As we approach the fall season, let’s look back at this year’s market for waterfront homes in Western Kentucky. All data is from the Western Kentucky Regional MLS as of Sept.6, 2016, covering 12 Western Kentucky counties.
Single family (S/F) waterfront home sales numbers along Lake Barkley and Kentucky Lake have mostly been disappointing this year. Whereas, last year to date thru Sept. 6, saw 84 units sold, in 2016 the same time span saw only 54 homes closed. That’s 23% fewer units sold. Comparing sales during the last 90 days is also gloomy. Last year from June through August 41 Waterfront Homes were closed on both lakes. This year only 19 units were closed. Over 50% decrease.
Of course, the big question is why? Interest rates have not gone up dramatically, remaining at under 4%. Inventory is slightly low with 177 units now on the Active market, but that is still a significant number of homes to consider for Buyers. And Pending sales are currently at 13 units so no big jump in sales for the next few weeks anyway.
It has been suggested that the upcoming election and the current political turmoil is the culprit. Buyers are concerned with what our economy will look like after the election in November. Because of the uncertainty, Buyers are holding off on the big purchase to see how things settle out after the election. Without a doubt, our market did begin to slow down as the Primary elections ended and individual nominees became apparent. Will it continue to slow through the end of the year? We can only wait and see. I will be posting additional information about the current waterfront market in upcoming reports, so stay tuned. Charlie