Jeff Shore spoke to our Milestone Kentucky Realtors®

Jeff Shore, an enlightened and engaging speaker from Auburn, CA, who specializes in creating Urgency in a Non-Urgent Market, was our guest on August 20th at Milestone to speak on our Kentucky Realtors®. One of the many critical points Jeff addressed was the history of real estate which tends to be cyclical. In looking at the real estate market beginning in 1990 through today there appears to be evidence that history is indeed repeating itself, or at least we hope so. Let’s look at the time line:

• 1990-1992  We were in a recession and home prices dropped
• 1992-1994  Flat market, no price changes
• 1995-1999  Healthy market, moderate price increases
• 2000-2005  Boom, prices way up
• 2006-2007  Prices up, rate of escalation slowing down
• 2008-2009  Recession, home prices dropped
• 2010 – Flat market, no price changes

With this said the next phase of our market should be “Healthy market, moderate price increases”.  You can enjoy Jeff Shore’s free newsletter, The Shore Thing, delivered to your email each Saturday morning.  Sign up at Jeff’s website.

According to National Association of Realtors® local market report, the current Median Home Prices for Louisville in second quarter of 2010 is at $136,400.  This number of Louisville Houses sold is up from a year ago.

Real Estate remains a long-term investment and those who bought Louisville houses early in the boom still hold some equity.

Louisville houses

The state existing home sales in 2010 Q2 vs 2009 Q2 is 30.5%. This sales level is much higher than a year ago and continues to grow.

The local economic outlook for Louisville as pertaining to employment, shows that employment has held up and is on an upward trend. Louisville’s unemployment rate lags the national average, but has improved relative to the same period last year.  Local employment growth is respectable compared to other markets.

Looking at the new construction activity shows that the current level of construction is 53.1% below the long-term average. It is expected that the reduced construction will limit new supply to the Louisville house market allowing demand to catch up with current supply and foreclosures more quickly.  The good news is that construction is on the rise, suggesting that inventories have stabilized.

We must focus on the positive in the current market and hold on tight for the market to return to normal.  We will get there!

3388 Pueblo Ct

What distinctive features set this home apart?

The front view of the home is inviting with a nicely landscaped area and manicured lawn.  It’s obvious that the present owners have valued the exterior and interior appearance of the home and lawn.

3388 Pueblo Ct

What are the advantages of the location & neighborhood?

Located on a desirable court, this charming home is just minutes from Hamburg and a wonderful neighborhood park.
Have there been any recent renovations or upgrades? Owners have expanded the once small deck to a 12′ x 20′ stained deck perfect for entertaining or relaxing.

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

No need to add a fence with a 6′ privacy fence accompanying this home.

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

One of the best features is the spacious master bedroom area with vaulted ceilings.

If you would like to set up a showing or have any additional questions 3388 Pueblo Ct, Lexington, KY please contact Joan Stafford.

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.

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:

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

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.

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.

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:

1. 45 of the Top economists in the Blue Chip arena say so in their forecast.
2. Consumers are repairing their balance sheets and debt burdens.
3. Consumer spending has increased since 2009 back to where it was in 2006.
4. Pent up demand will continue to reveal itself.
5. Corporate earnings and corporate taxes are up since beginning of 2010 .
6. Economic indicators are better at this point in the recovery than they were in prior two recessions.
7. Productivity has increased for 8 quarters and can’t keep going that way.
8. Employment has increased in every month in 2010.
9. ARRA (Stimulus Package) spending is coming to the market later rather than sooner.
10. 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 !

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

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:

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

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.