Southern Kentucky Real Estate Market Update: June 2025
As we move into the summer months, the real estate market across Southern Kentucky is showing signs of steady momentum despite a few shake-ups this past spring. Whether you’re buying, selling, or simply keeping an eye on the market, here’s what you need to know.
Prices Remain Strong, But Balanced
As of early June, median home prices in Kentucky are holding around $265,000, reflecting a 9.2% year-over-year increase. This steady growth highlights the region’s resilience and continued appeal to both local and out-of-state buyers.
However, the market is becoming more balanced. Homes are taking slightly longer to sell, and buyers are gaining leverage thanks to an increase in available inventory.
Inventory Is Growing
There are currently over 16,000 homes on the market across Kentucky, a 15.1% increase from last year. This is great news for buyers who may have struggled with low inventory in previous seasons.
For sellers, this means pricing your home competitively and ensuring it’s well-presented is more important than ever. Homes that are priced right and staged well are still moving quickly, but gone are the days of dozens of offers on Day 1.
Mortgage Rates & Buyer Power
Mortgage rates remain a hot topic. As of June, rates are expected to stay in the 6.5% range for much of the year. While higher than what we saw during the ultra-low-rate era, they’re still considered historically moderate. Buyers who are financially prepared can still lock in favorable deals—especially with more listings to choose from.
Impact of May’s Tornado in the Region
- Southern Kentucky is also navigating the aftermath of a significant weather event. In mid-May, an EF4 tornado caused widespread damage in parts of the Somerset and London area. With 19 confirmed fatalities and dozens of homes impacted, this storm is now considered one of the region’s most devastating in recent history.
- While heartbreaking, this event is expected to affect real estate patterns in the area increasing demand for new construction and likely reshaping the short-term housing market in affected zones.
What This Means for You
Thinking of Buying? More options are available now than we’ve seen in a while. This is a smart time to explore homes before potential demand spikes again later this year.
Selling Soon? Well-prepared homes that show well and are priced right are still moving fast—especially in sought-after neighborhoods.
Just Curious? Staying informed is half the battle. Reach out anytime if you want a personalized snapshot of your home’s current market value or a tour of what’s available nearby.
Final Thoughts
The Southern Kentucky market continues to evolve and whether you’re buying your first home, selling your current one, or simply exploring your options, staying ahead of the trends is key.
Even with shifts in inventory, rates, and recovery from recent storms, one thing hasn’t changed: this region is still one of the most desirable and affordable places to live in the country.
If you ever need honest guidance, a custom market breakdown, or just someone to walk you through the next step, I’m here. This isn’t just my job, it’s my passion. Let’s navigate it together.
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.
“Southern Kentucky is still one of the most affordable, livable markets in the country—and I’m here to help you navigate it with confidence.”
– 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.
