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Home Insights Housing Market Report

Market Statistics Year-To-Date: April 2017

Central Kentucky Market Statistics Year to Date: April 2017 - header image

Market Statistics

View Central KY Statistics | View Lexington-Fayette Statistics

 

 

Central Kentucky

April 1, 2017
RESIDENTIAL listings/sales
Lexington-Blugrass Association of REALTORS® Multiple Listing Service – Central KY (Areas 1-40)

 

[table width =”100%” style =”table-bordered table-hover” responsive =”true”] [table_head] [th_column]Statistics[/th_column] [th_column]YTD 2017[/th_column] [th_column]YTD 2016[/th_column] [/table_head] [table_body] [table_row] [row_column]Total active residential listings at this time[/row_column] [row_column] 2,926 [/row_column] [row_column]3341[/row_column] [/table_row] [table_row] [row_column]Months of Inventory[/row_column] [row_column]3[/row_column] [row_column]4[/row_column] [/table_row] [table_row] [row_column]Average List Price of Homes Sold[/row_column] [row_column]$190,798[/row_column] [row_column]$184,408[/row_column] [/table_row] [table_row] [row_column]Average Market Time of Homes Sold[/row_column] [row_column]74 Days[/row_column] [row_column]99 Days[/row_column] [/table_row] [table_row] [row_column]List Price VS Sale Price Ratio[/row_column] [row_column]97%[/row_column] [row_column]97%[/row_column] [/table_row] [table_row] [row_column]Number of Sales (Closings)[/row_column] [row_column]2,377[/row_column] [row_column]2,210[/row_column] [/table_row] [table_row] [row_column]Average Sale Price[/row_column] [row_column]$185,101[/row_column] [row_column]$177,915[/row_column] [/table_row] [table_row] [row_column]Overall Appreciation or Depreciation[/row_column] [row_column]+4%[/row_column] [row_column][/row_column] [/table_row] [/table_body] [/table]

 

 

Lexington – Fayette County

April 1, 2017
RESIDENTIAL listings/sales
Lexington-Blugrass Association of REALTORS® Multiple Listing Service – County of Fayette

[table width =”100%” style =”table-bordered table-hover” responsive =”true”] [table_head] [th_column]Statistics[/th_column] [th_column]YTD 2017[/th_column] [th_column]YTD 2016[/th_column] [/table_head] [table_body] [table_row] [row_column]Total active residential listings at this time[/row_column] [row_column]838[/row_column] [row_column]996[/row_column] [/table_row] [table_row] [row_column]Months of Inventory[/row_column] [row_column]2[/row_column] [row_column]2[/row_column] [/table_row] [table_row] [row_column]Average List Price of Homes Sold[/row_column] [row_column]$218,029[/row_column] [row_column]$206,706[/row_column] [/table_row] [table_row] [row_column]Average Market Time of Homes Sold[/row_column] [row_column]55 Days[/row_column] [row_column]72 Days[/row_column] [/table_row] [table_row] [row_column]List Price VS Sale Price Ratio[/row_column] [row_column]98%[/row_column] [row_column]97%[/row_column] [/table_row] [table_row] [row_column]Number of Sales (Closings)[/row_column] [row_column]1,049[/row_column] [row_column]921[/row_column] [/table_row] [table_row] [row_column]Average Sale Price[/row_column] [row_column]$213,207[/row_column] [row_column]$200,988[/row_column] [/table_row] [table_row] [row_column]Overall Appreciation or Depreciation[/row_column] [row_column]+6%[/row_column] [row_column][/row_column] [/table_row] [/table_body] [/table]

Information is based on residential homes listed and sold through the Lexington Bluegrass Association of Realtors (LBAR) Multiple Listing Service (MLS).Neither the LBAR nor its MLS guarantees its accuracy. Data may not reflect all real estate activity in the market.

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Home Insights

How Will Changing Interest Rates Affect Homebuyers

How will changing interest rates affect homebuyers?

 

How will changing interest rates affect homebuyers?

Do fluctuations in rates have a big impact on homebuyers?  Here’s the scoop on rates, affordability – and why now is the time to buy.

 

How affordability is affected by changing rates

As interest rates increase, the buying power of a borrower is lessened. Let’s say a homebuyer has $1,200 to spend on their monthly mortgage payment. If rates are 4 percent and the borrower secures a 30-year fixed conforming loan, their loan could total around $250,000. The monthly mortgage payment in these conditions would be $1,194.

Now let’s say rates rise 1 percentage point to 5 percent. With all the mortgage terms remaining equal, the borrower would pay $1,208 monthly for a loan totaling $225,000. That’s a difference of $25,000, or 10 percent, in buying power.

Many first-time buyers do not have a large down payment, and government and private lenders have changed their standards in order to accommodate these high earners with minimal savings. FHA loans can now be secured for as little as 3.5 percent down, while conventional (private) loans have a minimum of 3 percent down.

While these newer minimums have prompted many first-time buyers to enter the market, it also means these buyers are relying heavily on financing. And if rates increase slightly, they may need to look at adjusting their home buying budget a little.

 

The silver lining

The reality is that our local market is still a great place to buy!  Since the election last fall, mortgage rates have risen slightly…but remain historically low.  During the last economic expansion from 2001-2007, mortgage rates hovered between 5% – 7%.  And in the 1990’s, rates were even higher, skirting between 7% – 9%.   Even with a slight uptick in rates over the past few months, it’s a great time to buy a home in Lexington and Central Kentucky!

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Home Buying Tips Home Insights Newsletter Featurettes

6 Tips for a Successful Home Search

Thinking of buying? 

Whatever the reason – a recent “life event”, upsizing, downsizing or tired of paying rent
– it’s a great time to achieve your homeownership goals!

Pre-Tip: Get a Rector Hayden Agent to assist you.

#1.  Determine your limits

Financial experts often say that you shouldn’t spend more than 28 percent of your total income on housing, but it really varies for each person.  Keep in mind that your current credit score will be a major factor in how much money you can borrow.

You can determine your general range by playing around with online mortgage calculators, but it’s best to work with a lender to get pre-approved for a mortgage.  Why?  Well, the difference between a $200,000 and $250,000 home can be stark, and it’s best not to get your hopes up before you know what you can afford.  Your Rector Hayden Agent will be invaluable in guiding you to the best lenders in town – including Rector Hayden Mortgage!

#2.  Begin the hunt

Now the fun stuff – the online search!  Just 20 years ago, buyers had to search through thick, printed listing books to find homes that matched their price and location. Luckily today, your search can begin from your couch……or while in line at Starbucks.

Rector Hayden’s top home-search website and exclusive home search app have every available MLS listing in Lexington and Central Kentucky – updated at the top of every hour — so you can perform the most accurate and up-to-date searches!  Set up an account on either and save and share homes with your family and friends – as well as connect with your agent so they can see your likes and dislikes as well!

#4.  Finalize your needs

You may find yourself falling in love with homes in different locations, with varying styles, prices and features. That’s actually a good thing in today’s seller’s market — to get to the closing table, it may be necessary to keep your mind open to several options.

Work with your Rector Hayden Agent to determine your top needs, and then keep in mind the qualities and amenities that are unlikely to change versus those that you can alter. For example, a neighborhood’s walkability is pretty set, but you can always tear up carpet to put in hardwood floors, or refinish a kitchen to get the farmer’s sink you love. Once you have an established set of needs, it’s time to begin looking in earnest.

#5.  Tour inside homes…and think resale

Your Rector Hayden Agent will set up the showings for you – and as you view the homes and get the overall “feel”, if can be beneficial to think of yourself as an inspector. Pay attention to when upgrades were done, or if appliances have been replaced recently. It’s important to take note of how much work your eventual home will need.

It’s also good to talk with your Rector Hayden Agent about the potential resale value of the home.  At this point, you may not have any thoughts about ever selling – but it’s wise to ensure that your investment will be a good one in the future, should you ever decide to sell.

Want to learn more about the Home Buying Journey?  Walk through our online e-journey to get a feel for all of the steps toward buying your next home.  But remember, a Rector Hayden Buyer’s Agent is your BEST resource on your home buying journey!

buyersjourney_screenshot