Kentucky housing market snapshot

Prices are appreciating: Home prices are showing positive growth year-over-year. Some sources indicate a 9.2% YoY growth as of January 2025, and others show a 3.4% YoY increase in June 2025.

Affordability remains a draw: Kentucky is considered a more affordable housing market compared to the national average, attracting buyers from other states seeking lower costs of living. The median home value in Kentucky is approximately 65.1% lower than the national median, according to Bankrate. The cost of living in Kentucky is also 6.2% lower than the national average.

Inventory is increasing, yet it's still a seller's market: The number of homes for sale has been rising year-over-year, providing buyers with more options. However, the supply (number of homes available) is still less than the demand, creating a seller's market overall. The average months of supply is reported at 3 months, suggesting a relatively balanced, though still favoring sellers, market.

Homes are taking longer to sell: The median number of days on the market has increased compared to the previous year, suggesting a less competitive market than in the recent past. 

Key indicators

Median Sale Price: Reports indicate a median sale price ranging from $265,000 in January 2025 to $282,400 in June 2025. The median list price in Kentucky is $299,900.

Sales Volume: Total sales volume is up year-over-year, but there's some variation in monthly trends. For instance, in April 2025, total sales volume was up 3.4% YoY, while in December 2024, it was down 9.1% MoM.

Days on Market: Homes are staying on the market for an average of 41-57 days before going under contract.

Mortgage Rates: Current mortgage rates are around 6-7%, with some fluctuations and a recent slight dip in the 30-year fixed rate. Refinance rates have more than doubled since the pandemic, currently sitting around 7%, according to Bankrate. 

Buyer and seller considerations

Buyers:

Opportunities: Growing inventory gives buyers more choices and potential for negotiation. The market is less competitive than before.

Affordability: Kentucky remains a more affordable option than many other states.

Mortgage Rates: Buyers need to be aware of the impact of current mortgage rates on affordability and be prepared for potential interest rate fluctuations.

Strategy: Focus on individual financial goals rather than trying to perfectly time the market. Getting pre-approved for a mortgage is crucial.

Sellers:

Positive Appreciation: Sellers are benefiting from sustained price appreciation.

Stable Demand: The market continues to see strong demand from buyers, including those relocating from out-of-state.

Strategic Pricing: Accurate pricing is essential to attract buyers in a market where they have more choices.