Housing Market Cools Off Say Kentucky REALTORS®

Lexington, KY, May 20, 2022 --(PR.com)-- Forty-three percent of Kentucky REALTORS® expect more sellers to reduce their asking price, while fifty-eight percent expect a house to stay on the market for longer, according to the April 2022 edition of the HousingIQ Survey of Kentucky REALTORS®.

Compared to a Year Ago
- 37% expect house prices to increase—a 23-point drop

- 58% expect houses to stay on the market for longer—a 31-point increase

- 43% expect greater price-cutting by home sellers—a 23-point increase

- 41% anticipate a decrease in foot traffic—a 30-point increase

“The market is turning as both buyers and sellers adjust to the changed economic situation. 50% of the survey respondents said some of their buyers had dropped out of the market because of higher mortgage rates while 41% expect a decrease in foot traffic,” said Vidur Dhanda, survey author. “As sellers lower their asking price and additional listings come to market, buyers should get some relief. However, inflation and steeper mortgage rates will continue to weigh on buyers.”

In the latest Home Purchase Sentiment Index issue, which tabulates national consumer sentiment, Fannie Mae reported that a survey-high 76% of respondents said it’s a bad time to buy a home, as the headline index touched its lowest level since May 2020.

The Mortgage Bankers Association reported that the national weekly Purchase Index was 15 percent lower than a year ago.

The complete report is available here: housingiq.com/housingiq-survey-of-kentucky-realtors-april-2022/