Central Kentucky home sales top $4.2 billion in 2021, shattering records

Beth Musgrave
·2 min read

Central Kentucky’s booming housing market continues to shatter records.

Total home sales in a 30-county Central Kentucky region that includes Fayette County topped $4.2 billion in 2021, a 20 percent increase from the previous record of $3.5 billion set in 2020, according to the Lexington-Bluegrass Association of Realtors .

It’s the first time home sales have topped the $4 billion mark, real estate data shows.

Rising home prices and sales helped drive that total.

Year-end sales tallied an all-time high of 15,809 homes compared to the previous record of 14,687 last year, a 7 percent increase, according to LBAR data.

Median home prices continue to rise.

Overall, median home prices were up 14 percent from 2020, hitting $225,000 compared to $198,000 in 2020.

LBAR President Rusty Underwood said low inventory is driving those price increased.

“The past year showed us that home buyers were very active in the market, ”Underwood said. “People really want to live in this region of the country. The issue we face, and have seen play out for a few years now, is enough inventory to meet the level of demand we are experiencing. And because of this, prices have continued to rise.”

Woodford, Scott, Jessamine, Fayette and Madison were the top five highest priced counties in the region, LBAR data shows.

In Fayette County, the median home price was $229,000 in December 2020. It jumped by 11 percent to $255,000 in December 2021.

Jessamine County saw the largest median home price increase from December 2020 to December 2021. Median home prices went from $214,963 to $323,404, a 50 percent increase, according to LBAR data.

Low interest rates on home loans spurred real estate market growth in all areas of the country, Underwood said. The U.S. Federal Reserve has signaled it intends to raise interest rates throughout the year, which may slow the area’s rapid growth in home sales and prices, Underwood said.

“As consumers start to see mortgage rates rise, housing demand, which has accelerated beyond other market conditions, could have an impact on home prices,” he said. “We’ve already seen a bump in rates to start the new year, however, experts are saying they should stay below 4 percent this year and possibly next year as well.”