FRANKFORT, Ky. — With more vaccinations distributed and the pandemic coming under control, some Kentucky realtors think the housing market will improve for buyers soon.
What You Need To Know
- HousingIQ surveyed 318 Kentucky realtors
- Over 1 in 4 Kentucky Realtors expects homes to stay on the market longer over the next year
- 2 in 5 Kentucky Realtors anticipate an increase in inventory in the next 12 months
- 40% of survey respondents expect increased sales to first-time homebuyers
"With the success of the COVID-19 vaccine roll out and optimism about the recovery, previously reluctant sellers are returning," said Vidur Dhanda, the author of the Housing IQ survey. "As buyers become more certain about their financial situation, demand will continue to stay strong, although, higher interest rates and overall affordability issues will moderate price growth."
For its latest report, HousingIQ surveyed 318 realtors from across Kentucky. It found that over one in four Kentucky realtors surveyed expect houses to stay on the market longer over the next twelve months than they have been recently. For a while now, it has been a sellers' market. Kentucky realtors say homes have been flying off the market soon after listing.
A housing inventory shortage is driving that trend. However, the HousingIQ survey finds two out of five Kentucky realtors anticipate an increase in inventory in the next 12 months.
Recently released figures from Kentucky Realtors found the aggregate volume in pending home sales contracts for the state of Kentucky reached a record high in April. $2.2 billion in transactions were under contract in April 2021. That is up 47% over the $1.5 billion in pending sales volume for both April 2020 and 2019.
The Kentucky Realtors report said home sales numbers continue to be up year-over-year, but the meteoric rise in volume is largely due to the higher prices that the current housing market is commanding.
Closed sales are up once again in the Commonwealth. In April, 4,738 homes were sold. This is up 25% from 3,793 in April of 2020. The pending sales count was also up 25%, reaching 8,413 in April.
Nationally, existing-home sales waned in April, marking three straight months of declines, according to the National Association of Realtors. All but one of the four major U.S. regions witnessed month-over-month drops in home sales, but each registered double-digit year-over-year gains for April. The Southern region accounted for 44% of all existing home sales across the nation.
"Home sales were down again in April from the prior month, as housing supply continues to fall short of demand," said Lawrence Yun, National Association of Realtors chief economist. "We'll see more inventory come to the market later this year as further COVID-19 vaccinations are administered and potential home sellers become more comfortable listing and showing their homes. The falling number of homeowners in mortgage forbearance will also bring about more inventory."
Kentucky Realtors said the median sale price of homes in Kentucky for April was up about 10%, to $205,000. Year-to-date, Kentucky’s median sale price is up almost 12% at $198,000.
“Across the Commonwealth, and the entire nation, housing inventory continues to be the main factor in both rising prices and the speed at which homes are going under contract”, said Charles Hinckley, president of Kentucky Realtors. “We encourage anyone considering listing a home for sale to consult with a realtor to learn about all options available and how the market will react to their particular property.”
Kentucky Realtors CEO Steve Stevens, says although this market pace is not sustainable for the long term, experts are not anticipating a crash.