LEXINGTON, Ky. — Central and Southern Kentucky’s 38-county housing market saw solid momentum in August 2025, with increases across sales, pending sales, listings, inventory, and overall volume, according to the Bluegrass Realtors’ latest report.

In August, 1,338 homes were sold across the region, a 9% increase over the 1,230 transactions closed in August 2024. This signals continued buyer demand, even as the market adapts to higher inventory levels. Sales for the month of August sales were the highest since 2022. Compared to July, which was the best month in 2025 with 1,380 closings, sales fell 3%.

Single-family sales in August increased 8%, with 1,246 homes sold versus 1,155 last year. Townhouse and condo sales jumped 23%, from 75 units in 2024 to 92 this year. Townhouses and condos are just over 7% of the market.

For the year, sales are up 6% at 9,284 through the first eight months compared to 8,804 sales in 2024.

New construction sales continued to outperform last year. In August, there were 119 sales, down slightly from the previous month, but 4% over last year. So far this year, new construction is 9% higher in sales than in 2024.

Future trends positive

Looking ahead, pending contracts provide a glimpse into future activity, and August saw 1,321 homes go under contract, a 13% increase over the 1,167 pending sales recorded a year earlier. This momentum suggests the market will continue to see solid closing activity moving into the fall season. On the year, pending sales are up 8% with 10,188 properties that have gone under contract.

“The steady rise in sales shows that buyers are still eager to find homes in our region, and sellers are seeing strong interest when they price competitively,” said Todd Hyatt, president of Bluegrass Realtors®. “And with more properties coming online, the market will be able to meet some of the pent-up demand.”

New listings marked seven consecutive months of year-over-year increases, climbing 14% compared to last year and reaching the highest August total since 2019. In total, 1,947 properties hit the market. Year-to-date, new listings are up 12% with 14,251 homes being added to the market versus 12,733 last year.

The boost in listings pushed overall housing inventory to 4,106 properties in August, a 10% increase over a year ago. For 22 consecutive months, inventory has shown year-over-year growth.

Months of inventory rose slightly to 3.1 from 3.0 in August 2024.

“Rising inventory is helping bring the market closer to balance, which is usually 5 to 6 months. Buyers have more choices, and sellers are still seeing steady demand, which is why sales are climbing alongside the growth in available homes,” stated Hyatt.

Homes stayed on the market a bit longer in August, averaging 42 days before going under contract. That’s up from 35 days a year ago, representing a 20% increase. While still relatively quick by historical standards, the longer timeframe reflects a market that is giving buyers more time to consider their options. August marked one year of year-over-year gains. The median DOM climbed to 17 days in August, up from 13 days in 2024. For the year, the average days on market (DOM) was up 21% to 47 days.

Home prices also showed consistent growth, with the median price reaching $287,500 for the month, a
record high for August. That figure represents a 3% gain compared to the $279,000 median in August 2024. Although August’s median price cooled slightly from the previous month, the data now shows 78 consecutive months of year- over-year price appreciation. For the year, median prices are up 5%, reaching $284,900.

Single-family home prices in June rose 4% to $290,400, up from $280,000. Townhouse and condo prices
dropped to $248,725 from $260,000 in 2024, a 4% decrease.

“This month saw prices rise but a more tempered appreciation,” Hyatt said. “All other categories were
extremely strong and a good sign the market is trying to balance between buyers and sellers with strong demand and a healthy atmosphere through the end of the year.”

Bluegrass Realtors represents more than 4,000 members in 38 counties: Anderson, Bath, Bell,
Bourbon, Boyle, Casey, Clark, Clay, Elliott, Estill, Fayette, Franklin, Garrard, Harrison, Henry, Jackson, Jessamine, Knox, Laurel, Lee, Lincoln, Madison, McCreary, Menifee, Mercer, Montgomery, Nicholas, Owsley, Powell, Pulaski, Rockcastle, Rowan, Russell, Scott, Shelby, Wayne, Whitley and Woodford counties.

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