10/07/2026
Is the Central Kentucky housing market finally starting to balance out?
I think we’re getting closer, and the numbers are starting to show it.
In Fayette County, active inventory was up more than 14% year over year in September, with 1,317 homes on the market. At the same time, the median sold price was $350,000, essentially unchanged from a year ago.
The broader Central Kentucky market is showing a similar shift. Bluegrass REALTORS reported August inventory of 4,578 homes, up 12% from last year. Months of inventory also increased from 3.0 to 3.6 months.
Interest rates are part of the equation too. The average 30-year fixed mortgage rate was 7.28% as of October 1, compared with 6.34% a year ago. Higher borrowing costs reduce purchasing power, which makes affordability an even bigger part of the conversation for buyers.
Put all of that together and I think one thing is becoming increasingly important:
Pricing matters again.
Homes that are priced and presented well can still move quickly. But buyers have more choices, and they’re paying attention to value. Sellers who price based on where the market was a couple of years ago may find themselves sitting longer than expected.
For buyers, more inventory means more homes to compare and, depending on the property, potentially more room to negotiate.
I actually think a more balanced market is a good thing. Buyers and sellers can make decisions based more on the property, the numbers and their individual situation and less on the frenzy we saw over the last few years.
That doesn’t mean we’re suddenly in a buyer’s market. It means the market is changing, and every neighborhood and price range can tell a different story.
If you’re curious what the numbers look like around your home or in an area you’re considering, send me a message. I’m always happy to dig into the data with you.
Sources: Realtor.com Economic Research, September 2026; Bluegrass REALTORS, August 2026 market data; Freddie Mac Primary Mortgage Market Survey, October 1, 2026.