Rising mortgage mortgage rates of interest and a small stock proceed to hamper actual property gross sales in Kentucky, however sellers are discovering a bonus because the median value in Scott County rose 14 p.c in December over a yr in the past, in accordance with statistics launched Friday by Bluegrass Realtors Assoc.
“Whereas gross sales took a success within the second a part of the yr, the rise in median costs saved complete volumes at a report degree,” stated Kelley Nisbet, president of Bluegrass Realtors. “Market exercise has returned again to pre-pandemic ranges seen in 2018 and 2019. The massive distinction all year long, other than the sharp value will increase, is that stock and listings coming on-line are nonetheless unusually low.
The median value for a Scott County house rose to $310,000 in December, 1922, in comparison with $271,200 in December, 2021. Solely Woodford County at $348,500 reported the next median value in December among the many 30 counties represented by Bluegrass Realtors, previously Lexington Board of Realtors (LBAR). For 2022, Scott County’s median value for a single household house was $286,500, up from $264,00 in 2021. Scott County’s median house value for 2021 ranked fourth among the many 30 counties behind Jessamine at $305,000, Woodford at $300,000, and Fayette at $295,000.
For the complete 30-county group, median house costs reached a brand new all-time month-to-month excessive in December, hitting $240,000 in comparison with $222,400 final yr, an 8 p.c enhance, and a 3 p.c bounce from the November median of $232,500. December marked the forty sixth consecutive month of year-over-year value appreciation. Single-family house costs stood at $243,500, up 8 p.c whereas townhouse/condominium costs had been $206,500, up 16 p.c.
For the yr, median costs ended at $240,000, up 9 p.c from the $220,000 median final yr. The 2022 median value was an all-time excessive for space houses.
In gross sales quantity, Scott County actual property dropped 32 p.c in December, 2022, with 61 gross sales in comparison with 90 in December 2021. For the 2022 yr, Scott County’s actual property gross sales fell 9 p.c with 853 gross sales in 2022, in comparison with 1,071 gross sales in 2021.
The county’s December 2022 gross sales totaled $21 million, down 21.4 p.c from December 2021 month-to-month gross sales of $26.4 million. Scott County’s complete actual property gross sales in 2022 was $314.8 million, a 1.4 p.c drop from $319.3 million in 2021.
For the 30-county affiliation, December’s complete quantity dropped to $255 million in residential actual property offered, a 32 p.c decline over final yr’s complete of $376 million, however ranks because the third highest December on report behind the earlier two years. 2022 ended at $4.2 billion in total residential gross sales, second solely to the $4.4 billion reached in 2021.
Housing stock rose each month in 2022 in comparison with the earlier yr, houses in the marketplace got here in because the second lowest on report behind solely 2021. Annual stock averaged 2,616 month-to-month in 2022, a 5 p.c enhance over final yr with a month-to-month common of two,495, however 50 p.c beneath the common month-to-month stock of 5,242 logged in 2019, the bottom degree since earlier than the pandemic. December stock ranges hit 2,954, a 19 p.c enhance over final yr’s 2,491.
Scott County’s December 2022 new listings stock fell 26.3 p.c from the identical month a yr in the past to 56 from 76. 12 months-to-date new listings had been down 2.2 p.c from 1,270 in 2021 to 1,242 in 2022.
New actual property listings in Central and Southern Kentucky dropped 25 p.c in December in comparison with a yr in the past, with 775 residential properties versus 1,039 in 2021 and down 28 p.c in comparison with November. For the yr, new listings averaged 1,563 month-to-month, which was the bottom on report. Properties hitting the market had been monitoring usually for the primary half of the yr however took a downward flip when rates of interest elevated sharply
“As soon as the rates of interest jumped, gross sales dropped and so did new stock as patrons hit a degree of uncertainty the market hadn’t skilled in fairly a while,” stated Nisbet. “Though we knew exercise from the earlier 24 months couldn’t be sustained without end, patrons and sellers had been caught off guard by the speedy spike in charges.”
The variety of residential house gross sales decreased 37% in December from a yr in the past as transactions dropped beneath the 1,000 mark for in December for the primary time since 2018. December gross sales had been 911 in comparison with 1,448 final yr. Gross sales for the yr landed at 15,207 in comparison with 17,325 in 2021, a lower of 12%.
Pending gross sales in December dropped to 738 houses underneath contract, down 31 p.c from final yr when pendings had been at 1,071. Whole pending gross sales for the yr ended at 15,173, a 14 p.c dip from 2021 when the overall was 17,621. Scott County’s pending gross sales in December 2022 stood at 50, in comparison with 61 the earlier yr, a drop of 18 p.c. In 2022, the county had 988 pending gross sales, in comparison with 1,105 or a drop of 10.6 p.c from 2021.
The slowdown in gross sales and development for pendings to be decrease has pushed the months of stock above the 3-month mark for 2 months in a row and has risen, year-over-year, for eight consecutive months. In December, months of stock hit 3.2, an 88 p.c bounce from the earlier yr when it stood at 1.7. For the yr, the month-to-month common of unsold houses was proper at 2 months. In 2019, the common was simply over 4 months, a 100% distinction from simply 3 years prior.
Days on market (DOM) acquired one other bump in December with properties remaining in the marketplace 35 p.c longer with a mean of 35 days in 2022 in comparison with 26 days in 2021. The median DOM rose 157 p.c year-over-year, from 7 days in 2021 to 18 days in December 2022.
In December, 2022, the times in the marketplace in Scott County elevated to 29, a rise of 6 p.c from 21 in December 2021.Scott County’s common days in the marketplace rose from 20 days in 2021 to 25 days in 2022. The median variety of days in the marketplace in Scott County rose to 4 days in 2022, from three days in 2021.
“Rates of interest have softened somewhat over the previous a number of weeks and, in accordance with consultants are projected to land within the 5 to six p.c vary for many of 2023,” stated Nisbet. “Together with barely extra choice and houses staying lively somewhat longer, patrons might not really feel as squeezed going into the spring as they’ve over the previous a number of months. Gross sales might choose again up, not less than within the quick time period, if charges fall and stock expands.”
Rate of interest averages hit a peak in October with a mean of 6.9 however had been decrease in November at 6.8 p.c and closed the yr at a mean of simply over 6.3 p.c, in accordance with Freddie Mac. That’s double the speed from the place it was a yr prior which can assist to proceed slowing the value will increase skilled during the last a number of years.
The Bluegrass Realtors Affiliation represents greater than 4,000 realtors positioned in 30 counties together with Anderson, bathtub, Bell, Bourbon, Clark, Clay, Elliot, 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.
