REAL ESTATE

Wakeeld Reutlinger Realtors, a Berkshire Hathaway Aliate

1st Quarter 2016

Louisville and National Market Update

Wakefield Reutlinger
Realtors
Proudly Welcomes
New Agents

Megan Bianchi
and

The Greater Louisville area housing market ended

2015 on a high note with existing home sales up
12.5% compared to December of 2014. Sales for the
year were also robust, up 12%. Home sales in
Jefferson County were up 13% and up 7.6% in Oldham
County. The median price for all areas in 2015 was
up 5.8% compared to 2014, and the average price
was up 6.2%. The average price for Jefferson County was $190,764 and the median price was $152,500.
In Oldham County the average price was $291,467
and the median price was $255,000.
The Greater Louisville Association of Realtors
reports that buyer interest is still strong but
available listings that are move-in ready and in
affordable price ranges remain hard to come by.
Inventory of available properties in the Greater
Louisville area is 21% lower than a year ago.
U. S. home sales in December rebounded strongly
from Novembers lackluster results, as a portion of
closings in November were temporarily held back by
the introduction of new mortgage disclosure rules
from Dodd-Frank. Sales of previously-owned homes
surged 14.7% in December compared to November. Compared to one year earlier, Decembers sales pace was up by 7.7%. Sales for the year
were up a healthy 7.7%. The median existing home

LOUISVILLEReal

price for all housing types in December was

$224,100, up 7.6% for the year. Total housing
inventory at the end of December dropped 12.3%
and is now 3.8% lower than a year ago.
2016 Housing Market Outlook
National Association of Realtors: Pent up demand, sustained job growth and improving inventory conditions will be the main triggers pushing the expected gains in new and existing home
sales. Prices expected to rise 5% to 6%. Sales are
forecast to slow to a 1% to 3% gain due to slower
economic expansion and rising mortgage rates.
Freddie Mac: The 30-year fixed rate mortgage will
likely average below 4.5%. Home prices will moderate
to a 4.4% increase driven in part by the reduction in
home buyer affordability and reduced demand as a
result of Fed tightening. Existing home sales
projected to increase 3% and new housing starts to
increase 16%.
Fannie Mae: Mortgage rates expected to edge up
gradually to around 4.2% by end of 2016. The pace
of total home sales should moderate to 4% though
housing starts will accelerate to 17%. Housing
affordability will likely be a challenge in many
markets as home prices continue to escalate.
Cont. on pg. 2

Estate

U P D A TE

Year to Date at a Glance Single Family and Condo

Jan 11-Dec 31 2013

Jan 11-Dec 31 2014

Jan 11-Dec 31 2015

11775

14540

16279

Median Selling Price

$175,513

$180,054

$191,333

Average Days on Mkt

105

95

85

Houses Sold

Jamie Mick!

Units Sold January 1 December 31

ALL THE WAY HOME...425-0225

Median Price January 11-December 31

P age 2

What are the Unmet Housing

Desires of Movers? KAR.com
The Demand Institutes research reveals several unmet housing
related desires gaps between what Americans say they have currently
and what they say they want in their next home. Could these
satisfaction gaps motivate them enough to want to move?
The following are the top 10 housing desires, ranked according to
the satisfaction gap. Find out what these movers likely will be
searching for in their next home (and what you may want to
emphasize if your listing has any of these features):
1. Very energy efficient with lower monthly utility costs
2. Requires little or no renovation or improvements
3. Has an updated kitchen with modern appliances and fixtures
4. A home I can stay in as I get older
5. Home is located in a desirable neighborhood
6. Fits my budget, without requiring sacrifices
7. Offers a lot of privacy from neighbors
8. Has a lot of storage space
9. Has a good landlord that is responsive to maintenance requests
10. Is a good long-term investment

The current
owners removed
a number of
walls and used
soft, neutral
tones to create
a very spacious,
open concept.

Kentucky Ranked 3rd in the

U.S. in the 2015 Business
Climate Ranking
Site Selection Magazine, a leading source for economic
development trends, has ranked Kentucky number 3 due to
its flourishing business expansion and job creation. Since
January 2008, there have been 2,300 new or expanding
companies announced, more than 86,000 jobs created and a
total investment of $19.2 billion into Kentucky according
to Governor Steve Beshear.
Site Selection Magazine compiles its rankings by surveying
corporate real estate executives who take into consideration
the existing workforce skills, transportation and utility in
place, local and state taxes, and most importantly the land/
building prices and supply. Kentucky was only 2 points
(582) away from second place North Carolina (584) and 19
points away from top ranked Georgia with 601 points.
Twenty four companies on the Fortune 50 largest U.S.
corporations have facilities in our fair state.

Olmsted Parks
Olmsted Parks

The Parklands at Floyds Fork

The Parklands at Floyds Fork
Winter can be a magical Walking, Hiking and Biking - When
Walking, Hiking and Biking
It takes a lot more than luck to have
extraordinary parks. Volunteer to time in our parks and there it snows, they plow the roads and
help the Olmsted Parks Conservancy are plenty of things to do!
are plenty of things to do! clear the Louisville Loop! And the
restore the Olmsted Parks! Gloves,
tools and refreshments provided.
Dress for weather and working outdoors.
They welcome just an hour or two!
Seneca Park: 1:30 to 4:30 every Tuesday
Seneca Park:
Bingham Park:
Park: 10 am to noon on
Saturday March 5
Iroquois Park:
Park: 10 am to noon on
Saturday March 12
Spring Park Steward Training:
Training
Tuesdays at 6:30 February 23 to
March 29
Big Rock Blues and Jazz Festival:
Festival: Join
the planning committee now for the
October 4th event!
Sign up at
http://www.olmstedparks.org
Or Liz.Dehart@olmstedparks.org
Cont. from front
Realtor.com: Moderate but solid gr owth as acceleration in
existing home sales and prices both slow to 3% year over year.
New home starts are expected to increase 12% and new home

gravel and woods trails are always

easy and fun to hike in the snow or
on a sunny winter day.
Wednesday Wonders:
Wonders Interactive
Programs to Spark Curiosity of
Young Children-Every Wednesday
2:30 to 3:30 at the PNC Achievement
Center in Beckley Creek Park
Volunteer Opportunities - Park
Gardeners - Welcome Center Docent
Assistant Interpretive Ranger
Trail Maintenance Team Special
Event Teams
http://www.theparklands.org or
agreenwell@21cparks.org

sales to grow 16%. Lack of access to credit and rising homes

prices will ultimately limit housing demand and growth.

P age 3

Real Estate Insider

Design Trends Coming to Homes Near You in 2016

Mitchell Parker/Houzz
/Houzz
Two-tone kitchen cabinets. Keep upper
cabinets white or neutral for a clean, timeless
feel, then go crazy with the lower cabinets by
playing with various wood tones and deeper
colors to take your kitchen in two different
style directions.
Colored stainless steel appliances. Black
stainless steel is making a buzz on Houzz. In a
poll, nearly two-thirds of Houzzers say they
would consider the dark alternative to shiny
silver metal. (Shown here is LGs new Black
Stainless collection.) Not into the darkness?
Head to the light with Whirlpools Sunset
Bronze finish.
Extra-large-format tile. Large-format tiles
(such as 12 by 24 inches) have been making
an appearance in kitchens and bathrooms for
some time now, but be on the lookout for
extra-large-format ones.
Formal dining rooms. Not everyone takes
the leap to turn the dining room into an office
or media room. For homeowners who entertain
frequently, a designated space for gathering
for special meals isnt negotiable, and theyre
pouring attention into these rooms.
Niche appliances. Looking for a little added
luxury in the kitchen? Steam ovens promise to

cook food more thoroughly and healthily than Living rooms that ditch the tech for family. With
microwaves; warming drawers give cooks a little so much screen time throughout the day and
wiggle room to deliver hot meals to family and night, homeowners are looking for a calm
respite where they can read a book, chat with
friends and family or just sit quietly.
Thus, the rise of living rooms devoid of digital distraction.
Kitchens that embrace openness
and raw materials. The inherent
simplicity in open shelves and raw
materials plays a big part in the
barely there kitchen we mentioned
earlier. Embrace these, and the rest
will follow.
Sunrooms. A sunroom is a top
dream space for many homeowners.
Even those who dont have the luxury
of having or adding one are finding
guests; induction cook tops save space and are ways to carve out a special sun-drenched corner
safer for homes with young kids; and kimchi in their homes.
refrigerators offer fans of the popular Korean Punched-up white kitchens. White kitchen
condiment a chance to make their own at home. walls and cabinets and even countertops in
cases is a trend that will continue for
Barely there kitchens. As kitchen layouts many
years to come. To avoid a too-sterile look,
become more open, spatial identifiers like however, many designers and homeowners
walls of cabinetry and full-size appliances fade are learning to punch up an all-white space
away, leaving behind airy, fluid spaces that serve with smart, colorful details through tile, floormultiple functions while looking barely there. to-ceiling bookcases, raw materials and more.

Whats New in the Mortgage Business:

Loosening the Rules
Many would-be buyers are still unable
to take advantage of todays home
affordability, because they cant secure
mortgage approval. They entered the
market on the wrong side of the buy
low, sell high equation and now are
locked out, says Laurie Goodman,
director of The Urban Institutes Housing
Finance Policy Center. Programs are
now being offered to help out this group
of buyers.
Less traditional credit-scoring factors:
Family members who are not on the
deed can contribute to the overall tally
of household wealth.
Counting utility, cell phone, and
rent bills toward payment history:
Right now, if you dont pay utility
bills on time it hurts you, but if you do
pay on time, it doesnt help. This will
allow credit companies such as FICO
to score a lot more people than before.
There is also a push to a closer focus
on overall employment history, rather
than a persons longevity with a single
employer. For example, steady employment of 3 jobs with 3 employers
in 3 years would be considered.
New loan products benefitting buyers
across the spectrum:

According to Laura Steier of HomeServices Lending in Louisville, there

are a variety of new products with less
stringent requirements than we have
seen since Dodd-Frank went into effect.
Down payments on conventional loans
can now be gifted, any or all amounts.
Previously at least 5% had to be the
borrowers own money.
The minimum down payment for a
conventional loan is now 3% instead
of 5%.
The National Housing Fund (NHF) has
grant money up to 5% of the purchase
price to be used for down payment
and/or closing costs. It is non-repayable
and the borrower does not have to be a
first time homebuyer; however, there are
income limits. For our area, $73,715
for FHA loans and $89,740 for conventional.
Investors can now finance up to 6
properties, including their primary
residence, when previously it was only 4
properties.
The reserve requirement of 2-6
months of PITI has been eliminated
for borrowers purchasing a new
primary residence but still owning
and making payments on their old
residence.

Cindy Droste, Broker Associate

Cindy has been a successful Realtor with Wakefield Reutlinger Realtors for 7 years. She provides
many services from marketing your property and negotiating offers, through the home inspection and
repairs, up to the closing and beyond.
Cindy has an Associates Degree in Commercial Art, and in addition to creative marketing, she is also
fabulous at staging properties for sale to help sellers obtain the best offer and price for their home.
It can be challenging and stressful when you take that big step of buying your first house, or
selling in a tough market. It helps to have a professional on board who can make the journey a little bit easier.

Contact Cindy, 502502-649649-1840 or cdroste@WRrealtors.com

Working to deliver the best results for you. Always.

6511 Glenridge Park Place, Ste. 10

Louisville, KY 40222
WRrealtors.com

The percent of contracts that

are settled on time with no
delays.
12% identified a financing
issue; 8% had home inspection
problems; and 7% had an
appraisal issue.

This is not intended to solicit a currently listed property.

Information is deemed reliable, but not guaranteed.

Tips for Battling Low Inventory

If youre seeking to purchase a home in an area with tight inventory
conditions, its important to assume that there is going to be competition
from other buyers be ready to quickly make a solid offer, says
Sharon Voss, president of the Orlando Regional REALTOR
Association.
For buyers to have the best chance, Voss recommends the following
when battling low inventories:
Have finances in order. Buyers should know how much
house they can really afford and repair any credit issues. They
should have their down payment ready to help avoid any delays.
Get pre-approved. A pre-approval for a mortgage is a step
beyond getting pre-qualified and can put buyers into a better
position.
Identify contingencies. Buyers should know what their contingencies
are and which ones they will refuse to negotiate away.
Make your list. Home buyers would be wise to determine which
home features are a must have and which features are a nice-tohave upfront so they can move more quickly in finding a home.

Make your best offer. In hot housing markets, buyers may

not get a chance to make a second offer. They may be wise to submit
their very best offer at the start.
Be ready. Buyers in tight housing markets need to be easily
accessible and prepared to make decisions quickly. They may need
to respond fast to any questions about their offer if they dont want
to risk losing out.

Source: Here Are 7 Tips to Secure a Home When Inventory Is Low, HousingWire (Dec. 4, 2015)

The percent of adults who say that the

quality of a homes landscape and yard
would affect their decision on whether to
purchase a home or not, according to a
new survey by the National Association of
Landscape Professionals.