Kentucky metro area house prices are forecasted to track the national market over the next twelve months. Currently, the market is tracking the overall U.S. market. Compared to 12-months ago, Kentucky’s housing market has strengthened. Current local economic conditions support an estimated 6.8% 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 twenty-ninth amongst all states and D.C. The three-month outlook is neutral.
Forty-five percent of Kentucky REALTORS® expect houses to stay on the market for longer over the next twelve months, according to the June 2021 edition of the HousingIQ Survey of Kentucky REALTORS®. Thirty-six percent of the 354 REALTORS® from across Kentucky, expect an increase in price reductions by sellers over the next twelve months. Forty-eight percent of the REALTORS® said their buyers were waiting for a pickup in new construction. “
As the economy opens up and consumers get increasingly more confident about their job prospects, potential homebuyers are less likely to feel pressured into buying whatever is available. All the more so when substantial mortgage rate increases are not imminent and housing construction bottlenecks are starting to ease,” explained Vidur Dhanda, author of the survey. In the latest issue of the Home Purchase Sentiment Index, Fannie Mae reported that 64 percent of the respondents said it’s a bad time to buy a home while 77 percent said it’s a good time to sell."
- 40% expect house prices to increase
- 36% expect increased price-cutting
- 47% expect an increase in sales volume
- 45% expect houses to stay on the market longer
- 48% said buyers were waiting for a pickup in new construction
- 44% expect fewer offers per house