Lexington Sellers Hold Firm On Pricing As Inventory Builds To Highest Level In Years

Active listings jumped 29.6% year-over-year to 1,112 homes while median list price held steady at $419,450, creating a 2.6-month supply that signals shifting market dynamics for Kentucky’s second-largest metro.

The Lexington-Fayette, KY metro housing market absorbed 112 homes during the week ending Nov. 7, 2025, up 6.7% from 105 homes during the same period last year. Despite the inventory surge, the median list price dipped just 1.8% year-over-year, demonstrating remarkable price stability even as more options flood the market.

Rising inventory meets steady pricing in Kentucky’s second-largest metro

Lexington’s active inventory of 1,112 single-family homes marks a substantial shift from the 858 homes available a year ago. The 254-home increase provides buyers with more selection while maintaining seller-favorable conditions. New listings contributed 82 homes to the market during the week, feeding a pipeline that now offers 2.6 months of supply based on current absorption rates.

Price adjustments tell a nuanced story. While 39.4% of active listings took price cuts during the week, only 1.1% increased their asking prices. The median price decrease magnitude data wasn’t available, but the high percentage of reductions contrasts with the minimal year-over-year price decline. Additionally, 11.3% of properties were relisted after previously being removed from the market.

Weekly absorption climbs even as active listings surge

Market velocity remains healthy with 112 homes absorbed weekly, suggesting sustained buyer demand. Properties spent a median 63 days on market, up from 56 days a year ago but matching Kentucky’s statewide pace. The absorption rate supports the current months of supply calculation, indicating the market can handle the increased inventory without dramatic price pressure.

At $199.97 per square foot, Lexington properties command a premium over Kentucky’s statewide average of $174.94. The metro’s median list price of $419,450 sits 31.1% above the state median of $319,900, though it remains 3.1% below the national median of $432,980.

Market maintains seller advantage despite shift from ultra-tight conditions

Lexington’s housing market operates in seller-favorable territory according to market condition indicators. The 2.6-month supply exceeds both the statewide figure of 2.5 months and the national level of 2.5 months, yet remains well below the 6-month threshold typically associated with balanced conditions.

Monitor the 39.4% price cut rate as a leading indicator of seller sentiment. Track whether weekly absorption can maintain its current 112-home pace as inventory continues building. Watch the 11.3% relisting rate for signs of seller strategy adjustments.

Use the 63-day median days on market to set realistic expectations with clients. Leverage the 29.6% inventory increase when advising buyers about expanded options. Share the $419,450 median price point to anchor pricing discussions in this seller-favorable market.

HousingWire used HW Data to source this story. To see what’s happening in your own local market, generate housing market reports. For enterprise clients looking to license the same market data at a larger scale, visit HW Data.