Southern Kentucky Real Estate Market Update: May 2025
As we move through spring 2025, the Southern Kentucky real estate market continues to show signs of steady, sustainable growth. With rising home values, expanded inventory, and a balanced pace between buyers and sellers, it’s a promising time for those looking to make a move in this region.
The Market at a Glance
Home prices across Kentucky have climbed nearly 10% over the past year, with the median price now hovering around $265,000. This upward trend reflects the growing appeal of areas like Bowling Green, Hopkinsville, and Oak Grove, which offer a unique combination of affordability, space, and Southern charm.
Meanwhile, inventory has seen a healthy boost. Active listings across the state have grown by over 10% year-over-year, giving buyers more homes to choose from than they’ve had in recent seasons.
What It Means for Buyers
Buyers are finding more breathing room in today’s market. Homes are spending an average of 57 days on the market, which gives interested buyers time to explore their options without feeling rushed. Nearly one in four listings has had a price drop, and homes are currently selling for about 96.7% of their list price—offering some negotiating power at the table.
If you’re a first-time buyer or relocating to the area, this is a good moment to explore opportunities, especially in up-and-coming neighborhoods or smaller towns with strong growth potential.
What It Means for Sellers
Sellers still have a lot working in their favor. The average home value continues to rise, and demand remains solid, particularly in areas with good schools, updated properties, or proximity to major employers.
That said, strategic presentation matters. With more listings on the market, curb appeal, professional photos, and realistic pricing are crucial for attracting serious buyers.
Spotlight on Local Markets
- Bowling Green: A regional favorite with a strong mix of historic homes, modern developments, and vibrant downtown energy. This city remains one of the most competitive in Southern Kentucky.
- Hopkinsville & Oak Grove: These communities continue to appeal to first-time buyers and investors thanks to their affordability and military proximity (Fort Campbell).
- Glasgow & Franklin: Smaller markets that are growing in popularity due to their lower home prices and easy commutes to nearby job hubs.
Looking Ahead: 2025 Forecast
Market experts are forecasting continued balance throughout 2025. Mortgage rates are expected to hover in the mid-6% range, which could support more buyer activity as affordability stabilizes.
While we may not see the fast-paced bidding wars of recent years, this new equilibrium benefits both sides of the transaction. Buyers get choice and time. Sellers get value and motivated prospects.
Final Thoughts
The Southern Kentucky real estate market is healthy, active, and well-positioned for the months ahead. Whether you’re buying your first home, selling your current one, or investing in a rental property, now is a great time to lean in.
As always, working with a local real estate professional—someone who knows the neighborhoods, the data, and the rhythm of this market—can make all the difference.
“What I’m seeing across Southern Kentucky is a healthy mix of opportunity and growth. Buyers have more options, and sellers are still getting strong value. It’s a great time to make a move, especially if you’ve got the right strategy.”
– Ashlea Campbell
At the end of the day, real estate is personal. It’s about finding the right fit — not just in a house, but in a community you love. Southern Kentucky has that rare blend of value, charm, and momentum. Whether you’re planting roots or making your next move, I’m here to help you navigate it with confidence.
