One agent, one weekly read on the corridor — Lexington to Richmond. August is now a complete month in the MLS, and the numbers say something the last two editions did not: price growth has stopped. Not reversed in Lexington, but stopped. Here is the honest read.
The numbers — August 2026
| Fayette County (Lexington) | Madison County (Richmond & Berea) | |
|---|---|---|
| Median sold price | $355,672 (+1.0% YoY) | $284,000 (-8.1% YoY) |
| Average sold price | $430,036 (+0.4%) | $308,446 (-9.4%) |
| Homes sold | 309 (-14.2% YoY) | 109 (-16.2% YoY) |
| Active listings | 700 (+6.9% YoY) | 379 (+10.8% YoY) |
| New listings in August | 407 | 162 |
| Average days on market | 21.4 (22.6 a year ago) | 45.4 (45.5 a year ago) |
| Months of supply | 2.27 | 3.55 |
| New listings, last 7 days | 94 | 38 |
Source: Bluegrass REALTORS® MLS via FlexMLS. Monthly statistics reflect the last complete month, August 2026; new-listing counts are as of September 2, 2026. Months of supply is calculated as active inventory divided by the trailing twelve-month average of closed sales. Residential property only. Deemed reliable but not guaranteed.
What changed since our last edition
Two weeks ago, working from July’s completed data, this report showed median sold prices up 5.7% in Fayette and 4.2% in Madison year over year. August’s completed data puts those same figures at +1.0% and −8.1%. That is a real shift in one month, and it is the reason this week’s report leads with it rather than repeating a growth story the current data no longer supports.
What it means
1. Lexington prices are flat, not falling. A median of $355,672 is +1.0% against August last year, and the average sold price moved +0.4%. That is a market holding its level. If you are waiting for a Fayette County price drop to buy, the data does not show one.
2. The Madison County figure needs a caveat, and we are going to give it to you. That −8.1% is calculated on 109 closed sales. Over the last twelve months Madison’s monthly median has ranged from $284,000 to $328,000, and August landed at the bottom of that range. In a market this size, one month of mix — a few more starter homes, a few fewer large ones — moves the median more than the market itself moves. Treat it as directional, not as a valuation. Do not price your Richmond or Berea home off this number. Get a comparative analysis on your actual property.
3. Speed did not change. This is the most useful number on the page and almost nobody reports it. Average days on market is within about a day of where it was a year ago in both counties — 21.4 against 22.6 in Fayette, 45.4 against 45.5 in Madison. Correctly priced homes are still moving at last year’s pace. What has grown is the pile of homes that are not correctly priced.
4. Both counties are still seller’s markets. A market is generally considered balanced at roughly five to six months of supply. Fayette sits at 2.27 months and Madison at 3.55 months. Inventory is up year over year in both — +6.9% and +10.8% — but neither is close to balanced. Buyers have more choice than last summer; they do not have the upper hand.
5. The corridor gap is the enduring story. Fayette’s median runs $71,672 above Madison’s — a 25.2% premium — and Lexington homes sell roughly 2.12 times faster. That spread is why commuter-belt buying down I-75 keeps its logic. If you are weighing the trade, start with the community guides.
Common Questions
Are home prices falling in Lexington?
No. On August’s completed MLS data the median sold price in Fayette County was $355,672, which is +1.0% against the same month last year. Growth has flattened to roughly nothing, but that is a plateau, not a decline.
Is Richmond really down 8%?
That is what August’s 109 closed sales produce, but a single month at that sample size is noisy. Madison’s monthly median has swung between $284,000 and $328,000 across the past year and August sits at the low end. The honest answer is that Madison has flattened and may be softening slightly — an 8% drop in true value over twelve months is not supported by one month of medians.
What is months of supply, and why does it matter more than price?
It is how long the current for-sale inventory would last at the recent pace of sales — active listings divided by the trailing twelve-month average of monthly closings. Roughly five to six months is considered balanced. Below that, sellers set the terms. It matters more than price because it tells you the direction of negotiating leverage before prices reflect it.
Why report August numbers in September?
Because August is the last complete month. Partial-month statistics move as late closings are entered and consistently mislead in the first weeks. The only figure here drawn from the current week is the seven-day new-listing count, which is labelled as such.
Where do these numbers come from?
Directly from the Bluegrass REALTORS® MLS through FlexMLS — the same system agents use, not a third-party estimate or a national model applied to Kentucky. Residential property only. Figures are deemed reliable but not guaranteed.
Want the numbers for your street rather than your county? That is a different and much more useful question, and it is the one worth asking before you list or offer. Selling, buying, or just want a straight read on your situation — call or text.
Last updated: September 2, 2026.
By Marcos Gil, REALTOR® — Keller Williams Commonwealth · KY Real Estate License No. 296259 · Call or text (859) 310-1209.
Leave a Reply