A lot of people think that we need to build our way out of the shortage of houses for sale.
The only places left to build in Fayette County are on the edges of town at a time when there is more and more interest in living closer in. No builder is going to use the little bit of land we have left for anything less than a $173,950 house, which is the base price of the cheapest model Ball Homes will build in Masterson Station. A quick search on LBAR shows the cheapest actively listed new construction home is $202,900.
I think the problem is affordability for first time buyers. I have always said that it is the first time buyer who greases the entire real estate market. They are usually the only group that doesn’t need to sell a house in order to buy. It is like the bases are loaded and the first time buyer is the one who hits the home run so everybody standing on all those bases gets to move.
A lot of first time buyers are and will continue to look outside of Fayette County. They will look in Lexington neighborhoods they would not have considered 10 years ago to make their numbers work. They might even consider a townhouse or condo.
Like my baseball example, the bases are loaded. The first time buyer is waiting to hit their home run, only there are no balls being thrown. If more affordable houses come on the market, it will make sellers in all price ranges less worried about finding their next house. Sellers know they can sell quickly but are worried about finding a house. Remove that fear and we’ll have more houses for sale.