This broke the previous record (49,574 sales in 2017) and reflected booming demand statewide.
Dramatic Price Increases
Home prices rose markedly during this period.
Mortgage rates hovered around 45% in 20182019, then plummeted.
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These ultra-low rates allowed budget-conscious households to afford higher-priced homes without raising their monthly costs too dramatically.
The 2022-2023 Cooldown
By 20222023 the environment changed.
The post-pandemic housing frenzy cooled as the Federal Reserve raised interest rates to combat inflation.
This rapid rise in rates caused a noticeable slowdown in sales.
Even so, demand still exceeded supply in most of Kentucky.
In Kentucky and nationwide, that share shrank significantly by 2022.
Changing Buyer Demographics
Buyer demographics changed over this period.
The typical homebuyer has been getting older as affordability challenges mount.
Repeat buyers median age also climbed (often into the 50s or 60s).
Different Financial Approaches
The first-time vs. repeat dynamic also played out in terms of financial approach.
Successful move-up buyers often were those who could waive contingencies or pay above listing price.
Downsizing Challenges
On the other hand, downsizing buyers often empty nesters or retirees also made moves.
Downsizers might purchase a smaller single-story house, a condo, or even move to a quieter rural area.
The Stay Put Phenomenon
Indeed, staying put became a notable trend by 20222023.
This so-called lock-in effect was strong nationally and in Kentucky.
Owners with 3% loans were reluctant to trade that for a 7% loan on a new house.
Thus, the normal flow of upsizing and downsizing slowed.
This contributed to the low inventory: fewer people listed their homes, exacerbating the shortage for first-time buyers.
Realtors noted that once rates jumped, both buyers and sellers were caught off guard and pulled back.
However, by 2022 that trend cooled off sharply as costs rose.
Kentuckys affordable prices attracted some out-of-state investors, but also local landlords expanded portfolios.
This investor activity meant some budget-minded owner-occupants lost out on starter homes that became rentals instead.
By late 2022, though, investor buying waned as interest rates and cooling rents made it less attractive.
Kentucky is a state dominated by single-family housing, and detached houses remained the preferred property bang out.
This includes both newer construction in suburban subdivisions and older homes in established neighborhoods.
In urban areas like Louisville and Lexington, townhomes and condos became an appealing alternative for some buyers.
Multi-Generational and Multi-Unit Living
A trend related to property pop in is multi-generational living.
In 20202021, about 1520% of home purchases were multi-gen, a high in recent history.
In Kentucky, multi-gen purchases occurred when families pooled resources to afford a larger home.
This effectively increases budget and can be a strategy when homes are expensive relative to income.
By 2021, the median home price in Jefferson County (Louisville) was about $230,500.
Neighborhoods in the East End and South End saw bidding wars on mid-priced homes.
First-time buyers in Louisville often had to look in outlying areas or consider townhomes.
The region did have some condo developments, which attracted downsizers and young professionals.
This area benefits from the University of Kentucky, government jobs, and horse industry wealth.
Lexingtons housing supply was extremely tight; months of inventory often hovered around 12 months or less during 20202021.
In rural communities, households under $250K income are the norm, and many homes are modest.
Some rural counties saw little to no construction in the last decade.
Repeat buyers often held the upper hand, leveraging existing equity in the upsizing or downsizing process.
