Area home sales down after tax credit ends

With the federal home buyer tax credit over, residential home sales in 14 Central Kentucky counties took a steep drop in July, according to data released Thursday by the Lexington-Bluegrass Association of Realtors.

The group said there were closings on 533 residential home sales in July, down 32 percent from 788 in July 2009. The median residential sales price in July was $143,450, down 3 percent from the same time a year ago.

"In the coming months, the housing market is going to settle into a much different environment than the one we saw during the tax credit craze," said LBAR President Anthony de Movellan in a statement.

LBAR also reported the inventory of available homes was 11 percent higher in July than a year earlier. Overall, there were 13 homes available for each buyer during July, according to the group's statistics.