First-time Homebuyer Gets Tax Credit Relief
Jul 30, 2008 News
Today, President Bush signed the recently-passed housing legislation (H.R. 3221) into law. This first-time homebuyer tax credit is now in effect. What does that mean for first-time homebuyers here in Louisville, Kentucky? I’m glad you asked!
| FEATURE | H.R. 3221 – Housing and Economic Recovery Act of 2008 |
|---|---|
| Amount of Credit | Ten percent of cost of home, not to exceed $7500 |
| Eligible Property | Any single-family residence (including condos, coÂ]ops) that will be used as a principal residence. |
| Refundable | Yes. Reduces income tax liability for the year of purchase. Claimed on tax return for that tax year. |
| Income Limit | Yes. Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000, respectively). |
| First-time Homebuyer Only | Yes. Purchaser (and purchaser’s spouse) may not have owned a principal residence in 3 years previous to purchase. |
| Recapture | Yes. Portion (6.67 % of credit) to be repaid each year for 15 years. If home sold before 15 years, then remainder of credit recaptured on sale. |
| Impact on District of Columbia Homebuyer Credit | DC credit not available if purchaser uses this credit. |
| Effective Date | Purchases on or after April 9, 2008 |
| Termination | July 1, 2009 |
| Interaction with Alternative Minimum Tax | Can be used against AMT, so credit will not throw individual into AMT. |
Old Louisville Homes Some of the Best in Nation According to ‘This Old House’
Jul 20, 2008 News
I’m not the only one bragging about Louisville real estate these days. It looks like the editors over at This Old House recognize the charm and value in our old Kentucky homes (pun intended).
They recently named Old Louisville, Kentucky one of the Top 12 Best Places to Buy and Old House.
Stately homes face one another across lush, gaslit “walking courts,” and yards overflow with geraniums and magnolia trees here. Residents treat gardening like a competitive sport, their efforts celebrated by seasonal garden tours. Central Park, a 17-acre municipal green space designed by famed architect Frederick Law Olmsted, sits adjacent to the neighborhood, which was developed in the 1870s.
I don’t know about you but that sounds pretty darn good to me!
Louisville Banks Strong Compared to Nation?
Jul 19, 2008 Trends/Statistics
Panic causes people to do irrational things. Just because one bank fails, doesn’t mean your bank is going to fail?
Tell that to all those who sold shares of any and every bank stock they owned when they heard about a bank in California that was going under. (Why is it always California?) Now would be an excellent time for investors to buy shares of these now wonderful values.
Here in Louisville, banks are less likely to go after riskier prospects like the whole sub-prime debacle, so they’re in a better position to weather the cyclical downturns that are part of doing business.
All I know is that I recommend to my real estate clients that they use local banks like Republic or Stock Yards for their mortgages rather than national firms like Chase or Citi. Not only is customer service miles better, their rates are often just as good.
High End Real Estate Still Selling in Louisville
Jul 8, 2008 Commercial
Waterfront Park Place is home to some of our cities most expensive homes, which have sold better than many thought possible.
News outlets can continue to decry the housing market but Louisville isn’t behaving like other metro areas in many respects. Take, for instance, the upper echelon of properties in our city.
This piece by Alex Davis highlights the idea that many Realtors have known for some time. Namely, that with the enormous size of the aging boomer population there’s a great opportunity for developers with high-end condos and patio homes that require little to no work by the homeowner.
The growth of high-end condos has tripled the number of luxury homes in the metro area over the last six years. PVA records show there are now 506 homes in the county with an assessed value of least $1 million — more than double the 236 in 2004 and nearly triple the 170 in 2002.
I expect this trend to continue for a while longer as builders continue to sell their patio home/condo inventory at a faster clip than single family homes.
June 2008 Home Sales in Louisville, KY
Jul 6, 2008 Trends/Statistics
Much better numbers for June in almost all areas. Compare with May 2008 Home Sales in Louisville, KY if you like. I’m thinking about revising the way I display this data in the coming months, so if you have any suggestions, please feel free to contact me.
June 2008
| AREA | SALES | AVERAGE | DoM |
| 0 Central Downtown District | 6  |
$165,217 |
86  |
| 1 Downtwn/Old&WestLouisville/Shively | 55 |
$59,265 |
77 |
| 2 Butchertown/Highlands/Germantwn | 83 |
$210,421 |
73 |
| 3 Brownsboro/StMatthews | 59 |
$279,449 |
69 |
| 4 Pleasure Rdg/Valley Station | 64 |
$96,564 |
77 |
| 5 Auburndale/Fairdale/Iroquois Park | 62 |
$121,368 |
71 |
| 6 Buechel/Highview/Okolona/FernCreek | 137 |
$134,042 |
86 |
| 7 FernCrk/Hikes Point/Jeffersontown | 117 |
$167,613 |
99 |
| 8 Hurstbourne/Middletwn/Anchrg | 101 |
$278,827 |
88 |
| 9 Anchrg/Lyndn/Prospct/UpRvrRd | 113 |
$267,027 |
83 |
| 11 Bullitt Co. | 78 |
$144,749 |
75 |
| 19 Spencer Co. | 13 |
$186,646 |
94 |
| 20 Oldham Co. – North | 42 |
$413,500 |
95 |
| 21 Oldham Co. – South | 50 |
$294,225 |
65 |
| 30 Shelby Co. | 41 |
$176,391 |
106 |
Source: MetroSearch, Inc. Values are not warranted by LHB.
Louisville Looking at Job Growth
Jul 6, 2008 Trends/Statistics
Here’s a quick blurb, albeit an important one, that I found in Business First recently.
Although fundamentals are expected to soften this year because of the slowing economy, the Louisville retail market is well positioned for long-term health (emphasis mine), according to a second-quarter Retail Research Report by Marcus & Millichap, one of the nation’s largest real estate investment-services firm.
It may not be news specific to the Louisville housing market, but job growth is key to most facets of an economy. This is very positive news.
