2010 August | Milestone - Kentucky Houses

Bluegrass Real Estate Market Favors Buyers After Home Buyer Tax Credit Deadline Passes

August 31, 2010

By Judy Craft

A review of the real estate statistics for Bluegrass homes in July shows a slower sales pace and an increase in inventory.

Fast Tube by Casper

Sales in Central Kentucky for July 2010 fell 31%, while the National Association of REALTORS® posted a 27% decrease in sales for the nation. Buyers who took advantage of the home buyer tax credit caused a surge in sales in the Bluegrass from October 2009 to May 2010. Since the deadline for the tax credit has passed, sales are now slowing down. However, sales in the Bluegrass for the first seven months of 2010 are still up 9% compared to the same time period in 2009.

Bluegrass Homes Market Statistics

The average days on market for homes sold in the Bluegrass in July dropped 6% to 82 days compared to July of last year. The same figure for townhouses and condos dropped 27% to 85 days.

Pending sales dropped 30% in July 2010 vs. July 2009.

Bluegrass Homes Market Statistics

The active number of listings or inventory on the market for Central Kentucky in July was 7,106 which is up 11% compared to July 2009.

Bluegrass Homes Market Statistics

Both pending sales and active listings figures are being impacted due to the ending rush to place contracts on homes as buyers met the tax deadline.

Now that the rush to meet the tax credit deadline has passed, the market is definitely presenting buyers with favorable conditions to purchase a home including rock-bottom mortgage rates and plentiful inventory.

Subscribe to our RSS feed or watch the blog for my upcoming overview of August 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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Walden Mortgage Weekly Newsletter

By Walden Mortgage Group

Improvements in Housing Data

CoreLogic reported that the number of American homes that are “underwater” fell last quarter. A home is considered “underwater” when the owner owes more on their mortgage(s) than the home’s present value. The data fell from 24% in the first quarter to 23% in the second quarter. While this is not a huge decrease – given the high unemployment levels, any improvement is welcomed. How does our state stack up? Check out the chart below to see:

Improvements in Housing Data

What Happened to Rates Last Week

What Happened to Rates Last Week

Mortgage backed securities (MBS) gained +22 basis points last week causing 30 year fixed rates to decrease. MBS reached a new all-time best pricing level on Thursday. After we reached those great levels, we pulled back -53 basis points by Friday. The gains in mortgage backed securities (the only thing 30 year conventional mortgage rates are based on) were primarily the result of continued concerns about a very fragile economy and the perception of an increased probability of a “double-dip” recession. Our huge pull back on Friday (which caused mortgage rates to increase) was due to the release of the revised 2nd QTR GDP numbers. It was revised from 2.4% growth down to only 1.6% growth but the markets expected an even bigger downward correction. Since the data was better than market expectations, MBS sold off causing us to lose the lowest rates we have ever seen.

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
30-Aug	8:30	Personal Income	Jul
30-Aug	8:30	Personal Spending	Jul
30-Aug	8:30	PCE Prices- Core	Jul
31-Aug	9:00	Case-Shiller 20-city Index	Jun
31-Aug	9:45	Chicago PMI	Aug
31-Aug	10:00	Consumer Confidence	Aug
31-Aug	14:00	Minutes of FOMC Meeting	10-Aug
1-Sep	8:15	ADP Employment Change	Aug
1-Sep	10:00	Construction Spending	Jul
1-Sep	10:00	ISM Index	Aug
1-Sep	10:30	Crude Inventories	28-Aug
1-Sep	14:00	Auto Sales	Aug
1-Sep	14:00	Truck Sales	Aug
2-Sep	8:30	Initial Claims	28-Aug
2-Sep	8:30	Continuing Claims	21-Aug
2-Sep	8:30	Productivity-Rev.	Q2
2-Sep	8:30	Unit Labor Costs	Q2
2-Sep	10:00	Factory Orders	Jul
2-Sep	10:00	Pending Home Sales	Jul
3-Sep	8:30	Nonfarm Payrolls	Aug
3-Sep	8:30	Nonfarm Payrolls – Private	Aug
3-Sep	8:30	Unemployment Rate	Aug
3-Sep	8:30	Hourly Earnings	Aug
3-Sep	8:30	Average Workweek	Aug
3-Sep	10:00	ISM Services	Aug

It is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the Kentucky mortgage and housing 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

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Featured Property: 836 Henry Clay Blvd

August 30, 2010

By Katie Rowan

This Featured Property is a gorgeous two bedroom Lexington home in the Henry Clay subdivision. Vicki Rucker took some time last week to answer a few questions about 836 Henry Clay Blvd.

836 Henry Clay Blvd

What distinctive features set this home apart?

This house is made out of beautiful Bedford cut stone which makes it unique to Central Kentucky houses.This is a solidly built house and has been very well maintained throughout the years since 1952 the year it was built. There is a very nice bonus room added on for comfort and enjoyment for all seasons.

What are the advantages of the location & neighborhood?

This house is located inside New Circle Road in a lovely older established neighborhood. Lots of trees for outdoor activities in the summer time and ambiance the year round. This Lexington home is close to downtown for year round activities, recreation and fun. There are many places to dine and shop within easy driving distance.

836 Henry Clay Blvd

What makes the price of this house so great?

Included in the price of this wonderful ranch home is a HUGE insulated heated garage with lots of shelves for any kind of project/hobby that you might have. Above the garage is a huge unfinished insulated studio/apartment with electricity just waiting to be remodeled to your specifications whether it be an art studio or another living area or both.

Is there anything else that you’d like to tell us about the home?

This house would be great for first time home buyers or folks that are ready to down size. The outdoor patio area is large and wonderful for entertaining and enjoyment for all. The very nice pretty backyard area is fenced in which makes it very handy for children or family pets. There is an additional storage building on the property also.

Please contact Vicki Rucker at Milestone Realty Consultants if you would like to set up a showing or have any additional questions 836 Henry Clay Blvd, Lexington, KY.

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Featured Property: 2924 Polo Club Blvd

August 27, 2010

By Katie Rowan

This Featured Property is a beautiful Ranch home located in Gleneagles. The listing agent, Vicki Rucker recently gave us some details in to why you should buy 2924 Polo Club Blvd Lexington, KY.

2924 Polo Club Blvd

What are the advantages of the location & neighborhood?

This Lexington home is located in Gleneagles subdivision which is extremely close to beautiful Hamburg outdoor mall. The Mall has great places to shop, dine and fun diversions to enjoy. There is something for everyone. Two major highways, I-64 & I-75, are close by for easy access for traveling. Man-O-War Blvd. is very close by also for easier accessibility around Lexington. The neighborhood is friendly with folks out and about enjoying the outdoors whether it be walking, jogging, biking on a regular basis.

2924 Polo Club Blvd

What makes the price of this house so great?

This beautiful comfortable ranch home has very comfortable layout, a covered patio under truss plus a privacy fence for those backyard fun moments.The two car garage has pull down stairs for extra storage space.The house is also all electric with energy efficient windows. A wonderful house for the price.

Can you tell us a fun fact about the home?

This home design, the Tamora Plan, that was built by Rose & Co. builders won an award for the home layout.

Is there anything else you’d like to tell us about the home?

This house has been very well maintained. It has been professionally painted and cleaned.There are vaulted ceilings in the Master bedroom and living/dining room area. Also plant shelves in the dining area and kitchen for those decorating touches. The kitchen has extra tall cabinets for storage and hardwood flooring.

Please contact Vicki Rucker at Milestone Realty Consultants if you would like to set up a showing or had any additional questions 2924 Polo Club Blvd.

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Lunch With Dr. Crowe

August 26, 2010

By Becky Locknane

Dr. David Crowe, NAHB Chief Economist

On Monday, August 23, 2010, The Homebuilders Association of Lexington was fortunate to have Dr. David Crowe, NAHB Chief Economist speak to the local Home Builders and Bankers with an overview on the industry and outlook for the economy. He also addressed how Kentucky homes are weathering the downturn.

I was in attendance at his presentation and would like to share with you some “take aways” from the event.

His top 10 Reasons There Won’t Be a Double Dip are as follows:

45 of the Top economists in the Blue Chip arena say so in their forecast.
Consumers are repairing their balance sheets and debt burdens.
Consumer spending has increased since 2009 back to where it was in 2006.
Pent up demand will continue to reveal itself.
Corporate earnings and corporate taxes are up since beginning of 2010 .
Economic indicators are better at this point in the recovery than they were in prior two recessions.
Productivity has increased for 8 quarters and can’t keep going that way.
Employment has increased in every month in 2010.
ARRA (Stimulus Package) spending is coming to the market later rather than sooner.
Because, DR. CROWE SAYS SO!

According to Dr. Crowe, there are approximately 111 million households in the country today. There are 6 million homes in mortgage distress today and foreclosures make up about 1/3 of homes for sale.

Of course, all of this is National data and here in Kentucky we are fortunate that our foreclosure rate is way below the National average.

Crowe says, “ The economy must get rolling before the housing does”. While it is said that housing is what determines the economy we won’t see home sales and new home starts to rise until consumer confidence is in check.

New homes for sale are the lowest since 1968 and Crowe states the reason being because consumers are prudent and can’t get loans. He does report that new home starts are up in 2010 by 14% and he predicts they will continue to rise to 45% in 2011 and 39% in 2012.

Dr. Crowe predicts a 3-3 ½ % growth in home sales in the next two years and for interest rates to be at 6% in 2012. As for homes in Kentucky, we should see a modest return to shallow home appreciation.

We are recovering, but we aren’t quite there yet. Hang in there !

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Walden Mortgage Weekly Newsletter

By Walden Mortgage Group

New Home Owners In The Waiting

A new survey by Trulia.com found that 72% of all renters wish to eventually own their own home.

Of those that want to own their own home, one third are ready to buy now and two thirds say that they will wait two years or more. One-third is a very sizable number and combined with consistently low mortgage rates at or near their historic lows, the stage is set for entry-level home sales to continue to surge. As the entry-level market continues to improve, that provides demand for those that are moving up to the next price level. While renters are eager to own, they are concerned about the unemployment picture, the economy, and down payment options.

What Happened to Rates Last Week

What Happened To Mortgage Rates Last Week

Mortgage backed securities (MBS) lost -19 basis points last week causing 30 year fixed rates to rise. MBS neared their best all-time pricing levels on Thursday. After we reached those great levels, we pulled back -47 basis points by Friday. The gains in mortgage backed securities (the only thing 30 year conventional mortgage rates are based on) were primarily the result of very weak Initial Jobless Claims and Philadelphia Fed Manufacturing data. We pulled back from our best pricing on Friday due mainly for profit taking as no one wanted to hold MBS at their highs.

What to Watch Out For This Week

Date	ET	Release	For
24-Aug	10:00	Existing Home Sales	Jul
25-Aug	8:30	Durable Orders	Jul
25-Aug	8:30	Durable Goods -ex Transportation	Jul
25-Aug	10:00	New Home Sales	Jul
25-Aug	10:30	Crude Inventories	21-Aug
26-Aug	8:30	Initial Claims	21-Aug
26-Aug	8:30	Continuing Claims	14-Aug
27-Aug	8:30	GDP – Second Estimate	Q2
27-Aug	8:30	GDP Deflator – Second Estimate	Q2
27-Aug	9:55	U Michigan Consumer Sentiment – Final	August

Mike Dunn, Holleigh Sharp & Jeff Sharp

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Vote for Louise

August 20, 2010

By Louise Miller

Vote for Louise

I, Louise Miller, am running for the office of President–Elect at Greater Louisville Association of Realtors®. I have been a pro-active member of this association, buying and selling Louisville houses for 27 years and found that it has helped me tremendously to become more informed and value the relationships I have made with my associates. Because I am also an active Realtor®, I am aware of the challenges we face each day. Our economy has proven tough in these past few years to say the least. It is not over yet, but we have great support at our association with staff, education and services.

If elected, I will:

Help to strategically guide and direct decisions for the association
Provide good leadership by utilizing past experience and knowledge
Maximize member benefits and facilitate access to these benefits locally, regionally and nationally
Work diligently to help fellow Realtors® create new opportunities in the present economy
Continue to make sure we expose the consumer to the great service we provide
Look for creative and innovative ways to always bring positive ideas and education to our membership

Experienced leadership is an important key to in any organization. I promise to provide that leadership. I need your help and support. Please vote and encourage your associates to do the same.

This coming Monday, you (the members of our board), will receive an email with instructions asking you to vote. I urge you to take the time to do this and I thank you for your consideration.

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Featured Property: 468 Hunters Run Dr

By Judy Craft

Today’s Featured Property is a gorgeous two story home located in Madison County in Richmond, KY. The listing agent/owner, Mary Layton, took some time to answer some questions about 468 Hunters Run Dr and what makes this Richmond property so special.

468 Hunters Run Dr

What distinctive features set this home apart?

This home has an amazing view of over it’s 3.29 acres even though it is in a subdivision. It is a Frank Betz plan and a traditional two story home.

What amazing views will the new homeowner be able to enjoy?

The view from the deck is over the vast acreage and there are deer in the backyard almost every day. Imagine that in a subdivision. Also the view from the front door is not another house. There is a view of the land across the street.

468 Hunters Run Dr

What makes the price of this home so great?

It is spacious while allowing each person to have private space. The house is just minutes from Lexington’s Athens-Boonesboro, exit 104 and minutes from the city of Richmond as well.

Is there anything else you’d like to tell us about the home?

Both homeowners are licensed real estate agents in the state of Kentucky.

To contact Mary Layton, view more photos or set up a showing visit 664maidencanedr.milestoneky.com!

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Featured Property: 664 Maidencane Dr

August 19, 2010

By Becky Locknane

Today’s Featured Listing is a beautiful Ranch located in Chilesburg in Lexington, KY. The listing agent/owner, Judy Craft, took some time to answer four questions about what sets 664 Maidencane Dr a part from other Lexington homes.

664 Maidencane Dr

What distinctive features set this home apart?

This wonderful ranch style home features an open and airy layout with volume ceilings, a warm and inviting color palate and many upgrades. You will use every room as the home was designed to flow in a circular pattern with access to all rooms from the main family room/kitchen area. The back bedroom is accessed from the breakfast area by a french door which can be left open and used as a home office or locked for privacy. With over 20 windows, this home is bright and cheery and has abundant natural light. The kitchen features quartz counter tops, cherry cabinetry and stainless appliances including a Fischer-Paykel double drawer dishwasher, smooth top range with oven and warming drawer, additional wall oven and built-in microwave. The sun room is adjacent to the family room and part of the master suite and hosts a see-thru fireplace with gas logs, white paneled vaulted ceiling with beams and fan and glass pocket doors leading into the bedroom.

664 Maidencane Dr

What are the advantages of the location & neighborhood?

This home is located next to a green way/tree preservation area which is maintained by the developer for now and at some point the Homeowner’s Association so you get the pleasure of the extra yard space and trees without the upkeep!

What amazing views will the new homeowner be able to enjoy?

The private backyard is fully fenced, level and professionally landscaped. The over sized patio has been upgraded with brick pavers while the orientation of the home offers evening shade – perfect for cooking out or entertaining!

What makes the price of this home so great?

The home is loaded with upgrades including whole house speaker system, built-in bookshelves, 2″ blinds throughout, granite counter tops in both bathrooms, master bath with separate shower and whirlpool tub, ceramic tile, upgraded flooring, 25 year dimensional shingles and much more!

To contact Judy Craft, view more photos or set up a showing visit 664maidencanedr.milestoneky.com!

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Walden Mortgage Weekly Newsletter

August 18, 2010

By Walden Mortgage Group

High End Home Sales Surge

A significant decline in jumbo mortgage rates (loans above $417,000) are helping to move some of the highest-end inventory. Sales volumes of homes worth more than $1 million across the country are up more than 35% from this time last year according to the National Association of Realtors®. They also stated that homes between $700,000 and a million were up 29% from last year.

There is no question that high unemployment and concern about the economy is pressuring the housing market at all price points, but it is clear that the ultra-low mortgage rates are having a dramatic impact on the highest end of the price spectrum.

Conventional lenders (Fannie Mae and Freddie Mac) do not make jumbo loans. Those loans usually are held by banks. These banks are becoming more comfortable making higher end loans these days and are looking to take advantage of a premium that they just can’t earn with a conventional mortgage where their margins are simply too thin.

What Happened to Rates Last Week

What Happened To Mortgage Rates Last Week

Mortgage backed securities (MBS) lost -3 basis points last week but reached their best all-time pricing levels on Tuesday. After we reached those great levels, we pulled back -31 basis points by Friday. The gains in mortgage backed securities (the only thing 30 year conventional mortgage rates are based on) were primarily the result of the Federal Open Market Committee (aka “The Fed”) rate decision and policy statement on Tuesday afternoon. While they did leave their rates alone, their downwardly revised economic outlook and decision to reinvest their profits from maturing mortgage backed securities into Treasuries drove down rates.

What to Watch Out For This Week

Date	ET	Release	For
16-Aug	8:30	NY Fed – Empire Manufacturing Index	Aug
16-Aug	9:00	Net Long-Term TIC Flows	May
16-Aug	10:00	NAHB Housing Market Index	Aug
17-Aug	8:30	Housing Starts	Jul
17-Aug	8:30	Building Permits	Jul
17-Aug	8:30	PPI	Jul
17-Aug	8:30	Core PPI	Jul
17-Aug	9:15	Industrial Production	Jul
17-Aug	9:15	Capacity Utilization	Jul
18-Aug	10:30	Crude Inventories	14-Aug
19-Aug	8:30	Initial Claims	14-Aug
19-Aug	8:30	Continuing Claims	7-Aug
19-Aug	10:00	Leading Indicators	Jul
19-Aug	10:00	Philadelphia Fed	Aug

Mike Dunn, Holleigh Sharp & Jeff Sharp

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