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NAR Pushing ‘Awareness’ Campaign

Jan 17, 2010 Marketing 1 Comment

The advertisement you see above is one that the National Association of Realtors in putting in a number of publications lately. Their intent is to make sure that people are aware that now is a good time for them to out house hunting.

I don’t have a problem with their intent but I believe their execution is very disappointing. As a real estate professional, I know the many reasons that now truly is a good time for certain consumers to be house shopping. Chief among them are, 1) the historically low interest rates, 2) the never before seen tax credits from the government, 3) the reduced home prices, and 4) the large house inventories across the country.

But it seems that NAR is only focusing on the tax credit portion. Check out this commercial.

Nothing really wrong with this spot but I believe there is so much more they could have done. With interest rates expected to rise in 2010 along with the other variables I just mentioned, I would have thought a more comprehensive message would have served better. But because you read Louisville Homes Blog, you’re getting the entire picture.

Best Louisville Neighborhoods: Graymoor/Devondale

Jan 16, 2010 Neighborhoods Leave a comment

Graymoor-Devondale is an unassuming neighborhood in an amazing part of town. Close to shopping, schools, the expressway and just minutes from Downtown, this neighborhood really does have it all. Just north of Lyndon, Graymoor-Devondale is the merger of two previously separate neighborhoods. Also nearby are the great subdivisions of Northfield and the Woods of St. Thomas. Read More »

Louisville Build, Renovate and Landscape Expo

Jan 16, 2010 News Leave a comment

Forgot to post this earlier, but if you don’t have anything going on this weekend, you might want to visit the Louisville Build, Renovate and Landscape Expo being held at the Convention Center. They’ll have a large number of exhibits and experts on hand to answer any questions you might have. There’s another, larger event taking place in March as well.

The Future of Louisville Real Estate, 2010 Edition

Jan 11, 2010 Trends/Statistics Leave a comment

At the turn of every year, we like to look back and reflect on the year past. Here at Louisville Homes Blog, we’re no different. But it’s also important to look forward and see how to best take advantage on the real estate market for your own situation.

Predicting the future is always a tricky task but there are some very bright minds at the National Association of Realtors (NAR) who make it their job to study the data.

Now, this data isn’t specific to Louisville, KY but we can still learn a few things from it. Here are some of the high points from a recently published NAR article.

National: Existing Homes

National: New Homes

These national numbers are interesting but don’t translate well for Louisville real estate. Let’s look at data from the Louisville MLS.

Louisville Kentucky: All Homes

So from 2008 to 2009, the total of all home sales went up 2.5%, while prices dropped 4.5%.

If we use National projections for 2010, which I don’t necessarily recommend but it’s a fun exercise, then Louisville should have approximately 13,002 sales and average prices would rise to $164,037 for our market. Check back next January to see how close we were.

Greater Louisville 3Q Improves in 2009

Jan 4, 2010 Residential, Trends/Statistics Leave a comment

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.

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.

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 Leave a comment

Are you looking for waterfront apartments in Louisville? Beware a Craigslist scam trying to prey on you. When in doubt, contact a professional.

Louisville KY Home Sales: December 2009

Jan 2, 2010 Trends/Statistics Leave a comment

Numbers are down for December, as expected, especially after a stronger than normal November. But maybe not as down as one might have guessed.

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

December 2009

AREA	SALES	AVERAGE	DoM
0 Central Downtown District	6	$135,721	25
1 Downtwn/Old&WestLouisville/Shively	74	$46,566	77
2 Butchertown/Highlands/Germantwn	68	$178,766	76
3 Brownsboro/StMatthews	37	$244,747	82
4 Pleasure Rdg/Valley Station	52	$102,138	67
5 Auburndale/Fairdale/Iroquois Park	55	$102,387	69
6 Buechel/Highview/Okolona/FernCreek	96	$116,143	93
7 FernCrk/Hikes Point/Jeffersontown	111	$164,247	80
8 Hurstbourne/Middletwn/Anchrg	79	$226,479	85
9 Anchrg/Lyndn/Prospct/UpRvrRd	63	$222,647	83
11 Bullitt Co.	81	$134,269	73
19 Spencer Co.	17	$161,819	77
20 Oldham Co. – North	37	$260,946	86
21 Oldham Co. – South	27	$211,465	91
30 Shelby Co.	37	$145,713	131

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

Top 10 Stories in Louisville Real Estate 2009

Dec 31, 2009 Top 10 Lists 1 Comment

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.

Louisville Mortgage Rates Expected to Rise in 2010

Dec 24, 2009 Trends/Statistics Leave a comment

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 Leave a comment

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.

Weatherize Your Louisville Home

Dec 16, 2009 Home Improvement Leave a comment

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 Leave a comment

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 »

Home Buying Tax Credit FAQ

Dec 12, 2009 Residential Leave a comment

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.

Louisville Neighborhood Map with Homes For Sale

Dec 11, 2009 Marketing, Residential Leave a comment

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!

Louisville #37 in Nation for Housing Recovery

Dec 8, 2009 Trends/Statistics 2 Comments

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.

Louisville KY Home Sales: November 2009

Dec 2, 2009 Trends/Statistics Leave a comment

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.

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

Dec 1, 2009 News, Trends/Statistics Leave a comment

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.

Louisville Real Estate as Investment

Nov 29, 2009 News Leave a comment

As we near year’s end, thoughts of planning fill many minds here in Louisville. How did we do this year? Will next year be better or worse? How should we change our financial plan?

Chris Otts had a piece in the CJ yesterday titled Time to rethink finances? He brings up the idea that gold isn’t the only way to hedge investments against the stock market.

Planners say clients have been asking about investing in gold because of fears about inflation, given the government’s unprecedented borrowing to intervene in financial markets.

“Gold is simply a fear investment at this point,” Gilliam said. “We caution our clients not to get too caught up.”

Jones, of PNC, said there are better inflation hedges than gold, such as Inflation-Protected Securities sold by the U.S. Treasury, real estate and corporate bonds — though gold could be part of a broad mix of investments.

I think the important point to note is that real estate can be a great investment but it can also be a terrible one. Having sound advice is key. The best thing you can do is find yourself a trusted Louisville Realtor, whether he be a residential or commercial specialist, before you consider purchasing any piece of real estate.

Building Homes from Trash

Nov 26, 2009 News Leave a comment

Not necessarily Louisville real estate, but it’s great to see Dan Phillips take discarded materials and building useful homes.

Louisville Homes Sales Up, Thanks to Tax Credit

Nov 24, 2009 Trends/Statistics Leave a comment

Saw this article in the CJ citing the reason for the increased number of Louisville home sales in October.

First-time buyers taking advantage of a special tax credit gave sales of existing homes their biggest surge in a decade, raising hopes for a turnaround in the housing market and pleasing Wall Street.

Looking specifically at Louisville the increase was substantial.

The Greater Louisville Association of Realtors recently reported that its members sold 1,210 homes in October, a 26 percent increase over a year earlier. The median price for homes sold by GLAR members was $133,500, also an increase from October 2008.

Critics say that these buyers were planning on buying anyway just not this early. Now that the tax credit has been extended, it’ll be interesting to see how sales move going into 2010.