Builder Market Health Index: Lexington Housing Market ‘Healthy’

Lexington builders have reason to be optimistic, according to a recent article in Builder magazine. The Lexington-Fayette County area was ranked third (number 23) on Builder magazine’s “Next Best: Healthiest Building Markets for 2010 (#21-40).” Hanley Wood Market Intelligence (HWMI) computes the Builder Market Health Index by comparing 2009 actual to 2010 projections for key housing drivers such as employment, income, home values, and population. The results are weighted to produce an index rating. A score of 50 or above indicates a truly healthy housing market. Lexington’s Health Market Indicator is 28.9.
 
Though “none of the next 20 markets are healthy in the classic sense, most have at least something positive going for them,” says the March 16th article. “However, these markets had a notable uptick in permits pulled during the fourth quarter of last year, momentum that is expected to carry over into 2010 and produce a housing rebound.” According to the article, relatively strong employment growth (1.7%) and household formations (1.4%) should buoy the Lexington market this year. Home prices have held pretty steady; they dropped only 1.7% last year, even as median incomes fell. Foreclosures spiked in 2009 but appeared to level off by year's end. HWMI expects Lexington starts to race ahead 10% this year as builders seize opportunities in the downtown area and the outlying countryside.

If you're searching for a new or pre-existing home for sale in Lexington, KY or real estate in Central KY, visit www.LexingtonRealEstateSource.com to search the Lexington area MLS.