April is tax time. How is your biggest asset doing? Those Bluegrass homes are a great tax deduction. Home expenses can be deducted on the Form 1040 (long form) and itemized on Schedule A. Also the mortgage on your Bluegrass Home is deductible – real estate taxes, qualifying interest and premiums. Check with your tax accountant to get up to date information. Also repairs and improvements that add value may qualify for a tax deduction. Be sure to keep receipts! Energy efficient upgrades such as Energy Star windows, water heaters and HVAC may also qualify. A good site to check is www.energystar.gov to see if your projects qualify.
With March winding down and April around the corner, Spring is popping up all around us. Spring brings many exciting things in Georgetown. Up coming Spring Break for the students and teachers but also with the time change means more of us are outside. As we walk around our Georgetown homes be sure to make a list of things that need to be addressed from the winter wear and tear. Now is the time to get those small items taken care of before they become a big problem. This should be done each and every spring. Check gutters, screens and decking making sure everything is secure and in good working order. Maybe this is the year that your home needs a touch of paint. Don’t wait until you decide to put your home on the market and discover that neglect has sucked valuable equity out of your Georgetown Home.
John Tuccillo, Former Economist for NAR
Becky Locknane, Managing Broker at Milestone, and I attended the KAR Broker Summit in Louisville this week and had the opportunity to attend the opening session which featured keynote speaker John Tuccillo, former economist for NAR. John focused on the future of the real estate industry. He spoke not just in terms of the state that many Louisville houses are in but what is going on nationally, and made the following observations/comments:
1. The recent recession was not the worst in our history. The recession of 1981-82 was worse however this recession created the largest reduction of wealth.
2. He compared the recovery to a Marathon with the fastest runners (meaning wealthiest with most liquidity) out in front while the average runner hasn’t even reached the starting point. He mentioned the banking and automotive industries as the front runners.
3. Contrary to popular belief, Bank of America will not “dump” a large number of properties on the market at one time thereby oversaturating the market with distressed properties. As astute business people they will add homes to inventory stock as deemed appropriate by their business plan.
4. There is no sign that the labor market will improve anytime soon. In fact, we have become more proficient at producing equipment (robots,etc.) that produce goods thereby eliminating job opportunities for mere mortals.
5. The current recession has caused many Baby Boomers to become “lifers” as their savings and home equity disappeared.
These were just a few of the observations made by Mr. Tuccillo. Things to watch in the near future will be the effect of the private investor sector’s purchase of mortgage backed securities which will surely effect interest rates. Also, the regulation of the banking industry as they are currently more focused on their own health and profitability rather than on their role in the economy. Banks are currently playing the market and making more money that if they would make loans to the consumer. Lastly, we must be an avid follower of employment, mainly the number of jobs created or lost rather than unemployemnt percentages.
We are definitely in recovery mode, slowly but surely our market will rebound to a sustainable level. We are more than ready for change!!
Springtime in Lexington
Well Spring is trying to get here…we have had a taste of warmer weather with a mix of some cooler weather and promises by the weather persons of some even nicer weather to come so perhaps even though March came in like a lion it truly will go out like a lamb. March Madness is in full bloom with everyone hoping that the UK Cat’s will do well. It has been a while since I have seen this much excitement surrounding the NCAA and I myself welcome it’s return. I think it is a part of the rites of Spring here in KY and has been missing in the recent past several years.
One other rite of spring that I have noticed returning is the real estate market. It seems to recently have become quite active as buyers and sellers both try to take advantage of the spring market which is being aided by the Federal and State Tax Credits that are available. We have gone past the deadline for those who wish to use them and do a “build to suit from scratch” as builders need time to build and complete the Lexington homes, but there are what are called “spec homes” or “field models” that some builders such as Ball Homes have in inventory in various stages. Depending on what stage of construction it is, and if one does not delay, you could still get a new home completed before that June 30th deadline to close as long as they are go to contract before the April 30th deadline. Bottom line if one is interested in a brand new home it is still possible but their options are becoming more limited as the April 30th deadline approaches.
Keep in mind that this April 30th contract deadline also is in effect for the re-sale market of existing or completed homes as well and after the April 30th date that one can no longer take advantage of the Tax Credits unless they are extended and it does not sound like that will happen. Bottom line… If one is thinking of making a move there is nothing like now.
Hmmm… you say not quite ready or not thinking of moving? Well, one can still have an opportunity to take advantage of springtime in Ky as it truly is a magnificent time of the year here with new sprouts and emerging growth appearing and wildflower and other blossoms being found abundantly all about in all their glory and the spring racing at Keeneland is not too far off either which is another rite of springtime here so get out and take advantage of what you can and just enjoy the Spring for what it is. Ending with the hope that the economy will continue to become active and blossom as well
Katie Rowan, Deborah Back and I just returned from The Leading Real Estate Companies of the World Annual Conference in Las Vegas at the beautiful Encore at The Wynn hotel. The theme of the conference was, “Leading the Revolution”. Throughout the event the Beatles song, “Revolution” was played. This was a terrific learning and networking experience.
Awards Dinner
We were busy all day everyday attending break-out sessions. We all tried to attend different sessions so that we could bring back as much information as possible. Some of the topics were: RESPA, Brokers Brainstorming, How to Recruit the Young Generation, Staying Calm and Productive Under Pressure, Social Media Networking, just to name a few. The general sessions had some awesome speakers. My personal favorite was FHA Commissioner, Dave Stevens. He reported that 30% of all mortgages today are FHA and 80% of those are first time homebuyers as a result of the $8000 First Time Home Buyer Tax Credit.
2010 After Party in Las Vegas
Of course, short sales were a popular subject and the message was that we all need to embrace them and gain as much knowledge as possible in order to sell more Kentucky houses, even though Kentucky houses have not been as much of that market as other states. We attended the Annual Awards Dinner at which Milestone was awarded membership in the 2009 Global Alliance Club. Thanks to Katie Rowan and all the Milestone agents that have participated in Relocation transactions. The closing event was a “Social Networking” event at the Revolution Lounge at the Mirage and then on to Cirque de Soleil’s “ The Beatles Love”. It was a great evening!
For the second blog in my Series of Change I decided to address one of the more positive effects of the recent recession: the return of the neighborhood. In 1994 country singer Tracy Lawrence released a catchy yet poignant song titled If The World Had a Front Porch. The lyrics include:
“If the world had a front porch like we did back then
We’d still have our problems but we’d all be friends
Treatin’ your neighbor like he’s your next of kin
Wouldn’t be gone with the wind
If the world had a front porch like we did back then”
Buddy
Depending on your next of kin this could be a good thing or a bad thing (Haha!). But seriously, gone are the days of workaholics, lavish trips, dining out and, most importantly, keeping to yourself. As the boomers age and the new generation of X-er’s, Y-er’s and New Millenniums choose a different lifestyle, the return of the front porch (or desire of having a front porch) is significant. I have noticed in my neighborhood the return of getting to know our neighbors, their children, pets and hobbies. We are blessed with walking trails, greenspace and friendly people. What we are lacking are large, expansive porches where we can sit and socialize in a relaxed atmosphere. My dog, Buddy would like nothing better than to sit with me on a front porch and watch the world go by. In fact, he doesn’t like to go into the backyard. The backyard that I selected on which to build my home with his needs in mind so that he would have a place to play, thoughtfully positioned so we could enjoy the morning sun and the evening shade. The backyard that I fenced and landscaped and religiously mow so that he could romp and explore to his hearts content…but to no avail. If I sit out back and prop the door open (so that my precious angel can go in and out at his pleasure) he always goes back into the house after about 2-3 minutes and looks out the front door. After all, there’s no action in the backyard…only his boring Mom reading a magazine and looking out over his carefully manicured lawn. All the fun is out front where he can meet and greet the neighbors, growl at and traumatize other dogs and see what is happening in the world.
I believe we are all harkening back to a gentler time when we had a sense of community and belonging. Wouldn’t we all love to have a front porch? And not some narrow 3′ porch…we need a porch where we can place comfortable chairs or even a porch swing and sit and rock and share and enjoy. Jeremy Conaway from RECON Intelligence Services recently shared his findings on the new consumer with local real estate Brokers in our association. According to Jeremy the new consumer is relationship oriented with an emphasis on Self, Family and Friends, Colleagues and Neighbors and Citizens and Markets. It’s all about relationships and the most important relationships are those you have at home. Spring is here and with it comes new life, a new outlook and a new and hopefully recovering economy. It’s a new day – enjoy it in one of the many Bluegrass homes for sale!
In the Spring of 2008 Gale Fulton and I attended the REAL Trends “Gathering of the Eagles” conference in Colorado as part of the Leadership Team for the Lexington-Bluegrass Association of Realtors. At the time, little did we know of the challenges our industry would face over the next 2 years. One comment that resonated with both Gale and I was the quote from one of the speakers that “our industry is going through a change that, once we get on the other side, will be totally different from what we know now”. He must have possessed a crystal ball because he was right on the money. I am going to do a series of blogs that address some of the changes we have witnessed and are now experiencing, the first of which is the change of the consumer mindset regarding their “wants” vs. “needs”.
Find A Property
We recently attended a Broker Forum which featured Jeremy Conaway of RECON Intelligence Services. Jeremy travels extensively and consults with many Realtor associations around the country. Much of Jeremy’s focus was on the differences between the generations and their hopes and dreams. According to Jeremy the baby-boomers focus was on work, work, work, accumulation of wealth and the status of owning a large home and nice car. They didn’t have a lot of time to focus on family because they were so busy working to support their idea of the American Dream. The X-er’s and Y-er’s and New Millenniums are more focused on quality of life and enjoyment of their friends and family. They don’t feel the need to own a big home in a gated community. They can get by on much less with regards to housing and prefer to spend their money on travel, community service and protecting the environment. This is our new buyer and as real estate practitioners it is our responsibility to adapt to their way of thinking and doing business rather than attempting to force them into our antiquated and old school way of doing business.
One book you may want to read on the subject is “More Not So Big Solutions for your Home” by Sarah Susanka. Sarah is an architect and advocate of homes that are smaller, practically and efficiently designed, yet still beautiful and comfortable according to Inman News columnist Tara-Nicholle Nelson. Sarah compartmentalizes her book into several interesting chapters such as “By Design”, “Room by Room”, “Attention to Detail” while focusing the last half of her book on “Making it Personal” using practical and creative methods to create space and design solutions for the smaller home.
Our industry has never been more exciting with new methods, new consumers and fresh life coming into our lives after the demoralizing market we have recently endured. Embrace new technology, read (or listen to podcasts) of books such as Sarah’s that educate us on the new consumer and move forward into a fuller life balancing your business and personal life. It’s a great day! If you’re interested in purchasing a home and great place to start is our Find A Property.
Pending Home Sales Show Mixed Results
A Pending Home Sale is a when a contract is in place to sell a home but it has yet to close. The National Association of Realtors reported that from January 2009 to January 2010 this index increased by 12.3%. So, the year-over-year numbers show some improvement in the housing market.
However, Pending Home Sales shrank 7.6% in their monthly comparisons between December 2009 and January 2010. Home Sales traditionally pull back during the colder months. The warm, Spring air traditionally starts to heat up demand for housing and that is right around the corner.
Unemployment Rate Remains Unchanged
We had two very important measures of Unemployment last week. On Thursday, the Initial Jobless Claims data was released and showed that new claims for unemployment benefits fell by 29,000 from the previous week to a seasonally adjusted 469,000.
The Unemployment Rate was released Friday. It remained unchanged from the prior period at 9.7%. Most economists and the market expected it to increase. But two consecutive readings of 9.7% is starting to bolster the consensus view that we may have started to see the beginnings of some gradual healing and that we could be on the brink of showing some actual job creation by the next report.
What Happened to Rates Last Week:
Last Week's Rates Provided by Walden Mortgage Group
Mortgage backed securities (MBS) gained +13 basis points last week which caused 30 year fixed rates to decrease for both government and conventional loans. Our best mortgage rates were on Thursday as we matched our best pricing levels of the year which occurred previously on 02/08/2010. However, we lost -25BPS the very next day on the relative strength of the Unemployment Report. Make sure you call me for the real story on mortgage rate movements.
What to Watch Out For This Week:
The following are the major economic reports that will hit the market this week. They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and Conventional mortgages. We will be watching these reports closely for you and let you know if there are any big surprises:
| Date | ET | Release | For |
| 10-Mar | 10:00 | Wholesale Inventories | Jan |
| 10-Mar | 10:30 | Crude Inventories | 6-Mar |
| 10-Mar | 14:00 | Treasury Budget | Feb |
| 11-Mar | 8:30 | Continuing Claims | 27-Feb |
| 11-Mar | 8:30 | Initial Claims | 6-Mar |
| 11-Mar | 8:30 | Trade Balance | Jan |
| 12-Mar | 8:30 | Retail Sales | Feb |
| 12-Mar | 8:30 | Retail Sales ex-auto | Feb |
| 12-Mar | 9:55 | Mich Sentiment | Mar |
| 12-Mar | 10:00 | Business Inventories | Jan |
We know you are busy and it is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets. Just leave it to us, we monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upon.
Mike Dunn, Holleigh Sharp & Jeff Sharp
February 28th marked the 6th anniversary of the Homebuilders Association of Lexington’s Salute to the Stars, formerly called the SAM Awards. It was a great night for both Milestone Realty Consultants and Ball Homes as we garnered several marketing and homebuilding awards. Our creative director, April Roe, and website team, John Day, Katie Rowan and April Roe were pleased to be recognized for their many achievements in 2009. In order to qualify for an award you must be an active member of the Homebuilders Association of Lexington in good standing. All judges are from other areas to avoid any appearance of impropriety. Mike Wheatley earned the Pinnacle Award which is the highest award obtainable for sales in the new construction arena. Jeannie Phillips, Ball Homes interior decorator also received kudos for her innovative use of colors and materials/furnishings in the Ball Homes models. A complete list of the nights Milestone and Ball Homes winners can be found at 2009 Salute to the Stars Winners.
 Judy Craft |
 April Roe |
 Mike Wheatley |
 Joan Stafford & Connie Greathouses |
Milestone Realty Consultant's Agent Trainer, Randy Adkins
Milestone Realty Consultants is pleased to announce our New Agent Training Program. After several months of planning, Milestone’s New Agent Trainer, Randy Adkins, began his first program on Monday, March 1, 2010.
The program is a two week program that helps prepare newly licensed agents for their Real Estate career. While taking necessary classes and passing the Real Estate exam is a huge accomplishment, it does not prepare agents for the practical, everyday situations that they could encounter. Randy’s program teaches everything from individual marketing to presenting multiple offers. His corporate background coupled with his Real Estate experience makes him very qualified to help agents learn to build their own business and to practice Real Estate in the utmost professional manner. Currently, there are five Milestone agents participating in the program. They are Chris Coulter (Lexington) , Preston Ellis (Lexington), Christie Robinson (Georgetown), Anke Thayer (Georgetown) and Brandy Daugherty(Georgetown). We feel confident that this program will help the agents to sell Lexington Homes, Georgetown Homes, and all Bluegrass Homes.
