Is Lexington, KY 40516 a buyer’s or seller’s market?
Lexington is a seller’s market. With about 1.4 months of supply and 29% of recent sales closing above the original list price, competing offers are common on well-priced homes. Buyers here often have a pre-approval in hand and a plan for the appraisal gap before touring.
The Lexington housing market right now
In the three months ending August 31, 2026, 29% of homes in Lexington, KY 40516 sold above their list price, the typical home went under contract in 33 days and there were 1.4 months of supply. Under four months of supply means sellers have the edge: expect competition for well-priced homes. With only 7 sales, these figures can swing a lot from month to month.
Compared with the same period a year earlier, the share selling over asking rose from 13%, homes sold faster (57 days then) and the median sale price rose 11% to $317,363. Overall, Lexington is more competitive than a year ago, so tougher for buyers.
Within Fayette County, homes here sell more slowly than in 54% of the county’s ZIP codes, and sell more often over asking than in 54%.
Nearby, buyers who want less competition could look at Lexington 40507 (0% sold over asking) or Lexington 40508 (12% sold over asking), while Lexington 40513 (45% sold over asking) and Lexington 40504 (38% sold over asking) are even more competitive.
Run the numbers for 40516
Nearby markets
Lexington 40502Seller’s market $253 /sq ftLexington 40503Seller’s market $212 /sq ftLexington 40504Seller’s market $184 /sq ftLexington 40505Seller’s market $170 /sq ft Browse all markets →Towns like Lexington nearby
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Questions about Lexington real estate
Is Lexington a buyer’s or seller’s market?
A seller’s market: there were 1.4 months of supply in Lexington, KY 40516 in the three months ending August 31, 2026. Under four months usually favors sellers, and more than six favors buyers.
How fast do homes sell in Lexington?
The typical home went under contract in 33 days in the latest three months.
Do homes in Lexington sell over asking?
29% of homes sold above their original list price, and the typical sale closed at 98.0% of the list price.
What are property taxes in Lexington?
About 0.87% of a home’s value a year in Fayette County, or roughly $3,480 on a $400,000 home.
What is the median home price in Lexington?
The median sale price was $317,363 in the three months ending August 31, 2026, about $181 per square foot.
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Market data describes housing activity only. Figures are rolling 3-month values from Redfin and may be revised. Methodology