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Top 10 Stories in Louisville Real Estate 2009

Dec 31, 2009 Top 10 Lists

Last year I wrote a Louisville Kentucky Real Estate Review of 2008 focused primarily on home values. This year, I thought I’d do something a little more fun. I took some time to look through all the big stories of 2009, with an eye on Louisville real estate to see which ones have had the biggest impact. Below you’ll see my conclusions. Have a differing opinion? I’d love to hear from you!

#1 Home Buyer Tax Credits Get Extended into 2010

This is most certainly the biggest news of the year. Here at LouisvilleHomesBlog.com, I’ve created the Home Buying Tax Credit FAQ to help answer any questions you might have. Also, here’s a post called Home Buyer Tax Credit Changes which identifies what’s new in the recent legislation. Don’t forget that our State has incentives as well, Kentucky Housing Offering Help to Louisville Home Buyers.

#2 Historical Low Mortgage Rates on the Rise

The bright spot in the housing recession has been the incredibly low interest rates. But that won’t be the case going forward as Louisville Mortgage Rates Expected to Rise in 2010.

#3 Internet + House Buying = Match Made in Heaven

The Internet has made browsing active listings a breeze! 2009 was no exception, with new innovations like my Louisville KY Neighborhoods Map, connectivity technology like Facebook and Twitter, there’s no end to the real estate benefits that the Internet affords.

#4 The Housing Recovery Hits Home

Lots of news here like Louisville #37 in Nation for Housing Recovery, Louisville 1 of 10 Cities Primed for Real Estate Turnaround and Louisville Beats Nation as Values Level Out. Louisville certainly isn’t the real estate disaster like Detroit, Las Vegas and others.

#5 Real Estate Improves Status as Investment

Just because standard home buying customers has chosen to stay on the sidelines, doesn’t mean that investors haven’t taken advantage of the great buys, because Louisville Real Estate as Investment has grown in volume.

#6 Home Improvements Increase as Sales Drop

Less people moving means more people improving their current property. LHB has the following great posts on this topic: 10 DIY Cheap and Easy Ways to Protect Your Home, Energy-Efficient Rebates Pushed to Spring, Top 10 Louisville Home Improvement Projects and Are Replacement Windows a Wise Home Improvement?

#7 Louisville Still Popular Relocation Destination

Relocation made up a large part of my real estate business. And that makes sense because Louisville Kentucky Tops Voter’s List of Favorite Cities.

#8 New Developments Continue to Break Dirt

Artisan Park in Oldham County, Bannon Crossing off Bardstown Road, Beech Spring Farm in Prospect, or one of a host of great, new neighborhoods, Louisville is experiencing solid development growth. And here I didn’t even mention our wonderful, planned community of Norton Commons.

#9 Cost of Living Still Drawing a Crowd

Just like #6, there are many reasons that Louisville KY has won some national attention with our housing prices: Louisville Awarded Top 20 Best Places to Retire.

#10 Louisville’s Homearama Still a Lively Affair

I was surprised to learn that not every major city has their own version of Homearama. As a Realtor, I love visiting ours and the 2009 Homearama was no exception.

Tags: 2009, louisville ky, real estate, Top 10 Stories of 2009

Louisville Mortgage Rates Expected to Rise in 2010

Dec 24, 2009 Trends/Statistics

All good things must come to an end. That’s how the saying goes anyway. Today this concept applies to our 40-year, low mortgage interest rates. I’ve published this chart before, but it bears a repeat visit.

Many experts believe that rates will rise in 2010. America’s #1 Mortgage Broker posted about this on ActiveRain just this week. He believes rates will rise to 6% by March. Here is his reasoning:

Mortgage rates have been steadily climbing, from a low of 4.5% around November 27, 2009 to above 5% on December 22, 2009. For the past two months I’ve been warning that this will eventually happen. It’s not because the economy is recovering; it isn’t recovering. The reason mortgage rates will rise to 6% or above, soomer rather than later is because that is the “natural” market.

What does this mean to you? Well, maybe nothing but then again, maybe everything. If you refinanced your Louisville home since rates have been down under 5%, you’re a winner! If not, I recommend that you speak with your loan specialist as soon as possible.

If you’re considering a move, there’s no time like the present. Here’s an example from a standard mortgage calculator:

Just as an example, let’s say you are borrowing $180,000.00 for 30 years with an interest rate of 5.000%. If the value of your home is $200,000.00, your property taxes $3,000.00 per year and your insurance is $1,500.00 per year, you can expect to be making a total payment of $1,416.28. This is because you need to pay $966.28 toward the actual loan, plus $250.00 for real estate taxes and $125.00 toward insurance.

Now up the interest rate to 6% and see what it looks like. The payment jumps to $1,529.19 which translates to an extra $40,647.60 in interest payments over the life of the loan. That’s not pocket change.

If you’re looking for a Louisville Realtor®, I’d love to work with you. Drop me a line.

Have a Merry Christmas!

November ‘09 Dwarfs November ‘08

Dec 16, 2009 News

Of course, real estate agents in Louisville are going to try and project a positive image to our city’s housing market. But the numbers don’t lie.

Last month’s home sales were 67 percent above November 2008. Lisa Stephenson says the high sales mark the continuation of a trend that began in summer.

“The last five months of 2009, we say increased sales over 2008,” she says. “So we’ve seen a really great 5 months. That started in July. June was about the same as last year.” [link]

Most of this is credited to the tax credits and entry-level portion of our market.

Tags: Lisa Stephenson

Weatherize Your Louisville Home

Dec 16, 2009 Home Improvement

Today, our Louisville weather brings us a crisp 20 degrees on our thermometers. That’s chilly! Homeowners should (if they haven’t already) give some thought to the heat that could be escaping their homes. Saving 15% on that new sweater for Aunt Sharon is great but if you’re paying an extra 15% on your LG&E bill because of heat escaping through cracks in your house, it’s all for naught.

It seems many look to our government for guidance far too often as some are actually calling for a “cash for caulkers” program. From today’s Wall St. Journal:

Such unsexy-sounding home improvements can be some of the most lucrative in terms of energy savings and make a home far more comfortable. The federal Energy Star program estimates homeowners can save up to 20% on heating and cooling costs just by sealing and insulating, or “weatherizing” against the elements.

I find this one part tragic and one part common-sense. Couldn’t we just hire a Louisville handyman or do the work ourselves?

Best Louisville Neighborhoods: Hunting Creek & Estates of Hunting Creek

Dec 15, 2009 Neighborhoods

For the past 30 years, Hunting Creek has been the standard of luxury homes and condos in Prospect. New neighborhoods, like nearby Sutherland, have come and surpassed it. With the addition of the Hunting Creek Estates section, the battle is on again. There are some amazing homes in this neighborhood! While the two-story traditional is very common to Louisville and can be found in most every neighborhood in the city, the difference here is the setting. Hunting Creek Estates has huge lots and in most cases these lots are incredible. Read More »

Tags: best louisville neighborhoods, Estates of Hunting Creek, homes for sale, Hunting Creek, louisville ky

Home Buying Tax Credit FAQ

Dec 12, 2009 Residential

Back in November I posted the helpful chart from NAR that outlines the changes to the home buyer tax credit that was extended by the Obama administration. And while that’s good, it still doesn’t address all the questions that people have regarding buying a new Louisville home. So I’m going to try and do my best to answer those questions, FAQ-style.

[This information is accurate to the best of my knowledge but is not warranted.]

Who is eligible to get the housing tax credits?

Previously, the tax credit was only available to first-time homebuyers but now current homeowners may also be eligible.

First-time homebuyers, both single taxpayers and married couples, who have not owned a primary residence in the previous 36 months are eligible for the tax credit.

In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence (such as a second home or investment property) that individual would be eligible.

What are the other requirements to the first-time homebuyers tax credit?

According to the IRS, if any of the following describe their situation, a credit would not be due:

• They do not use the home as your principal residence.
• They are a nonresident alien.
• They sell their home before the end of the year.
• The property is bought from a blood or close relative. This includes a spouse, parent, grandparent, child or grandchild.
• They owned a principal residence at any time during the three years prior to the date of purchase of your new home.
• They are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
• Their home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)

What are the tax credit amounts?

The tax credit for first-time homebuyers is 10% of the purchase price of the home, with a maximum credit of $8,000.

The tax credit for current home owners is up to $6,500 for those who have owned and occupied their primary residence for five consecutive years during the last eight years.

Are there income caps for the tax credit?

Single tax filers who earn under $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.

Joint filers who earn under $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

How does the tax credit work?

A tax credit is a direct reduction in tax liability owed by an individual to the IRS. In the event zero taxes are owed, the IRS will issue a check for the amount of the tax credit.

Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual’s primary residence.

What is the maximum home purchase price?

Qualifying buyers may purchase a property with a maximum sale price of $800,000.

Can homebuyers claim the tax credit in advance of purchasing a property?

No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.

Can a homebuyer claim the tax credit if the property is purchased from a seller with seller financing, even if the seller retains title?

Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Please confirm with your tax specialist for more details.

Can homebuyers purchase a property from a step-relative and still be eligible for the housing tax credit?

Yes, as long as they are not direct blood relatives.

Can a parent who will not live in the property still co-sign for the mortgage and their child still remain eligible for the tax credit?

Yes, provided the child meets the other requirements for the tax credit.

What are the tax credit deadlines?

In order to qualify, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

Tags: IRS, tax credit

Louisville Neighborhood Map with Homes For Sale

Dec 11, 2009 Marketing, Residential

Just a quick post to let you know that we’re up to 39 of Louisville’s best neighborhoods over on my real estate Web site. When I add another one next week, that will make 40 neighborhoods spotlighted in 3 years.

I’m not always the brightest bulb on the Christmas tree, but building Best Louisville Neighborhoods was a very good idea. I receive more compliments on it than anything else that I’ve built online. I’d love to hear your thoughts as well!

Tags: homes for sale, louisville ky, neighborhoods map

Louisville #37 in Nation for Housing Recovery

Dec 8, 2009 Trends/Statistics

There is a lot of great real estate information on Forbe’s site. Today we’ll look at America’s Fastest-Recovering Cities. Louisville comes in at 37th, ahead of Indianapolis (44), Columbus (47), Cincinnati (55), Memphis (69) and Dayton (89) but behind Nashville (19) and Knoxville (32). Lexington did not make the list.

Louisville’s Sales Rate Rank is 3rd, which is incredible, while our Gross Metropolitan Product is 85th and really drags down our overall ranking. It’s also interesting to see that foreclosures in Louisville are only a small percentage of overall sales.

Visit their full list for sortable data and ranking methodology.

Tags: Forbes, housing recovery

Louisville KY Home Sales: November 2009

Dec 2, 2009 Trends/Statistics

Possibly in reaction to a strong October, November numbers were, as expected, down. Following yearly trends, December should also be down as well, but according to many experts, 2010 should show some positive growth.

As always, if you have any questions, please don’t hesitate to contact me.

November 2009

AREA	SALES	AVERAGE	DoM
0 Central Downtown District	6	$286,000	184
1 Downtwn/Old&WestLouisville/Shively	61	$59,669	71
2 Butchertown/Highlands/Germantwn	79	$178,683	54
3 Brownsboro/StMatthews	52	$198,109	80
4 Pleasure Rdg/Valley Station	86	$106,308	66
5 Auburndale/Fairdale/Iroquois Park	82	$119,621	97
6 Buechel/Highview/Okolona/FernCreek	126	$123,810	76
7 FernCrk/Hikes Point/Jeffersontown	129	$164,435	72
8 Hurstbourne/Middletwn/Anchrg	76	$239,938	88
9 Anchrg/Lyndn/Prospct/UpRvrRd	99	$244,364	91
11 Bullitt Co.	67	$141,394	84
19 Spencer Co.	11	$163,767	92
20 Oldham Co. – North	35	$283,600	127
21 Oldham Co. – South	24	$202,838	106
30 Shelby Co.	41	$143,388	83

Source: MetroSearch, Inc. Values are not warranted by LHB.

Tags: home sales, louisville ky, November 2009

Louisville #24 in Bang-For-The-Buck Rankings

Dec 1, 2009 News, Trends/Statistics

I love lists! Can you tell? Some of LHB’s most popular posts are from my Top 10 Lists articles. Today, I’m talking about a recently releases Forbes.com list of Best Bang-For-The-Buck Cities for 2009.

Of interest to real estate enthusiasts is the full rankings which shows Louisville’s strong suit to be low real estate taxes. Forbes puts us at 17th best in the country in that category. Future job forecasts looks pretty good too at 21. Our current unemployment numbers, however, aren’t as promising with a ranking of 66. The list only includes the 100 largest Metropolitan Statistical Areas.

Tags: Bang-For-The-Buck, Forbes