Kentucky Housing Market Starts Cooling Off

Higher mortgage rates discourage buyers as sellers rush to beat the slowdown.
LEXINGTON, Ky. - July 12, 2022 - PRLog -- Sixty-nine percent of Kentucky REALTORS® expect sellers to drop their asking price, while eighty-five percent expect houses to stay on the market for longer, according to the June 2022 edition of the HousingIQ Survey of Kentucky REALTORS®.

"Although, mortgage rates have fallen about a quarter point in the last couple weeks, they are still significantly higher than a year ago. The typical home mortgage payment is approximately 35% higher. 66% of the survey respondents said some of their buyers had dropped out of the market because of higher rates," said Vidur Dhanda, survey author. "Sellers will have to reset their expectations. The days of immediate sales and contingency-free offers are likely over. 55% of the survey respondents expect more houses to sell below the asking price."

In the latest Home Purchase Sentiment Index issue, which tabulates national consumer sentiment, Fannie Mae reported that a survey-high 81% of respondents believe the economy is on the 'wrong track'. Only 20% said it's a good time to buy a home.

The Mortgage Bankers Association reported that the national weekly Purchase Index was 17 percent lower than a year ago.

The complete report is available here:

Vidur Dhanda
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Industry:Real Estate
Location:Lexington - Kentucky - United States
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