In September 2023, the median home price in Kentucky dropped from $256,600 to $250,000. In Q4 of 2022, it declined by 4.51%. Also, a total of 27% of homes sold for less than the listing price in Kentucky. These factors show that the last quarter of the year can be good for buyers in the Bluegrass State.
Moreover, the popular 30-year fixed mortgage has recently hit a 7.29% interest rate in Kentucky. It is likely to increase even further. So if you want to buy a home, capitalize on current mortgage rates. You can refinance your home once the rates reduce in the future.
Why should you buy an KY house now?
- In September 2023, homes in Kentucky sold for 97.7% of their listed price. This means that sellers are willing to negotiate and offer discounts.
- The GDP of Kentucky grew by 4.7% in 2022. This shows that real estate property investment is a beneficial option for potential home-buyers.
- The number of homes sold in Kentucky has decreased by 10.8% between May and September 2023. This reflects reduced competition among buyers. They also have a greater scope to find the properties that suit their requirements.
What Are the Best Months to Buy a House in Kentucky?
September to December are the best months to buy a house in Kentucky. You can take advantage of favorable home offers. Moreover, you get the opportunity to negotiate home prices due to less competition.
In case these months do not align with your financial goals, here is our list of the best months to purchase a house in Kentucky:
|Month||Best For||Average Median Price|
Which Is the Best Season to Buy a House in KY?
Fall is the best season for a low-on-cash home buyer wanting to buy a house in Kentucky. Sellers are less demanding due to the low availability of buyers. Moreover, they wish to sell off and settle elsewhere before the school year begins.
If you are looking to buy a home, here’s what you get in each season:
- Spring: The real estate market competition is high but open to lower asking prices. Home demand usually rises in this season.
- Summer: Summer is the peak season with an active housing market and competitive buyers. There is also a better inventory for buyers to choose from.
- Autumn: Fall has determined sellers who look to settle elsewhere before winter. That’s why they are open to negotiations and may accept lower asking prices.
- Winter: Housing prices are at their lowest. The festive season reduces the competition in the housing market, so buyers may get better home offers.
Kentucky Housing Market Conditions
The current real estate market conditions are becoming favorable for home buyers in Kentucky. Here’s how:
- Less Market Competition: The rates are at a record high of 7.29% in more than 20 years. This has put many buyers out of the market and decreased the home-buying competition in Kentucky.
- Lower Asking Price: There is a limited selection for buyers at this point. The existing home sales decreased from 4,216 in May to 3,758 in September 2023. This has forced the sellers to reduce the prices of their homes.
- Flexible Decision-Making Opportunity: High mortgage rates make buyers cautious. In September, the average time houses spend on the market in Kentucky has increased to 32 days, compared to 31 days the previous year.
Top Kentucky Home Buying Tips in 2023
Buying a house is an exciting experience. But, it can be stressful and confusing, especially if you’re doing it for the first time. Here are some tips to help you through it:
- Check Your Credit Score: Check your credit score to determine your financing options. A good credit history can help you get the required score for lower interest rates.
- Save for a Down Payment: To avoid paying private mortgage insurance, or PMI, you must keep at least 20% of the home’s purchase price as the down payment. Some mortgage lenders provide no-PMI mortgages with lower down payments but expect to pay a higher interest rate.
- Get a Pre-Approval Mortgage: A pre-approved mortgage is useful when making an offer on a home because it gives you a better idea of your home affordability.
- Find a Good Real Estate Agent: An experienced real estate agent in Kentucky can save you time and money. They understand the market and can fulfill your requirements.
- Negotiate Repairs: A home inspection report may reveal significant or minor flaws. You need to ensure that the major issues are rectified before your loan is finalized. You can always take care of minor issues in future.
- Always Do a Final Walk-Through: Do this diligently as this is your final opportunity to inspect the house. Ask questions, and address any outstanding issues before they become your responsibility.
» Steps to Buy a House in Kentucky: Here is a step-by-step guide to buy a house in 2023.
Is 2024 a Good Time to Buy a House in Kentucky?
With the current trend in the KY housing market, you have a better chance of getting a profitable deal on your dream home now than in 2024. Here are some of our predictions:
- Mortgage Rates will Increase: Mortgage rates may increase in 2024 due to economic factors, inflation, and changes in central bank policies.
- It will be a Seller’s Market: The inventory is low and would benefit sellers by creating a seller’s market, potentially leading to quicker sales and higher prices.
- Decrease in Competition: Increased mortgage rates deter buyers, reducing demand and competition in the housing market.
The Bottom Line: Is Now a Good Time to Buy a House in Kentucky?
Yes, this is the “best time” to purchase a house in Kentucky. However, your budget and credit score can influence this decision.
It also depends upon your ability to get a loan. Mortgage rates in Kentucky are rising. Fannie Mae also predicted that mortgage rates would go even higher in 2024. So, if you have the necessary funds, then purchase now!
Find Your New Home With Houzeo
With thousands of property listings, Houzeo.com is one of the biggest property listing sites in the US. Find condos, townhouses, co-ops, and other types of homes for sale on Houzeo.
» Need More Clarity? Read these exclusive Houzeo reviews and learn why the platform is the best in America’s competitive housing market.
Frequently Asked Questions
How long does it take to buy a house on average in Kentucky?
When is the best time to buy a house in Kentucky?
The months from September to December are the best time to buy a house in Kentucky. However, the purchasing decision may depend upon your location and requirements.
What if there is a recession in US housing market?
The New York Federal Reserve says that there's a 56.12% chance that the United States might face a recession by September 2024. A recession might make it tough for people to purchase a house in an expensive city. This is due to job scarcity and reduced affordability.
However, if you have savings, it might be a good time to purchase a house in Kentucky before the recession hits.