Kentucky communities are trending upwards in price, with low interest rates continuing to spur homebuyers into crossing the finish line.

"The Lexington area is continuing to experience a strong real estate market, with prices still trending upward,' says Realtor Lynne Sneed. "Sellers who opt to put their home on the market now are seeing surprising results. A lot of buyers and sellers out there trying to make the move before the holidays."

Says Realtor Carl Mams Jr., "Residential home sales in the month ending September 30, 2002 were up 12 percent compared to September 2001, with the average price up 2 percent to $144,218. However, the number of new listings on the market were up 14 percent and the months of inventory available were down to 4.4 from 6.2 in September of 2001.

"This is a complete reversal from August and indicates that we have more competition coming onto the market for sellers," he forecasts, "and the buyers are becoming more selective even though interest rates have been excellent and buyers have been able to buy afford more home than they may have thought possible when they began their search. The one positive note for sellers is that the average days on the market holding steady at 64 days, so buyers are moving fast in their selection."

In Louisville, home of the Kentucky Derby, home sales are showing improvement.

"The Derby City market is gaining this week," says Realtor . "It seems better because homes being listed are down by 8 percent since this same time last year. Rates seem to be the brightest light this week, hovering around 6.2 percent. Buying is up a little this week, by 15 percent for the same time last year. Overall activity has been a little better this past week. This looks like a slow market for sellers in the upcoming weeks in Derby City, but a great buyers' market. Interest rates, hopefully, will bring more buyers into the market and end this slow down soon."

Says Realtor Cindy Shannon, "The absorptions rate continues to show us that the market is neutral in terms of being a buyers and sellers market."

"Naturally mortgage rates continue to be at an all-time history low with more first-time buyers than ever," continues Shannon. "Move-up buyers as well as those wishing to downsize all want to hop on the bandwagon and catch a piece of the action while we have record low mortgage rates and lots of buyers wishing to take advantage of the low rates.

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Published: October 30, 2002

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