Bluegrass Realtors, which represents more than 4,000 Realtors across 38 Kentucky counties, reports that median home prices in May reached $278,000, the highest ever on record.
The May figure is up 8% from last year’s $257,200 and up 5% over the previous month. May’s median price marked the 63rd consecutive month of year-over-year price appreciation.
Single-family homes matched the median in May at $278,000, a 7% increase from the previous year, while townhomes/condos spiked 19%, moving up to $250,000 in 2024.
For the year, overall median prices have risen 7%, reaching $267,000 compared to $249,900 in 2023.
The total volume of real estate sold through the first five months of the year surpassed just over $1.5 billion with $420 million of that coming in May, a 12% jump over last year and tallied a 25% increase from the previous month.
“Home prices continue to rise and have for more than five years,” said Randy Newsome, president of Bluegrass Realtors. “Buyers who are ready to move into the market but are waiting on the sidelines because of interest rates are missing the opportunity to start building equity. Refinancing is always an option if rates drop but you can’t go back and grab price gains.”
Interest rates in May averaged just over 7%, up slightly from 6.99% the previous month and 6.43% the previous year. The rate was the highest it’s been since November 2023 but did slow moving into June. The Fed has delayed cutting rates as inflation remains higher than desired. However, forecasts say they could drop towards the end of the year.
As buyers grow more comfortable with the current rates, home sales have started to pick up. The number of residential home transactions hit 1,313 in May, a rise of 4% over last year’s 1,260. This is the highest monthly sales total in 20 months when it hit 1,366 in September 2022. May also marked the second consecutive month with year-over-year sales increases, the first stretch with back-to-back months in two years.
“The market would welcome even more inventory heading into the summer,” Newsome concluded. “Additional supply could help alleviate some of the price increases the market is experiencing mainly due to the demand that still exists in our region. Additionally, more homes being available offers buyers greater selection when they are actively searching for a property to purchase.”
