Realtors® Reflect on Year of Real Estate Achievements

Louise Miller, President of the Greater Louisville Association of REALTORS

Despite a challenging year in many respects, 2011 was a year that reinforced the value of homeownership for families and communities across the country. Most Americans still believe in the American dream of owning their own home, and Realtors^® remained actively engaged to ensure that housing and homeownership issues were first on the nation’s public policy agenda.

“We would describe 2011 as a rebuilding year, as well as one full of tremendous achievements,” said Louise Miller, President of the Greater Louisville Association of REALTORS. “The market is showing signs of improvement, and more than ever, people aspire to become homeowners. Throughout the past year Realtors^® have worked hard to make sure everyone who is willing and able to assume the responsibilities of owning a home should have the opportunity to pursue that dream.”   

 In 2011 the National Association of Realtors^® released data that showed a significant majority of today’s homeowners and renters agree owning a home is a smart long-term decision. In addition, more renters than ever before said they aspire to homeownership. Housing is also crucial to the local economy, according to the Greater Louisville Association of REALTORS (GLAR).

“A typical home sale pumps a total of $60,000 into the economy over time,” said Miller. “The importance of the housing market in relation to our nation’s well-being couldn’t be more evident than it is right now.”

Realtors^® helped reshape housing policies throughout 2011 on behalf of would-be home buyers, sellers and owners. On October 1, 2011, Congress allowed conforming loan limits to revert from 125% of the local area median home price to 115% of the local median home price. This meant fewer people had access to affordable mortgage loans. GLAR and its members, along with Realtors^® across the country, successfully persuaded legislators to reinstate the higher loan limit formula.  “This is significant for buyers and sellers in the Greater Louisville Area,” said Miller

In addition, Realtors^® ensured that the National Flood Insurance Program was extended for an additional six months through May 31, 2012. NAR continues to work with members of Congress on a longer extension. 

Looking toward 2012, Miller said there are several crucial issues ahead. Realtors^® will be keeping an eye on efforts to reform the secondary mortgage market to ensure that future home buyers have access to affordable mortgage financing. Preserving the mortgage interest deduction will also remain a top priority for Realtors^® this year.

“Homeownership matters to individuals, families and America,” said Miller.  “In addition to helping people achieve their dreams of owning a home, Realtors^® will continue to work tirelessly in 2012 to protect and sustain opportunities for responsible homeownership.”

Market Overview – December 2011

Overall Market:      

Members of the Greater Louisville Association of Realtors® posted 860 sales during the month of December 2011. December’s total sales continued a six-month trend of outpacing the same period last year, which posted 847 sales during December 2010.  The sales volume trend was notable as it revealed the 2010 Home Buyer Tax Credit produced a surge in activity in the 2^nd quarter of 2010, leaving a lean 3^rd and 4^th quarter in its wake. The average selling price paid for single family and condominium homes in December was $160,402, up $3,499 from November, but down 7% from a year earlier. Average sales prices have retreated from their year-to-date peak of $179,758 posted in July 2011, but remain above the low for 2011 which was posted in March at $152,801.  

 Inventory, or the number of homes for sale, fell to their lowest level of the year in December, to 7,294 units, from 7,825 in November, 8,373 in October and 8,704 units in September.  The number of homes for sale continues to exceed 2010 levels and remains at an 8 month supply; inventory levels near a 6 month supply are often associated with an in-balance market.   

Overall, GLAR members end 2011 with 10,975 units sold, a decline of 467 units, or 4% less than 2010. The 2011 average sales price paid was $163,317, a 1.8% decline from 2010’s average of $166,295. In 2011, Metro Louisville home prices retreated from 2010 levels, but the year ended on a positive note with the December average $7,600 greater than March’s low of $152,801. 

Year-end market snippets:   Cash transactions increased in 2011 to nearly 17% of all sold units closed by GLAR members.  Cash sales increased nearly 50% from 2010 and posted their highest numbers of the decade.  Conventional sales continued to dominate financing terms in 2011, with FHA and VA a distant second place.  The highest priced home sold by a GLAR member in 2011 was an Oldham County property located at 14200 Reserve Cove; the unit closed for $3,000,000 in October 2011. In sum, 10,975 units were sold by GLAR members in 2011, totaling $1,792,398,597. The average list-to-sale ratio was 95%.

Jefferson County Market:
Realtors® posted 612 closed sales in Jefferson County in December, an increase of 6% over December 2010. The December ’11 average selling price posted a gain over November, rising to $160,652 from $156,812. For the month, the average Jefferson County selling price has lost 8% from a similar period last year.  The year-end average price paid for a home in Jefferson County was $161,373, 3% less than a similar period last year. The supply of homes on the market in Jefferson County stands at 4,414, down 377 units from November, but up 423 units from December 2010. At the current absorption rate, the county has a 7 month inventory of homes on the market. Year-end sales in the county stand at 7,648 units, down nearly 4% from a similar period last year.

 

Oldham County Market:
In contrast to slightly lower sales numbers in Jefferson County, the number of closed sales in Oldham County was up 6% in 2011 compared to 2010.   The average price statistic in Oldham County was up 8% from $251k  in 2010, to $271k in 2011, and the median price was up 2% from $230k in 2010, to $235 in 2011. The median figure is less variable and is not affected as much as the average statistic by the sale of some larger homes that closed in 2011. The number of sales going under contract in Dec 2011 was 56 vs. 40 during Dec 2010, and the inventory of unsold homes remained higher than last year by 17%. Continued low mortgage rates, stable local employment trends and improving consumer confidence will be the key factors that will allow for the absorption of the current inventory of homes and the resumption of a balanced market in Oldham County.

 

 Bullitt County Market:
Realtors® posted 52 closed sales in Bullitt County in December, a decline of 14 units from November, but    December ’11 sales were up slightly from a similar period last year which posted 50 closed sales.  The average selling price in the county for December was $143,788, up $10,149 from December ’10 and up 4% from November 2011. Bullitt County’s average selling price for 2011 was $139,214, which was nearly even with 2010’s average of $140,793.  Year-to-date sales, in the county, stand at 741 units, down 2% from a similar period in 2010. Supply, or the number of homes on the market, has fallen to 507 units, down from 546 units in November, but up nearly 12% from a similar period in 2010.

 GLAR Contact Information:
Louise Miller                                                                    Lisa Stephenson
President                                                                            Executive Vice President
(502) 214-8000                                                              (502) 894-9860

Market Overview -Nov. 2011

Overall Market Comment:

Members of the Greater Louisville Association of Realtors® posted 870 sales during the month of November 2011. This month’s sales figures continued a well established trend of outpacing the same period last year, which posted 772 sales during November 2010. The November 2011 sales were 13% stronger than November 2010, continued evidence that the local market has adapted to the post‐Home Buyer Tax Credit market of early 2010. The current year‐to‐date sales figures are behind a similar period in 2010, down nearly 5% to 10,115 sold units from 10,595, but strong sales over the past 4 months have closed the gap that was double digits. The average selling price for November 2011 was $156,903, down $5,678 from October 2011, and down $16,263 when viewed against November 2010. The year‐to‐date average sales price of $163,557 for 2011 remains close to the year‐to‐date figure from 2010, $165,788.

For the year, average sales prices have retreated from their peak in July 2011, but remain above the low for 2011 which was posted in March at $152,801. Inventory, or the number of homes for sale, fell to their lowest level of the year, to 7,825 units in November, from 8,373 in October and 8,704 units in September. The number of homes for sale continues to exceed 2010 levels and remains at a 9 monthsupply; inventory levels near a 6 month supply are often associated with an in‐balance market.

Overall, GLAR members continue to sell homes and move inventory in a challenging market. Realtors® continue to absorb a barrage of housing news and data, likewise, buyers and sellers are also saturated with headlines relative to the housing market, whether a bottom has been reached, the depth of foreclosures and low mortgage interest rates. The fact remains that Metro Louisville home prices have retreated from 2010 levels, but remain above lows posted in the current year. Sales volume has gained strength over the past 120 days, with year‐to‐date sales lagging only 480 units behind last year. Yearendfigures are expected to be posted next month and will likely show a 4‐5% loss in volume, when compared to 2010. 

 

Jefferson County Market Comment:
Realtors® posted 617 closed sales in Jefferson County in November, a decline of 3% from October, but an increase of 11% over November 2010. For the year, the average Jefferson County selling price has lost 3% from a similar period last year. The supply of homes on the market in Jefferson County stands at 4791, down 408 units from October, but up 446 units from November 2010. At the current absorption rate, the county has a 8 month inventory of homes on the market. Year‐to‐date sales in the county stand at 7036 units, down 5% from a similar period last year. In summary, the Jefferson County market followed the broader GLAR analysis by posting an increase in sales volume when matched against the same period last year, while recording the lowest inventory level of the year.

Oldham County Market Comment:
The number of closed sales in Nov 2011 almost mirrored closed sales of Nov 2010, bringing the YTD total up 7.8% compared to the same time last year. The YTD median price figure was up 1% ($236k vs $234k) and is less volatile than single month data points. The number of sales going under contract in Nov 2011 was 48 vs. 52 during Nov 2010, and the inventory of unsold homes remained higher than last year by 10%. Continued low mortgage rates, improved local employment trends and consumer confidence will be the key factors that will allow for the absorption of the current inventory of homes and the resumption of a balanced market in Oldham County.

Bullitt County Market Comment:
Realtors® posted 66 closed sales in Bullitt County in November 2011, nearly even with the 63 units sold in October and 65 units closed in September 2011. However, the November sales were up nearly 136% from November 2010. The average selling price in the county for November was $137,666, down $4,920 from October, and down 7% from November 2010. Year‐to‐date sales, in the county, stand at 689 units, down 3% from a similar period in 2010. Supply, or the number of homes on the market, has fallen to 546 units, down 19 units from October, but up nearly 14% from a similar period in 2010.

http://www.LouisvilleRealtors.com

99-Cent Solutions

NAR’s House Logic has some great ways to fix some everyday items in your home  for just 99 cents.
Click here to check out how to:
#1 – Fix scuffed countertops
# 2 - Repair a torn window screen
#3 – Patch a drywall hole
# 4 – Fix a loose cabinet hinge
#5 – Fix a stripped screw

Now that’s a bargain!

Stolen Christmas: 5 Ways to Prevent Horrible Holiday Crimes at Home

With Christmas just around the corner, home owners are neck-deep in decorations and last-minute shopping, excited to soon share their holiday cheer with loved ones. But thieves and vandals also have something to look forward to in the holiday season. Cars and homes filled with easy-to-grab boxed goodies and lawns decked out with opulent embellishments make tempting targets for predators. To help you make sure the naughties don’t ruin it for the nice, here are a few tips for protecting your home.

1. Keep your “check-ins” in check.

Three months ago in Nashua, N.H., burglars targeted a home because the occupant told his Facebook “friends” he was going out of town. Announcing to your whole social network that you’re not home or that you just received an expensive present may not be a good idea. The ACLU and others have cautioned against posting information about where you are and what you do. If it falls into the wrong hands, the consequences could be dangerous.

It’s also something to think about if you’re out shopping for good deals. Through location-based applications such as Facebook Places and Foursquare, vendors are offering valuable promotions to shoppers who “check-in” at participating stores. But broadcasting this type of information could cost you more than it could save.

Protect yourself:
Never allow check-ins at your own home (you’ll be alerting potential thieves to your address).
Don’t make comments about items you’ve purchased or received as gifts.
Don’t check in online when you’re out of town.
Limit sharing information to friends and family by only accepting people you know as friends and followers.

2. Remember to lock your door.

There’s something Iraq War veteran and Rhode Island resident Christopher Adamovich, recipient of three purple hearts, will never again forget—to lock his back door. Last Christmas, the first he had planned to celebrate in his newly bought home, he was robbed. Thieves entered through the unlocked back door and made off with hundreds of dollars of presents, including a Nintendo Wii, a Sony DVD player, and assorted toys. This type of scenario isn’t uncommon. Security company ADT says 40% of all burglaries are termed as “no force entries.” That means the predators gain entry through unlocked doors and windows.

Protect yourself:
Check all doors and windows are locked and that your deadbolt (if you have one) works.

3. Don’t give vandals a chance to act.

In 2009, a North Carolina family decided to turn their front yard into a winter wonderland, complete with inflatable Winnie the Pooh and Grinch figures, to celebrate their little boy’s second birthday. It was a momentous occasion—their little one suffered from a rare bone disease and wasn’t expected to live long. Sadly, he has since passed away. During the display’s first night out, before they could show it off to little Ethan in the morning, vandals slashed the larger-than-life characters. Some acts of vandalism are premeditated and some are spur of the moment, but both leave you with expensive property damage and a ruined holiday.

Protect yourself:
Install motion detector lights on all sides of your house, and if possible make sure they’re visible from the road.

4. Deny easy access to the garage.

In November, a Corpus Christi, Texas, family left their garage door opener in their truck overnight. To their dismay, they woke up to discover thieves had used it to gain access to their garage. All the tools, a lawn mower, and other equipment were stolen—along with all of the Christmas presents the family had stored in the garage for their daughter. It’s convenient to keep the garage door opener in the car for easy access. It’s also just the kind of thing observant criminals are on the lookout for.

Protect yourself:
Never leave your garage door opener in your car.
Always make sure your garage door is closed and locked, with the inside door secure.
Don’t tempt fate—try not to use the garage as a hiding place for gifts.

5. Display the tree, not the gifts.

For many families, a perfectly picturesque holiday includes the Christmas tree, all done up with lights, ornaments, and beautifully wrapped gifts, displayed in front of the living room window. Trouble is, it’s a scene crooks also like to see.

Protect yourself:
Don’t put out your gifts until Christmas Eve.
Dispose of product boxes at a recycling center, not your garbage cans.

All it takes is one thief’s determination to potentially ruin your holiday. Remain vigilant this Christmas!

Source: NAR’s Houselogic.com.

Read more: http://www.houselogic.com/home-advice/home-security/stolen-christmas-5-ways-prevent-horrible-holiday-crimes-home/#ixzz1gQo9rFc9

6 Tips for Terrific Holiday Lights

Get terrific holiday lights by following these six tips for holiday lights from Mary Beth Gotti, director of the GE Lighting & Electrical Institute:

• Know your lights. If you’re buying new lights, make sure they’re compatible with your existing light strings.

• Unsure how many lights you need for your tree? Figure 100 to 150 lights per vertical foot of the tree.

• Use LED holiday lights on your tree. LED holiday lights use up to 80% less energy and are cooler than traditional incandescent lights.

• Add movement. Want that snowflake display to sparkle or your eight tiny reindeer to trot? Give the illusion of movement with color changing lights. Many options are available, including twinkling, chasing, and fade-in, fade-out styles. New this year: cascading icicles with a circuit that gives off a melting effect.

• Mix lighting styles. To make holiday lighting stand out, pair strings of different sized lights together to add depth to decor. On the tree, set a base of white lights at the bottom and continue upward, adding strands of large bulbs and novelty lights for color and variety.

• Find inspiration. Every year, thousands of tree lighting ceremonies take place all over the country. Draw ideas from these magical designs. One of the most renowned tree lightings is the National Christmas Tree in President’s Park, a tradition that began in 1923.

  Source: GE Lighting & Electrical Institute
  From: NAR’s HouseLogic.com

Read more: http://www.houselogic.com/news/lighting/6-tips-terrific-holiday-lights/#ixzz1gQm9gGnG

Holiday House Selling Tips

Are you selling your home during the Holiday Season?  If so there are some unique challenges you might face.   Many potential home buyers are more focused on the Holiday Season and all of the excitement that goes with it than on buying a home.   Here are some simple tips to help put you in front of the pack this season and get your home sold.

Minimize Your Decorations
Minimizing Christmas décor can help to make the house look as big as possible. Use a smaller Christmas tree and try to keep decorations neutral. Don’t distract the buyer with over the top decorations.

What Smells So Good!
Use the wonderful smells of Christmas to make your home more attractive to buyers. Using scents such as cinnamon or spruce will enhance the experience for them and give a favorable impression.

You Always need Curb Appeal
Since the exterior is the first thing a home buyers sees, give your home the curb appeal it needs to make a favorable first impression   Get rid of all the dead leaves, shovel a clear path  for walkways and take down those outdoor container with dead flowers.  Make any exterior repairs your home may need and paint any areas that need to be refreshed or touched up.

Market the House and Price it to Sell!
Try using a virtual video tour of your home as well as photos taken of your house during spring and summer months so that buyers can see what the landscaping looks like when it is warm. With the help of your REALTOR, research what comparable homes have sold for in the immediate area and price your house to sell. 

Remember, you need to make your home as appealing as possible to nab that potential home buyer.  Use these tips and the advice of your local REALTOR to get your home sold!

Find the Home Loan that Fits Your Needs

Article From BuyAndSell.HouseLogic.com
By: G. M. Filisko

Understand which mortgage loan is best for you so your budget is not stretched too thin.It’s easier to settle happily into your new home if you’re confident you can afford it. That requires that you understand your mortgage financing options and choose the loan that best suits your income and ability to tolerate risk.

The basics of mortgage financing

The most important features of your mortgage loan are its term and interest rate. Mortgages typically come in 15-, 20-, 30- or 40-year lengths. The longer the term, the lower your monthly payment. However, the tradeoff for a lower payment is that the longer the life of your loan, the more interest you’ll pay.

Mortgage interest rates generally come in two flavors: fixed and adjustable. A fixed rate allows you to lock in your interest rate for the entire mortgage term. That’s attractive if you’re risk-averse, on a fixed income, or when interest rates are low.

The risks and rewards of ARMs

An adjustable-rate mortgage does just what its name implies: Its interest rate adjusts at a future date listed in the loan documents. It moves up and down according to a particular financial market index, such as Treasury bills. A 3/1 ARM will have the same interest rate for three years and then adjust every year after that; likewise a 5/1 ARM remains unchanged until the five-year mark. Typically, ARMs include a cap on how much the interest rate can increase, such as 3% at each adjustment, or 5% over the life of the loan.

Why agree to such uncertainty? ARMs can be a good choice if you expect your income to grow significantly in the coming years. The interest rate on some-but not all-ARMs can even drop if the benchmark to which they’re tied also dips. ARMs also often offer a lower interest rate than fixed-rate mortgages during the first few years of the mortgage, which means big savings for you-even if there’s only a half-point difference.

But if rates go up, your ARM payment will jump dramatically, so before you choose an ARM, answer these questions:

•How much can my monthly payments increase at each adjustment?

•How soon and how often can increases occur?

•Can I afford the maximum increase permitted?

•Do I expect my income to increase or decrease?

•Am I paying down my loan balance each month, or is it staying the same or even increasing?

•Do I plan to own the home for longer than the initial low-interest-rate period, or do I plan to sell before the rate adjusts?

•Will I have to pay a penalty if I refinance into a lower-rate mortgage or sell my house?

•What’s my goal in buying this property? Am I considering a riskier mortgage to buy a more expensive house than I can realistically afford?

Consider a government-backed mortgage loan

If you’ve saved less than the ideal downpayment of 20%, or your credit score isn’t high enough for you to qualify for a fixed-rate or ARM with a conventional lender, consider a government-backed loan from the Federal Housing Administration  or Department of Veterans Affairs.

FHA offers adjustable and fixed-rate loans at reduced interest rates and with as little as 3.5% down and VA offers no-money-down loans. FHA and VA also let you use cash gifts from family members.

Before you decide on any mortgage, remember that slight variations in interest rates, loan amounts, and terms can significantly affect your monthly payment. To determine how much your monthly payment will be with various terms and loan amounts, try REALTOR.com’s online mortgage calculators.

Visit houselogic.com for more articles like this. Reprinted from HouseLogic with permission of the NATIONAL ASSOCIATION OF REALTORS®
Copyright 2011.  All rights reserved.

7 Steps to a Stress-free Home Closing

Article From BuyAndSell.HouseLogic.com
By: G. M. Filisko

By doing homework in advance, you’ll understand what you’re asked to sign when you close the sale of your home.You’ve already cleared several hurdles by finding the right home, negotiating the best price, and securing favorable financing. The last obstacle on your homebuying track is the closing, which can be both tedious and tense. By knowing what to expect and doing some legwork, you can put your closing behind you. These seven steps will guide you through a smooth closing.

1. Set a closing date

Your real estate agent will work with the seller’s agent and title company to schedule your closing date. Be sure it meshes with the end of your lease or the sale of your existing home and a time when you’ll able to play hooky from work. If you’re tight on cash, schedule your closing for the end of the month because that’s when you’ll have to pay the least amount of interest at the closing table.

2. Gather your funds

You may be required to bring funds to the closing. If they’re not easily accessible, arrange early to transfer them to a liquid account to avoid last-minute problems. If the title company requires the funds in the form of a cashier’s check, also leave time to stop by the bank and pick one up.

3. Purchase title insurance

Title insurance protects the policyholder against trouble with a home’s title. Your lender will insist that you purchase a policy to protect it. You should also consider purchasing what’s called an owner’s title policy from the same insurer, which protects you from fraudulent claims against your ownership and errors in earlier sales. In some areas, sellers traditionally pay for the buyer’s title policy. Shop online at Closing.com (http://www.closing.com), EasyTitleQuote.com (http://www.easytitlequote.com), and FreeTitleQuote.com (http://www.freetitlequote.com). If your home has been sold within the past few years, ask the prior owner’s insurance company for a reissue discount.

4. Line up homeowners insurance

Get quotes and compare policies to be sure coverage will be in effect by your closing date. An annual policy should run $500-$1,000, depending on your home’s size, age, and amenities. If you live in an area where natural disasters occur, like earthquakes, floods, or hurricanes, you’ll need separate insurance to protect your home.

5. Review your good-faith estimate and HUD-1 settlement sheet

Your lender must provide a good-faith estimate of your closing fees. Some of those fees can’t change, and others can rise by 10%. Before you go to the closing, read your good-faith estimate, compare it with your HUD-1 settlement statement, and question any fees that increased.

6. Do a walk-through

Schedule an appointment to walk through the home one last time just before your closing. Make sure repairs you requested have been made, no major changes have occurred since you last viewed the property, and that the sellers left anything they agreed to leave and took all their belongings.

Also test electronics and appliances, such as the doorbell, dishwasher, washer and dryer, and oven, to ensure they’re functioning properly. Do the same with the hot water heater and heating and air conditioning systems. Walk the yard to be sure no plants or shrubs have been removed.

7. Resolve issues identified in your walk-through

If your walk-through uncovers problems, in some states you can delay the closing until the seller corrects them. But that’s often not feasible because your lease is probably over and you’ve already scheduled movers. Another option is to negotiate a discount to your sales price to cover the cost of the work needed. If the air conditioning is on the fritz and a contractor says the repair will cost $500, ask that the sales price be reduced by that amount. If you make that request at closing, however, be ready for a delay while the title company redoes the paperwork.

A third option: Have the title company hold a portion of the seller’s proceeds in escrow until the dispute is resolved. Once that happens, the funds will be released to you or the seller, depending on the outcome.

Visit houselogic.com for more articles like this. Reprinted from HouseLogic with permission of the NATIONAL ASSOCIATION OF REALTORS®
Copyright 2011.  All rights reserved.

Time for Fall Cleaning

Just as spring-cleaning is needed for the warm summer months, it’s important to clean your home in preparation of the cold winter months, too. Just think of all that time spent indoors during the next few months. Check out some tips to get started here.

Simple tasks that take barely any time at all, such as flipping your mattress over, are a great way to begin. Other ideas, such as vacuuming your drapes and window accessories may take longer, but are still very important. While the vacuum is out, move the furniture (and even appliances) around to clean the places that have been neglected for the past few months.

Other ideas to get ready for the winter months include cleaning your carpet. Summertime is great for hosting parties and having company at your house. Now that it’s fall, it’s time to think of all the dirt they tracked in. With the comfortable fall weather, it’s also a great time to tackle the window-cleaning project. Take out the screens, wipe everything down, spray them out and make sure they are properly sealed to keep the heat in.