As we progress through 2024, several key trends and statistics are emerging, highlighting the dynamic nature of real estate in the Bluegrass State. Here, we’ll examine the current Kentucky real estate market and offer insights that can help prospective buyers make informed decisions.

Inventory

One of the buyers’ biggest challenges in 2024 is a low inventory of homes. In March of 2024, Kentucky reported a 10% decrease in new listings compared to last year. That makes being fully prepared especially important for those looking to buy, particularly first-time buyers. Before hitting the market, be sure to:

• Maintain healthy credit
• Have a handle on your finances and budget
• Consider getting pre-approved for a mortgage
• Explore all loan options available to you

That way, you act fast when you find a house you’re ready to call home.

However, it’s not all doom and gloom when it comes to inventory. New construction has increased as builders respond to the demand for housing with developments and more affordable options.

Affordability

Speaking of affordability, let’s explore mortgage rates and home prices.

Mortgage Rates

With information obtained from Zillow.com, the current average 30-year fixed mortgage rate in Kentucky is around 6.94%. Bankrate.com puts the national average at 7.09% as of May 24, 2024, making Kentucky rates slightly more affordable.

Home Prices

Redfin.com puts the median sale price of Kentucky homes at $257,000, up 5.6% compared to last year. This change reflects the broader national trend of increasing prices, but Kentucky has been fortunate to see only a moderate increase compared to other states.

What’s responsible for this upward trend? Namely, the shortage of available homes continues to drive fierce competition among buyers.

How to Combat Rising Rates & Prices

What can we conclude from this mortgage rate and home price data? That affordability remains a primary concern, especially for first-time buyers. Kentucky’s overall cost of living is still more affordable than many other states, making it an attractive option for those looking to relocate.

How can you combat these rising rates and prices? By exploring all available loan options and down payment programs. Here at JustChoice Lending, we’re a division of Fahe, which means we have access to down payment options that other lenders may not know. With increased down payment assistance, we help put homeownership within reach, even among rising prices!

What’s to Come

Overall, experts are optimistic but cautious about the remainder of 2024 and the housing market’s direction. It’s predicted that while home prices will continue to rise, like in other states, they will do so at a slower pace. That, coupled with the new construction, is expected to help the demand for affordable housing.

This is a significant time for buyers to stay informed not only about trending market conditions but also about financing options. If you qualify, FHA, USDA, and VA loans, and any specialty loan programs are worth exploring.

Navigate the Market & Secure a Home With Help From JustChoice Lending

Here at JustChoice Lending, we believe everyone deserves access to affordable housing. That’s why we have a range of loans and will work with you to find the best match for your needs. Don’t let market trends dictate your housing situation—turn to our non-commission-based lender for the care and attention to detail you need to secure your dream home. Get started today!