Is now the time to sell your home?
Hello, Lawrenceburg, 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 home sellers have about the current local real estate market. Afterwards, if you are interested, we’ll discuss the real estate indicators we used to answer them.
Let’s get started.
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(PLAYLIST – Housing Market Spotlight: Lawrenceburg-Anderson County, Kentucky)
The first question home sellers ask is, “What’s the pace of the market?”
It’s moving fast.
There are 37 days of inventory available, and homes are finding buyers in just 23 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 Lawrenceburg-Anderson County are strong.
Home sellers can still capitalize on historically high prices and continued homebuyer demand. The median sales price was slightly below that of 2023. If you are curious about the current local 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 23 days in January. Pricing and condition matter and should be reconsidered if a home is on the market longer than average. As mortgage interest 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 1.23 months or 37 days of available homes on the market, more home 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 that homes for sale 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 “What’s the pace of the market?”
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 number of homes available for purchase would last at the current rate of sales. 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 Lawrenceburg-Anderson County, the months supply of inventory fell to 1.23 months or around 37 days. That’s a 25% decrease over the previous month and 19.6% lower than a year ago. For context, over the past decade, the average months supply of inventory was 3.9 months. At 1.23 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, “What’s the pace of the market?”
Current Inventory also serves as a balancing act. When the current number of homes available for sale 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. While the number of homes on the market can vary, by consistently using the same day each month, we can establish meaningful month-to-month trends.
As of January 15th, there were 24 homes available on the market in Lawrenceburg-Anderson County. This represents a 25% decrease compared to the previous month. Compared to last year, when there were 42 homes on the market, we observe a 19.6% decrease in the number of available homes. For home sellers, the low number of homes for sale signals scarcity, driving heightened demand, increased home 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, “What’s the pace of the market?”
This indicator tells us about the pace of the market. A faster pace favors home sellers. Existing home sales is the total dollar amount of homes whose sales contracts were finalized during the month.
In January, 2.4 million dollars’ worth of property was sold in Lawrenceburg-Anderson County. That’s 54.6% lower than in January and down 26.1% compared to the previous year. Home sellers who are ready to put their homes on the market 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 were cheaper and half were more expensive.
The median sales price of a home in Lawrenceburg-Anderson County was $228,000, which was 8.1% below the previous month and 2.6% lower than last year. For 2023, the median sales price was $234,000 which was above the median sales price in 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, “What’s the pace of the market?”
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. The Days on Market is the average number of days that sold homes were on the market. Those days are calculated from the day a property is put on the market until the property finds a buyer.
Days on Market is at 23 days, which is up 13.5% from last month and down 30.3% 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, home sellers can expect more homebuyers 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 Lawrenceburg-Anderson County market update, we cover other Central Kentucky counties. Check out our local real estate market update videos for Frankfort-Franklin 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.