When Is Refinancing NOT a Good Idea?
Mar 5, 2010 Residential
John Curran for Time yesterday published Is Mortgage Refinancing a Loser’s Game? He makes a great point that I think many may miss.
To wit, the way fixed-rate mortgages are structured the lion’s share of your first decade’s payments are for interest payments, not to build home equity. Each time you refinance you reset the clock to zero, starting the interest-heavy period all over again.
If interested, read the whole piece because it includes a real life example.
Tags: John Curran, Time
How To Find the Value of Your Louisville Home
Mar 2, 2010 Residential
I was having a conversation yesterday with a very intelligent person about the value of their home. It was during this conversation that I was reminded that while I think about the home valuation process quite often, most people do not. There are many Louisville homes for sale and determining value is critical right now.
After we had been talking for a while, this person asked me to give them the value of their home. He asked it in such a way that it told me he thought there was an exact, singular dollar amount “value” for his home, so I knew we had some “talking to do.”
Simple Principles of Home Valuation
The value of a home depends upon the paradigm of the viewer (the “valuer”). I always like to think that there are four different ways that we can value a home, and homeowners and real estate agents need to marry-up their current motivation levels to determine which value is right at the present time.
Cost is the amount of money that it would take to replace the home today. This number is an estimate of what you would have to pay for a “replacement” home site similar to the one in which the home is sitting, as well as what you would spend to build the actual structure(s) on the property. It is always important to look at this “cost approach” to home valuation so that you don’t kid yourself on what potential buyers could do were this home not available for purchase.
Price is the amount of value established by the homeowner and the listing agent. This is an arbitrary figure that could or could not represent a value that potential buyers would feel compelled to view and potentially purchase the property.
Value is what the property is worth to someone. If you have been in the real estate business as long as I have, then you have heard a few stories about somebody who paid an amount for a home that seemed to be “crazy high” compared to what else was happening in the market.
Market Value is a price range that appeals to many buyers and causes a sale to occur within a reasonable time frame. This is the value that serious home sellers should be seeking from their real estate broker. A Current Market Analysis (CMA) is the report that details the finding of a broker or real estate agent.
Value And Motivation Go Hand In Hand
The most important thing for a homeowner to understand is that their current motivation is the most critical factor when determining the value of their home. In order to illustrate, let us look at three common situations in which many potential home sellers find themselves:
- “If I could get a certain amount from the sale of my home, then I could afford to buy the home in the area in which I have always wanted to live.” This is an example of a home seller who has the luxury of setting a price to see what will happen. Unfortunately, this seller will not get their home sold in today’s real estate market, where supply is way too high to generate enough activity to get this home viewed by serious home buyers. Often times, we say this seller will be the “highest bidder on the house,” meaning the seller values the home more than buyers do.
- “I know the Johnson’s sold their home down the street for $X, and my home is as nice as that, so I will ask for $X as well.” This homeowner is hoping that a past event will re-occur again in the form of another home sale. And it might. Of course, it most likely will have no bearing on what will happen in today’s real estate market, with a different buyer. Typically, prospective home buyers choose what they feel is the best value on the day that they make their home buying decision. Therefore, the fact that prices have been dropping paired with an abundance of choices for home buyers suggests that this seller will not receive an offer either.
- “I need to be out of this home by the end of May to start my new job in Atlanta on June 1st.” This homeowner has a good chance of selling the home as long as he prices his home within a market value range that appeals to many buyers. This price can be determined by looking at comparable homes for sale in Louisville… in other words, his competition, and priced to be the best buy.
Tags: CMA, home value, Joe Manausa
Louisville Real Estate Responds to Market Conditions
Feb 23, 2010 Residential
Louisville follows the same real estate trends as other cities in our nation, only to a much lesser degree. But like I posted earlier this month, Louisville hasn’t seen a drop in home values since before 1978. That changed in 2008 and 2009.
How does the market respond? For the most part, the same as the rest of the country. For starters, new homes are designed smaller. Here’s a snippet from Home Sizes Fall as Builders, Buyers Embrace Economic Reality.
Data recently released by the National Association of Home Builders (NAHB) found the average size of a new home that was completed in 2009 fell to 2,480 square feet from 2,520 square feet in 2008. The last time the average completed-home size fell by a statistically significant amount was 1982.
I can attest to this personally, as my clients that are looking to build are more interested in a smaller house footprint but want the home built with more energy-efficient, green technology.
The other response to a housing downturn is that more homeowners put off moving to a new home and instead focus on remodeling their existing home.
The most popular projects in the past–remodeling the kitchen and bathrooms–have decreased in popularity, as adding a bathroom has taken the honors of the most popular project. This makes sense since, for many homeowners, updating an existing room can be put off because it is often seen as a “luxury,” while for many, the addition of a bathroom is a necessity due to changes in the needs of the family.
Just ask any Louisville home builder how many of their projects are remodels vs. new builds.
As the Louisville market rebounds, this phenomenon will decrease. From the lyrics of a hit 80’s song, “He knows changes aren’t permanent, but change is.”
Tags: Louisville real estate, National Association of Home Builders (NAHB)
New Construction in Louisville Waiting for Rebound
Feb 3, 2010 News, Residential
The CJ did a little piece on Monday about where the new construction numbers are and where they’re heading. It should be no surprise to anyone following the situation that most of the action is taking place at the low end of the price range due to the Federal home buyer’s tax incentives, but I did find this quote from a National Association of Home Builders economist interesting.
“It’s like, Louisville behaved really well at the party, but for some reason, you were as hung over as everyone else,” Denk said.
So the numbers would lead us to believe that Louisville’s housing market is poised for a rebound, but because that isn’t happening, what are the causes? Unemployment? Concern over the larger, economic picture? There are experts on both sides of these predictions.
Tags: Courier-Journal, National Association of Home Builders, new construction, Robert Denk
You Can Never Have Enough Pro Selling Tips
Jan 29, 2010 Residential
Home staging can take your ordinary, ho-hum home and instantly make it feel larger, more spacious, warmer, brighter, more cheerful and more welcoming.
It may be hard to believe that simple home staging can do all that, but it’s true! Often times, it is as much about your feelings as it is about the home itself. Home staging helps set the stage, so to speak, so that buyers can immediately feel at home the moment they walk through the door. After all, buying an Louisville home is an emotional process.
If you are unsure how to approach home staging, here are the basics to get you started:
- Remove any unnecessary furniture to eliminate a cluttered feeling. Once you have accomplished that, work to move your furniture away from the walls and into warm vignettes. For example, instead of placing your living room sofa against the wall, move it to face the room’s fireplace. In one fail swoop you have created a warm, interesting room that plays up the room’s best feature – the fireplace.
- Add warm fabrics, such as throws and pillows, to beds and sofas, thereby instantly adding the feeling of warmth and comfort to the rooms of your home.
- Pack up your personal knick-knacks, photographs and the like and instead use simple mirrors and prints on the walls and vases and flower arrangements on the tabletops. You want to allow your buyer to imagine himself in your home, and it’s a bit hard to accomplish this when you have family photographs scattered about.
- Remove the clutter from your kitchen counter-tops and instead replace it with bowls of colorful fruit or fresh flowers.
- Set the mood with lightly scented candles and scented soaps.
- Change up your daily towels with beautiful guest towels.
- Eliminate silk or dried flowers and replace them with live plants and fresh bouquets.
- If you have a fireplace, light it and instantly set the mood.
- Don’t forget your outdoor spaces. Create living spaces with pretty outdoor furniture, and use outdoor area rugs and pillows to pull it all together and create a feeling of comfort and relaxation.
Tags: Richard Soto
Greater Louisville 3Q Improves in 2009
Jan 4, 2010 Residential, Trends/Statistics
I’ve got another post on deck, but before we look forward I wanted to highlight some data I just found about Louisville’s 3rd Quarter of 2009 in real estate.
The first table shows total units for Greater Louisville, Region 3 of Kentucky.
| # SOLD 3Q 2009 | # SOLD 3Q 2008 | # SOLD % |
| 3,519 | 2,993 | 17.57% |
As you can see, that’s a pretty big jump; higher than many projected. Which brings us to the second table. Why was the increase that large? Probably because prices dropped so much.
| Median Price 3Q 2009 | Median Price 3Q 2008 | Median Price % |
| $136,800 | $140,000 | -2.29% |
Based on information from local REALTOR associations/MLSs for the periods of July 1 – September 30, 2008 and 2009.
It’ll be interesting to see what prices did over the entire year. Be sure to check back and I promise to keep throwing more Louisville real estate statistics your way.
Louisville Waterfront Scam
Jan 2, 2010 Residential
Are you looking for waterfront apartments in Louisville? Beware a Craigslist scam trying to prey on you. When in doubt, contact a professional.
Tags: craigslist, scam
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!
Home Buyer Tax Credit Changes
Nov 9, 2009 Residential
Now that it’s law, I thought this information deserved its own post. If you have any questions about how this might apply to buying your next Louisville home, please don’t hesitate to contact me.
| FEATURE | Jan 1 – November 30, 2009 Rules as enacted February 2009 | December 1 – April 30, 2010 Rules as enacted November 2009 |
|---|---|---|
| First-time Buyer – Amount of Credit | $8000 ($4000 married filing separate) | $8000 ($4000 married filing separate) |
| First-time Buyer – Definition for Eligibility | May not have had an interest in a principal residence for 3 years prior to purchase | -same- |
| Current Homeowner – Amount of Credit | No Provision | $6500 ($3250 married filing separate) |
| Effective Date – Current Owner | No Provision | Date of Enactment |
| Current Homeowner – Definition for Eligibility | No Provision | Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years |
| Termination of Credit | Purchases after November 30, 2009. (Becomes April 30, 2010 on Date of Enactment.) | Purchases after April 30, 2010 |
| Binding Contract Rule | None | So long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close. |
| Income Limits (Note: Increased income limits are effective as of date of enactment of bill) | $75,000 – single, $150,000 – married, Additional $20,000 phase out | $125,000 – single, $225,000 – married, Additional $20,000 phase out |
| Limitation on Cost of Purchased Home | None | $800,000 Effective Date of Enactment |
| Purchase by a Dependent | No Provision | Ineligible Effective Date of Enactment |
| Antifraud Rule | None | Purchaser must attach documentation of purchase to tax return |
Louisville Bedroom Defined
Nov 4, 2009 Residential
There is a lot of confusion about what constitutes a bedroom in real estate. There are many opinions and even proper definitions. Let’s tackle them one at a time.
Building Codes
Every principality has official building codes. These codes go into great detail and are what inspectors use to verify certification. This is especially important for new construction as the home occupancy certification is needed before the home buyers can legally move in.
In all cases, the local building codes are the most authoritative answer as to what constitutes an official bedroom. The following is the official Louisville Occupancy Limitations (156.103) for what constitutes a bedroom excerpted from Property Maintenance Code Chapter 156.
D. Bedroom requirements. Every bedroom shall comply with the following requirements:
- Area for sleeping. Every bedroom occupied by one person shall contain at least 70 square feet (6.5 mm) of floor area, and every bedroom occupied by more than one person shall contain at least 50 square feet (4.6 mm) of floor area for each occupant thereof.
- Access from bedrooms. Bedrooms shall not constitute the only means of access to other bedrooms or habitable spaces and shall not-serve as the only means of egress from other habitable spaces except in units that contain fewer than two bedrooms.
- Water closet accessibility. Every bedroom shall have access to at least one water closet and one lavatory without passing through another bedroom. Every bedroom in a dwelling unit shall have access to at least one water closet and lavatory located in the same story as the bedroom or an adjacent story.
- Prohibited occupancy. No person shall use any kitchen, nonhabitable or public space for sleeping purposes, nor shall food be prepared or cooked in any room used for sleeping purposes, except in an efficiency apartment. In an efficiency apartment, that portion of the room designated for sleeping purposes shall not be within ten feet of that portion of the room designated for cooking purposes. The ten feet shall be calculated as the shortest straight line distance between the sleeping area and the stove. The ten feet requirement shall not be a violation when the ten feet distance is separated by a permanent divider wall of a height of at least 50% of the height of the room.
- Other requirements. Bedrooms shall comply with the applicable provisions of this chapter including, but not limited to, the light, ventilation, room area, ceiling height and room width requirements of this section, the plumbing facilities and water-heating facilities requirements of this chapter; the heating facilities and electrical receptacle requirements of this chapter; and the smoke detector and emergency escape requirements of this chapter.
In the area of bedroom requirements, the Federal government’s office of Housing and Urban Development (HUD) general defers to the local housing regulations.
Home Appraisers & Tax Appraisers
This group of real estate experts may also add to the list of what constitutes a bedroom. But they may not remove any of the local regulations.
Realtors® & Real Estate Agents
In real estate, to be counted as a bedroom it must be:
- A room with a door,
- that has it’s own closet, and
- a means of egress.
Examples of rooms that are often counted as bedrooms but really shouldn’t be are:
- A basement room where the window is too small for someone to escape through;
- A room without a closet but utilizes a piece of furniture for clothing;
- A room, other than a loft, that’s open to the rest of the home.
Hopefully, this has helped you better understand the quirky nature of bedroom definitions. If you need a more specific answer for your Louisville home, feel free to contact me any time.
Conventional Mortgages vs. FHA Loans
Sep 8, 2009 Residential
The 2009 fiscal year is shaping up as the biggest on record for FHA loans. Applications for single-family home mortgages were up 50 percent from Oct. 1 through mid-August. Approvals have jumped 70 percent, to 1.67 million.
FHA has carved out a huge chunk of the market in the last three years, from 3 percent in 2006 to a whopping 23 percent today. Borrowers of all stripes are turning to the FHA for help in obtaining a mortgage and achieving the dream of homeownership.
One of the major reasons is the FHA’s low down payment requirement, which starts at just 3.5 percent. Conventional loans often require a down payment of at least 10 percent. That’s just one of the big differences between FHA loans and conventional loans.
Here’s a look at some of the other major differences between FHA and conventional loans:
Qualifying
Conventional Loans: Conventional loans are traditionally more difficult to qualify. FHA loans are backed by the federal government. But there are no such guarantees with a private conventional loan, meaning lenders often employ greater scrutiny and put significantly more emphasis on credit scores. Prospective borrowers with past instances of foreclosure or bankruptcy may struggle to obtain conventional loans or pay significantly more for them.
FHA Loans: The FHA examines each case individually and does not rely on blanket credit standards. Borrowers that are two years beyond a bankruptcy can be eligible to obtain a loan, even for the maximum amount. Those who have experienced a foreclosure can be eligible after three years.
First-Time Homebuyers
First-time homebuyers have traditionally been drawn to FHA loans because of the lower down payments and looser credit requirements. First timers with less than perfect credit may qualify for alternative loan programs (A-minus or ALT A, for example), but many of these come with more expensive down payments and equity requirements and often include pre-payment penalties. This is another area where FHA loans continue to provide more flexible opportunities for a wide range of borrowers.
Mortgage Insurance
Conventional Loans: There is no need for upfront mortgage insurance premiums with conventional loans. Borrowers generally have to buy mortgage insurance when their down payment is less than 20 percent of the property purchase price.
FHA Loans: Mortgage insurance is mandatory for all FHA loans. It is typically monthly charge equivalent to 0.5 percent of the loan amount per year. There is also an upfront premium charge of 1.5 percent. The interest is tax deductible.
Loan Limits
Conventional Loans: These loans have traditionally had the upper hand in this regard, as loan limits were simply tied to a borrower’s credit history, financial standing and other factors that lending institutions evaluate. Conventional loans generally have larger loan limits than FHA loans in most parts of the country.
FHA Loans: Recent legislative changes have led to loan limit increases for FHA loans, which now extend to about $729,000 in some parts of the country. These limits have always been a part of FHA loans, which aim to primarily help those with low to middle incomes.
This article was written by Brandon Laughridge of Mortgage Loan Place. MLP specializes in educating consumers about all types of mortgages with an emphasis on government programs such as the FHA Streamline Refinance. Check out their tools including their brand new embeddable mortgage calculator widget!
Tags: Brandon Laughridge, Conventional, FHA, loans
First-Time Homebuyer’s Tax Credit Questions Answered
Aug 26, 2009 News, Residential
If all these tax credits are confusing you, never fear! Here’s a simple, easy-to-understand source to make it all clear.
In 2008, Congress enacted a $7,500 tax credit designed to be an incentive for first-time homebuyers to purchase a home. The credit was designed as a mechanism to decrease the over-supply of homes for sale.
For 2009, Congress has increased the credit to $8,000 and made several additional improvements. This revised $8,000 tax credit applies to purchases on or after January 1, 2009 and before December 1, 2009.
Read all about it, including frequently asked questions, sample scenarios and more at Realtor.org.
Tags: Realtor.org, tax credit
Kentucky Ups New Home Tax Credit
Aug 23, 2009 News, Residential
The New Home Tax Credit is a nonrefundable credit, up to $5000, against individual income tax allowable to a qualified buyer.
As we had previously written about back in April, Kentucky Joins in Tax Incentives for Home Buyers, some changes have been made. Here’s how to know if you qualify.
You can claim the credit if all of the following apply:
- Your qualified principal residence is a single family dwelling;
- Your qualified residence is purchased to be the principal residence of the qualified buyer(s) for a minimum of two (2) years;
- You purchase a new home after July 25, 2009 and before July 26, 2010; and,
- You meet qualifications and receive approval from the Department of Revenue.
You cannot claim the credit if:
- Your application is not received via FAX within seven (7) calendar days from the purchase date. Any application submitted via mail will be denied.
- Your new residence has been previously occupied.
- Your application is received after the New Home Tax Credit cap has been reached.
- You are eligible for first time homebuyer credit under Section 36 of Internal Revenue Code.
Please understand that you must apply for this tax credit and you must do so within (7) days of your closing. For all the details, please visit the Department of Revenue’s Web site for more details: New Home Tax Credit.
Tags: louisville ky, new homes, tax credit
Louisville Housing Market Improving
Jul 23, 2009 News, Residential
This piece in the NYT is aptly titled Home Sales, All Over the Map and that’s exactly the point! Depending on where you live, housing markets are extremely different from one another.
Areas like D.C. and San Francisco which had seen home values dropping drastically are leveling out, whereas, Las Vegas and most of Florida are still seeing these numbers fall. Like I just posted yesterday, Louisville isn’t seeing those dramatic drops because we never saw dramatic increases years before.
So is this a good time for you to buy? As always, that depends on your situation.
For Amy Musial, who manages a Starbucks in Sacramento buying a house became “a no-brainer” this spring once she and her husband realized that their monthly payments would be slightly lower than the rent they had been paying on a two-bedroom apartment. They paid about $229,000 for a three-bedroom house that had been through a foreclosure. Several years ago, the same house could have sold for more than $350,000, estimates Shelley Hescock, the real-estate agent who represented the Musials.
The best advice I can give is for you to find a trustworthy Realtor and ask as many questions as you need. Interest rates are still historically low and there’s a great deal of inventory still in the Louisville MLS, though we just dropped under 8,000 Single Family Homes today.
Update 7/24: The CJ decides to post the positive news, for once.
Home Values Approaching Bottom?
Jun 30, 2009 Residential, Trends/Statistics
This piece in the NYT gives some home sellers hope for a better future.
Home prices continued to fall as unemployment rose and new foreclosures hit the market. But the pace of declines, which had been accelerating, leveled off slightly, according to the Standard & Poor’s Case-Shiller Home Price Index, a closely watched yardstick of the market.
Keep in mind that Louisville home prices didn’t rise at such great rates in the past, so they also haven’t fallen like the national averages.
Buyers need to keep this in mind. Deal hunters may be running short of time.
Tags: New York Times
Louisville Interest Rates Inching Upward
Jun 14, 2009 News, Residential
It was bound to happen. Rates can’t stay low forever. Hopefully you’ve already taken advantage of the historically low rates. For example:
A typical 30-year fixed-rate home loan at Louisville-based Stock Yards Bank & Trust carried a 5.875 percent rate Friday afternoon, a full percentage point higher than it was May 21. The difference: consumers locking in a $100,000 mortgage at the higher rate now would face $62 in higher monthly payments.
It’s not to say rates might not drop back down towards 5% but if you’re seriously considering a move, I’m advising my clients to move quickly at this point.
Tags: interest rates, louisville ky
5 Reasons to Buy a Home Now
Mar 19, 2009 Residential, Trends/Statistics
Please note that I didn’t say it’s a great time to sell? Homes are certainly being sold—almost 1,200 properties have sold in the first two months of the year here in Louisville—it’s just a tougher market to sell right now. The other side of the coin is that it’s a wonderful time to buy.
Don’t just take my word for it, here are Five Reasons to Buy a Home This Year from the experts at MarketWatch. I’ll bullet point the reasons below, but if you’re considering a move in 2009, you should read the whole piece.
1. Affordability is better than ever
2. You have a large inventory to choose from
3. Builders are offering big discounts
4. Mortgage rates are historically low
5. You can get a federal tax credit
Don’t discount #4 as no one knows what rates will do when the economy does rebound.
Tags: interest rates, MarketWatch
Foreclosures: Builders Lose, Consumers Win
Mar 12, 2009 Home Improvement, Residential
Just a quick post to bring this issue to your attention. I feel like half of my job is battling the largely negative news coming from almost every media outlet on a daily basis. Sure, you can speak to how foreclosures are hurting builders, like the Wall St. Journal does in this piece called Foreclosed Houses Haunt Home Builders. That’s certainly true.
Or, you could talk about how this phenomenon positively affects consumers, who now have a much greater selection, lower home prices and historically low rates.
It’s almost like the media wants our economy to continue to slide with how much they focus on the bad. If more consumers would wake up to the possibilities that exist in today’s housing market, these new transactions would only help to revive our country’s economic activity.
Ok, I’ll stop for today.
Tags: foreclosures, Wall St. Journal
Things Are ‘Looking Up’ for First Time Homebuyers in Louisville
Feb 12, 2009 News, Residential
This house is not currently for sale but in hot areas like St. Matthews and the Highlands, home prices have dropped enough that buyers can find great deals.
The Wall St. Journal wrote an article yesterday entitled For Some, It’s Finally Time to Dive Into Housing Market. Of course, they picked an extreme case to use as their example, as the real estate market in Phoenix, Arizona has been extremely volatile over the past decade and a half. I doubt you’ll see a price drop from $340,000 to $220,500 in less than two years in Louisville’s market, but you never know.
But the truth of the situation applies to us here in Louisville KY just the same. For people moving up from lower priced housing to more expensive housing—whether that’s someone who stops leasing an apartment and buys their first home; to, a family selling their starter house and purchasing a larger, nicer home—conditions in the Louisville housing market are very favorable to people making these kind of moves.
I’ve written about this topic several times in the past but after looking at the real estate market in 2008, more experts are coming around to believe that 2009 is going to be a much better year for real estate in our country.
When you also include the $7,500 tax credit for first time home buyers it adds to the attractiveness for this group of home buyers. Please talk to your Realtor to see if you qualify. More information about the Senate Stimulus Bill, as it relates to this tax credit can be found here.
Tags: Housing Market, louisville ky, St. Matthews
