Posted November 12, 2018 06:01:03 The real estate market has turned.
Kentucky has been on a boom since the late 1990s, when many were buying for their children or grandkids.
That trend is expected to continue as well, with the number of homes sold each month hitting a record high of more than 2,000 last month.
The trend has helped buoy the economy and led the state’s largest cities, Louisville and Nashville, to add more than $8 billion in new housing construction over the past year, according to the latest U.S. Census Bureau data.
The pace of new construction has led to a rebound in the value of homes.
The average price of a new home in the state has more than doubled from last year to more than a $400,000, according the Real Estate Board of Greater Cincinnati.
That’s more than double the value from last July, the year before, when it was at about $200,000.
But for all the hype, many people are still in the market for a home.
It’s not uncommon for a buyer to need to negotiate a price with the seller to find the right location.
“A lot of people who are on the fence have a lot of money invested in real estate and are willing to pay a little bit more,” said Dan Ochsner, a real estate agent with Real Estate Brokers in Nashville.
Some people are willing for that to happen, said John Kall, a financial adviser with Kall & Schulman in Nashville and a former chairman of the Kentucky Real Estate Association.
“The more you have to put in the work, the more it becomes a deal-breaker for the buyer.”
The number of people living in rental homes has grown at a slower rate than the overall population.
The number living in a home rented out to others rose by 6 percent last year compared with the previous year.
But that increase is largely due to people renting to other people, rather than buying, said Ochssner.
For example, there were more people living with roommates last year than the year prior, but fewer people living alone, according a Census Bureau analysis of Census Bureau figures.
In the state, people living on their own have accounted for about a quarter of all new housing built over the last decade.
In fact, the number living with a family or two has been growing faster than people living independently.
In 2016, there was a significant increase in the number who lived with roommate, and that figure jumped to 24.5 percent, according data from the Bureau of Labor Statistics.
In 2018, there have been more than 10.6 million new rental units in Kentucky, more than in any other state.
About 13.5 million of those new rental homes were located in Louisville and surrounding areas, the Census Bureau said.
There are also more than 3.3 million vacant housing units in the city, according Census Bureau estimates.
Still, many residents still are not willing to make a move.
“I’ve heard some of the arguments, and some of it is legitimate, and a lot can be done to get it fixed,” said Mary Darden, a Nashville real estate broker who has been in the real estate business for 32 years.
“But I’d rather have the money I have, rather pay the price than have it sit there and get destroyed.”
It’s been a rough year for many people, including many who are in the rental market and have never lived in the neighborhood.
That is one of the reasons that many are still searching for a place to rent.
“It’s hard to explain,” said Michelle Burchfield, a retired teacher who has lived in Nashville for 28 years.
She said her husband is in the process of selling and moving to a new state, but she wants to be close to him.
“We’d rather be in the same place, we’d rather stay close,” Burchfields said.
“People are trying to find a way to move to the city or the suburbs and we just want to be in our own house.
We’ve had to live in this for 20 years.”
In a year where a lot has happened, some people are choosing to move closer to home and live closer to work.
“There are a lot more people moving out here because they want to get away from the city,” said Darden.
“Some of the houses are a little nicer, and I think that’s good.
But it’s not going to be a perfect environment.
It will be a lot better.”