The real estate market in Central and Southern Kentucky recorded positive performance at the end of 2025, with residential property sales rising by 8% to reach 1,117 transactions compared to 1,038 the previous year.
New-home sales saw notable growth of 17%, totaling 106 sales—the highest level since December 2021. Meanwhile, the total number of properties sold throughout the year reached 13,684, an increase of 5% compared to 2024.
Home prices posted an annual increase of 2% in December, with the average price reaching $275,000, compared to $270,000 last year. Single-family home prices rose by 1%, while condominium and townhouse prices jumped by 8%. Over the full year, the average price increased by 4% to reach $285,000.
Annual real estate sales volume exceeded $4.5 billion, marking a 9% increase. In December alone, total sales reached $362 million, up 12% from the same month in 2024.
Housing supply in December recorded its highest level since 2019, with 4,176 properties available—an increase of 7% year over year. The annual rise in inventory continued for the twenty-sixth consecutive month, in addition to an 8% annual increase in newly listed properties on the market.
The average number of days homes spent on the market rose to 49 days for the month, up 11% compared to last December. Meanwhile, months of inventory saw a slight decline to 3.7 months, indicating continued sales activity.
Pending sales increased by 1% in December and by 6% over the full year, reaching 14,268 in 2025 compared to 13,506 the previous year. The year ended with a significant drop in interest rates to an average of 6.19%, supporting buyer activity.
In conclusion, Mike Inman, President of Bluegrass Realtors, described the market as strong after a year of growth and adjustment, praising the increase in options available to consumers and the longer time provided to make comfortable purchasing decisions.
