The year-to-date median sale price for a Scott County home increased 10 percent over the same period last year, mirroring a trend throughout Central Kentucky, according to September statistics released by Lexington-Bluegrass Board of Realtors (LBAR).
Demand and low inventory has driven up prices over the first nine months of the year to $227,000 for a Scott County home, a 9 percent increase over last year when the median was $207,288. Scott County’s September figures, however, are flat at $239,900, compared to last September’s median price of $240,550.
There were 109 Scott County homes sold this September, a jump of 9 percent over September 2019 when 100 homes were sold. Days a house was on the market fell 40 percent from 47 days last September to 28 days in September 2020. There are 82 pending transactions in the county at the end of September, according to LBAR.
The number of listings in Scott County has fallen 13 percent over the same period last year with 1,131 listings, compared to 1,299 last year. Year-to-date, the number of days a house is on the market has fallen 24 percent from 59 days in 2019 to 45 days in 2020.
LBAR reports on 26 counties in Central Kentucky and the same trends are being reported throughout the region. Demand has driven up home prices over the first nine months of the year. The median price of a home in September hit $209,900, a 17 percent increase over last year when the median was $180,000. The September median is up over 2 percent from the previous month and has spiked 21 percent from January. Home prices have risen for 19 straight months with September recording the fourth consecutive month with median prices closing above the $200,000 level.
For the third quarter of the year, the median price is up 14 percent while year-to-date, the median price for all residential properties stands at $195,000, up from $177,000 last year, a change of 10 percent.
The price increase for the month, coupled with a corresponding jump in sales, pushed the total sales volume for real estate sales up 37 percent year-over-year, reaching just over $335 million in September, up from just over $245 million last year. For the year, the total volume for real estate sales closed at over $2.5 billion, an increase of 14 percent over the $2.2 billion closed in 2019.
“Foot traffic to properties continues to exceed last year and September showings followed several months of record highs,” said Greg Buchanan, LBAR president. “The upward trajectory of prices will continue as long as inventory remains lower than what is needed to satisfy the demand in the area. But homes continue to sell at a record pace moving into the last quarter of the year.”
September marked four straight months home sales have increased in the Central Kentucky region with a 17 percent increase reaching 1,384 compared to 1,180 during the same month last year. Single-family homes jumped 19 percent fueling the increase and off-setting a 3 percent drop in the sales of townhomes and condos.
Total transactions have increased 4 percent through the first three quarters of this year with 11,186 sales compared to 10,729 last year at this time. Home sales jumped 10 percent during the third quarter with 4,552 homes sold, compared to 4,154 sold during the same quarter in 2019.
New construction had a big month in September with 137 sales, up 59 percent over the 86 sales recorded last year. This marks the seventh consecutive month with year-over-year increases for new construction and increases in 14 of the last 15 months.
Inventory is at an all-time low with only 1,966 homes available throughout the 26-county region, a drop of 51 percent from last year. September is the 10th consecutive month inventory has fallen from the previous month.
New listings in September also fell and were down 6 percent over last year with only 1,459 coming online compared to 1,548 in 2019. With this decrease, months of inventory hovered at historic lows, reaching 1.4 months, compared to 3.4 months last year, a drop of 59 percent and tied with August as the second lowest total on record.
Homes priced from $160,000 to $250,000 hovered around two to three weeks of inventory available across most of the 26 LBAR counties. In the counties of Fayette, Madison, Scott and Jessamine, the four most active counties in the jurisdiction, inventory levels remain at a couple of weeks for homes priced under $250,000. A six-month supply of inventory is often considered a balanced market, and throughout 2020, most Central Kentucky counties are far below that level.
September’s days on market (DOM) matched the August number with a decline of 14 percent year-over-year with homes taking an average of 38 days to sell, compared to 44 days last year. Seventy-three percent of homes were on the market less than a month while only 8 percent lasted more than 120 days.
“Economic conditions are strong for buyers and are getting better with low interest rates, unemployment numbers declining and consumer confidence rising a 17-year high in September,” stated Buchanan. “However, we continue to see a tightening of inventory as people are not bringing homes to market to match the demand we are experiencing. We don’t have enough homes to sell as this is an ongoing issue for our area.”
Freddie Mac reported another all-time low, the tenth record this year, as the 30-year mortgage rate hit 2.81 percent. Rates have averaged below 3 percent for several weeks, while rates a year ago hovered near 3.5 percent.
Mike Scogin can be reached at email@example.com.