Kentucky Homebuyers Bid Up Prices as Sellers Hold Back

EAST LONGMEADOW, Mass. - Rezul -- Nearly three out of five Kentucky REALTORS® – 61% – said their sellers were holding back listings due to current economic uncertainty, according to the May 2020 edition of the HousingIQ Survey of Kentucky REALTORS®. Nearly 60% of the 374 REALTORS® from across Kentucky reported that their buyers had started to return to the market.

"Home prices are gaining due to tight inventories that have further shrunk because of reluctant sellers", explained Vidur Dhanda, author of the survey. "The survey results highlight the beneficial impact of government actions in protecting homeowners.  What remains to be seen is how fast sellers feel confident about their economic situation and return to the market."

The HousingIQ Survey of Kentucky REALTORS® is administered monthly to the Kentucky REALTORS® membership as part of an effort to harness the ears-to-the-ground knowledge of REALTORS®. The responses are analyzed and reported as the HousingIQ/Kentucky REALTORS® Confidence Index. The May 2020 edition included additional questions to gather first-hand knowledge about the impact of the coronavirus on the Kentucky housing market.

More on Rezul News

• "Micro-Studio": Why San Diegans are Swapping Crowded Gyms for Private, One-on-One Training at Sweat Society
• Beycome Closes $2.5M Seed Round Led by InsurTech Fund
• Tatanka Run Announces Phase-2 Development Following Completion of Phase-1 Spec Home
• Tru by Hilton Columbia South Opens to Guests
• Christy Sports donates $56K in new gear to SOS Outreach to help kids hit the slopes

The emerging narrative is that prices will likely trend up in the next twelve months although growth in transaction volumes will remain low. As sellers return to the market, there will be pressure to reduce listing prices to attract buyers.  As government support and forbearance plans wind down, single-family rental investors could have valuable opportunities.

In the next twelve months:

- 36% of respondents expect an increase in sales volume
----- 35% anticipate increased foot traffic
----- 34% expect houses to stay on market for fewer days
----- 35% expect increased sales to first-time buyers
- 81% of respondents anticipate an increase in delinquencies
----- 39% expect more houses to sell below asking price
----- 58% expect increased sales to investors

"Home prices are gaining due to increased buyer activity and tight inventories.  As the full economic impact of the pandemic plays out on homeowners and inventory starts to rebound, there may be downward pressure on prices.  A local market expert will be invaluable in helping sellers correctly price the listing and advising buyers on negotiating through a bidding war", said Kentucky REALTORS® President Lester Sanders.

More on Rezul News

• PulteGroup Northeast Florida's 4th Annual Building Hope Golf Tournament raises record $224,331
• Newest David Weekley Homes Community Now Open In Georgia's Forsyth County
• "BigPirate" Sets Sail: A New Narrative-Driven Social Casino Adventure
• Phinge CEO Ranked #1 Globally by Crunchbase for the Last Week, Will Be in Las Vegas Jan. 4-9, the Week of CES to Discuss Netverse & IPO Coming in 2026
• Women's Everyday Safety Is Changing - The Blue Luna Shows How

Nearly a third of the realtor respondents reported an improvement in their ability to conduct business during May. "KYR has proactively helped its membership work through the challenges posed by COVID-19", said KYR C.E.O. Steve Stevens. "By providing new insights about the Kentucky housing market, KYR is now enabling the eco-system to partner and advance the market. For example, with nearly 3 out of 5 REALTORS® anticipating increased sales to investors, property management companies and lenders can collaborate to provide packaged services", explained Steve Stevens.

The latest report is available here: https://housingiq.wainstreet.com/surveys/ky/