Real Estate news and statistics for the Greater Louisville, Kentucky area. Mortgage rules, findings, sale and sold statistics, and interest rates along with home improvement tips to increase property values.
Real Estate news and statistics for the Greater Louisville, Kentucky area. Mortgage rules, findings, sale and sold statistics, and interest rates along with home improvement tips to increase property values.
Real Estate news and statistics for the Greater Louisville, Kentucky area. Mortgage rules, findings, sale and sold statistics, and interest rates along with home improvement tips to increase property values.
Wakefield Reutlinger Realtors, a Berkshire Hathaway Affiliate
ALL THE WAY HOME...425-0225 Insider Insider Insider Insider Real s tat s tat s tat s tat e ee e E EE E UPDATE Louisville 2nd Quarter 2014 Wakefield Reutlinger Realtors YTD Sales by Price Range 1/1-3/31 2013 1/1-3/31 2014 % Change Up to $150,000 1,569 1,522 -3.0% $150,000-$299,999 883 829 -6.1% $300,000-$499,999 239 208 -13.0 $500,000-$999,999 58 62 +6.9% $1,000,000 + 5 4 -20.0% Total 2,754 2,625 -4.7% Month at a Glance Month at a Glance Month at a Glance Month at a Glance March 2012 March 2012 March 2012 March 2012 March 2013 March 2013 March 2013 March 2013 March 2014 March 2014 March 2014 March 2014 Houses Sold 981 1071 1002 Avg. Selling Price $168,930 $169,843 $168,761 The housing market in Louisville, like most of the rest of the country, suffered due to the severe winter weather. First quarter sales of existing homes for the Greater Louisville Area were down 5% from a year ago, but ongoing inventory shortages kept prices level in most areas. Sales for the month of March were down 6.4% versus the same month a year ago. Prices in Jefferson County were up about 1.5% from a year ago. Tight inventory was reported in most areas, with 20% fewer homes for sale in March compared to the same month one year ago. In fact, some sellers in the Highlands, St. Matthews and Crescent Hill are experiencing bidding contests. Buyers are competing for scarce homes because many potential sellers have decided to stay put instead of moving up or out after the recent housing crisis. Another factor adding to the lack of inventory is that one in six Louisville metropolitan area homeowners, or 16.6%, still owe more than their house is worth. However, the Spring market is looking up with interest rates still at histori- cally low levels and an almost 10% increase in pend- ing sales in March versus a year ago. Nationally, following three consecutive monthly declines, existing home sales fell another .2% in After Slow Start, Home Sales Looking Up March, dropping to the lowest level since July of 2012. Lawrence Yun, NAR Chief Economist, said that current sales activity is underperforming by historical standards. There really should be stronger levels of home sales given our population growth, he said. In contrast, price growth is rising faster than historical norms because of inventory shortages. Yun expects some improvement in the months ahead. With ongoing job creation and some weather delayed shopping activity, home sales should pick up, especially if inventory continues to improve and mortgage interest rates rise only modestly. Another positive, Steve Brown, NAR President, believes There are indications that the stringent mortgage underwriting standards are beginning to ease a bit, particularly regarding credit score requirement. In addition, Federal Reserve Chairwoman Janet Yellen said recently that interest rates would stay low for some time and then rise only gradually. Her comments included remarks that the gap between the 6.7% unemployment rate and the Feds 5.2% to 5.6% estimate of the normal rate remains significant, and in our baseline outlook, it will take more than two years to close. Units Sold January 1-March 31 March Unit Sales of Single Family Residential and Condo 21c Hotel is Gold 21c Hotel is Gold 21c Hotel is Gold 21c Hotel is Gold Louisville's 21c Museum Hotel has been named to Conde Nast Traveler's "Gold List" for 2014. The list, which was published in the January issue, includes the property among the world's top hotels in the Platinum Circle category for the second year in a row. The Platinum Circle features properties that have made the Gold List for five years or longer. 21c Louisville has been named to the Gold List since its opening in 2006. TESTIMONIAL "Ellen, I am so delighted and appreciative of all that you have done to make a difficult journey easier. I respect your honesty and your professionalism and am delighted with our new home." Page 2 Why Education Will Keep Housing Crisis at Bay Why did the financial crisis happen in the first place? More importantly, can we learn enough from history to stop it repeating? Anyone with a heartbeat could get a mortgage, and lending standards remained non-existent. Boom, then bust. And America is still clawing itself out of the leftover damage. Doug Duncan, chief economist for Fannie Mae, previously said, It took 10 years to get to the housing bust, so it will take 10 years to get back. But for now, the Consumer Financial Protection Bureau is doing what it can to ensure that the same situation never happens again. We have an opportunity to see that America does better by its children. Now more than ever, as we emerge from the deepest financial and economic crisis of our lifetimes, people need the know-how to manage the ways and means of their lives, Richard Cordray, director of the CFPB, said at the Presidents Advisory Council for Financial Capability for Young Americans meeting. The choices they face in the financial market- place with instruments like mortgages, credit cards, auto loans, student loans, credit reporting, and more are increasingly complex, he continued. Cordray outlined five ways young child- hood education is the key to helping shape housings future. 1. Financial education should begin at a young age. Education needs to be a priority as students approach graduation from high school and should continue to evolve into adulthood. Cordray explained that this can be attained through integrated curric- ula in our schools, so the benefits of com- pound interest are understood in math class, economic costs and risks are taught in social studies class, and essay topics in Eng- lish class may cover how we use money, how we protect our money, or how we can take control of our financial lives to achieve our goals. 2. Students should practice financial management through experimental learning. Whether it is through simulating a banking experience or playing a computer game that hones financial skills, it will help students learn more effectively. 3. Teachers who are interested in teaching personal financial management need to be supported and engaged. Teachers need access to training and incentives to take part, such as continuing education credits or need-based travel stipends. 4. Financial education concepts need to be integrated into standardized tests. In doing so, it would increase the incentive for educators to teach these topics. 5. Parents need to get involved. Parents help set expectations, and research has shown that if parents engage their children by establishing a savings account for them, these children are seven times more likely to attend college than those without a savings account, Cordray explained. Arming todays youth with greater financial knowledge is the key to making sure there is no repeat of the housing and economic crisis. The Value of a Home Inspection Home inspections have proven to be a positive and educational experience for prospective home buyers. An impartial inspection by a professional National Home Inspector (NHI) or Registered Home Inspector (RHI) will provide a large measure of protection from unpleasant surprises and allow you to make an informed decision about your purchase. The inspection also affords you the opportunity to learn the ins and outs of how your new home is built and how the varied systems operate. The purpose of an inspection is to determine the condition of a property at the time of purchase, or afterwards in cases involving litigation, in order to disclose the following: Serious deficiencies Replacement and repair requirements Age and life expectancy of major components Positive aspects of the home maintenance and safety information The following is part of a standard home inspection: Exterior: Slope, grading and drainage of the property Foundation and exterior walls Porches and decks Windows, doors, headers and sills Fascia, soffits and eaves Roof, flashings, vents, chimneys, garage, carport Interior: Foundation walls, basement floor, posts and beams Waterproofing, moisture penetration, wood rot, etc. Electrical service and wiring Plumbing supply, waste drainage and fixtures Heating, air conditioning and ventilation Floors, walls, ceilings, doors and windows, attic insulation and ventilation Typically an inspection takes between 2 and 3 hours, occasionally longer. It can cost $300 and up depending on the size and scope of the property. It does not include appraisals, exact quotations for repairs, noncompliance with building code requirements, and is not intended to provide guarantees or warranties. Septic inspections are not part of a standard home inspection but very important. New home construction is not without its problems. While most homeowners can identify cosmetic issues with their new home, often their untrained eye can overlook serious construction deficiencies. This is a job best left to a trained professional. Air Conditioners can not be inspected except during summer months (typically May to September). Pools and spas are not included as inspection items. Wood burning fireplaces could require a separate inspection. Knowing what to expect will help you make an informed decision about the value of your home as well as the costs of future upkeep. You are generally granted a limited time frame to arrange and have your inspection completed. The actual home inspection takes place after all price negotiations have been finalized and the sellers have accepted your offer. At this point in time, it is evident that you intend to purchase the property. Now is your opportunity to determine the finer details about what you are buying by engaging the services of a licensed Home Inspector. Source: 5 Ways Children Hold the Key to Housings Future, HousingWire Real Est at e Insi der Page 3 Although kitchens and bathrooms always steal the spotlight in a home remodel, they arent necessarily the ones that have the highest return on investment when you sell your home. Since 2002, a trade magazine for contractors and builders called Remodeling has been tracking how much it costs to do common home improvement projects and then calculating how much of that cost is recovered when the home sells. Each year, we highlight the projects with the highest return on investment (ROI)from the magazines Cost vs Value Report. The 5 Best Time-Tested Remodeling Projects and the Worst Project Long Term ROI Entry door replacement (steel) 97.2% Siding replacement (ber-cement) 83.8% Minor kitchen remodel 82.3% Siding replacement (vinyl - mid-range) 81.6% Deck addition (wood) 80.6% Siding replacement (foam-backed vinyl) 79.7% Attic bedroom remodel 79.4% Window replacement (vinyl - upscale) 79.4% Window replacement (wood - mid-range) 76.8% Window replacement (vinyl - mid-range) 75.9% B, G E D T B S S The spring and summer months are traditionally the busiest times of year for the residential real estate market. Weath- er is more cooperative and many families like to move while the kids are on their summer break. But in recent years, spring for many regions, has meant more homes on the market, but also more buyers, erce competition and an increase in prices. If youre in the market for a house this spring, there are a number of steps you can take to try to give you the advantage over other homebuyers, including: Get your loan pre-approved. This will give an advantage on several fronts. First, it will be done and out of the way. Second, youll know how much the bank is willing to loan you so you know in which price range to look. And third, it shows sellers that youre serious and ready to buy when you make an oer. Figure out how much you have for a down payment. NAR says rst-time buyers typi- cally make a down payment of 6 percent on a home purchase, and 24 percent of down payment funds were gifts from relatives or friends. If thats not an option, there are many loan programs that accept down payments of ve or three percent. And dont forget closing costs, which will often run two to seven percent of the propertys purchase price. The River Bluff Occupying a setting overlooking the Ohio River in Indian Hills, this large "Cottage" style home with Tudor inluences was designed by E. T. Hutchings. Built in 1923 for Pauline and Robert Burgess on a site of 14 acres, Mrs. Burgess was the granddaughter of Theodore Ahrens, the President of American Standard. The home is entered through a heavy wood door to the entrance hall facing the Formal Dining Room. To the left through a small Den is the large updated Kitchen with windows in all directions taking advantage of the views. To the right of the entrance is a large story and a half Great Room spanning the house from front to back. In front, looking South, are large windows and to the rear are French doors leading to the Terrace overlooking the River. At the front of the Great Room is a Hall leading to the 2 story bedroom wing with Master Bedrooms on both loors. Many rooms have large windows and balconies with views of the River and the wood- ed property. The front bedroom wing was add- ed by Architect Hutch- ings in 1937. The estate was subdivided in 1967 and the original home has 6 acres which pro- vides delightful privacy. By Dave Arnett But this year, we decided to focus not just on the new data, but how projects have performed since 2002. So, whatd we ind? Well, you may want to reconsider turning that spare room into a full-ledged ofice. A home ofice remodel had the worst overall ROI of 53%; the projects been declining since it was added to the study in 2005 with an ROI of 72.8%. The biggest jump weve seen? Backup generators, which had some of the lowest ROI rates over the years as low as 47.5% in 2011 leapt to 52.7% in 2012 and then took an almost 15 point jump to 67.5% in 2013! We can be pretty sure Hurricane Sandy and extreme weather in recent years are a big part of the reason. But the real gems are those projects that dont have such highs and lows the ones with consistent ROI. Were not saying these steady and reliable projects are the right ones for you. If a home ofice will improve your quality of life and help you enjoy your home more, then it makes sense. We just think knowing whats going to happen with your remodeling dollars makes sense, too. So, which ones are the long-term winners? The projects that share these 4 characteristics: Low-maintenance Good -not necessarily the highest quality Energy-eficient Not too costly Myths and Facts about Appraisals By Marcie Geffner This is not intended to solicit a currently listed property. Information is deemed reliable, but not guaranteed. Interest Rates Fixed 30 Year 4.250 % Fixed 15 Year 3.375 % Fixed FHA 30 Year 3.750 % Fixed 30 Year Jumbo 4.375 % *as of May 6, 2014- restrictions apply. If you've ever watched "Antiques Roadshow", you're already familiar with the concept of an appraisal. The idea is similar in the realm of real estate valuations. Each property is unique, and the appraiser relies on his or her general expertise and specific research to arrive at an opinion of value. Here are some myths and facts: Myth: The primary purpose of an appraisal is to make sure the buyer doesn't pay too much for the house. Fact: An appraisal provides valuable information for the buyer and the seller, but the appraiser's primary mission is to protect the lender. That's why the appraisal takes place before the lender grants final approval of the buyer's loan. Myth: Appraisers use a specific formula, such as one using the price per square foot, to figure out exactly how much each home is worth. Fact: Appraisers weigh the location of the home, its proximity to desirable schools and other public facilities, the size of the lot, the size and condition of the home itself and recent sales prices of comparable properties, among other factors. Myth: Good housekeeping can improve a home's valuation. Fact: Appraisers aren't interested in dirty dishes or dusty dressers, but they do notice such signs of neglect as cracked walls, chipped paint, broken windows, torn carpets, damaging flooring and inoperable appliances. Myth: Anyone who has a clipboard and business cards can be an appraiser. Fact: Federal law requires states to establish minimum standards and licensing practices for real estate appraisers. Myth: Appraisers have no obligation to reveal home defects to buyers. Fact: If the buyer is applying for a mortgage that will be insured by the Federal Housing Admin- istration (FHA), the appraiser must survey the physical condition of the home and disclose potential problems to the buyer. No such obligation exists for non-FHA mortgages. Myth: An appraisal is identical to a home inspection. Fact: The FHA disclosure requirement notwith- standing, an appraisal isn't a substitute for a professional home inspection. The appraiser formulates an opinion of the property's value for the lender, while the inspector educates the buyer about the condition of the home and its major components. Myth: If the appraiser's opinion of value is lower than the purchase price, the buyer won't be able to purchase the home. Fact: A transaction can sometimes survive a "low" appraisal if the seller reduces the purchase price, the buyer makes a hefty downpayment or a separate escrow account is set up to fund repairs that will increase the value of the home. On rare occasions, an appraiser will reconsider his or her opinion if new evidence supports a higher val- uation. Carol Armstrong Carol Armstrong Carol Armstrong Carol Armstrong, REALTOR REALTOR REALTOR REALTOR
Carol was born and raised in Springfield, KY, attended University of Indiana, and worked as a surgical and psychiatric nurse until she became a Realtor in 1978. She has been involved in so many worthwhile organizations over the years, raising monies for cancer and art programs for disadvantaged children. She has served on the boards of EMS, Multiple Sclerosis, and the Norton Psychiatric Council as well as involved with the Younger Womans Club and the Womans Club of Louisville. My interests, other than my two adorable granddaughters and family, are competitive bridge, golf, needlepoint, and being with friends... and of course, I love my work....finding the perfect home for clients. David Alkire David Alkire David Alkire David Alkire, , , , REALTOR REALTOR REALTOR REALTOR
David comes to us with a long background of sales experience. After attending Michigan State University, David plunged into the auto industry and after 6 months knew he wanted a career in sales.
Learning how to cope with the "hard to sell" made me more determined. Used cars became my favorite, because no two used cars are identical....just like homes.
David was the General Manager for Volvo of Louisville from March 2004 until May 2013.
I Love to work. I look forward to assisting my clients in making informed decisions about real estate.