Real estate industry sky rockets in central Kentucky during pandemic
LEXINGTON, Ky. (WKYT) - While many industries collapsed during the pandemic, real estate sky-rocketed in central Kentucky.
With a low inventory and high demand, the market turn around sped up. After a few months of the market coming to a screeching halt during quarantine, buyers are making up for lost time.
Summer and Sean Jensen, who moved here from Utah, expected their house hunting to be different in Kentucky.
“So we started looking out here a month ago and we’ve been able to see a handful of homes but we’ve got notifications on all of the major real estate apps and there’s just not that much out there,” Summer said.
Their realtor, Whitney Pannell, had been showing the Jensens and other clients houses by FaceTime.
“We’re seeing quite a few buyers coming in from out of state. We tell them how busy our Lexington market is and if they’re really wanting to purchase a home, it’s mostly going to have to be done via the phone, like a FaceTime,” Pannell said.
In this market, buyers have to act fast.
“We’ve seen a record number of sales both in number of transactions, total volume, because of course when supply is low and demand is high prices do what supply and demand says they’re going to do, which is they’re going to grow really quickly,” said Justin Landon, CEO of the Lexington-Bluegrass Association of Realtors.
According to Lexington-Bluegrass Association of Realtors, home values are up and interest rates are down.
“Because of very low interest rates, well under three percent for almost the entire year, we’ve seen more people able to buy a home than ever before,” Landon said.
And “for sale” signs are turning to “sold” within a matter of days—even hours.
“We just listed a house on Friday in the 700 range and there were nine showings in the $700,000 range. It sold that day. Typically, a $700,000 home could take 6-9 months to sell,” Pannell said.
Like a lot of buyers, the Jensens are looking for a quiet neighborhood and some land. Their realtor says they need to know their deal breakers, and have all of their boxes checked before racing to make an offer.
“Need an agent that’s got their finger on the pulse of the market and be ready to run,” Pannell said.
In a market breaking records, she says it’s important to be competitive.
Landon said December saw the highest median price point ever, and says the data indicates prices will continue to rise.
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