Like many things involved in buying a house, when to buy is a personal decision. What are your family’s priorities? Is price or selection more important to you? Learn more today about how to time the market in Kentucky.
Buying a house is a stressful and emotional process. You'll likely have to spend weeks touring properties, fill out hundreds of forms, and invest a large chunk of your savings to secure the right house.
One way to make buying a house easier is starting the process at the right time. In Kentucky, housing inventory, mortgage rates, and market trends vary from month to month.
For example, this year listing prices for homes in Kentucky were lowest in January. On average, homes were $29,814 less expensive. While in October — the month with the highest prices — the listing prices were $19,810 more than the annual average.
In truth, the best time to buy a house really depends on your priorities and situation. Read on to find out which time of year will give you the most options and the biggest savings when buying a house in Kentucky.
Best Month For
9.7% lower than average
31.7% more homes to choose from
2.90% interest for 30-year mortgage
Realtor.com data (October 2020)
Bankrate data (December 2020)
If you're interested in buying a home, the first step in the home buying journey is getting preapproved by a licensed lender. Even if you’re already pre-approved, shopping around for lower rates can pay dividends over the life of the loan.
You can fill out the form below to be instantly matched with a licensed lender who knows the area and can guide you through the process.
Best Time of Year to Buy in Kentucky
Kentucky is a dynamic state that offers something for everyone — from cities like Lexington and Louisville to rural countryside and mountaintop getaways.
Timing a unique market like Kentucky’s can be difficult. That said, there are some general guidelines you can follow depending on your priorities.
What is most important to you and your family? Do you want the lowest prices? The largest selection of houses? Or something in between?
For the lowest prices, you’ll probably want to start looking in the fall and aim to buy in the late fall to early winter. In fall and winter, there are fewer homes on the market but also fewer people looking to buy.
Homeowners selling from November through February are often selling because they have to, not because they want to — and that can lead to large discounts.
Biggest Selection of Homes
If selection is more important to you than price, spring is for you. April has the most listings of any month, and April, May, and June are far and away the three most popular months for new listings.
Unfortunately for buyers, spring is also the most expensive time to buy. In the spring selling season, with the most availability comes the most competition. From March to May, one in every four houses sells above its list price.
Good Selection & Good Prices
If you want a middle ground between the craziness of spring and the lull of winter, home shopping towards the end of summer might be for you. There’s a larger selection of homes available than in the fall and winter, and unlike in spring, houses will be priced to move.
Homeowners who hoped to sell in spring or summer, but didn’t, will start to offer discounts towards the end of summer. Sellers still living in their homes want to move before the weather gets cold. Parents want to move before the school year starts. And because the end of the season attracts fewer buyers, good deals are still to be had.
The Best Places to Buy a Home in Kentucky
Louisville is more than just the biggest city in Kentucky and home to the Kentucky Derby; it’s also a metropolitan city filled with restaurants, shops, and culture. From Crescent Hill to Germantown and everywhere in between, there is a neighborhood in Louisville and its surrounding area for everyone.
Wilmore is in Jessamine County, about 30 minutes from Lexington. It’s a small town with low crime rates and affordable real estate. If you work in the city but are looking for small town charm, Wilmore just might be the place for you.
Cherokee Seneca, a suburb of Louisville, is a great place for families and young people. Its affordability, diversity, good schools, and low crime rate make Cherokee Seneca an appealing place to live.
A suburb of Cincinnati, Fort Thomas is found on the southern bank of the Ohio River. Fort Thomas is a charming town of around 16,000, with walkable streets, friendly faces, and affordable real estate.
No list of places to live in Kentucky would be complete without Lexington. Home to the University of Kentucky, hip restaurants, and just a hop from many stops on the Bourbon Trail, Lexington has something for everyone.
4 Ways to Get a Great Deal On a Home in Kentucky
1. Find a Great Kentucky Real Estate Agent
It’s important for every buyer to find the right real estate agent. You need an agent who knows the local market inside and out and can advise you on the best time to buy in your area.
A good agent will know the trends and when homes like the one you’re looking for are likely to appear on the market. Realtors are experts and can help advise you on what time of the year to buy to fit your family’s needs.
Learn More: What Does a Real Estate Agent Do for a Buyer?
2. Assess Your Needs and Lay Out Your Goals
When you’re buying a home, every decision is personal, and how to time your purchase is no different. Some buyers care most about price, while others are more interested in having the widest selection to choose from. Some are tied to a specific location, while others don’t have a particular area in mind.
Plan out your needs and priorities before you start looking. From there, you can get a better idea of when the time is right for you to look.
3. Find a Lender and Secure Financing.
Unless you plan to buy your home with cash, you'll need to apply for a mortgage. For most home buyers in Kentucky, interest rates are among the biggest factors when choosing a lender. Doing a little upfront research and comparing options to find the best rates could save you tens of thousands of dollars over the life of your loan.
For example, in Kentucky a typical house is worth $156,000. Assuming a 20% down payment, if you took out a 30-year mortgage for 3.5%, your monthly payment would be $557. But if you shopped around and found a 3% mortgage, your monthly payment would drop to about $526.
Getting a mortgage is a big decision – and it pays to shop around! Keep shopping until you find a lender with competitive rates who also understands your goals. Don’t get pressured into taking on a bigger loan than you’re comfortable with – work with a lender who explains what you’re really signing up for.
» Get instantly matched with a lender who works in your area.
4. Negotiate for the Best Possible Price
After you’ve found your dream home, your agent will help you prepare and make your offer. When looking for an agent, make sure you find an expert negotiator who will save you money every step of the way.
If you’re shopping for a home in Kentucky, get in touch with a Clever Partner Agent. Clever Partner Agents are all top-rated and can help you with every step of the purchase process.
Fill out our online form and we’ll put you in touch with a Clever Partner Agent in Kentucky for a no-obligation consultation.