.
  • Employment has increased.
So all these points should lead to an increase in home sales.

Not only were home sales up but they increased almost a hundred percent from 2011 and were 57 percent higher than the average of the previous four years.  

Central Kentucky Market Report

We continue to see a steady stream of buyers so hopefully this is the beginning of the recovery of the housing market.  Before we get too excited we need to look at prices.  Log in tomorrow to see what happened to prices in January of 2012.