Home prices in the region increased to $250,000, tying the second highest median price mark all-time and a new monthly high for April. Last year, the median price stood at $245,000, resulting in a 2% increase year-over-year and the slowest rate of increase since November 2022. April marked the 50th consecutive month of year-over-year price appreciation. For seven months in a row, starting in the last quarter of 2022, year-over-year price appreciation has remained in the single-digits. Year-to-date, median prices are up 6% in 2023 compared to 2022.
April’s total volume dropped to $291 million in residential real estate sold, a 30% decline over last year’s total of $414 million. On the year, total sales volume hit $1 billion through the first four months of the year, down 19% from the 2022 total of $1.3 billion.
“Price appreciation has been suppressed over the past few months,” said Kelley Nisbet, president of Bluegrass Realtors®. “The inventory crunch and demand for housing, however, continues to keep prices elevated in the region even as prices slipped nationwide.”
Real estate listings that hit the market in April decreased 27%, a monthly low, when compared to a year ago, with 1,372 residential properties. Last year, 1,871 properties came onto the market. The drop in new properties marks six consecutive monthly lows since October 2022.
Inventory levels retreated month-over-month for the sixth straight month, reaching 2,207 active homes on the market. The 4% decline over last year is the first dip in inventory that has been seen in 2023 and snaps a 12-month streak of year-over-year inventory gains.
Months of inventory stayed at 2.2 months in April and ties last month as the lowest level since August of last year. This is a 38% increase over last April when inventory stood at 1.6 months, one of the lowest ever. Year-over-year, months of inventory has risen for 12 consecutive months, however, over the past few years, inventory levels reached historic lows.
“The market across the region needs a more robust supply of inventory to give buyers more options,” continued Nisbet. “Fayette County only has about a dozen available properties under $200,000 which means first-time buyers face an uphill battle in their search. Until move-up buyers are provided with ample choices, housing transactions will remain at a standstill.”
April experienced a 30% drop in residential home sales with 1,021 compared to last year when there were 1,456 sales. April’s total sales were also down 8% from the previous month. Single-family home sales for the month stood at 958, a drop of 30%, while townhouse/condo sales were 63, a decline of 32% year-over-year.
After tying a monthly high in March dating back to 2008, new construction sales stood at 100, a slide of 27% over the previous month and down 19% year-over-year.
Pending sales in April fared better than total closed sales when compared to a year ago. The 1,282 homes under contract were a high for 2023 but were 16% lower than the 1,529 pending sales in April 2022.
Homes are taking longer to sell with days on market (DOM) continuing to trend upward in April, marking nine straight months with year-over-year increases. The 43 days were the lowest in 2023 so far but up 72% from last year when homes on the market remained for 25 days. The median DOM rose 150% year-over-year, from 4 days in April 2022 to 10 days this year.
“The spring and summer markets could prove to be interesting for sales because of the tight inventory,” stated Nisbet. “However, the Fed has scaled back rate increases which should keep mortgage rates stable. This could have an impact on both sales and inventory as inflation calms.”
Interest rates ended April lower than March at an average of 6.34%, compared to 6.54%, a decrease of 3%, but was up from around 5% the previous year.
As the region’s leading advocate for homeownership, Bluegrass Realtors® understands the value and joy of owning a home. The Association represents more than 4,000 Realtors® located in 30 counties: Anderson, Bath, Bell, Bourbon, Clark, Clay, Elliott, Estill, Fayette, Franklin, Harrison, Jackson, Jessamine, Knox, Laurel, Lee, Madison, McCreary, Menifee, Montgomery, Nicholas, Owsley, Powell, Pulaski, Rowan, Russell, Scott, Wayne, Whitley and Woodford counties.
Visit www.bluegrassrealtors.com for up to the minute real estate listings and buying and selling resources.
