According to a USAToday piece, in cities like Philadelphia, courts are getting involved.

Sheriff’s sales cannot go forward without a last-ditch effort by the lender and homeowner to work out a deal.

To some, suing the lender sounds like a viable option, but it really flies in the face of capitalism for a business to loan money to someone they believe won’t be able to pay—there’s no money in it. I doubt these suits will ever make it court.

How is our city, Louisville, reacting to the problem? According to the article:

Louisville, also is giving out up to $5,000 in loans. The loans will be forgiven if the homeowner stays put for a decade. The city has teamed up with the United Way to offer access to housing help in addition to the charity’s social services.

Surely a short-term fix, but one that could certainly help a good portion of homeowners facing foreclosure. Way to go Louisville!

The first development, Glenview Park, calls for a 52-lot subdivision that would be located on Cabin Way, near Lime Kiln Lane. [link]

My brother and his wife are currently designing a new home to be built in another Canfield development, Poplar Woods, located in Goshen. He says their experience so far has been quite good.

1. Cut back the transfer of heat through the roof and walls. If the attic isn’t already insulated or is under-insulated, insulate it NOW. This will give you the greatest change in comfort for the least amount of expense. Before you buy, see the Home Insulation Buying Guide. Weatherize your home to reduce the loss of conditioned air. Employ caulk and weather stripping to cut back on the transfer of air.
2. Install a foil radiant barrier in the attic. Staple it to the underside of the roof rafters, allowing an air space between the foil and the roof sheathing. Place staples about 3 inches apart. Position seams between sheets of foil centered on the rafters and seal the seams with a bead of caulking compound.

Read Tips 3-9 »

As expected, as we head into Spring the number of sales are increasing. Average prices are also holding pretty steady, if not also rising.

Compare with April 2008 Home Sales in Louisville, KY if you like, and as always, please contact me with any questions you might have.

May 2008

AREA	SALES	AVERAGE	DoM
0 Central Downtown District	11	$300,915	79
1 Downtwn/Old&WestLouisville/Shively	105	$56,186	83
2 Butchertown/Highlands/Germantwn	85	$185,265	54
3 Brownsboro/StMatthews	57	$196,876	50
4 Pleasure Rdg/Valley Station	58	$104,445	74
5 Auburndale/Fairdale/Iroquois Park	65	$119,904	78
6 Buechel/Highview/Okolona/FernCreek	137	$130,861	91
7 FernCrk/Hikes Point/Jeffersontown	129	$170,187	76
8 Hurstbourne/Middletwn/Anchrg	84	$259,386	84
9 Anchrg/Lyndn/Prospct/UpRvrRd	102	$240,853	80
11 Bullitt Co.	73	$131,643	102
19 Spencer Co.	17	$176,147	108
20 Oldham Co. - North	35	$333,011	86
21 Oldham Co. - South	28	$281,368	98
30 Shelby Co.	39	$157,459	72

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

The S&P Case/Shiller Home Price Index, which tracks 20 of the largest housing markets, showed prices plummeting by 12.7% in the 12 months ending February. That’s the biggest fall since the index began tracking prices in 2000.

…the future doesn’t sound very bright, well, except for people living in Texas. Meanwhile, here in Kentucky, things don’t look nearly so bleak.

It is, after all, a positive gain and which could turn out to be even higher. The housing market here in Louisville is stronger than many other parts of the country. Just look at their predictions for some of our neighboring cities.

Indianapolis: 1.3%
St. Louis: -0.8%
Memphis: -1.5%
Nashville: -3.3%
Cincinnati: -4.2%
Columbus: -4.4%

Florida is getting absolutely hammered. Retirees putting a priority on economic factors might not be heading South for their silver years.

“We’re very fortunate in that we’re kind of steady. We never saw crazy appreciation, 30-40 percent increases in value, but at the same time we’re not experiencing the flipside to that, where we see the bubble burst and the losses,” says Adam Hall, president of the Kentuckiana Chapter of the Mortgage Bankers Association.

Given all the press that the topic of foreclosures has received, how many do you think we’ll have here in Louisville this year?

A) 20,000
B) 10,000
C) 5,000
D) 2,000

According to Adam Hall, president of the Kentuckiana Chapter of the Mortgage Bankers Association, he predicts it will be even lower than 2,000.

Not exactly real estate news but if you’re a parent of young kids like I am, it’s always great to have extra activities on deck. The Northeast YMCA has been working on Calypso Cove and it’s about ready to open!

Pools, slides, playgrounds, it has it all. And it’s all going to open on Saturday, May 24th. Learn more here.

OFHEO just released this 82-page monster titled Decline in House Prices Accelerates in First Quarter. Doesn’t sound very positive does it? But wait!

Jump to page 19 and you’ll find that Kentucky ranks 16th in the nation with a 1-Year appreciation of 2.81%. Notice I wrote appreciation rather than depreciation? The nation as a whole was down -0.03% but states 37 through 51 were all down. The biggest loser is predictably California with a -10.58%. Ouch.

We here in Louisville have a lot to be thankful for. With LG&E sporting some of the nations lowest utility rates and home prices still rising, it’s a great place to live. Now, if we can only start drawing in more growing companies.

Rock Springs is a brand new RJ Thieneman neighborhood right off Highway 22 still inside Jefferson County. (It’s streets aren’t even mapped yet!) Homes start in the low $300s and feature styling not commonly found in traditionally minded Louisville. Rock Springs, near Prospect and Glen Oaks, is close to shopping in The Summit and expressways. There are currently a good number of available lots if you want to build the custom home of your dreams in this great location. Read More »