What To Expect in the Lexington Housing Market in 2025

By Bob Sophiea

Founder and CEO of New Home Collective, established the company in 2014 with a mission to revolutionize the real estate industry.

What’s happening with the current Lexington, Kentucky, real estate market? Is now a good time to buy? Is it a good time to sell? And, of course, the big question is: Is the market going to crash? We’ll look at the actual stats from last month to see how the market is performing. I’ll also share my thoughts as a Realtor in Lexington, Kentucky.

Kentucky Market Overview: October 2023 vs. October 2024

Note: When I mention Kentucky, I’m referring to the Bluegrass Realtors Association, which covers 30 counties in that region.

• Market activity and home sale price. In October 2023, homes sold went from 1,041 homes to 1,058 in October 2024, showing a 1.6% increase. This slight uptick in market activity suggests more buyers are entering the market.

This shows steady demand for sellers as winter approaches. The average sales price rose from $286,649 in October 2023 to $329,799 in October 2024, representing a 15% growth. With this upward trend, sellers can capitalize on higher prices. Buyers need to act sooner, as prices are likely to remain strong in the coming months.

• Days on market. Homes were listed for an average of 36 days in October 2023, while in October 2024, it was slightly longer at 38 days—a 5% increase. This suggests that homes sell a bit slower, giving buyers more time to decide.

• New listings. The number of new listings is a leading indicator of future market trends. Year to date, there was a 12.9% increase in new listings. In October 2023, there were 1,425 new homes listed, while in 2024, it rose to 1,609 homes. We have more inventory now, which gives buyers more choices. This trend is expected to continue, leading to a more balanced market.

• Pending sales. From 934 homes in October 2023 to 1,168 homes in 2024, pending sales jumped 25.1%. This means strong buyer interest exists, and well-priced homes are moving quickly.

The increase in the number of days on the market and pending sales shows that sellers need to be patient. Homes could take longer to sell during the holiday season, while buyers may need to act quickly.

Lexington Market Overview: October 2023 vs. October 2024

Now, let’s look at the housing market numbers in Lexington, Kentucky.

• Market activity and sale price. In October 2023, the Lexington market saw a 4.6% increase in listings sold, from 284 homes sold to 297 homes sold in October 2024. There’s relatively stable market activity, indicating that buyers are still interested, and sellers can expect a steady market as we move into the new year.

The average sales price rose by 12%, from $377,788 in October 2023 to $415,343 in October 2024. This indicates that home prices continue to climb, so sellers might still see good returns if they list their properties soon. Buyers could benefit from locking in a home now to avoid future price increases.

• Days on market. There’s a 1% increase in days on the market in Lexington from an average of 23 days in October 2023 to 24 days in October this year. This means that homes are still selling at a similar pace, and the market will stay active as we head into winter.

• New listings. The number of listings in Lexington increased from 340 homes in October 2023 to 358 homes in October 2024, representing a 5.3% rise. Buyers can see more options on the market, though sellers might feel some pressure due to slightly more competition in the market. We may see even more listings come onto the market as we move into early 2025, giving potential buyers even more options.

These numbers give you a high-level overview of the Lexington market, but the specifics can be different depending on your home and neighborhood. I can provide specific information about your neighborhood and how your home would sell in this market.

If you want to talk about a plan to live here, staging and pricing your home, or anything in between, you can schedule a free consultation. I can help you get on the market or connect you with an experienced agent on our team. Book a call with me at (859) 693-2379, send an email to bob@nhcnow.com, or check out my website: https://www.nhcnow.com. We love connecting with our viewers.