Beech Tree News Network

Over the past several months, I’ve noticed the price of purchasing a home has escalated. The pricing is somewhat based on square footage. Of course, some properties are well maintained and others have problems, so square footage is not the only factor to consider when buying or selling a property. The location is also an important factor related to pricing, and location doesn’t simply refer to the zip code. The worth of a property depends on the market for it.

Numbers related to purchasing or selling a home can get confusing and vary across the U.S. According to Zillow, “the typical home value in Kentucky is a little over half the US national typical value of $349,770.” The typical home in Kentucky is $197,657. The value of square footage – one factor in determining price – also varies from state to state. Recent estimates indicate the median price for each square foot for a home in the United States was $123. But this can vary widely based on location and other factors. The cost of building or buying a home in Kentucky averages $152.30 per square foot. Although homes are different, available living space and location may help the buyer or seller sort through the numbers.

A home is likely a person’s most expensive purchase. Those who plan to finance a home are usually preapproved for a bank or credit union loan beforehand, allowing them to shop for a home priced in their comfort range. An online Newsweek article by Giulia Carbonaro, “Home Sale Cancellations Surge Nationwide as Thousands of Deals Fall Through,” stated: During times of economic downturn, housing demand normally falls as potential buyers face slower hiring and potential layoffs and are increasingly hesitant to buy even if they qualify for a mortgage.” People don’t want to make a large purchase that could become uncomfortable. An online Redfin News article by Mark Worley (“24% of Americans are Scrapping Plans to Make a Major Purchase Like a Home or Car Due to Tariffs: Redfin Survey,” April 17, 2025) quoted Redfin Economics Lead Chen Zhao: “Consumers are tightening their belts because they are rightly nervous about their job security and the prospect of paying more for everyday expenses. There are some potential silver linings for homebuyers: the drop in demand could cause home prices to stay flat, or even fall, and there’s some chance mortgage rates could drop in the next few months.” Certainly, a person must be comfortable with the property cost in order to enjoy the property.

Mortgage interest rates are another important consideration regarding a property purchase. On May 4, the Business Insider website reported the average Kentucky mortgage interest rate for a 30-year-fixed loan at 6.72 percent. The mortgage interest rate for a 30-year FHA loan was at 6.25 percent (U.S. Mortgage Rates by State). Over the last few years, mortgage interest rates have fluctuated greatly. In January 2021, the average 30-year fixed mortgage rate was at 2.65 percent, but in October 2023, it had reached 7.79 percent. Undoubtedly, people in the market for a home must watch the mortgage rate as well.

Jean Chatzky said, “Debt certainly isn’t always a bad thing. A mortgage can help you afford a home. Student loans can be a necessity in getting a good job. Both are investments worth making, and both come with fairly low interest rates.” I agree with Chatzky, but also hope interest rates don’t rise. For those house hunting or selling, I hope you find “the right fit.”