BluegrassForeclosure.com

No real surprise here, at least in N. Kentucky.  Home sales up slightly in December,  but down overall for the year.  Even with the tax credit for first time buyers.  Check out Cincinnati.com for more.

“. . . sales in Northern Kentucky continued to slip for the full year, falling to 4,852 sales, down 5.6 percent from 2008. Sales were up for December by 1.5 percent with 328 sales, the Northern Kentucky Association of Realtors reported.

Nationwide, sales climbed 4.9 percent for the year, the National Association of Realtors said.

Realtors credit a large portion of the sales gain locally and nationally to the federal home buyer tax credit that lured thousands of first-time buyers into the market last year.

First-time buyers purchased 43 percent of homes in December, down from 51 percent in November, according to a national Realtors survey. The $8,000 first time buyer credit has been extended through April 30, and expanded to include a $6,500 credit for current homeowners looking to buy again.

Experts say the credits will yield another sales gain this year, but economists warn that the job market remains a concern that could dampen the housing recovery.

While sales may be on an upswing, the big question for 2010 is if and when will prices begin to rebound.

Locally and nationally, median home prices – the midpoint of all sales – continued to slip in 2009.

In Southwest Ohio, the median price was down 4.6 percent to $123,000; in Northern Kentucky, the median price slipped 4.2 percent to $126,600. Prices nationwide were off 12.4 percent from 2008 to $173,500.

Realtors say sales of distressed homes – which include foreclosures and short sales – continue to drag down prices because the deals sell at extreme discounts.

“There is a pipeline of foreclosures that will continue to impact the market, but we don’t know if it will hit us in 2010 or 2011,” said Rebecca Trout, president of the Northern Kentucky association’s board. “No one has a glass ball to look into. If (new foreclosures) are spread out, the impact won’t be as severe. If they all hit at once, it could have a significant impact.”

For all of 2009, Realtors estimated that roughly 36 percent of all national sales were distressed properties.

Tim Mahoney, president of the Cincinnati Area Board of Realtors says in spite of the coming wave of foreclosures, he believes the region has already reached the bottom of the price declines.

“Even though there are more foreclosures coming, we’re beginning to weed through a lot of them,” he said. “As we do, it will be reflected in housing prices stabilizing and eventually going back up.”

Monday’s reports also revealed that the inventory of unsold homes is shrinking locally, another key to a more normal market.”