Louisville Homes Prices Fare Well OverallPosted by Jonathan Karlen on Friday, September 2nd, 2011 at 9:18pm.
Some of the exceptions to that broad picture, to cite an example, would be Anchorage KY. Anchorage real estate showed a fairly strong growth from 2007 to 2008, with an average increase of 3.5% appreciation. Oldham County KY real estate fair even better, with an average increase from 2007 to 2008 of 4.6% appreciation. Ok. Ok. So they don’t compare to some of the “Flip My Home” shows you see on TV. But you have to remember the Louisville KY real estate market is fairly conservative overall – and those values, especially in today’s real estate market and economy do represent good and strong growth for our area.
Some areas that are exceptions in the other direction for the Louisville homes market, would include Downtown Louisville homes, Old Louisville, West Louisville, and Shively. Those areas saw extremely strong depreciation from 2007 to 2008 of -22%. That much of a drop is worrysome to most persons as it would take years of our historical rate of appreciation to regain what they lost in value in just the 1 year timespan.
There is however some brighter news on the horizon. The new federal housing bill was recently passed, and as part of the $4 billion package, it includes monies allocated to fix up areas designated as blighted and those that have lots of vacant property. Additionally, there is up to a $7500 tax credit available for first time home buyers. The $7500 essentially acts as an interest free loan. The loan has to be repaid (sorry folks!) over the course of 15 years by making annual payments (unless you sell your home prior to the 15 year maturity), but it is interest free – and even if you have to pay it back, the use of that money can be a real boon to persons looking to make their first home purchase. And as with almost any government program, there is a lot of what ifs that follow along with it. Consult with your accountant to find out all the ins-and-outs regarding the program after you make your home purchase and are getting ready to file your taxes.
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