Bill Robinson
Members of the Madison County Board of Realtors sold 255 homes in the second quarter of 2009, 40 less than in the same period of 2008, a decline of 13.5 percent.
The average price of homes sold also was down 14.4 percent, to $132,297 from $154,559 the year before, according to statistics released by MCBOR.
The 163 days that the average home remained on the market before selling was 10 days longer than in second quarter 2008.
The total value of homes sold in the quarter came to $33.7 million, a drop of more than 11.9 percent from the year before when sales totaled $45.6 million.
The $120,000 to $139,999 price range was the most active in the past three months, with 58 homes sold in the second quarter. That was 10 more than sold in that price range a year earlier.
Sales in the $140,000 to $159,999 category, however, dropped more than 53 percent, from 45 to 21.
Other price ranges saw only slight declines. In the $100,000 to $119,999 category, 29 homes sold, compared to 32 the previous year. The $160,000 to $179,999 range saw 20 homes sold. In the same period a year earlier, 23 sold.
Only one home sold in the $500,000 to $749,999 range in the second quarter. A year before, two sold.
Reasonable prices and historically low interest rates, plus state and federal tax incentives make this a good time to buy a home, said Lora Noble, MCBOR president.
While interest rates are low — in the 5-percent range — lenders are scrutinizing loan applications more closely and generally want a higher credit score than in past years, Noble said.
“The lenders I’m working with want a credit score of at least 620,” she said.
A federal income tax credit of up to $8,000 is available to buyers who have not owned a home in the past three years.
“There are a lot of misconceptions about this program,” said Realtor Tonita Goodwin. “You don’t have to be a first-time buyer to qualify. You just can’t have owned a home in the past three years.”
For married couples who file a joint tax return, the restriction applies to both husband and wife.
Buyers have until Dec. 1 to purchase a home, but do not have to wait until 2010 to receive the credit. They can amend their 2008 tax returns and realize the credit much earlier.
To receive the full $8,000 credit, an individual’s adjusted gross income limit may be no more than $75,000 for single filers and $150,000 for joint filers.
Single-filers with incomes from $75,000 to $95,000 and joint-filers with incomes of $150,000 to $170,000 may receive proportionately less tax credit.
Vacation homes and rental property do not qualify. Those who have been given or have inherited a home also do not qualify.
Those who do not qualify for the federal “first-time home buyer” tax credit may qualify for the Kentucky New Home Tax Credit, Goodwin said.
Beginning July 26, buyers of never-occupied homes in Kentucky may receive a $5,000 tax credit. Application must be made within seven day of closing the purchase.
While the state program is authorized to run through July 26, 2010, once $25 million in credits have been applied, the program will cease.
Bill Robinson can be reached at brobinson@ richmondregister.com or at 624-6622.
