The real estate market in Central Kentucky has seen significant growth and change over the past year. There are several notable developments that professionals in the industry should be aware of.
Despite what you may be hearing: Low inventory of homes for sale
One of the most significant trends is the low inventory of homes for sale. This has led to a highly competitive market for buyers, driving up home prices and making it challenging to find suitable properties. According to a recent report by the Greater Louisville Association of Realtors, the inventory of homes for sale in Central Kentucky decreased by 28% in 2022. With more people looking to move to the area, the demand for homes has skyrocketed, resulting in bidding wars and increased home prices.
Despite what you may be hearing in the national media, it is still a very strong seller’s market in Central Kentucky even with the rising interest rates on homes.
Rental rates in the region have also increased significantly
Furthermore, rental rates in the region have also increased significantly, as more people opt to rent instead of buying a home. This trend is likely due to the lack of available inventory and the high costs associated with buying a home. According to a report by RentCafé, the average rent in Central Kentucky increased by 7.3% in 2022, compared to the national average of 3.2%.
There are still opportunities to be found in the Central Kentucky real estate market
However, despite the challenges facing homebuyers and renters, there are still opportunities to be found in the Central Kentucky real estate market. One of the most notable trends is the increase in interest in rural properties and land. With more people seeking to escape the hustle and bustle of city life, there’s a growing demand for larger properties and land with plenty of open space and outdoor amenities.
In addition to rural properties, there are several up-and-coming neighborhoods in Central Kentucky that are worth considering. For example, the Jefferson Street corridor in Lexington is seeing significant revitalization, with new businesses and residential developments popping up in the area. In Louisville, the Germantown and Shelby Park neighborhoods are also experiencing a surge in popularity, thanks to their proximity to downtown and their affordable housing options.
The impact of COVID-19 on the Central Kentucky real estate market cannot be ignored. The pandemic has accelerated several existing trends, such as the shift towards remote work and the desire for more outdoor space. As a result, homebuyers are prioritizing larger properties with home offices, outdoor amenities, and plenty of space for entertaining.
In conclusion, the Central Kentucky real estate market is dynamic and ever-changing. While the low inventory and high costs may present challenges for homebuyers and renters, there are still opportunities to be found in rural properties, up-and-coming neighborhoods, and properties that meet the demands of the post-pandemic buyer. By staying informed and working with a knowledgeable real estate agent, you can make informed decisions and take advantage of the opportunities available in this exciting and dynamic market.
To learn more about the Central Kentucky Housing Market. We recommend contacting the Make Kentucky Home Group at EXP Realty.