Louisville Homes Blog

It’s funny to hear the members of the national press parrot one another for months on end. That is, until a new topic is launched then everyone gets on that train.

All we’ve heard lately is that the housing market is “horrible” or a “disaster.” Some areas are certainly on a downward trend, that doesn’t make them horrible. Wait enough time and the trend will move upward. Homeowners who borrowed more than they can afford are certainly in a lot of financial trouble, but the rest of us have avoided that disaster.

But the press continues to publish negative story after negative story about the housing market. So imagine my surprise when I read a different message. Amy Hoak has published a piece called, Home prices aren’t tanking everywhere, that paints a more balanced, and in truth, accurate pictre.

This title makes perfect sense in relation to what we’ve been hearing lately, but here’s the part that really matters to you, my readers here in Louisville, Kentucky.

The housing problems largely aren’t national but regional in nature, said Susan Wachter, a real estate professor at the University of Pennsylvania’s Wharton School.

Wow! Sound familiar? Could be because I’ve been talking about it here, here and especially here. The reality is that the market is far from the “death trap” the national media makes it out to be so if you’re looking to make a move here in Louisville now may be an awesome time to purchase.

It all depends on the:

• value of your current home,
• value/asking price of the new home, and
• interest rate at the time of purchase.

For many, there hasn’t been a better time to make a move. It all depends on your situation.

Touching on the same topic as last week’s Louisville: Should You Buy a New Home Now? comes this story from Business First: Louisville one of top cities for affordable housing.

Here’s a quote:

A recent Bizjournals.com study comparing housing affordability in the top 50 metropolitan areas nationwide showed that Louisville, with a No. 11 ranking, is one of the least expensive markets in which to own a home.

As we head into Spring, I’m receiving more questions from my clients about the current state of affairs regarding Louisville’s housing market. With rates low, values holding steady and lots of inventory, I tell them there are going to be a lot of good deals for buyers in 2008. Selling their home? That’s a little bit tougher.

On Thursday we hear that Louisville’s “economy has declined in recent months.” They make sure to add that residential real estate has also “declined” (even though real estate was included in their previous comment). Ouch.

But then, on Friday the CJ follows up this sour news with something positive. Good for them!

Median home prices in the Louisville area rose 1.1 percent to $134,000 during the first two months of the year, compared with the same period in 2007, according to the Greater Louisville Association of Realtors.

That’s good news right? Sure! Louisville’s housing market doesn’t suffer the dizzying ups and downs of so many other markets in the U.S. In addition, because there is currently so much inventory, buyers have a larger selection to choose from. And once they find their favorite home, the odds of getting a better than average deal is quite good.

For the homeowner looking to sell, it still comes down to price first, property condition second. Speak with a real estate professional to find out which home improvement projects can optimize your property’s opportunity to sell.

In one of our most popular posts of last year—Comparing Home Improvements in Louisville with the Nation—we looked at how home improvement project costs were recouped when it came time to sell your home. This is important information given that so many homeowners desire to include 100% of their home improvement dollars in their asking price when it comes time to sell, which isn’t realistic.

Now we have the numbers for 2007! Unfortunately, in almost every case, recoup values have gone down, sometimes drastically. But having this information should help every homeowner better prepared for both what kind of home improvement projects to undertake, as well as, what kind of home value increase is reasonable for each project.

Costs Recouped: 2007

Caton Bredar is reporting in the Courier-Journal that home buyers in Louisville can request a background check, of sorts, from the county health departments. With a rise in meth labs, this is something conscientious buyers (and their Realtors) should do as part of their due diligence.

This is especially important if you know that the property in question was being leased. The old adage—”Buyer Beware”—is certainly true. “Better Safe Than Sorry” is another one that pops into my head, but you get the picture.

Saw this complimentary snippet today:

The housing market is Louisville, Ky., is slowing, but not nearly as much as other parts of the country, says a Courier-Journal news story. In August, the number of home sales was about equal to the amount sold in August 2005, while listings jumped from 589 to approximately 700, the newspaper says. Meanwhile, the spring quarter of this year showed an annual home-price appreciation rate of 2.4%, the Courier-Journal says. “Overall, Louisville is still a very good real-estate market,” the paper quotes a local real-estate professor as saying. However, real-estate professionals report that in coming months, home buyers will have more properties to choose from, while sellers will face more competition, the article says.

It’s like we’ve been saying here at Louisville Homes Blog for months, buyers can still get some amazing deals while sellers’ properties at least are appreciating.

Joseph Lord has a nice piece over on the Velocity Weekly site called Gimme Shelter. My favorite part is that he’s “spot on.”

The problems in the national housing market have not hurt Louisville nearly as bad as major cities on the coasts, but the perception remains that the market is staggering.

Right and right. Today’s perception of the housing market, especially in more stable cities, like here in Louisville, Kentucky, is completely inaccurate. Our home values aren’t dropping now because they didn’t overly inflate in prior years. We didn’t get the 4%-5% increase last year that we have experienced at certain times in the past, but our 1% increase in 2007 was a great deal better than any decrease.

When you include the large number of homes currently on the market and historically low interest rates, it’s a wonderful time to buy a home.

Just consider, it’s always important not to take on more debt than you can afford. Heaven knows we Americans love our debt. This article points out that when considering the amount to finance, don’t go higher than three times your family’s annual income. That’s a very good rule of thumb. We don’t want you to become another foreclosure statistic.

I just read a couple of articles from yesterday’s Courier-Journal, both directed towards Louisville real estate. On the one hand, the Fed cutting the prime rate makes borrowing more affordable. This should translate into greater investment activity—in particular, housing investments.

This spurs optimism in the local housing market.

“If you have property you are purchasing or you’re looking to refinance, go ahead and do it. Don’t wait,” Evans said. “Now is a great time to refinance based on where the market and interest rates are today. It might go down some more, but it very quickly could change and go the other direction, too.” [link]

Others aren’t as enthusiastic.

“A lot of builders are sitting on property, and sitting on homes,” said John Hughes, a developer of the Quarry Bluff subdivision in Utica, Ind. “They’ve really cut back, and it’s not very good right now.”

What might not be good for builders can certainly good for prospective buyers. Can you say, “Deal!”? There are some amazing bargains to be had by those ready to buy a new home in Louisville today.

We’ve just recently launched a new Web site for the residents of Springhurst in Louisville, Kentucky. Hip hip hooray!

Looking for a babysitter? See who’s available! Lost a family pet? Check it out to see if your loved one has been found! Want to know how much that house down the street sold for? Visit SpringhurstNeighborhood.com!

The site is newly launched and there’s so much we’re going to add in the future. Check it out and see what you think. We’d love to hear your feedback!

If you have an adjustable rate mortgage that is expecting to rise next year, you’ll certainly want to check with your lender because news out of Washington says the Bush administration is trying to provide some relief.

Elements of the plan include a five-year freeze on interest rates for certain subprime loans, many of which are expected to reset to higher rates in the months ahead. [link]

Good news in light of what some think are troubling times for the housing market. Here in Louisville, foreclosure filings are actually down from 2Q 2007 and 3Q 2006.

This is exceptional news when you consider that Bethesda, MD is up 1640.7 over their 3rd quarter 2006 numbers.

Number of sales is down from October but average prices are up. Let us know how helpful this information is to you.

November 2007

Source: MetroSearch, Inc.

ABC’s heart-warming show Extreme Makeover: Home Edition, has come to Louisville and is now running on all cylinders to get the job done.

Louisville’s Patrick Henry, despite being born without eyes is living beyond most people’s expectations. Now the family’s home, near Buechel Bank Road is getting the special treatment in order to provide a better situation for Patrick and his family.

The reveal is set for Wednesday.

When compared with September numbers, it looks like everything is higher—Sales, Avg. Price and Days on Market. Let us know how helpful this information is to you.

October 2007

Source: MetroSearch, Inc.

Here’s something you don’t hear every day. A couple near Pittsburgh are trying something, that to my knowledge, has never been tried by someone selling their home.

According to the Husicks’ offer, the buyer would get the money back when the couple dies. And if the buyer agrees to care for them in old age, they could also inherit their retirement home in Arizona, bringing the estate’s current value to about $500,000.

Surely, someone will jump on this highly aggressive marketing approach. Even if they aren’t allowed by the courts, this free PR make the Husicks some smart sellers.

There seems to be a never-ending flow of negative news coming from news outlets these days; especially regarding the housing market. True, it’s a tough time for sellers given all the inventory out there. But the “silver lining” is that home values continue to rise in Louisville. That’s certainly good news.

Like every market, corrections occur to make recent increases more realistic and reasonable. So, just because a house has dropped its asking price by $30,000 doesn’t mean the sky is falling. It could mean they were asking too much to begin with. (I love how writer’s strive to find a way to put a negative spin on everything. Actually, I don’t.)

For even more good news, that we hear so little about, is that home buyers can get amazing deals. Where is all the chatter about this golden opportunity? Isn’t this something we could focus even a little attention upon?

If there’s one thing we can set our watches by, it’s that the news is 80% negative (crimes, disasters, etc.) and only 20% positive. In the case of our housing market, I would set those closer to 50%/50%.

Today marks the first time we’re going to publish monthly home sale numbers here on Louisville Homes Blog. If there’s another piece of data that you would find helpful, just drop us an email.

September 2007

Source: MetroSearch, Inc.

Found this neat little post on Students of Success that holds Louisville real estate in high esteem.

The 10 most livable and most affordable metro areas as determined by criteria developed by “Places Rated Almanac” (David Savageau) and the latest quarterly median sales prices compiled by the National Association of Realtors are:

1. Salt Lake City-Ogden, UT $157,000
2. Tampa-St. Petersburg-Clearwater, FL $172,800
3. Raleigh-Durham-Chapel Hill, NC $175,600
4. Houston, TX $138,100
5. Phoenix, AZ $193,800
6. Cincinnati OH, $139,600
7. Louisville, KY $130,100

So Louisville combines both being a very livable city and being reasonably priced as well? Why aren’t we hearing more of this positive news?

“With all the negative news about spiking home prices and the widening affordability gap, it’s refreshing to find highly desirable metro areas where most buyers can find affordable homes,” said Michael Bearden, president and CEO of HouseHunt, Inc.

That’s what I’d like to know Michael.

With foreclosures up and more urban properties that need updating, the idea of flipping a house is becoming more and more common. So common, in fact, that TLC has a show entirely devoted to the idea called Flip That House.

Louisville’s own Scherer family will be highlighted on an episode due to air early next year. How did this family succeed in getting the producers attention?

“They fell in love with the fact that it was being flipped by a family,” Scherer said.

Don’t think “flipping” is easy. It’s entirely possible to lose money due to many different factors, so beware. But for the Scherer family it’s about more than just making a few extra bucks.

“It brought us together as a family,” Scherer said. “It’s truly amazing what a family can do when it puts its mind to something. I never thought I would see the day my wife was cutting walls apart with a power saw or my mom framing with a nail gun.”

Sounds like fun. I’m looking forward the broadcast!

Louisville may not be Yuma, Arizona, who leads the nation with 90% chance of having a sunny day, but we’re ahead of Chicago, Detroit and Cincinnati! This according to the National Climatic Data Center. What constitutes a sunny day anyway? More than 50% of hours with at least some sunshine?

In any event, it’s interesting to see how technology improvements make their way into new construction and home improvement. What brought this to mind is that the Department of Energy is sponsoring a competition to build the best home that runs entirely on solar energy. With teams from MIT and other top schools, they’re really pushing the envelope. In fact, the competition requires that they use only “commercially available products”.

“You can’t yank something out of the lab and throw it onto your roof. You have to use commercial, production-grade products,” said Kurt Keville, the project’s faculty adviser and a researcher at MIT’s Institute for Soldier Nanotechnologies. “I was heartbroken.”

Here in Louisville, Kimbel Construction is looking to differentiate themselves as our city’s energy-efficient builder, even though his Web site doesn’t go into detail about what that means. It would certainly be worth your time to interview Mr. Kimbel if a new home is in your future.

Even if you have never considered public education for your children in other parts of the country, you should look at what is offered in the Jefferson County Public School system. It will really surprise you!

Moving to a new home can be an ordeal for any family. The issues that you face while house hunting are compounded even more when it involves school-aged children. Relocating to Louisville may be one of the most difficult transitions because the school system is so complex. The good news is that Louisville offers some pretty amazing educational opportunities. The bad news is that you have to be very well informed in order to make the best choice.

I moved to Louisville when my children were in Kindergarten and first grade, respectively. I knew nothing and had no one to tell me what options were available to me. Fortunately, our Realtor guided me to a neighborhood where my home school was very good.

However, I had no idea that there were other possible choices. There are elementary schools with Montessori philosophy. There is the Brown School downtown that offers a very artistic and open style of education. (Children who select the Brown School can attend through High School.)

From first grade to graduation, Louisville offers schools that focus on many different areas, such as: Performing and Visual Arts, Math, Science and Technology, Computers, or even Aerospace Engineering.

Whether your preference is for a school with uniforms and strong discipline or you prefer a school that’s “artsy,” Louisville has something to offer every parent. It is vital that you learn about these different options before you decide on the area of town that you wish to live. It is also a good idea for you to choose a Realtor who knows and understands the importance of these crucial decisions.

After living here for a few years, I was able to place my two sons on a track that was right for us. We chose to send them to a Middle School that focused on Math, Science, and Technology (MST), which was also a feeder school to the magnet high school, Dupont Manual. This amazing, world-renowned high school offers five different programs including Performing Arts, Communications, High School University, Visual Arts and MST. Manual produced 43 Merit Scholarship semi-finalists and 23 finalists last year alone!

My son was one of those finalists and he starts his freshman year at Cornell University this fall. My other son graduates this spring and he is also looking at some very competitive Universities, as well.

Louisville has an incredible school system, but you have to know how to find the best fit for you. For people moving in from out of town, it’s a great help to have a Realtor who can help guide you from the beginning.

Carol Dines is a Realtor with Coldwell Banker McMahan in Louisville. Raised in New York City, Carol was an actor/singer and has performed all over the U.S. After she married, she went into Advertising/Public Relations and had a long and successful career. With her children almost grown, Carol chose to utilize all of her interpersonal and marketing skills in real estate. Active in the community, she performs with several local theater groups but her greatest pride has been in successfully navigating the Jefferson County Public School system and seeing that her children had the best education possible.