LEXINGTON, Kentucky (WTVQ) – Property prices jumped to new all-time highs after the previous month’s record.
Median prices in May were the third consecutive month of record prices at $ 227,750 per unit. per month, which is 18 percent more than last year $ 193,000, and 5 percent more than last month at $ 218,000.
May 11th consecutive month of double-digit increase and 27th month in a row overall price increases over last year. Single-family homes rose 19 percent to $ 230,000, while townhouse / apartment prices jumped 18 percent to $ 198,865 (Statistics for May 2021).
From the beginning of the year to date, median prices for all home sales were $ 213,000, up from $ 186,125 in 2020, an increase of 14 percent.
Total real estate transactions in dollars jumped 33 percent in May to a record high in a month, reaching over $ 347 million in a month, up from just over $ 261 million last year. For the year, total sales reached nearly $ 1.4 billion.
“Local demand is pushing prices to new highs every month,” said Christy Gooch, president of the Lexington-Bluegrass® Association of Realtors (LBAR). “We saw a jump in performance in May from last year as buyers continue to navigate a market with extremely limited inventory.”
Indicators in May were up 9% from a year ago and reached a second all-time high after two consecutive all-time highs. There were 24,958 impressions this year, up from 22,870 in May 2020.
The increase in demand led to an increase in home sales for the month. Home sales in May increased 9 percent from last year, which was the last month the market slowed due to the pandemic.
1,300 properties were sold this year, up from 1,188 in May 2020. Single-family homes rose 12% to 1,238 sales, while townhouse / condominium sales fell 25%, with 62 sales accounting for only 5% of the total market for the month.
Total sales to May grew 11 percent from 2020, with 5,665 transactions closed in the first 5 months of 2021, up from 5,121 in the same period last year.
New home sales fell from the same period last year for the second straight month, with sales of 112 in May, down 10 percent from 125 in 2020. However, the figure in May was 29 percent higher than the previous month, when 87 new homes were sold.
“Buyers are realizing the challenges of finding and buying a home in today’s marketplace,” Gutsch said. “Situations with multiple sentences are the norm in most cases due to lack of inventory. But interest rates are still at historic lows, so buyers continue to navigate the market to find a home that suits them. ”
Record low inventories were again reached in May when 1,468 residential properties were put up for sale. That’s 56 percent less than 3,364 homes were available last year, and that’s 25 percent less.th consecutive month of annual decline. The total for May is down less than 2 percent from the previous record low of 1,490 homes last month, marking the fourth straight month that inventories are below 2,000.
The number of homes entering the market is growing for the second straight month, up 5 percent from last year, with 1,598 listings this year, up from 1,525 in 2020. New offerings were down slightly over the year by 4 percent, but Lawrence Yoon, chief economist at the National Association of Realtors (NAR), says the market outlook is encouraging and “supply is expected to improve, giving buyers more opportunity and helping to bring down all-time high prices for existing houses ”.
In terms of pending sales, this will be good news as contract deals fell 7 percent, from 1,634 last year to 1,515 in May.
And with nearly as many sales closed as new online placements, monthly stocks were held to near all-time lows of 1.1 months, down 48 percent from last year’s 2.1-month housing supply. A balanced market is usually defined as six months of housing supply. For the entire jurisdiction with 26 counties, home inventories under $ 300,000 took just over 3 weeks to take months and an average of 22 days on the market.
For all homes, the average number of days on the market in May was 26 days, up from 46 days last year, down 44 percent. The number of days on the market in May was the second highest on record, behind only 19 days in December last year.
“Interest rates have been at historic lows throughout the summer,” Gooch said. “This gives buyers who have had the opportunity to increase their savings over the past year due to the pandemic more purchasing power to buy their first home or upgrade to a larger one. Consequently, being in the market right now can pay off as many shoppers postpone their searches due to vacations and shopper fatigue, so competition may subside as we advance in the next few months. ”
LBAR represents over 3,500 REALTORS® located in 26 counties: Anderson, Bath, Bell, Bourbon, Clark, Clay, Elliott, Estill, Fayette, Franklin, Harrison, Jackson, Jessamine, Knox, Laurel, Lee, Madison, Menifi, Montgomery, Nicholas, Owsley, Powell, Rowan, Scott, Wheatley, and Woodford counties.