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Lexington weekly real estate update

Purchasing a first home just got a whole lot more difficult for first time home buyers whom experts say could soon be priced out of the U.S. real estate market writ large.

That’s because the Fed announced the largest interest rate hike since 1994. The increase is anticipated to drive 30-year mortgage rates to levels that will price out millions more potential homebuyers.

Year to date mortgage rates have risen from 3% to around 6%, meaning monthly mortgage payments for a $400,000 home purchased today have effectively risen 42% from what they would have been six months ago, according to MarketWatch.

The most concerning part? Builders and real estate experts don’t expect home values to decrease with the looming recession.

The dual forces of inflated home values and higher interest rates threaten to pinch Americans looking to get into a new home. And overall those same Americans are not seeing their wages increase at nearly the same level as other goods and services, housing included. The Fed has argued it must raise rates dramatically to cool the red-hot U.S. economy and prevent further price inflation.

And it is cooling. Home sales have been dropping month after month as the Fed has raised rates, and the market is expected to slow even further over the remainder of 2022. Big real estate firms are announcing massive layoffs this week – an indication that industry leaders see slower growth ahead.

ZeroDown compiled a weekly real estate market report in Lexington, KY metro area using data from Redfin. Statistics are as of the week of June 12, 2022.

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Median sales price

Lexington, KY metro area:
– Median sales price: $302,350
– One-year change: +13.7%

Metros with highest median sales price
#1. San Francisco, CA metro area: $1.6 million
#2. San Jose, CA metro area: $1.5 million
#3. Santa Cruz, CA metro area: $1.2 million

Metros with lowest median sales price
#1. Davenport, IA metro area: $122,438
#2. Pine Bluff, AR metro area: $128,875
#3. Bay City, MI metro area: $132,875

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Median sales price per square foot

Lexington, KY metro area:
– Median sales price per square foot: $162
– One-year change: +16.5%

Metros with highest median sales price per square foot
#1. San Francisco, CA metro area: $1,103
#2. San Jose, CA metro area: $924
#3. Kahului, HI metro area: $923

Metros with lowest median sales price per square foot
#1. Pine Bluff, AR metro area: $75
#2. Carbondale, IL metro area: $87
#3. Peoria, IL metro area: $88

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Sales to list price ratio

Lexington, KY metro area:
– Average sales to list price ratio: 1.02
– One-year change: +0.01

Metros with highest sales to list price ratio
#1. Rochester, NY metro area: 1.16
#2. San Francisco, CA metro area: 1.11
#3. Oakland, CA metro area: 1.11

Metros with lowest sales to list price ratio
#1. Weirton, WV metro area: 0.96
#2. Carbondale, IL metro area: 0.96
#3. Pine Bluff, AR metro area: 0.96

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Homes sold with price drops

Lexington, KY metro area:
– Homes sold with price drops: 8.8%
– One-year change: -2.3%

Metros with most homes sold with price drops
#1. New York, NY metro area: 25.9%
#2. Chico, CA metro area: 25.1%
#3. Medford, OR metro area: 24.6%

Metros with least homes sold with price drop
#1. Columbia, MO metro area: 0.0%
#2. Evansville, IN metro area: 0.0%
#3. Hilton Head Island, SC metro area: 0.0%

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Off market in two weeks

Lexington, KY metro area:
– Off market in two weeks: 70.0%
– One-year change: +2.7%

Metros with the most homes off market in two weeks
#1. Rochester, NY metro area: 88.3%
#2. Kalamazoo, MI metro area: 81.8%
#3. Ames, IA metro area: 81.3%

Metros with the least homes off market in two weeks
#1. Urban Honolulu, HI metro area: 2.7%
#2. Morristown, TN metro area: 4.2%
#3. Oshkosh, WI metro area: 4.7%

FOTOGRIN // Shutterstock

Months of supply

Lexington, KY metro area:
– Months of supply: 5.6 months
– One-year change: +0.4 months

Metros with the most months of supply
#1. Lubbock, TX metro area: 177.8 months
#2. Brownsville, TX metro area: 31.8 months
#3. Lafayette, IN metro area: 24.2 months

Metros with least months of supply
#1. Greenville, NC metro area: 3.5 months
#2. Lewiston, ME metro area: 3.7 months
#3. Wichita, KS metro area: 3.8 months

This story originally appeared on ZeroDown and was produced and
distributed in partnership with Stacker Studio.