Housing sales, including foreclosure short sales and non-distressed dwellings, declined in Louisville, Kentucky in March 2011 compared with the same month a year ago. Sales for the whole first quarter of the year also decreased from year-ago levels, while average prices of houses also went down in the area compared with one year earlier.

Home market data for the quarter showed decreases in sales of bank foreclosed homes in Louisville and sales of single family homes in various local markets. In Louisville, 891 housing units were sold during March 2011, representing a 10% decrease from the March 2010 total sales of 990 residential units, based on figures presented by the Greater Louisville Association of Realtors.

Meanwhile, the number of non-foreclosed and foreclosures for sale houses that were purchased by buyers during the January-March 2011 quarter totaled 2,162 units. This represents a decrease of 7.4% when compared with the 2010 first quarter. In terms of average selling prices, Louisville homes sold during the period had an average selling rate of $152,801, declining from the $157,639 price recorded a year ago. Inventory of for-sale houses in March 2011, on the other hand, were up both from last year and from the previous month. As of the end of March, a total of 8,916 houses are available for sale in the region.

This represents a 24% rise from March of last year and a 4% jump when compared with February 2011. Realtors are expecting inventories to increase further in the coming months as distressed dwellings and foreclosure short sales continue to flood the Louisville market. Meanwhile, sales of residences in the whole Jefferson County for the lone month of March and for the whole first quarter both declined compared with year-ago levels.

For March of this year, a total of 621 homes were sold in Jefferson County, representing a 10.4% drop from March 2010. Jefferson County had a total of 2,162 houses sold for the whole first quarter, translating to a 9.6% drop from the 2010 first quarter. The average price of houses sold in the county during the month of March was $154.038, declining from the $158,929 average selling rate recorded during the same 2010 period.

Most local realtors are optimistic that sales will pick up in the next few months. However, they also expect prices to continue to tumble and for the inventory of unsold homes to continue to expand as more distressed dwellings and residential foreclosure short sales enter the market.

Those who wish to purchases homes from tax deed sales lists and from regular home sellers in Kentucky will find it much easier to do so in the coming months. This is because a bill, which will help homebuyers acquire a residential property, was recently signed into law in the state and will take effect by the end of April 2011.

The law was reportedly aimed at middle income people who wish to buy foreclosures for sale in Louisville and non-foreclosed houses in various other areas of the state. Under the measure, buyers will be provided with financing that will be issued by the Kentucky Housing Corporation. According to local officials, the program is meant to provide financing options to buyers who failed to get assistance from other lending agencies.

They reported that a lot more people want to buy foreclosures for sale in Kentucky and even newly built homes, but strict requirements in the lending market have prevented them from doing so. Officials further stated that government-sponsored enterprises Freddie Mac and Fannie Mae have failed to assist a big number of would-be homebuyers, hence the need to enact such regulations.

Furthermore, officials believe that the law is much needed right now, with families wanting to buy a home unable to find assistance and the housing market in need of more buyers as the number of foreclosed houses and homes in tax deed sales lists continue to rise. They claimed that the law will help boost homeownership by providing buyers with safe loans, while the overall housing market of Kentucky will also benefit from increased number of buyers.

With homes foreclosure listings expected to rise again this year, officials reported that the bill was considered important as evident in the way it was passed; with not a single dissenting vote among any of the state lawmakers. Meanwhile, local officials have revealed that the program will be geared towards families or homebuyers with a household income of as high as 175% of the median income in the region. The program will also provide closing costs and down payment assistance, officials have revealed.

Local authorities are hoping that the legislation will help families who want to purchase their own homes and will also assist in lowering the number of unsold foreclosed properties, new homes and houses in tax deed sales lists in the region. The financing assistance is also expected to aid the economic recovery of Kentucky.