One of the best indicators of the following month’s home sales is pending sales. For the third consecutive month, year-over-year pending home sales continue to drop, signaling a slow and steady recovery to a more sustainable market pace. Pending sales in August dropped slightly over ten percent to 7,690 (from 8,593 in August of 2020). Closed sales were down just under three percent at 5,458. In August, Kentucky’s year-to-date sales stand at 38,379. This is a 7.5% increase from 2021 when that number reached 35,704.
Nationally, total existing-home sales, completed transactions that include single-family homes, townhomes, condominiums and co-ops, fell 2.0% from July to a seasonally adjusted annual rate of 5.88 million in August. Year-over-year, sales dropped 1.5% from a year ago (5.97 million in August 2020).
“Sales slipped a bit in August as prices rose nationwide,” said Lawrence Yun, NAR’s chief economist. “Although there was a decline in home purchases, potential buyers are out and about searching, but much more measured about their financial limits, and simply waiting for more inventory.”
The median sale price of homes in Kentucky jumped by ten percent from $199,900 to reach $220,000. This figure is down just slightly from July’s record high of $225k. “This plateau of the sale price trend couldn’t have come at a better time”, said Kentucky REALTORS® C.E.O. Steve Stevens. “Generally, the fall and winter months see a slowing down of the market’s pace. We’re hopeful that growth in inventory will continue to moderate prices a bit further.”
70% of Kentucky REALTORS® said that their buyers were waiting for prices to stabilize, according to the August 2021 edition of the HousingIQ Survey of Kentucky REALTORS®. “Amidst the uncertainty caused by the Delta variant, struggling homeowners who are also exiting mortgage forbearance should consult with their local market experts”, said Charles Hinckley, President of Kentucky REALTORS®. “Last year’s price gains have likely created an equity cushion. A REALTOR® can educate them about their options.”
Housing inventory continues to hover at a critically low level. Though the figure stands at more than double what it was in the spring, it still would take only about 2 months to sell every home currently listed in the Commonwealth. Experts agree that a stable housing market contains about 6 months of inventory.
Distressed sales in Kentucky sat at just 12 units in August. This is identical to the August 2020 figure.