Each month, Pam Jury, Principal Broker at Christie's International Real Estate Bluegrass, analyzes the local real estate market in Central and Southern Kentucky, breaking down the data. In December 2025, the Central Kentucky real estate market closed the year on a strong and stable note, characterized by rising sales volume and steady price appreciation even as a healthy increase in inventory began to offer buyers more breathing room.
As the final chapter of 2025 closed last month, the Central and Southern Kentucky real estate market demonstrated remarkable resilience and sustained homeowner confidence. Despite persistent inventory constraints, buyer engagement remained high, property values held firm, and annual sales volume concluded on an exceptionally strong note.
Sales Volume Surpassed Previous Year
December 2025 saw 1,120 closed transactions, an increase of 82 sales over the same period last year. Even with a leaner selection of available properties, motivated buyers are acting decisively when the right opportunity arises. This uptick in closing activity signals that demand across our region remains fundamentally healthy.
Sustained Appreciation in Home Values
The median sale price reached $275,000, representing a 1.9% year-over-year increase. This growth underscores the fact that Central and Southern Kentucky home values remain on a solid upward trajectory, as buyers are willing to pay a premium for properties that are well-prepared and priced accurately. Consequently, sellers continue to benefit from a market defined by consistent demand, offering a very encouraging outlook for those considering a move in 2026.
A Shift Toward a More Balanced Pace
The median days on market rose to 32 days, an increase of one week compared to December 2024. This shift indicates a market that is cooling just enough to provide buyers with much-needed breathing room. While well-presented homes still move quickly, listings that are overpriced or lack preparation are taking longer to gain traction. However, once a buyer identified the right property, the pace remained brisk, with the average home going under contract in just 19 days and buyers negotiating an average of 2.7% below the list price. This equilibrium points to a market that is active and stable, rather than overheated.
Total Sales Volume Sees Double-Digit Growth
December generated $363.4 million in total sales volume, a significant 12.4% increase from the previous year. This substantial rise reflects a robust mix of sales across all price points and a deep-seated confidence from both sides of the closing table.
Inventory: Improving, Yet Constrained
Throughout 2025, the Central and Southern Kentucky market welcomed 19,726 new listings, an 8% increase over 2024. While this growth has begun to alleviate some of the inventory pressures of recent years, demand continues to outpace supply, keeping the market leaner than many buyers or agents would prefer. Fortunately, new construction is filling the void, with builders introducing vital options in price segments where resale inventory remains scarce.
Next Steps: Navigating the 2026 Market
Whether you are looking to buy, sell, or simply monitor your investment, the primary takeaways are clear. Sellers should expect strong interest provided the home is strategically priced and expertly staged, while buyers must remain prepared to act despite enjoying more time for due diligence than in previous seasons. Overall, homeowners can take comfort in the steady appreciation and stability of their equity. The Central and Southern Kentucky market remains resilient and ripe with opportunity.
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