Welcome to the second edition of The Recovery series, formally known as The Hangover. The spring market for  Central Kentucky homes continues to gain momentum, and there are several encouraging trends. Our official monthly market report has been released by the Lexington Bluegrass Association of Realtors®, and here is my take on the numbers, what they mean, and where we are headed.

The three main categories I focus on are pending sales, total inventory numbers, and average sales price. Pending sales for the month of March came in at 652 representing a 25% increase over February numbers, representing 3 consecutive months of increased pending sales! Inventory numbers, while still very high, are up 7% from the previous month, but actually lower than the same month last year. We always see inventory levels rise throughout the year until around September, when they start dropping off again. Average sales price for the month was up slightly from February 2011 and about the same as the same month last year. The average sales price figures continue to indicate we have reached a plateau of stability in our local market values. The ratio of final sales price vs. list price remained basically unchanged when compared to the previous month, and when compared to the same month last year.

The bottom line story is the same as last month and will continue to be the same throughout this year: we still have way too many homes on the market but homes that are priced right and in great condition will sell, just not as quickly as we want. As we continue through the first quarter of the year, I will put less focus on the how this year’s numbers compare to last years’, as it isn’t a fair comparison. I want to focus instead on trends we are seeing in our current market. Once we get through April, it will be interesting to see how we compare to last year-I expect the numbers from May going forward will look more and more impressive when compared to the previous year’s numbers.

Below is a summary of some of the key indicators for our local market:

Kentucky homes - Market Statistics

As always, my goal is to provide accurate, timely information on our local market. Feel free to call or email with any questions or comments. Should you have friends or family in need of a real estate pro, please pass my name on to them.