Most people picture the Kentucky Derby when they think of Kentucky, but this classic image of Southern hospitality is one of the driving factors people are searching for homes in the area.
One of the best things about living in Kentucky is that while living here is inexpensive, the amenities available to low-cost areas abound.
What to Expect in Kentucky
Transportation is highly affordable here, as are housing, healthcare, and other additional cost of living expenses.
In fact, according to the Northern Kentucky Tribune, in 2017, home sales hit a record high for the entire state reporting that there was an increase of 1.8 percent from the year before.
Just like in many areas across the country, one of the reasons for the record high in sales has to do with a lower supply of inventory in the Kentucky housing market. According to the president of the Kentucky Realtor Association, Steve Cline, there is a considerable demand from qualified buyers, but the houses just aren’t available.
The result of the competition means that there are many multiple offer situations that leaves buyers competing for the same piece of property. Homes that are priced at the right price point are getting picked up quickly, thereby keeping demand steady.
The total volume of homes sold in 2017 reached nearly $10 billion with an expected increase over 2018.
Limitations of the Kentucky Housing Market
The limitations of the housing market lie distinctly in the employment rate for the state as well as the total potential qualified buyers that are actively searching for homes.
The job market is strong, which means that the demand and competition continue to increase in Kentucky, which also causes the interest rates to rise.
Other issues that can limit the housing market include the recent tax reform that was signed into law this past December. The reduction in available deductions has the power to undermine buyer confidence if it is significant enough.
Top Places to Live in Kentucky
Kentucky is more than derbies and bluegrass. Take a look at these cities for suggestions to help with figuring out what some affordable options are that still provide a comfortable lifestyle.
The capital of Kentucky is Frankfort, a modest town with a median home price of around $130k and under 30 thousand residents.
History runs throughout the area as there are many historical landmarks and home sites that date all the way back to the Civil War. History buffs will appreciate all of the knowledge and exploring there is to do based purely on the history of Frankfort.
The town is also considerably diverse with many people from different backgrounds and cultures.
For home buyers looking into the Kentucky housing market with the expectation of finding homes near metropolitan areas, Nicholasville is the perfect place to call home.
Located near Lexington, Nicholasville is just the right distance to commute to Lexington for work while enjoying a small town feel at home. Add the median home price of around $139k and buyers can enjoy well-priced homes without having to skimp on amenities.
Wine aficionados will also enjoy living in Nicholasville, as there are two wineries within the city’s boundaries. One of them, First Vineyard, is over 200 years old and is actually on the National Historic Register.
Residents frequently see horses and kayaks in Georgetown, and while the median home price is higher than Frankfort and Nicholasville at around $150k, it makes sense given its economic base.
Jobs are fairly easy to come by if buyers are willing to work in the Toyota Motor Manufacturing plant found in this larger town.
There is also plenty of recreation available to those in Georgetown including golf courses, paddling on the local creek, and an annual Festival of the Horse complete with family-friendly activities.
Housing Statistics in Kentucky
Home buyers will be happy to see that the median home value is around $133k according to Zillow with an increase of almost 4% within the past year.
The median list price is relatively low at $107 USD, which is reflected in the median home price of $175k.
Zillow reports the market score as 5.9, which is considered healthy, complete with an average time span of 92 days that a house sits on the market.
Neighboring towns mirror similar home value and home price in nearby Lexington and Elizabethtown as well.
One of the most expensive town to live in is Douglass Hills, while one of the least expensive is Georgetown.