The Lexington, Kentucky housing market has experienced significant change and interesting trends in 2024. Understanding the nuances of the Lexington housing market is essential for prospective homebuyers, investors, or those simply interested in the real estate industry.
What will the Lexington KY housing market look like in 2024?
Lexington Home Prices
the current May 2024Home prices in Lexington have been rising consistently. Rocket Homesthe median home sales price is about $314,842Reflecting the increase in 6.6% That compares favorably to last year. Similarly, Redfin reported that home prices 4.8%the average price of a house is $330,000.
| metric | value |
|---|---|
| Average Home Price (May 2024) | $314,842 |
| Annual price increase | 6.6% |
| Average Listing Price | $330,000 |
| Average home price (Zillow) | $305,566 |
This upward trend suggests strong interest and demand in the Lexington area despite fluctuations in the overall real estate market.
Sales Dynamics
- Average days on market: Lexington homes are typically 24 days On average, this indicates a relatively fast turnover rate.
- Sale price and listing price: Interestingly, 40.4% Homes sell for less than the asking price, allowing buyers to negotiate and secure better terms.
Apartment Rent
If you are considering renting: Rent Cafe The average rent is $1,245 In Lexington, it is below the national average. $1,713.
Lexington Housing Predictions for 2024 and beyond
of Lexington-Fayette, Kentucky Housing Market It has been steadily rising in recent years. But what happens after 2024? Let’s take a closer look at predictions based on available data and analyze whether a crash or boom is more likely.
By the numbers: potential change
Based on data from Zillow, forecasts for the Lexington Metropolitan Statistical Area (MSA) suggest the housing market may be slowing. Here’s the breakdown:
- June 2024 (0.4%): A gradual increase is expected in June, with the upward trend expected to continue.
- Next quarter (July-September 2024) (0.3%): Growth is expected to slow further in the next quarter.
- Forecast for 2025 (-0.3%): It is predicted that house prices may fall in 2025.
Why did it slow down?
Several factors may be influencing this potential change.
- Rising interest rates: The Federal Reserve has been raising interest rates to fight inflation, which could raise mortgage costs and discourage homebuyers.
- Inventory Increase: A slowdown in projected growth could lead to an increase in the number of homes for sale, which could result in a more balanced market, with buyers having more options and sellers having to negotiate.
- Domestic market trends: Housing markets across the nation are also showing signs of slowing, and a national correction could impact Lexington as well.
Crash or boom?
The data suggests a potential slowdown, not necessarily a crash, and here’s why.
- Slow decrease: The projected decline for 2025 is -0.3%, indicating a very slight decline rather than a steep drop.
- A strong foundation: Lexington’s economy remains healthy, with job growth and an attractive location to attract residents, which could provide a buffer against a major economic downturn.
What to expect:
- A more balanced market: With more inventory and fewer potential bidding wars, the market could favor buyers who can negotiate and find a deal.
- Slow evaluation: We may see fewer double-digit price increases, and we can expect more gradual and manageable increases.
summary:
The Lexington-Fayette housing market appears headed for a correction, not a crash, and while a price correction may occur, the city’s strong fundamentals suggest long-term stability.
Factors influencing future trends
The following factors are expected to shape Lexington’s housing market in the future:
- Interest level: of Mortgage Bankers Association The interest rate is about 6% By the end 2024 And more 5.5% Ahead of time 2025.
- Housing SupplyHousing inventory is expected to gradually increase, which could help moderate home price increases.
according to HauseoExperts predict:
- Moderate price increaseHome prices in major cities across Kentucky, including Lexington, are expected to rise steadily, if at a slower pace.
- Benefits for sellers: Due to a housing shortage, Kentucky It remains a seller’s market, and homes tend to sell faster and for higher prices.
Are Kentucky home prices falling?
While home prices are rising across Kentucky, some areas, including parts of Lexington, are seeing fluctuations. Real Estate Agent.comThe median home price in Lexington in May 2024 is $369,000. 7.5% Year-over-year comparison. This suggests that buyers may have an opportunity to find a good deal in a particular area.
Is it a good time to buy a home in Kentucky?
Why buy now?
- Stabilizing interest ratesAs mortgage rates become more predictable, securing a loan can become easier and more affordable.
- Possible deal: The majority of homes are selling below the asking price, giving buyers the opportunity to negotiate better terms.
Disadvantages of buying now
- High demandA seller’s market can mean intense competition for desirable properties.
- Price IncreaseA steady and significant rise in home prices can mean higher upfront costs.
recommendationIf you’re planning on buying, consider getting into the market early while interest rates are stable but not yet rising.
Is it a seller’s market?
in Lexington, KentuckyThe market is leaning heavily in favor of sellers, as evidenced by steadily increasing prices, high demand, and faster turnover in sales. Rocket Homes Lexington is classified as a seller’s market, meaning properties sell faster and sellers often enjoy favorable terms.
- Quick SaleHomes are selling within 24 days, highlighting the robust market activity.
- High demandWith a limited supply of homes available, sellers continue to have strong negotiating power.
| Market Trends | indicator |
|---|---|
| Average sales time | 24 days |
| Percentage of homes sold below asking price | 40.4% |
Is Lexington, Kentucky an expensive place to live?
Cost of living
Compared to other major cities, Lexington It’s a relatively affordable place to live, although the cost of living is higher than other areas of Kentucky. Moving Wally They emphasize that utility rates and the overall cost of living are comparable to other cities in the state. Rent Cafe He noted that Lexington’s cost of living is about 1% lower than the national average, making it more affordable than many other metropolitan areas.
Comparison with other cities
| city | Cost of living |
|---|---|
| Lexington, Kentucky | 1% lower than the national average |
| Hebron Estates | Higher than Lexington |
| Louisville, Kentucky | Comparable to Lexington |
summary:
Summary, 2024The Lexington housing market is in a delicate situation. With strong price performance and a clear sellers’ market, there are clear advantages for both buyers and sellers depending on strategy and timing. Home prices are generally trending upward, but buyers may still be able to find favorable deals, especially with mortgage rates remaining stable.
