2010 July | Milestone - Kentucky Houses

Video Market Update: The Milestone Minute

July 30, 2010

By Judy Craft

We just posted our June video market update on our YouTube channel. The Milestone Minute is a quick monthly update on the latest real estate news on Central Kentucky houses. You’ll catch up on trends, statistics and what might happen next in a couple of minutes.

Fast Tube by Casper

If you’d like a text version of this video we posted one in our blog entitled Bluegrass real estate sales up 20% year-to-date, new construction sales up 80% for June and for previous editions of the Milestone Minute be sure to check our YouTube channel.

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We’re in a Good Place

July 28, 2010

By Judy Craft

The Central Kentucky real estate market has largely escaped the foreclosure disaster that has reaped havoc on other parts of the country. According to RealtyTrac, Fayette County currently has 66 homes in foreclosure which is astonishingly low. Jefferson County hasn’t fared as well with 987 but they have also experienced more job loss than Lexington. To give you an idea of how bad it has been and still is for many of our fellow Americans:

Foreclosure Market Statistics

An estimated 4.9 million borrowers were 90 days or more past due or in foreclosure at the end of March. Seven out of ten homeowners are past due, in default or in some level of foreclosure today. *MarketWatch
According to calculations made by National Mortgage News using MBA’s findings, that means $1 trillion in both first and second liens are now in arrears.
There were 322,920 foreclosure filings, or one for every 400 households, in the United States in May.
The bill for restoring and reselling just one of these repossessed homes generally costs the government about $10,000 after repairs are made, stolen appliances are replaced, and the inside and outside are returned to marketable condition.
Foreclosure homes accounted for 31% of all residential sales in the first quarter of this year, and the average discount for properties that sold while in some stage of foreclosure was nearly 27%.

Wow, not such good news for many. It really makes me happy to be in a place with such stability with regards to housing prices and jobs. There are some, however, who are struggling to make ends meet. If you find yourself in a bind don’t give up! Go to HUD.gov or FreddieMac.com for advice on keeping your home and your credit intact.

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GLARPAC Fundraiser at Locust Creek

July 26, 2010

By Becky Locknane

Join RPAC-Join Milestone!

You could have a chance to win $6000 by supporting your Real Estate business! On September 9th, 2010 the annual GLARPAC Fundraiser will take place at Locust Creek Clubhouse. You could win $5000 plus an additional $1000 if you are present at the reception! What a nice Prize! GLARPAC is the Greater Louisville Association of Realtors arm of Realtor Political Action Committee (RPAC) . RPAC is the voice of REALTORS on Capital Hill. Since 1969 RPAC has been promoting the election of pro-REALTOR candidates across the United States. It is a grass roots organization and begins on a local and state level working upward to the federal level. During the last federal election cycle alone, RPAC contributed over $12 million to pro-REALTOR candidates to Congress, making it the number one trade association political action committee in the nation. It takes everyone’s contributions to RPAC to get the job done. Without these funds we cannot get our voices heard effectively. Because of RPAC efforts many governmental issues have been battled to protect and improve the Real Estate Industry. If you are a REALTOR and you sell any Kentucky houses get involved in RPAC! You can start by purchasing a ticket to this great event for $100 that goes directly to GLARPAC. It is sure to be a wonderful evening with cocktails and delicious hors d’oeuvres being served, plus you get to network with your fellow agents. To make a contribution or for more information call Lisa Stephenson at the Greater Louisville Association of Realtors, phone number is 502-894-9860.

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Bluegrass real estate sales up 20% year-to-date, new construction sales up 80% for June

July 23, 2010

By Judy Craft

A review of the Central Kentucky market statistics for June shows an increase in total sales and a dramatic rise in new construction sales.

Sales for Central Kentucky houses for 2010 as of June 30 were up 20% compared to 2009, while nationally that figure is only up 3% according to the National Association of REALTORS® (NAR).

Year-to-date as of 6/30/10 Percentage Change vs. Last Year for Total Sales

June 2010 sales were only up 1% compared to June 2009, while the NAR posted an 8.3% gain for the nation for the same time period.

Monthly Percentage Change vs. Last Year for Total Sales

Monthly Percentage Change (June 2010) vs. Last Year for Total Sales

While sales in June did not outpace national figures, cumulatively for 2010 the Bluegrass has outpaced national sales dramatically. Because of the stable local economy Central Kentucky has benefited from the housing tax credits more than the nation as a whole.

New construction sales in June 2010 vs. June 2009 were up 80%. Sales of new homes were down as much as 23% in January 2010 vs. January 2009, but have made significant jumps with each passing month this year. Show slide 4

Monthly Percentage Change vs. Last Year for New Construction Sales

Pending sales dropped 29% for June 2010 vs. June 2009. This figure may continue to linger in the negatives as the tax credit deadline continues to factor in; however, it is up 31% compared to May 2010.

Monthly Percentage Change vs. Last Year for Pending Sales

The active number of listings or inventory on the market for Central Kentucky in June was 6,842 which is up 6% compared to June 2009. Show.

Monthly Percentage Change vs. Last Year for Inventory

Subscribe to our RSS feed or watch the blog for my upcoming overview of July data in relation to the national market. And, don’t forget that you can check out highly detailed statistical reports on our Market Statistics page.

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Make It Happen

July 21, 2010

By Becky Locknane

How many times have you had a closing fall apart at the eleventh hour? I think probably every seasoned agent has had it happen before.

To paraphrase Mary Sand, in Realtor® magazine, “having a contract is only the beginning”. According to recent Realtor’s® Confidence Index surveys conducted by the National Association of Realtors®, between 10 percent and 14 percent of pending transactions don’t close. Another 20 percent are delayed but eventually close.

Does this happen to all of us selling Kentucky houses? You bet it does!

Kentucky houses

As Managing Broker for Milestone’s Lexington and Louisville offices, I am told of various types of closing problems almost everyday. Some of these problems include closing and possession dates, repair requests as a result of the home inspection, homes not appraising for the sales price and finally, loan approvals falling through at the last minute.

New condominiums can be a loan challenge as well, because FHA requires that 50 percent of the development’s units must be under contract before the agency will approve financing for individual condos.

Certainly, unexpected issues can develop, but if you are careful, detailed and have a system in place with a checklist of things to do and important questions to ask you will reduce the risk of closings falling apart. Be sure to always allow enough time for things to be completed and reflect this upfront when negotiating a closing date.

Most of all, educate your buyers and sellers about the process and timeline from the moment the offer to purchase is accepted and becomes a bona fide contract until the hour of closing.

If you will try to anticipate problems before they happen and be proactive, you will be that much closer to payday and to a happy client!

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Inman Technology Conference – Takeaways

July 19, 2010

By Judy Craft

Inman Technology Conference 2010 in San Francisco CA... a multimedia experience!

Milestone doesn’t just sell Bluegrass homes; we travel all over the nation so we can always be ahead of the curve in all things real estate and technology for better services and information for our clients. We actually just got back from San Francisco where the weather was cool (mid-60′s) but the information was hot, hot, hot!! Katie, April, John and I attended the Inman Technology Conference last week and were absolutely amazed at what we saw and heard from the industry’s leaders. I attended most of the Broker training programs while Katie focused on Blogging and WordPress, April on Marketing and John on everything else. I sure was happy to have someone under the age of 30 to explain to me in layman’s terms what everything meant. Some of the highpoints of the meeting:

1. From 2002-2007 Yahoo flatlined while Google skyrocketed in the search category. In the past 2 years Google has flatlined while Facebook has taken off. It is being said that Facebook will be the next big Search company due to knowledge of their client base.

2. The future of Facebook is in Search, as an Advertising Platform and Sydication.

3. Redfin and Sawbuck presented at the Broker training and implored Broker’s to get “on board” with them with regards to Online Broker Partnerships. This was a complete turnaround from a couple of years ago when Redfin boasted that their business model would put the traditional Broker out of business.

4. Social Media is everything but you need to know how to use it in an appropriate manner. We are able to reach an unlimited number of people at no cost which will enable us to reduce our marketing dollars and generate additional revenue.

5. The public isn’t interested in the individual agent. They are looking for a brand they can trust. The key to a successful Brokerage is to stay relevant, give the agent tools they can use and the consumer more value.

6. The New York Times Research and Development reported that the paradigm shift is from publishing to communication. Smartphones will outsell PC’s by 2011. Time on email has flatlined while time on Social Networking has skyrocketed.

7. Errol Samuelson of Realtor.com reported that 90% of the population ages 65-72 have email and 40% of Amazon book sales are now e-books.

8. Google reiterated that they are not trying to take over the real estate industry. They are trying to organize all the world’s information geographically and real estate is a big part of that endeavor. We shall see….

9. Real Estate websites are not just to provide information anymore, they are about building community.

The media portion of the Conference was absolutely incredible! All in all it was a great trip.

Let us know what you think about our takeaways by posting a comment!

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The Hangover Part 4

July 15, 2010

By Mike Wheatley

Halfway through the month of July now, and no huge surprises with the June actual numbers and the preliminary July numbers are showing that the market malaise continues. The one number that stands out to me is the number of Active Bluegrass homes on the market, which was 6842 on June 1. This is becoming the “elephant in the room”…we hit all time highs in July through September of 2007, when Active listings exceeded 7000 for the first time in our history. I expect to see us hit that level again in July of this year, as Pending sales continue to lag behind seasonal averages. The effect of higher inventory is usually more pressure on pricing, as sellers anxious to move their homes try to make their home stand out in the marketplace, usually through price reductions.

In the short term, my personal experience has shown that the last 2 weeks of July and the first 2 weeks of August have been a very quiet time for sales activity. I think people use that time to get in their last getaways of the summer before the kids get back in school.

On a positive note, interest rates continue to stay at or near historic lows. The impact of these lower rates is so much more significant than the tax credits that were offered, but for some reason, the public doesn’t seem to recognize that. The quick gratification of an $8,000 check from the government is more appealing than saving tens of thousands over the life of the loan. Here’s what I mean:

The following has been updated to reflect the actual numbers for June, and a projected figure for July 2010:

*July 2010 projected based on current data available through 7-15-10.

As always in this type of market with lots of supply, it is crucial for sellers to be priced right and have top notch condition. Buyers have so many choices today, and buying decisions can be based on what might seem like insignificant factors.

Please feel free to call or email with any additional questions you may have. My goal is always to provide accurate, professional real estate advice.

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It’s All About the Customer!

July 14, 2010

By Becky Locknane

In today’s Real Estate Market, the consumer is smarter and more savvy than ever before. It is our job as Realtors to be attentive to and meet the customer’s needs beyond what they are able to access on the internet about Bluegrass homes.

We must learn to communicate with all types of personalities effectively. Not everyone thinks and learns the same way. Being flexible means you are willing to accommodate to the thoughts and actions of others. You must learn to recognize what works best with each individual customer.

We must remember our customers are the reason we get paid! The quality of our service will determine our success. Listed below are some tips for developing customer loyalty according to Patti Hathaway, CSP, “The Change Agent”:

• When meeting someone for the first time, a customer will decide in the first 15 seconds whether they think you are competent, prepared and whether or not they want to do business with you.
• Make the first 15 seconds count by looking neat, clean and professional. Smile and be cheerful.
• The attitude you project will be reflected back to you by your customers.
• Keep the Customer informed.
• Try to answer all their questions. If you do not know, do your best to find the answer.
• Respond quickly.
• Listen!
• Say thank you!
• Don’t take your personal problems to work with you. Your customer has enough of their own.
• Ask for feedback.

These are just a few ways to make your customer know that it’s all about them!

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The Fuller Center Project

July 12, 2010

By Dennis Miller

The Fuller Center Project is dedicated to giving rehabbed existing Louisville homes to in need candidates.

Since my last report, the Community Relations Committee of the Greater Louisville Association of Realtors has been very active in numerous projects, thus creating the need for several sub-committees to support each effort. One of our year’s new projects of 2010 is “The Fuller Center Project”. Rather than building a new home for a person in need and just releasing the title to them upon completion, like Habitat for Hummanity does, the Fuller Center Project’s mission is to repair, remodel and rehabilitate existing Louisville houses so that they can be ultimaltey be owned by the person in need after a trial rental period of one year. After a year of compliance, an ownership payment plan is established and the deed is turned over to the individual at that time. This rental period is to help ensure that the candidate recieving the home will be able to make the payments on the home that are required as well as make sure that they have the dedication that is needed to upkeep and care for the property. This particular sub-committee of the Community Relations Committee is chaired by Grace Patterson. The Fuller Center Project had the consistant challenge as with many of our other projects do, which is funding. Through Grace’s dedication and passion to this great cause, our committee unanimously approved to support this effort and we ultimately received a financial commitment from our Louisville Board of Realtors which was then matched by a supporting grant as well! This has provided a great stimulus for upcoming projects for Louisville houses. It is so encouraging for us to see such great progress in the short 8 months of 2010 so far and we look forward to seeing what we can accomplish by year’s end! If you have any questions about The Fuller Center Project or any of our other events, please do not hesitate to give me a call!

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Homearama: Shakes Run 2010

July 9, 2010

By Becky Locknane

It’s Homearama time in Louisville! This year’s Homearama is under way in Louisville July 10-25 in Shakes Run. Show hours are weekdays: 5:00 p.m.-9:30 p.m., Saturdays: 10:00 a.m.- 9:30 p.m. and Sundays 1:00 p.m.- 6:00 p.m.

Homearama: Shakes Run 2010

Ten Louisville houses built by eight Louisville Builders are included in the Homearama and nine of the 10 are already sold! According to Louisville Builder magazine, studies have found that community and energy efficiency topped the lists of priorities for today’s home buyers. The homes being featured in the 2010 Homearama certainly provide both.

Veteran Homearama host and developer, Steve Canfield, Canfield Development,LLC, describes Shakes Run as a neighborhood that homebuyers are flocking to because it provides them the opportunity to live together in community. The emphasis is on community and connecting with each other on a number of levels.

Home sites and roads in Shakes Run were planned around the land’s natural ridge lines and many existing stream beds and valleys were left untouched. As a result, nearly 30 percent of Shakes Run is open space and vegetated areas.

The homes on display range in price from $400,000 to $600,000. The floor plans in these homes are designed less for show and more for function. Some of the amenities include, detailed trim work, custom cabinetry, beautiful fireplaces and more.

Each of the homes are Energy Star qualified which guarantees energy efficiency that is so important to today’s homebuyer.

You won’t want to miss this event if you are in the Louisville area. For more information visit the website Homearama.com.

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