Wakefield Reutlinger Realtors

REAL ESTATE
Wakeeld Reutlinger Realtors, a Berkshire Hathaway Aliate

TESTIMONIAL
I would recommend Kristen to
anyone looking to buy or sell a
home. She is professional,
friendly, and incredibly good at
her job. She made the entire
home buying process go
seamlessly.
--- Diana Gipson

The Boo La La
Halloween Ball!

Louisville and National Market Update

Existing home sales in the Greater Louisville
Area continued their strong upward trend for the
year buoyed by continued low mortgage rates,
climbing 12.7% for the first nine months compared
to the same period last year and up 17.7% in
September versus September 2014. The median
price for homes in the Greater Louisville Area is
$155,500, up almost 6% year to date as the
inventory of available homes for sale continues
to be a problem in some areas. For the entire
Greater Louisville Area inventory is down 18.5%
from the same time last year.

still roughly double the pace of wages, affordability

has slightly improved since the spring and is
helping to keep demand at a strong and sustained
pace. The NAR said existing home sales were
up 8.8% from a year ago as inventory continued
to tighten. Unsold inventory was down to a 4.8
month supply at the current sales pace, down
from 5.1 months in August and 5.4 months a
year ago. As we enter more softer demand
months, we may not really feel the squeeze of
tight inventory, but come spring of next year
we could be facing a very tight inventory situation,
U. S. home sales in September rose more than said Yun.
expected suggesting the housing market The stable pace of home resales in September
continues to show strength. September home follows strong housing starts data, bolstered by
sales bounced back solidly after slowing in August increased demand for rental apartments.
and are now at their second highest pace since Housing has steadily improved relative to the
February 2007, Lawrence Yun, the National rest of the U.S. economy, which has been buffeted
Association of Realtors Chief Economist says. by soft global demand, a strong dollar and weak
While current price growth around 6 percent is capital spending in the energy sector.

Supporting Olmstead Parks

Conservancy at their annual
fundraiser

Turkey Run Park is

Now Open!
800 more acres to enjoy at
The Parklands at Floyds Fork
Check it Out!
www.theparklands.org/Parks/
Turkey-Run-Park

ALL THE WAY HOME...425-0225

4th Quarter 2015

Real

Estate

U P D A TE
Year to Date at a Glance Single Family and Condo
Jan 11-Sep 30 2013

Jan 11-Sep 30 2014

Jan 11-Sep 30 2015

11437

11035

12442

Median Selling Price

$144,900

$146,900

$155,500

Average Days on Mkt

106

98

87

Houses Sold

Units Sold January 1 September 30 2015

September Unit Sales 2015

P age 2

Shipping Container Housing

Once considered undesirable housing
units for those who simply couldnt afford
the traditional brick and mortar option,
storage container houses have become
the hot new trend for, well, just about
anyone. Shipping container houses are
created out of any type of shipping
container usually used for transporting
goods across the globe. It is estimated
that one million containers are peppered
across the globe sitting around in disuse
taking up space at any given time.
Instead of letting the containers continue
to clog up the environment, creative
folks and firms have taken to repurposing
the containers into eye-catching,
economical housing.
Looking for an inexpensive
backyard office, a small
cabin in the woods, an
intimate beachfront getaway, a compact urban
abode or a larger, sprawling
home? Check out the
growing field of container

architecture.
Storage container homes offer a fast, green
and sustainable approach to building.
Builders today offer prefab container homes.
There are also plans and kits that allow
you to customize a container house. A
large house built from shipping containers
ranges in price from $150,000 to $175,000,
about half the price per square foot of a
conventional
home. Steel
containers
typically cost
from $1,400
to $4,000,

Home inspections are a common part of todays residential real

estate transactions. A recent national survey estimates over 75% of
homebuyers order a home inspection, 79% attend the inspection,
and 88% have said that the inspections increase their confidence
about the condition of the property.
Over the past few years, the process has changed.
One reason is the HGTV effect, according
to Dave Steward, CEO of Pillar to Post.
Shows like House Hunters or Flip or Flop,
have left buyers asking for more than just
structural and systems evaluations. They
want to know about safety issues, air and
water quality, including radon and mold.
New technology has also made an impact, such as infrared thermography.
Home inspectors are better educated now, taking regular classes to
stay up to date on current construction and energy efficient trends.
As a result, the home inspection reports have become more
comprehensive and negotiations for repairs more technical, and
potentially more difficult.
What does this mean to you the buyer, or you the seller? Here are
some tips from Realtors and home inspectors recently interviewed
for The Residential Specialist trade publication.
To Buyers: Hire an educated, licensed inspector with good references and steady background. Good home inspectors will tell you,
its not their job to rate your house, tell you whether to buy it, or tell
you what its worth. Their job is to give you objective information.
Not every item in a report is cause for panic. Every house has issues,
even brand new homes. Dont get too picky with the small
stuff; negotiate repairs and/or concessions for the major concerns.
If its insurmountable, then move on to the next house. Attend the

and customizing a container home with

electricity, plumbing, windows and other
options can cost from $50 to $150 per
hour. Cost of the land and a foundation
upon which the container will be placed
as well as any necessary permits to
ensure your home is approved and built
following local regulations need to be
considered too.

home inspection so you can see the problems first hand and
question the inspector about the findings. Something read in a
report can sound much worse than it actually is.
Stick to the FACTS. Buying a home can be emotional, but
the home inspection process should not be. Warning! Some
home inspectors get excited about finding
problems, which is what they are hired to
do. Dont let the excitement in their
delivery affect your thinking.
Rely on the advice of your Realtor who
has the expertise to navigate the process and help negotiate whats best for
you. Then your transaction can move
forward smoothly to closing.
To Sellers: Be pr epar ed. Remember , even pr oper ties super
well maintained will have things show up during the inspection.
Well before listing your house, troubleshoot the main systems, i.e.
electrical, plumbing, HVAC, roof, foundation. Be thorough in
disclosing what you know about your house. If something
major shows up on the inspection that you shouldve known
about, the buyer may be worried about a history of poor
maintenance and concerned about why you didnt disclose it.
Repairing even minor things ahead of time will give even
anxious buyers peace of mind.
Theres no formula for how to respond to a buyers repair
request. Each transaction has its own personality. Your
Realtor, who has accumulated knowledge over many
transactions, can advise you on which items need to be
addressed in your particular situation. Negotiating in good faith
will keep you on track for closing!

Lessen the Stress

of Home
Inspections

P age 3

Real Estate Insider

Housing Shortage Is Running Up Prices, Rents

A shortage in housing caused by a drastic
slowdown in homebuilding activity has
pushed up home values too much in
some areas and made rents unusually
high, according to the National Association
of REALTORS. Unless construction
activity picks up soon, rising prices will
make homes less affordable and rents
too, NAR warns.
Homebuilding activity for all housing
types is underperforming in about twothirds of 146 metros measured and that
has prompted a significant drop in available
homes for sale, according to NAR.
"In addition to slow housing turnover
and the diminishing supply of distressed
properties, lagging new home construction
especially single family has kept
available inventory far below balanced
levels," says Lawrence Yun, NAR's chief
economist. "Our research shows that

even as the labor market began to strengthen,

homebuilding failed to keep up and is
now contributing to the stronger price
appreciation and eroding affordability
currently seen throughout the U.S."
NAR Report: New-Home Construction
Is Trailing Job Growth
Adding to the housing shortage, millions
of home owners are still underwater
meaning they still owe more on their
mortgages than their home is currently
worth. That will keep a significant number
of properties off the market. Also, distressed
property sales are down, currently comprising
about 9 percent of the market, which is
down significantly from 35 percent just a
few years ago.
"The demand for buying has drastically
improved this year and is propelling home
sales to a pace not seen since 2007," says
Yun. "As local job markets continue to

expand, the pool of home buyers will only

increase. That's why it's crucial for builders
to begin shifting their focus from apartments
to the purchase market and make up for
lost time."
The median sales price for a single-family
home reached an all-time high in June at
$236,400 that's higher than the previous
record of $230,400 reached during the
housing boom in July 2006, according to
NAR. Renters are also being squeezed.
Rental costs are up 4 percent nationwide,
while incomes have only risen 2 percent.
"We are having a nationwide housing
cost problem," Yun told the Huffington
Post in a recent interview.
Source: R
" EALTORS Worry About
Growing Housing Shortage," Consumer
Affairs (Sept. 14, 2015) and R
" eal Estate
Has Become Unaffordable," Huffington
Post (Sept. 9, 2015)

Wage Pressure and Home Prices

Home price appreciation outpaced wage growth in the U.S. by
a ratio of 13 to 1 from 2012-2014, according to Realty Trac.
On a national basis, median wages rose 1.3% between the second
quarter of 2012 and the second quarter of 2014. But home prices
increased 17% in the two years ending in December 2014.
While the national median sales price for single family homes
was at an all-time high at $236,400 in June of 2015, its definitely
a tale of two cities. The median sales price in San Jose for

example is $980,000 while some of the large mid-west cities

are still under $100,000. The places that are affordable are the
cities with the highest unemployment rates. In the cities where
you can find a job, you might have to live in your car!
After home prices hit bottom in 2012, prices have recovered
relatively quickly, especially in markets attractive to investors,
says Realty Trac V.P. Daren Blomquist. For the recovery to
maintain its momentum, traditional buyers will need to play a
bigger role in the housing
market. Those markets with
the biggest disconnect
between price growth and
wage growth during the last
two years are most likely to
see plateauing home prices in
2015 until wages catch up.
Markets where wage growth
has outpaced home price
appreciation are poised to see
steady growth.
So how does Louisville stack
up? Our median price has
risen to an all-time high of
$156,000, a 7.6% rise in the
last two years. And our
median wages are up 2.5% in
the same period. Thats a
ratio of 3 to 1 compared to the
national ratio of 13 to 1. So
what does this mean for our
housing market? What do you
think?

Claire Alagia, REALTOR

Claire brings a unique perspective to her clients. She served as CEO of Bittners, Louisvilles
premier interior design firm, and worked with builders, architects, contractors and interior
designers for over 25 years.
She is a business leader and community volunteer, serving on a number of community boards
including the Louisville Community Foundation, Leadership Kentucky, and University of
Louisville Board of Overseers.
Claire is a Louisville native and is one of five siblings, all who share the same passion for their community.
She is a graduate of the University of Kentucky and truly enjoys working with others.

Contact Claire Alagia for all your real estate needs!

502502-592592-3459 / calagia@WRrealtors.com
6511 Glenridge Park Place, Ste. 10
Louisville, KY 40222
WRrealtors.com

Give us a call for current interest rates.

Were happy to keep you informed!

This is not intended to solicit a currently listed property.

Information is deemed reliable, but not guaranteed.

College Major as Predictor of House Prospects?

Graduates' college majors may have a lot to do with how much home
they can afford later on, according to a new analysis by Realtor.com.
For example, engineering majors, will likely be successful in the housing
market. Out of 300 majors evaluated by Realtor.com, petroleum engineers had the highest salaries that translated into being able to afford more
house. Petroleum engineers had a mid-career salary of $168,000 and
grads of that major could afford to buy up to $744,000 more than
three times the national average list price.
On the other end of the spectrum, education and liberal arts majors didn't
fare as well as engineering jobs. Early-childhood education had a midcareer salary of $38,000, which is barely enough to purchase a home at
$168,000 (which is below the national median). Social work is also
among the lowest paid careers, with a mid-career salary of $45,700.
Realtor.com used Payscale's mid-career salary estimates and Realtor.com's
own affordability calculator to calculate the maximum price typical
grads could afford after working for 10 years according to their major.
Mid-career employees with a bachelor's degree earn a median salary
of $77,006, which means they can afford a house costing up to
$341,000 about 60 percent more than a high school graduate.