Home Values Rise in Louisville Housing Market
Apr 26, 2008 Trends/Statistics
In a title obviously affected by the media’s relentless attack on the topic of housing, Business First brings us, Louisville housing market isn’t so bad, PVA says. Who says journalists don’t have a sense of humor?
The study, which was authored by PVA Tony Lindauer and Chief Deputy PVA Donna Hunt, found that median property values in Jefferson County increased to $147,000 in 2007 from $141,000 in 2006.
Yet more evidence that Louisville isn’t San Diego or Naples and that depending on your situation, 2008 could be an advantageous time to make a move.
Louisville Loop Trail Marches On
Apr 25, 2008 News
[This story was originally posted on SpringhurstNeighborhood.com]
City Planners are working towards creating a 100-mile trail for bikers/walkers around the city of Louisville. They’re calling it the Louisville Loop. Depending on the route and design of the path, this project sounds absolutely wonderful. Now, can they get through all the red tape and wrangling with communities affected by their plans?
Most recently, people here in Springhurst were able to view the current plans and offer their comments. Money always plays a major role in cases like these as principalities want to know who’ll be responsible for construction costs and then ongoing maintenance. Apparently, those negotiations are still underway.
Metro Parks says “the loop is approximately 25% complete” as of the time of this writing. If they can complete the circle, this innovative idea will be another positive move towards improving Louisville and our perception to the rest of the country.
Housing Markets Perform By Region, Louisville In Good Shape
Apr 23, 2008 Residential
It’s funny to hear the members of the national press parrot one another for months on end. That is, until a new topic is launched then everyone gets on that train.
All we’ve heard lately is that the housing market is “horrible” or a “disaster.” Some areas are certainly on a downward trend, that doesn’t make them horrible. Wait enough time and the trend will move upward. Homeowners who borrowed more than they can afford are certainly in a lot of financial trouble, but the rest of us have avoided that disaster.
But the press continues to publish negative story after negative story about the housing market. So imagine my surprise when I read a different message. Amy Hoak has published a piece called, Home prices aren’t tanking everywhere, that paints a more balanced, and in truth, accurate pictre.
This title makes perfect sense in relation to what we’ve been hearing lately, but here’s the part that really matters to you, my readers here in Louisville, Kentucky.
The housing problems largely aren’t national but regional in nature, said Susan Wachter, a real estate professor at the University of Pennsylvania’s Wharton School.
Wow! Sound familiar? Could be because I’ve been talking about it here, here and especially here. The reality is that the market is far from the “death trap” the national media makes it out to be so if you’re looking to make a move here in Louisville now may be an awesome time to purchase.
It all depends on the:
- value of your current home,
- value/asking price of the new home, and
- interest rate at the time of purchase.
For many, there hasn’t been a better time to make a move. It all depends on your situation.
Louisville a Top City for Affordable Housing
Apr 14, 2008 Residential
Touching on the same topic as last week’s Louisville: Should You Buy a New Home Now? comes this story from Business First: Louisville one of top cities for affordable housing.
Here’s a quote:
A recent Bizjournals.com study comparing housing affordability in the top 50 metropolitan areas nationwide showed that Louisville, with a No. 11 ranking, is one of the least expensive markets in which to own a home.
As we head into Spring, I’m receiving more questions from my clients about the current state of affairs regarding Louisville’s housing market. With rates low, values holding steady and lots of inventory, I tell them there are going to be a lot of good deals for buyers in 2008. Selling their home? That’s a little bit tougher.
Selecting Best A/C and Heating Systems
Apr 13, 2008 Home Improvement
[The content below is posted with permission from the kind folks at the Home Improvement Blog.]
Selecting which brand of comfort system is usually on the top of the list when people make this very important decision. Unfortunately that is probably the least important part of the equation to ensure that your system will provide you and your family years of trouble free and efficient comfort.
Qualify Your Needs
All of today’s equipment manufacturers rate there equipment by the ton, there are 12,000 BTU’s per 1 ton of cooling. As an example, a 3 ton system would have a nominal size of 36,000 BTU’s. The most important aspect of your comfort system is ensuring it is sized properly. A system that is over-sized will satisfy cooling requirements much too quickly with out removing adequate humidity. Your home will feel cool but clammy, you may have problems such as bread molding quickly, clothing becoming musty and most important are the problems that moisture can cause with your homes structure. There is only one way to determine the proper size system your home will need. A heat gain calculation based on ACCA’s Manual J. Old rules of thumb such as one ton per X number of square feet is just not accurate.
Qualify the Equipment that You Are Considering
Most Brands are very similar in construction. In fact a lot of brands use the same components such as fan motors, compressors, and electronics. Your choice here should be focused on efficiency, features, and there benefit compared to there cost.
Qualify the Warranty for Each Comfort System
This is probably the area you will find the most difference between brands. You will also find that most brands have different warranties with in there product line. Of course the top of the line equipment is usually the one with the best warranty. This is another area that the benefit should be compared to the cost. Air conditioning repair costs can add up and peace of mind can be hard to put a price on.
Finally the Installation of Your New Comfort System
This is actually the single most important factor that will determine the reliability, efficiency, and longevity of your new comfort system. It is important that your contractor ensures that your duct system is adequate for your new system. Today’s more efficient systems have very different airflow requirements than systems 10, 15, 20 years ago. Installation details should be outlined clearly to ensure items such as refrigerant lines, electrical supply wires and breakers are correctly sized. Finally good practices should be followed during the installation itself. The refrigerant lines should be purged with nitrogen during field brazing, and the system should be evacuated using an accurate micron gauge to ensure a leak free, clean, dry refrigerant circuit. Any of these steps that are skipped, or not done properly can have dramatically adverse repercussions on your systems lifespan.
March 2008 Home Sales in Louisville, KY
Apr 3, 2008 Trends/Statistics
Things are picking up, but clearly not as much as in years past. I believe the unusual amount of rain in March has had something to do with house hunters staying indoors.
Compare with February 2008 Home Sales in Louisville, KY if you like, and as always, please contact me with any questions you might have.
March 2008
| AREA | SALES | AVERAGE | DoM |
| 0 Central Downtown District | 7  |
$47,658 |
134  |
| 1 Downtwn/Old&WestLouisville/Shively | 91 |
$43,824 |
79 |
| 2 Butchertown/Highlands/Germantwn | 77 |
$169,231 |
85 |
| 3 Brownsboro/StMatthews | 48 |
$220,015 |
92 |
| 4 Pleasure Rdg/Valley Station | 70 |
$103,608 |
71 |
| 5 Auburndale/Fairdale/Iroquois Park | 83 |
$105,935 |
94 |
| 6 Buechel/Highview/Okolona/FernCreek | 105 |
$127,846 |
65 |
| 7 FernCrk/Hikes Point/Jeffersontown | 92 |
$180,833 |
71 |
| 8 Hurstbourne/Middletwn/Anchrg | 76 |
$255,522 |
81 |
| 9 Anchrg/Lyndn/Prospct/UpRvrRd | 87 |
$251,694 |
75 |
| 11 Bullitt Co. | 67 |
$135,447 |
74 |
| 19 Spencer Co. | 15 |
$201,020 |
113 |
| 20 Oldham Co. – North | 33 |
$247,752 |
99 |
| 21 Oldham Co. – South | 32 |
$202,944 |
101 |
| 30 Shelby Co. | 35 |
$173,238 |
94 |
Source: MetroSearch, Inc. Values are not warranted by LHB.
Louisville: Should You Buy a New Home Now?
Apr 1, 2008 Trends/Statistics
Here is the most popular question I receive these days. “Is now a good time to buy or not?”
That’s a great question! The answer? It depends. “Well, thanks a lot, that really clears things up for me.”
I know, I know, it can be confusing, but let me shed a little light on the topic with a few examples.
First, mortgage rates vary by location, by credit rating and also fluctuate on an hourly basis. But if you take a look at some 30-year fixed rates in Kentucky over the past 2 years, you’ll note we’re currently in a pretty desirable position.
“Ok Mr. Pryor, but rates are just part of the story. What about me not being able to get as much on the sale of my current home?” Another great question! Here’s a great example from a recent Time article called Ignore the Headlines.
But let’s say you are emotionally ready to be a homeowner. You have good credit, plan to stay put for five years and have been waiting for the perfect entry point. It’s time to get serious–before an inevitable rise in interest rates wipes out your advantage. “The thing that will make home prices stop falling is the very same thing that will push mortgage rates higher,” says Jim Svinth, chief economist at mortgage firm Lending Tree. So anything you gain by a further drop in prices might be offset by rising financing costs.
Consider a typical home that sells for $218,900. You put down 20% and get a 30-year fixed-rate mortgage at today’s rate of 5.5%. Monthly principal and interest come to $994.31. Let’s say that 12 months from now the same house goes for 10% less, or $197,010. But by then the recession is history and the Fed is jacking up rates to stem inflation. If mortgage costs rise a point, to 6.5%, your monthly payment would be $994.94 and you’d have saved nothing. Meanwhile, home prices might steady and sellers might become less willing to negotiate. And you have spent a year living someplace you’d rather not be.
In this example, the change in rate completely wiped out any gain the homeowner might have received in the price of the house. With rates currently at their lowest since 2004, it’s not unreasonable to expect them to rise in the future.
Here’s another part of the equation. Home values here in Louisville have held their own much better than most similarly sized cities in our part of the country.
Nashville-Davidson–Murfreesboro–Franklin, TN - 34.80%
Louisville-Jefferson County, KY-IN – 20.68%
Atlanta-Sandy Springs-Marietta, GA – 19.43%
Memphis, TN-MS-AR – 18.47%
Cincinnati-Middletown, OH-KY-IN - 15.22%
Columbus, OH – 13.49%
Indianapolis-Carmel, IN – 11.95%
Source: MSN
As you can see, only Nashville is outperforming Louisville in home appreciation. Everything in life is cyclical. Values and rates will rise and fall everywhere. But here in Louisville, those increases and decreases are simply just smaller.
The last part of the puzzle is your particular plan. Are you moving from a more expensive home to a less expensive home? Given that Louisville’s housing market has a large amount of inventory, buyers are generally getting good deals. If you want to put a number to this “good deal”, let’s use 4%. When you take 4% of a $300,000 property ($12,000), it’s obviously greater than 4% of a $190,000 property ($7,600) so the good deal you’ll get on your new, less expensive house won’t make up for the amount you’ll losing in the sale of your current home. (Keep in mind this is a simplified example, so your experience may be quite different. The interest rates on both your current and new mortgage factor in, as well.)
But if you’re moving from a less expensive home to a more expensive home, the reverse is true—therefore, it certainly is a good time to make a move. Especially if you can do so before rates increase.
Hopefully, I’ve done an decent job of explaining this complicated issue. Like always, if you have any questions, please feel free to contact me. I’m here to help!
