Is now the time to sell your home?
Hello, Frankfort, Kentucky. This is your Real Estate Market Watch for January 2024 brought to you by CENTURY 21 Simpson & Associates. We’ll answer the four most common questions sellers have about the current real estate market and then discuss the real estate indicators behind them.
Let’s get started.
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(PLAYLIST – Housing Market Spotlight: Frankfort-Franklin County, Kentucky)
The first question home sellers ask is, “What is the pace of the market?”
It’s moving fast. There are 48 days of inventory available, and homes are going under contract in just 33 days. Tight inventory and strong buyer demand could lead to more price increases over time.
The most asked question is about home value. While each home is different, we can answer, “What are the pricing trends?”
Prices in Frankfort-Franklin County are increasing. Sellers can still capitalize on historically high prices and continued buyer demand. 2024 median sales prices are above those of 2023. If you are curious about the current Median Sales Price, stay tuned for our discussion of the real estate market indicators for January 2024.
Another question home sellers ask is, “How does my home compare to others on the market?”
Price and Condition Matter. Homes were on the market for 33 days in January. Pricing and condition matter and should be reconsidered if a home is on the market longer than average. As rates fall and competition increases, sellers can expect more buyers to act fast.
And finally, home sellers want to know, “Does the market favor buyers or sellers?”
It is a sellers’ market. Tight inventory continues to be a major factor fueling this market. With 1.63 months or 48 days of listings on the market, more buyers are expected to enter the market and prices will likely rise.
Timing the market is nearly impossible! The best we can do is read and react to the data available, and it’s sending a clear message: If you’re ready to sell, it’s best to act now!
With falling rates, buyer demand is expected to rise. Tight inventory means listings are poised to be in demand.
Let us, or have your REALTOR run the numbers based on the market and see if that achieves your financial goals.
Call our office or reach out to one of our real estate agents if you have any questions.
Now that we’ve answered the top questions of home sellers, let’s go deeper and discuss the real estate indicators behind them. For each of the 5 indicators, we’ll discuss what they are, how they are calculated, the current results as of January 2024, and what those results mean for home sellers.
Let’s start with Months Supply of Inventory which we used to answer the questions, “Is it a sellers’ market?” and “How quickly is the market moving?”
This indicator tells us about the balance between supply and demand in the real estate market and whether the current market favors buyers or sellers. Months Supply of Inventory measures how long the current inventory of properties available for purchase would last at the current rate of sales if no new properties came on the market. Six months of inventory represents a balanced market, favoring neither buyer nor seller. When Months Supply of Inventory is below 6 months, it is considered a sellers’ market.
In Frankfort-Franklin County, the months supply of inventory fell to 1.63 months or around 48 days. That’s an 8.9% decrease over the previous month and 13.8% lower than a year ago. For context, over the past decade, the average months supply of inventory was 3.9 months. At 1.63 months supply of inventory, the market continues to favor sellers. There are simply not enough homes on the market to meet buyer demand.
Now, let’s shift our focus to the Current Inventory. It is another measure that provides insights into the question, “How quickly is the market moving?”
Current Inventory also serves as a balancing act. When current inventory is low, the market dynamics favor home sellers by fueling demand, fostering increased competition, accelerating sales, and driving the potential for elevated property prices. This indicator gives us a snapshot of the number of homes currently available for sale. It’s important to note that the number of homes on the market can vary as it depends on when the report is generated. By consistently using the same day each month, we can establish meaningful month-to-month trends.
As of January 15th, there were 73 homes available on the market in Frankfort-Franklin County. This represents a 13.1% decrease compared to the previous month. Compared to last year, when there were 98 homes on the market, we observe a 25.5% decrease in the number of available homes. For sellers, low inventory signals scarcity, driving heightened demand, increased buyer competition, faster sales, and potential for higher property prices.
Our third indicator is Existing Home Sales Volume. It is a third measure that provides insights into, “How quickly is the market moving?”
This indicator tells us about the pace of the market. A faster pace favors sellers. Existing home sales is the total number of all the properties whose sales contracts were completed, or closed, during the month.
In January, 6.8 million dollars’ worth of property was sold in Frankfort-Franklin County. That’s 22% lower than in November and up 5.3% compared to the previous year. Sellers who are ready to list their homes should be encouraged that despite lower sales, buyer demand still exceeds supply. As mortgage rates moderate, more buyers will re-enter the market.
Next is the most-requested indicator, Median Sales Price. This indicator answers the question, “What are the pricing trends?”
This indicator helps us understand how home prices are moving in the current market. The median is the price where half of the homes sold in any given area that month were cheaper, and half were more expensive.
The median sales price of a home in Frankfort-Franklin County was $236,000, which was 4.6% below the previous month and 11.3% higher than last year. Prices tend to dip at the end of the year. For 2023, the median sales price was $235,000 which was above the median sales prices in 2021 and 2022. Sellers can still capitalize on historically high prices and continued buyer demand.
Days on Market is our final indicator and helps answer the question, “How does my home compare to others on the market?” Like many of the other indicators, it also provides insights into, “How quickly is the market moving?”
The Days on Market indicator helps us determine if our pricing is correct or if there is some other market resistance, potentially leading to reduced buyer interest and negotiating power. The Days on Market is the average number of days that sold listings were on the market. Those days are calculated from the day a property is listed until it goes under contract. If there were any days the property was off the market, then those days are subtracted.
Days on Market is at 33 days, which is down 14.7% from last month and down 41.1% over last year. Pricing and condition matter and should be reconsidered if a home is on market longer than average. As rates fall and competition increases, sellers can expect more buyers to act fast and be ready with strong offers.
Overall, the real estate market indicators clearly favor sellers.
If you have a home to sell and were feeling like you missed your window, don’t miss this one!
We’re here to help. Call our office or reach out to one of our real estate agents.
In addition to this Frankfort-Franklin County market update, we cover other Central Kentucky counties. Check out our local real estate market update videos for Lawrenceburg-Anderson County and Versailles-Woodford County. If you’d like a broader perspective, we also provide a monthly overview of the national residential real estate market.