There aren’t enough flame emojis on the Internet to describe the Lexington housing market. According to the most recent housing report from Bluegrass Realtors, the median home in Fayette County sold for ~$300,000, a 15% jump year-over-year. Yowza. 🔥
Prices show few signs of cooling off. But for those hoping to dip their toes in the home-buying waters soon, it helps to know what trends to expect. Put on your floaties, and let’s hear what the local experts predict.
Look out for the ‘burbs
Lukas Owens and Ryan Camenisch, Real Estate Advisors for The Brokerage, said they believe the big story for 2023 will be “Masterson Station trending upwards,” thanks in part to the $60 million dollar shopping plaza development planned near there on Citation Boulevard.
The median home price for a single-family home in Lexington is $239,000, according to the Lexington Herald-Leader. Ryan said Masterson Station homes are currently in that range, but also hold the unique promise of seeing new, exciting developments being built nearby.
Don’t give up on LEX
Buyers hoping to find areas with a bit less competition may want to think about getting a sweet pad in neighborhoods like Castlewood, Irishtown, or Eastland. Ryan said there may be some deals in these areas because “as supply continues to get snatched up, people are going to be looking for other places in the city with charm.”
Worth it to wait?
Rocket Homes currently lists Lexington as a “seller’s market,” meaning prices are continuing to trend high while also selling fast.
Mortgage lenders at Central Bank agree. We recently sat down to chat with them about mortgage loans. A full story on that will be published soon. “Lexington has a high demand for housing due to how many people are moving here,” said Bradley Sutherland, Vice President of Mortgage Loans. “I don’t see the price of single-family homes going down.”
What about renting?
A recent study by SmartAsset ranked Lexington as the fifth-most affordable metro market for single renters in the US. However, the cost of renting is still going up — rising 4% year-over-year according to Roof Stock.
Outside the wagon wheel
Lukas and Ryan both mentioned Nicholasville, Georgetown, and Winchester as potential hot spots. They noted that many outlying areas (like these three) have started to develop their own “main streets,” so folks don’t really need to trek into the city to find great restaurants and cultural activities.
The supply + demand problem
“There is just not as much single-family home development in Lexington as there was 10-15 years ago,” said Bradley of Central Bank. Additionally, people from outside the Bluegrass region are starting to see the appeal of our region, especially those moving from more expensive coastal areas. “I would say three out of every eight buyers are from out of state,” said Lukas of The Brokerage said.
Our local city government has created the Office of Affordable Housing with the goal of leveraging public investment to preserve, produce, and provide safe, quality, affordable housing.
Additionally, the city of Lexington is offering a series of new grants for citizens looking to help mitigate the rising cost of housing. The community has access to ~$5 million that can be used for projects that develop and support affordable rental housing and home ownership.
Another trend to watch for in 2023 is empty nesters putting up their homes for presale. Basically, older homeowners may want to cash in when the value of their property is at an all-time high and use the money to travel or purchase a second home, even if they aren’t ready to move.