Spring Reveals Some Signs of Rebound in Louisville
Mar 31, 2010 Trends/Statistics
With basketball season almost complete, thoughts of another kind of rebound is quickly approaching. Spring always holds an upswing in Louisville real estate but the real question is, “How will this Spring compare to the last two Springs?”
This AP story cites a “partial rebound in consumer confidence” as a reason for optimism.
The Conference Board said Tuesday its Consumer Confidence Index rose to 52.5 in March, recovering about half of the nearly 11 points it lost in February. Analysts expected a reading of 50 for March, but the index is still far below the 90 reading that’s considered healthy.
This could just be an adjustment from the statistically severe low this Winter but it’s something to keep our eyes on.
Separately, the Standard & Poor’s/Case-Shiller 20-city home price index showed prices rose 0.3 percent from December to January, the eighth consecutive monthly gain. Among the 20 cities in the index, 12 rose. But there’s some worry the momentum in the housing market won’t be sustained. Home sales sank during the winter, and government incentives that have propped up the market are ending.
As the home buyer tax benefits run out, first-time homebuyers are less likely to be in the market. Most experts believe this will reduce the total number of sales for 2010 but that some of the higher end inventory will continue to move due to more drastic price cuts.
More worrisome is the effect of the health care legislation on consumer spending.
Economists watch the figures closely because consumer spending, including health care and other major expenses, accounts for about 70 percent of U.S. economic activity and is critical to a strong economic recovery.
Tags: AP, Case-Shiller, Louisville real estate, Standard & Poor
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)
Prices Drop Nationally, While Sales Increase in 2009
Jan 26, 2010 News
It appears that while home values were down more than expected for 2009 the number of sales increased over 2008. Keep in mind that the following data is from an AP story considering the country as a whole.
Still, prices plunged by more than 12 percent last year – the sharpest fall since the Great Depression. The price drop for 2009 – to a median of $173,500 – showed the housing market remains too weak to help fuel a sustained economic recovery. Total sales for 2009 were nearly 5.2 million, up about 5 percent from 2008.
As we wrote earlier this month about real estate in Louisville, Kentucky, “…from 2008 to 2009, the total of all home sales went up 2.5%, while prices dropped 4.5%.” Our sales experienced half the growth of the nation but only dropped 4.5% compared to the nation’s 12%.
Tags: AP, Louisville real estate
Louisville Home Owner Asbestos Prevention Info
Feb 24, 2009 Home Improvement
Asbestos is a highly fibrous mineral whose qualities made it one of the most desirable building materials in the 20th century. Manufacturers of asbestos were aware of its potentially harmful components, but continued shipping the product anyways. Its main uses were found as insulation, piping, brake lining, flooring and roofing. Located on the Ohio River, asbestos exposure incidents in Kentucky have mainly occurred as a result of industrial sites.
How Asbestos Affects You
Potential home buyers in Louisville or those seeking to remodel older homes should be aware that many homes and buildings built before 1980 could still contain asbestos. This doesn’t mean you should be frightened because asbestos exposure can be easily prevented with the proper precautions. Although asbestos in the home is a concern, not all asbestos poses problems. It is only when asbestos becomes damaged and its fibers become airborne, where exposure can be a health concern.
Frequent and long term exposure to asbestos has been known to cause asbestosis and pleural mesothelioma, two forms of asbestos lung cancer. Although progress has been made with mesothelioma treatments, physician prognosis is usually poor and fatal. Research has alluded that it can take up to 20 to 50 years for this illness to develop. Although significant progress has been made with mesothelioma treatments, patient prognosis is usually poor.
What To Do If You Find Asbestos
If any asbestos is located in the home, most experts recommend leaving it un-disturbed as not all asbestos poses concerns. Asbestos that is disturbed or damaged due to age is known as “friable” asbestos. This is a serious concern because its toxic fibers can easily circulate and become inhaled. A professional home inspector can determine the best course of action to take.
Sometimes, the best action is no action. If asbestos removal is necessary, it should be performed by licensed abatement contractors who are trained in handling toxic materials. The Kentucky Division For Air Quality strives to protect the environment and civilian health by monitoring and assisting in the disposal and removal of asbestos.
Once the removal is complete, green insulation alternatives now exist that replace the need for asbestos entirely. These eco-friendly options include cotton fiber, lycnene foam and cellulose. They provide home owners with the same intrinsic qualities possessed by asbestos, a healthy replacement and can even reduce annual energy costs. Studies have shown that the use of cotton fiber can reduce energy costs up to 25 percent annually. As a home owner, you have additional responsibilities to make sure you are living in a hospitable environment. This information will allow you to live free of any health damaging materials.
Tags: asbestos, Louisville homes, Louisville real estate, mesothelioma treatments, pleural mesothelioma
