NKY’s Low Real Estate Inventories a Boom to Selling Prices

Florence, KY – November 23, 2015- Since this week is Thanksgiving, the Leadership and staff of NKAR and NKMLS would like to take a moment to share a few things we are thankful for. We are thankful that we live in a country where opportunity abounds, where anyone with a dream of homeownership can achieve that dream. We are also thankful for all our REALTOR® members who strive very hard to make their clients “American Dream” of owning a home a reality.

The Northern Kentucky Association of REALTORS® and The Northern Kentucky Multiple Listing Service Homes report that residential home sales in October 2015 were up, showing a 4.26% increase over the same month in 2014 (563-540). Average selling prices increased by 14.5% from $151,712 to $173,747 month over month, and listing inventories continued to drop to the lowest number of homes for sale tracked in recent years.

October stats for press release 

At the end of October, the Months of Inventory (based on closed transactions) was 4.4 months, meaning it would take only 4.4 months to sell off all of the homes listed in the local MLS that are available for purchase, if no new listings came onto the market.
Northern Kentucky REALTORS® are encouraging homeowners who want to sell their home to consider listing it now because average selling prices for the last 6 months have been consistently higher than normally seen in our local market.

May-15 $ 168,016.00
Jun-15 $ 177,230.00
Jul-15 $ 171,692.00
Aug-15 $ 164,566.00
Sep-15 $ 164,872.00
Oct-15 $ 173,747.00

You have to strike when the market is hot, as the old saying goes, and that’s so true now when inventories of homes for sale in Northern Kentucky are at an all-time low. In October, 2306 active listings were available, the lowest number for all of 2015, and even for as long as the MLS has been tracking active listing inventories.

Across the nation, it seems that first time buyers are delaying their first home purchase, choosing to rent instead. Many first timers find that tight lending conditions, high FHA PMI (private mortgage insurance), and high student loan debt are delaying their dream of home ownership. The result of this is higher and higher rental rates. The Federal Housing Administration or FHA has just reduced their PMI rates by 50 basis points which is expected to make home ownership a possibility to 250,000 first time buyers in the next 3 years.

The home buying process can be daunting to first time buyers or any buyer for that matter. Contacting a professional REALTOR®, one who knowledgeable of the home buying process and is working on your behalf to ensure you have a smooth transaction, is a smart move. Your REALTOR® is bound by a strict Code of Ethics and is there to support and advise you through negotiations, inspections, and the successful purchase of your “American Dream” home.

What are you waiting for? Call a local REALTOR® today!