Published: November 15, 2008 06:26 pm      

Foreclosures down 23 percent

Local home sales down 13 percent in 3rd quarter

The number of homes sold by members of the Madison County Board of Realtors declined by 13 percent in the third quarter of 2008, but the average price increased 2.4 percent.

The 195 homes sold from July 1 to Sept. 30 were 29 fewer than the 224 sold in the second quarter, and 19.1 percent below the 241 sold in third-quarter 2007.

The average price of homes sold during the quarter climbed $3,894 to $164,695, bringing it to within 1.7 percent of the third-quarter 2007 average, $167,548.

Homes sold in the third quarter averaged 150 days on the market, not significantly different from the previous quarter’s average of 155 and 148 days in third quarter 2007.

Recent actions by the federal government and several mortgage lenders have help stabilize prices and restore the confidence of homebuyers, said Melanie Franklin, president of the local board which represents more than 250 Realtors.

“Getting the election behind us also has helped,” she said. “In just the past week, I’ve seen business pick up.”

A decline in foreclosures also have helped stablize prices, Franklin said.



Foreclosures down

The number of home foreclosures in Madison County declined 23 percent during the third quarter.

From July 1 to Sept. 30, Madison Circuit Court ordered 66 homes to sold at auction by master commissioner David Baird. That was 20 fewer than in the second quarter, but five more than in the year’s first quarter.

However, the 213 foreclosures in the first nine months this year is only four fewer than in all of 2007.

If fourth quarter foreclosures equal the pace of the previous three quarters, they will rise 30.9 percent to 284.

That would still be less of a jump than from the previous year.

The 217 foreclosures in 2007 was 45.6 percent more than the 149 of 2006. The 2006 figure was only 8 percent above the 138 in 2005.

This year’s third quarter decline may be attributed to non-economic factors, Baird said.

“Traditionally, the court has fewer sessions in the third quarter, which may have resulted in fewer referrals,” he said.

Baird also took a vacation in the third quarter.

Not every mortgaged home referred to the master commissioner goes on the auction block, Baird said.

In a few cases, the borrower may sell the home or make other financial arrangements. If the debtor declares bankruptcy, the case is transferred to federal bankruptcy court for disposal.



Some aid for distressed homeowners

In October, the Federal Home Loan Bank of Cincinnati granted $400,000 to assist homeowners in 52 Kentucky counties who are facing foreclosure.

Eligible homeowners may receive up to $3,500, according to a release from the Kentucky Association of Realtors.

Applications must be submitted to the Community Ventures Corp. of Lexington. For details, applicants should call 1-859-231-0054.



Bill Robinson can be reached at brobinson@richmondregister.com or at 623-1669, Ext. 267.