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.

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