July 2008 Home Sales in Louisville, KY
Aug 27, 2008 Commercial
Ok, I know I promised some changes in the way this home sales data is presented here at Louisville Homes Blog. It’s really quite the challenge. I’ve even enlisted the advice of some high-powered, number-crunching gurus and still no clear path presents itself.
Never fear, I shall continue to press forward in the hopes that inspiration strikes. Until then, please enjoy our free, real estate information and, as always, if you have any questions, please contact me.
July 2008
| AREA | SALES | AVERAGE | DoM |
| 0 Central Downtown District | 7  |
$171,220 |
66  |
| 1 Downtwn/Old&WestLouisville/Shively | 61 |
$68,608 |
104 |
| 2 Butchertown/Highlands/Germantwn | 85 |
$204,900 |
94 |
| 3 Brownsboro/StMatthews | 51 |
$223,578 |
81 |
| 4 Pleasure Rdg/Valley Station | 56 |
$105,143 |
74 |
| 5 Auburndale/Fairdale/Iroquois Park | 52 |
$112,917 |
90 |
| 6 Buechel/Highview/Okolona/FernCreek | 105 |
$130,308 |
85 |
| 7 FernCrk/Hikes Point/Jeffersontown | 113 |
$170,667 |
79 |
| 8 Hurstbourne/Middletwn/Anchrg | 71 |
$319,369 |
90 |
| 9 Anchrg/Lyndn/Prospct/UpRvrRd | 95 |
$221,079 |
72 |
| 11 Bullitt Co. | 67 |
$160,337 |
95 |
| 19 Spencer Co. | 22 |
$154,077 |
95 |
| 20 Oldham Co. – North | 31 |
$276,420 |
90 |
| 21 Oldham Co. – South | 25 |
$247,341 |
86 |
| 30 Shelby Co. | 30 |
$160,685 |
96 |
Source: MetroSearch, Inc. Values are not warranted by LHB.
Media Missing Mark in Real Estate Reporting
Aug 20, 2008 Residential, Trends/Statistics
Seems some in the media may be seeing the other side of the coin, in regards to the real estate market here in Louisville. Here’s a point from the Sunday Courier-Journal on foreclosures:
We found that the percentage of homeowners losing their homes to foreclosures is much smaller than previously reported. We estimate that in 2007, between 0.6 percent and 0.8 percent of Jefferson County homeowners endured foreclosure, a rate one-third the size reported in the media.
That’s a very low percentage. If you asked the average person on the street how many foreclosures have occurred, I’m sure your poll results would show public perception to be many times higher.
These numbers represent an even smaller amount when you consider:
Around one-half of the foreclosed properties were owned by real estate investors, presumably too highly leveraged to withstand the recent slowdown in home price appreciation.
Ahhh… the truth comes out. Now doesn’t that feel good? Will this stop the mainstream media from reporting things like, “Housing Depression Takes Economy Into Recession”? (Pretty catchy title there, huh?) Nope, but the educated citizen should be looking past their motives for higher ratings.
To be fair, we should give Paul Coomes, John Burgard and David Heintzman a little credit for coming clean, even if it’s months past all the damage the CJ and other media outlets have already done; better late than never.
Foreclosures and Louisville Real Estate
Aug 15, 2008 General
It seems this is the hot topic in real estate these days so I thought I’d take some time to weigh in on the issue for foreclosures here in Louisville.
- Rule #1: Prices fluctuate. That’s how things work. They go up, then come down. But in our city, Louisville, even when things are down they’re not really “down” they’re just not increasing at the historical 4-5% rate. It’s more like .5-1%. So our cycles are milder, which is good and they’re still moving up! Just be happy you’re not in Las Vegas, San Diego or Tampa.
- Rule #2: What’s bad for home sellers, is actually good for home buyers. Why don’t we hear that message very much? Bad news sells better than good news, that’s why. So depending on your situation, selling your home now and buying a new one may be a great idea, For example, if you’re moving up in price range. Or, if you’re looking to downsize, now may not be the best time for you and you should wait it out.
I’ve yet to see any data on why the foreclosures have occurred. I’m sympathetic to those who’ve had health problems or suddenly lost their jobs or something out of their realm of control, but I don’t feel remorse for those who overreached and bought more house than they could afford. It’s a tough lessen, but unlike what we hear from Hollywood, greed is not good.
If we had this data, I’d wager more than 2/3 of all foreclosures were primarily poor decisions by the home buyers. Just because some slick loan company telemarketer is yada-yada’ing about a “new program” where you pay nothing but make out like a bandit, it doesn’t mean you should sign on the dotted line. What sounds too good to be true, probably isn’t.
I just finished reading this lengthy piece from Business First about how foreclosures are coming to high-end neighborhoods too. Well, of course! Anyone can give in to the temptation to buy more home than they can truly afford. It’s a universal, human behavior.
Moving Forward
So where do we go from here? If you’re in trouble with your current home, you’ll certainly want to speak with some reputable experts that are familiar with short sales. Ask your Realtor which real estate attourney they recommend. Continue to make payments, even if they’re less than the amount needed. But above all, be proactive. Don’t sit back and hope it will go away because it won’t. There are ways to sell a property you can’t afford and move forward with your life, but it all begins with you making that first call.
A source I trust, Crown Financial Ministries, recommends spending no more than 38% of your Net Spendable Income (NSI) on housing. This includes the mortgage, taxes, insurance, utilities and maintenance. If you maintain this standard, you’ll most certainly avoid the foreclosure scare.
Interview: Louisville’s Center Stage Homes
Aug 9, 2008 Marketing, Residential
In an effort to keep Louisville home sellers on the leading edge of national real estate trends, I was happy to meet with Melissa Marshbanks of Center Stage Homes to talk about home staging and how it can be used to help homeowners better market their property and get a leg up on the competition.
For starters, could you give us a quick overview of staging and what it entails?
Home staging can take on many different forms. It can be as simplistic as removing clutter and reorganizing a home before it goes on the market or it can be as involved as bringing in furniture from an outside source to add dimension to the home. And, of course, it can take the form of anything and everything in between such as painting, landscaping, etc.
When did this kind of service begin in the United States? How about here in Louisville?
Home staging started in the U.S. in the 1980′s however it only gained momentum over the last ten years or so. We began our marketing a year and half ago and found that most of our clients did not know the service existed in the Louisville area. With the housing market being as flooded as it is home staging is becoming a necessity in order to set a home apart and make it memorable to the buyers. We were recently told by a Realtor in Nashville that she does not list a home until it is staged and that is becoming the standard in her area and we believe that philosophy is coming to the Louisville area.
What are the most common questions you receive from people asking about staging?
“Why should I hire a home stager and not an interior designer?”
Interior designers are experienced in making a house a home. Their job is to customize a home with things that make the owners happy such as favorite colors and things that bring out the owners personality. Home staging is the exact opposite. The goal of home staging is to turn a home back into a house that can be marketed to a wide variety of people. The wider net of potential buyers home staging can cast the quicker the home will sell!“If I hire Center Stage Homes are you just going to tell me to paint everything off white to make it ‘neutral’?”
I tell them, “No!” While a home has to have colors in it that will appeal to most buyers it also has to be modern and up to date. Also there is much more to home staging than just repainting.“I have read on the internet about how to stage so why should I hire a professional?”
As the seller you are too emotionally attached to the home. You need an objective eye that is going to tell you how the public is going to perceive your home. A professional can look at the whole picture, everything from the perception upon pulling into the driveway, to walking in the front door, etc. Other aspects may also include things such as odors, something that is you live there day to day may never be noticeable to you. Remember potential buyers are only in your home 15 minutes or less, so first impressions are critical!“What type of success have you had in Louisville?”
We are proud to say we have had much success. A recent success story is for a developer of a community. He asked us to stage some of his model homes including the unit they were having the most trouble selling. We staged it and have since sold 4 of that particular model in the past 3 and a half months.“Are there different ‘stages’ I can purchase?”
We can do a consultation were we give you a list of suggested changes and the seller is in charge of completing those changes or we can do all the work for you.
So, is staging right for every homeowner who’s looking to sell their home?
Staging is for every seller… it does not matter if you are selling your home for $100,000.00 or a million dollars, one year old or fifty years old, there are things we can do make your home stand out!
How long does it usually take to complete your work?
The length of time depends on what you want or need done. If we bring in furniture from an outside source that is going to take a few days to get it to you and set everything up. If the home only needs to be de-cluttered and organized then we can typically do that much faster. However we try to do what we can to meet the clients needs. We once had clients ask us to completely stage a home, including furnishings, for an open house that was five days away and we were able to meet their timeline.
What separates Center Stage Homes from other staging companies?
Several things set Center Stage Homes apart. For starters we are a Louisville based company so we have a vested interest in the community. The most exciting difference is that we have an exclusive partnership with Burforf’s Furnishings and Flooring. This is exciting for us because we are able to offer our clients a much higher quality of furniture at a better price! In addition, our partnership has made us able to offer much more flexible contracts to our clients, again resulting in a better price, than others can. Others who do not have partnerships may ask you to either buy the furniture or rent from a rental company. Another fantastic advantage of Center Homes Staging is that we do not charge by the hour!
Last but not least, do homes that are professionally staged really sell for more money? If so, does that increase cover the cost to hire your company?
There are several statistics that prove home staging to be nothing but a benefit to the clients. One that I always like to point to is soundmoneytips.com. It states home staging will result in a 251% return on investment. I like this statistic because it comes from a source that is independent of home staging, therefore it does not have a bias.
The best thing about home staging it pays for itself and then some! Staged homes typically sell for more than homes that are not staged. Estimates on how much more can range anywhere from 3% to 12%. For example, a $300,000 home would net $9,000 from home staging using the low end at 3%. This will leave the client with a net profit after the cost of home staging.
There are other ways that home staging weighs into profit. Staged homes make buyers look at the overall picture of the home and make the home appear to be in “move in condition.” Buyers are willing to pay more of the asking price for a house that is in move in condition. If a home is not in what the public perceives as move in condition buyers cannot visualize themselves moving in. Thus the home will stay on the market longer causing the seller to pay more months of the mortgage which plays into the overall profit if the seller has already moved to a new house. And homes that are not in move in condition are way more likely to receive a low ball offer.
Best Louisville Neighborhoods: Woodmont
Aug 8, 2008 Neighborhoods
Woodmont is another up-scale, east end neighborhood that got its start at the beginning of the new millenium. Off Old Henry Road, Woodmont is close to expressways but still feels like it’s in a private setting away from commercial clutter. Across the street from Fox Run and near Lake Forest, this neighborhood has newer homes from the mid $300s up to the $500s sitting on 1/3 to 1/2 acre lots on average. With a club house/pool and the gently rolling hills, Woodmont might be just what you’re looking for! Read More »
Best Louisville Neighborhoods: Fox Run
Aug 6, 2008 Neighborhoods
Fox Run is a newer neighborhood in the popular area near Old Henry Road. Close to both Woodmont and prestigeous Lake Forest, Fox Run offers homes in from $300-$400k. This neighborhood was just developed about five years ago and already they built more than 50 homes, with more under construction as I type. If you’re looking for new construction in the price range, this east end of Louisville subdivision with worth considering. Read More »
Louisville Real Estate Quick Hits – 8/3/08
Aug 3, 2008 News
- Home values rising in some parts of the Kentuckiana
The year’s not over so I don’t know where they’re getting this -2.8% number. Louisville is certainly doing better than most of the country, even though that’s small solace to some homeowners here. - Report: Louisville Housing Market Avoided Slump
Our new home builders were quick to respond to market conditions, which in turn, helps the entire housing market. - Bluegrass State says ‘come back’
Mayor Jerry is out promoting our city, which is great, though I’m not sure it’s cost effective for our top executive to sell to individuals, far better would be to lure up-and-coming businesses to call Louisville home. I’m sure Mr. Abramson knows this, I’ve just had a tough day.
Sale Data Charts by Area: Coming Soon
Aug 3, 2008 Trends/Statistics
I certainly need to come up with a catchier name but I’m very excited about the new data charts I’m working on for Louisville real estate. Getting the data is easy, putting it into a visual format that communicates clearly and efficiently, well, that’s the challenge.
I think everyone will agree the new graphical representation of this data will be a big improvement. Stay tuned.
