Fueled by the federal home buyer tax credit, residential home sales in 14 Central Kentucky counties rose 36 percent in May compared with a year earlier, according to data released Wednesday by the Lexington-Bluegrass Association of Realtors.
Home sales have improved dramatically year over year, beginning late last year, when buyers began to take advantage of the federal tax credit for new homebuyers, which expired at the end of April with sales to be closed at the end of June. The program had been expanded to include a credit for purchases by those who already own homes.
The group said there were closings on 839 residential sales in May, up from 615 in May 2009. The median residential sales price in May was $146,000, up 5 percent from $139,000.
"Now that the federal first time home buyer tax credit has expired, the market is going to be one with drastically fewer buyers," LBAR president Anthony de Movellan said in a statement. "As the market slows, pricing homes to sell is going to play an integral part in selling properties more expediently. Currently, interest rates are at an almost all-time low."