Lexington, Kentucky, November 21, 2025
The Bluegrass region housing market is seeing a notable rise in inventory with 4,471 homes available, alongside steady buyer demand. Despite a slight drop in new listings, the market remains balanced with a 12% increase in housing inventory compared to last year. The median home price has risen to $290,000, continuing a trend of price appreciation. With October showing an increase in sales and a decrease in average interest rates, buyers are finding more options in the diverse market.
Lexington, Kentucky – Bluegrass Region Housing Market Sees Rising Supply and Strong Demand
The housing market in the Bluegrass region of Kentucky is experiencing a notable increase in available properties, coupled with sustained buyer interest, according to recent data from Bluegrass Realtors®.
Key Market Indicators
- New Listings: In October, 1,659 homes were listed, a 3% decrease from the previous year, breaking an eight-month trend of year-over-year increases. However, year-to-date, new listings have risen by 7%, totaling 17,221 homes compared to 16,063 in 2024.
- Housing Inventory: The region’s housing inventory reached 4,471 homes in October, marking a 12% increase from the 4,011 properties available in the same month last year. This growth offers buyers more choices across various price points and communities.
- Months of Inventory (MOI): MOI rose to 3.9 months, up 8% from 3.6 months a year prior. This indicates a balanced market, with a steady supply of homes relative to sales activity.
- Days on Market (DOM): The average DOM increased to 46 days, a 21% rise from 38 days in October 2024. The median DOM also climbed to 23 days, up from 17 days the previous year, suggesting that while homes are taking longer to sell, demand remains strong.
- Home Sales: A total of 1,129 homes sold in October, a 2% increase from 1,110 closings recorded last year. Single-family home sales rose by 3%, while townhouse and condo sales decreased by 11%.
- Home Prices: The median home price reached $290,000, a 6% increase from $275,000 in October 2024. This marks the 80th consecutive month of year-over-year price appreciation in the region.
- Interest Rates: The average interest rate for October was 6.25%, the lowest monthly average in 13 months, down from 6.43% the previous year. This decline is attributed to Federal Reserve rate cuts in September and October.
Market Outlook
Despite a slight decrease in new listings, the overall housing inventory continues to grow, providing buyers with more options. The increase in MOI and DOM suggests a shift towards a more balanced market, allowing buyers additional time to make purchasing decisions. The sustained demand, coupled with rising home prices, indicates a robust housing market in the Bluegrass region.
About Bluegrass Realtors®
Bluegrass Realtors® is the leading advocate for homeownership in the Bluegrass region, representing over 4,000 Realtors® across 38 counties. The association provides up-to-date real estate listings and resources for buying and selling homes.
Key Features of the Bluegrass Region Housing Market
| Indicator | October 2025 | October 2024 | Year-over-Year Change |
|---|---|---|---|
| New Listings | 1,659 | 1,712 | -3% |
| Housing Inventory | 4,471 | 4,011 | +12% |
| Months of Inventory | 3.9 | 3.6 | +8% |
| Average Days on Market | 46 | 38 | +21% |
| Median Home Price | $290,000 | $275,000 | +6% |
| Average Interest Rate | 6.25% | 6.43% | -0.18% |
FAQ
What is the current state of the housing market in the Bluegrass region?
The Bluegrass region is experiencing a balanced housing market with increased inventory and sustained buyer demand. In October, new listings decreased by 3% year-over-year, but overall inventory rose by 12%, offering more choices to buyers.
How have home prices changed in the Bluegrass region recently?
Home prices have been on an upward trend, with the median price reaching $290,000 in October, a 6% increase from the previous year. This marks the 80th consecutive month of year-over-year price appreciation in the region.
What factors are contributing to the current housing market trends?
Several factors are influencing the market, including a 34% increase in inventory levels since January, a decline in average interest rates to 6.25%, and sustained buyer demand despite longer times to secure contracts.
Now Happening on X
- @Skoobz1 (November 19, 2025): Lexington’s growth has slowed recently due to a housing shortage, with rents increasing about 50% since 2019 according to a city-sponsored study. View on X
- @CBarberini_RE (November 17, 2025): Real shifts in the housing market include declining mortgage rates improving affordability, more sellers listing homes, and increased options for buyers. View on X
- @kttalkatl (November 17, 2025): The housing market is shifting favorably for buyers and becoming more attractive to sellers, potentially benefiting both sides. View on X
- @7ftloanofficer (November 17, 2025): After slower years, the market is turning a corner with declining mortgage rates, more listings, and growing buyer activity signaling traction heading into 2026. View on X
- @BRPRealEstate (November 14, 2025): Annualized home sales indicate broad-based stability with a ripple effect on commercial growth, noting 6,800 homes sold in the Tri-Cities area. View on X
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