Kentucky Housing Market Heats Up
Houses to sell faster as foot traffic picks up
Thirty-two percent of Kentucky REALTORS® anticipate more houses to sell above the asking price over the next twelve months, according to the January 2021 edition of the HousingIQ Survey of Kentucky REALTORS®. Forty-six percent of the 265 REALTORS® from across Kentucky, reported a decrease in the number of motivated sellers compared to last Fall.
“The survey results reflect a general optimism. Nearly forty percent of respondents anticipate an increase in renters looking to buy and forty percent expect lesser price cutting”, explained Vidur Dhanda, author of the survey. “The remarkably lowered expectation among respondents for distressed sales points to the success of forbearance measures and confidence in the economic recovery.”
The headline HousingIQ/Kentucky REALTORS® Confidence Index surged five points to 51.3. A value of 100 corresponds to all respondents agreeing that market conditions will improve, while a value of 50 corresponds to respondents anticipating no change in market conditions. The over eight-point drop in the Buyer Power sub-index and over five-point decrease in the Homeowner Stress sub-index suggest a strengthening market.
With over forty percent of respondents anticipating greater foot traffic, more than one-third expecting houses to sell faster, and nearly one-third expecting more houses to sell above the asking price in the next twelve months, Kentucky REALTORS®collectively anticipate a sellers’ market.
“Kentucky REALTORS® ability to respond to the pandemic’s challenges allowed 2020 to be a record year for the housing market. No doubt, the market’s resilience will continue this year and real estate will play an important part in the economic recovery,” said KYR Communications Director, Paul Del Rio.
Thirty-eight percent of the respondents said individual rental property owners were preferring to sell. “The impact of the eviction moratorium on landlords, especially the mom & pop rental property owners who are left with ever-increasing amounts of unpaid rent and no relief on expenses, is a challenge that we continue to highlight in conversations concerning rent relief,” said KYR CEO, Steve Stevens.
- 49% of respondents expect an increase in sales volume
- 57% expect increased homebuying by Millennials
- 46% expect increased sales to investors
- 39% anticipate increased homebuying by renters
- 32% of respondents expect more houses to sell above the asking price
- 43% anticipate greater foot traffic
- 38% expect houses to sell faster
“With the market heating up, buyers need to be prepared to act in a competitive environment. A REALTOR® can help buyers weigh the pros and cons of all-cash offers, waiving contingencies, and crafting an escalation clause” added KYR President, Charles Hinckley.
The full report is available here.