Since 2005 the economy has added 4 million new jobs, wages have grown by 8% and houshold wealth has grown by $5 trillion dollars.
When you add interest rates expected to remain low and availability of homes to chose from buyers will be able to find some very good investment opportunities.
Monday, December 31, 2007
Thursday, December 27, 2007
Success Story
A recent client of mine was able to sell their current home in 10 days at full price and purchase their move up home at a roughly $30,000 discount from the builder.
The Louisville market remain strong despite what you might have heard.
The Louisville market remain strong despite what you might have heard.
Tuesday, December 18, 2007
Credit Worthiness
Your credit worthiness has always been important to the home buying process. It not only allows you to shop for the mortgage product that best fits you situation but can also affect the total cost of your mortgage.
In light of recent problems with the sub-prime mortgage market, lenders are beginning to reevaluate how they manage risk. Some are considering adding fees in order to improve their ability to be weather losses.
Don’t let your credit worthiness affect the cost you have to pay for a mortgage.
If in doubt about your situation, contact a mortgage consultant who can give you advice and direction on how to position yourself for the most cost effective mortgage possible.
In light of recent problems with the sub-prime mortgage market, lenders are beginning to reevaluate how they manage risk. Some are considering adding fees in order to improve their ability to be weather losses.
Don’t let your credit worthiness affect the cost you have to pay for a mortgage.
If in doubt about your situation, contact a mortgage consultant who can give you advice and direction on how to position yourself for the most cost effective mortgage possible.
Thursday, December 06, 2007
National average data doesn't reflect strength of Local Markets
Louisville is akin to other local markets throughout the country that while not setting huge rates of appreciation it is also not likely to fall victim to bursting bubbles.
This was most recently reiterated by Lawrence Yun the chief economist for the National Association of Realtors
“A national picture of the real estate market is just about as valuable as giving a national high temperature for the day".
The following is an example featuring the Kansas City real estate market which in many rfespects mirrors the Louisville market.
Although the Realtors report that the national median price declined 2 percent during the third quarter compared with a year earlier, the price in the Kansas City area declined just 0.7 percent, to $157,000.
That difference speaks to the fundamental fact that Kansas City historically has not been a particularly volatile housing market. Although we didn’t soar as high during the recent housing boom, we are equally unlikely to suffer as much as the national average during the correction.
Now, consider this little nugget that often goes unnoticed amid the nationwide hand-wringing over housing.
Ninety-three of 150 metropolitan markets tracked by the Realtors actually posted median home price gains during the year ending in the third quarter. Although Kansas City wasn’t among them, most of those gainers are midsized markets in the country’s vast middle section akin to ours.
The focus on recent declines in nationwide housing values also tends to ignore the previous — and, admittedly, unsustainable — run-up in values.
Despite the recent 2 percent dip in median home prices nationwide, the Realtors report that the typical seller posted a 38.8 percent increase in value over the past six years.
Now, none of this is intended to downplay the housing market correction that is under way both here and across the country. It’s as real as the “reduced” sign down the street.
Clearly, it’s a buyer’s market, with 15,788 existing homes available for sale in the metropolitan area, according to the latest report from the Kansas City Regional Association of Realtors. That’s eight months of supply at the current sales rate, which is more than the six-month supply typically considered to be a balanced market. And that’s the main reason the sales price has slipped a bit over the past year.
But at this point it’s hardly a disaster. The local housing market is simply undergoing a needed, if painful for some sellers, market correction. Prices are coming down some to clear a backlog of accumulated inventory, and include a recent increase in foreclosure properties. But mortgage rates also are drifting lower for qualified buyers, which should help demand. And assuming the broader economy doesn’t slip into recession, the local housing market will turn the corner sometime next year.
Bottom line: It’s a great time for buyers, and a tough time for sellers. Markets adjust.
This was most recently reiterated by Lawrence Yun the chief economist for the National Association of Realtors
“A national picture of the real estate market is just about as valuable as giving a national high temperature for the day".
The following is an example featuring the Kansas City real estate market which in many rfespects mirrors the Louisville market.
Although the Realtors report that the national median price declined 2 percent during the third quarter compared with a year earlier, the price in the Kansas City area declined just 0.7 percent, to $157,000.
That difference speaks to the fundamental fact that Kansas City historically has not been a particularly volatile housing market. Although we didn’t soar as high during the recent housing boom, we are equally unlikely to suffer as much as the national average during the correction.
Now, consider this little nugget that often goes unnoticed amid the nationwide hand-wringing over housing.
Ninety-three of 150 metropolitan markets tracked by the Realtors actually posted median home price gains during the year ending in the third quarter. Although Kansas City wasn’t among them, most of those gainers are midsized markets in the country’s vast middle section akin to ours.
The focus on recent declines in nationwide housing values also tends to ignore the previous — and, admittedly, unsustainable — run-up in values.
Despite the recent 2 percent dip in median home prices nationwide, the Realtors report that the typical seller posted a 38.8 percent increase in value over the past six years.
Now, none of this is intended to downplay the housing market correction that is under way both here and across the country. It’s as real as the “reduced” sign down the street.
Clearly, it’s a buyer’s market, with 15,788 existing homes available for sale in the metropolitan area, according to the latest report from the Kansas City Regional Association of Realtors. That’s eight months of supply at the current sales rate, which is more than the six-month supply typically considered to be a balanced market. And that’s the main reason the sales price has slipped a bit over the past year.
But at this point it’s hardly a disaster. The local housing market is simply undergoing a needed, if painful for some sellers, market correction. Prices are coming down some to clear a backlog of accumulated inventory, and include a recent increase in foreclosure properties. But mortgage rates also are drifting lower for qualified buyers, which should help demand. And assuming the broader economy doesn’t slip into recession, the local housing market will turn the corner sometime next year.
Bottom line: It’s a great time for buyers, and a tough time for sellers. Markets adjust.
Tuesday, December 04, 2007
Net worth higher for home owners
According to the Federal Reserve Board they consitantly find that the net worth of a homeowner versus a renter is staggering.
The average net worth of a homewoner is $184,000 versus $4000 for renters.
The average net worth of a homewoner is $184,000 versus $4000 for renters.
Friday, November 30, 2007
Do you have the right smoke detectors installed?
In metro Louisville you are required by city ordinance to have either a hardwired smoke detector(one that uses your home's electricity for power) or a ten year non-replaceable lithium battery smoke detector.
When you sell your home you must certify that you have the appropriate smoke detector.
Even if you are not selling your home you are still liable for damages to property and residents as a result of not having the appropriate smoke detectors installed.
Not worth the risk!
When you sell your home you must certify that you have the appropriate smoke detector.
Even if you are not selling your home you are still liable for damages to property and residents as a result of not having the appropriate smoke detectors installed.
Not worth the risk!
Thursday, November 29, 2007
Has your home been tested for Radon gas accumulations?
Radon gas is created by the decomposition of radio active material present in the earth. It dissipates very rapidly to the atmosphere. It has been linked to long term health effects.
This is only a problem is when the gas accumulates in the basement or crawl space of a home. The geological make up around the Louisville area is susceptible to radon gas accumulations.
When buying a home in the Louisville area you should seriously consider have a radon test performed during your home inspection process. If unacceptable levels of Radon gas are found you have an opportunity to ask the seller to install a radon mitigation system at their expense. Radon gas levels below 4 pCi/l are considered safe. Some home test as high as 100 plus.
Radon mitigation systems may cost $700 and up to install and can reduce radon levels to below 2 pCi/l.
Definitely worth the $80-$150 cost for the testing.
This is only a problem is when the gas accumulates in the basement or crawl space of a home. The geological make up around the Louisville area is susceptible to radon gas accumulations.
When buying a home in the Louisville area you should seriously consider have a radon test performed during your home inspection process. If unacceptable levels of Radon gas are found you have an opportunity to ask the seller to install a radon mitigation system at their expense. Radon gas levels below 4 pCi/l are considered safe. Some home test as high as 100 plus.
Radon mitigation systems may cost $700 and up to install and can reduce radon levels to below 2 pCi/l.
Definitely worth the $80-$150 cost for the testing.
Wednesday, November 14, 2007
Be sure to choose the right lender
Choosing the right lender can afford you protections that may not be obvious!
Ask you realtor for the risks you may be avoiding!
Ask you realtor for the risks you may be avoiding!
Final walkthrough prior to closing
Don't forget to do a final walk through before you close on your new home!
Stake Surveys
Purchasing a stake survey is highly recommended!
Stake surveys, in a significant percentage of cases, uncover defects that could dramatically reduce your property's value.
Possibilities include;
A neighbor's house or shed could be on your property
Stake surveys, in a significant percentage of cases, uncover defects that could dramatically reduce your property's value.
Possibilities include;
A neighbor's house or shed could be on your property
Your house could be on top of a utility easement rendering it unmarketable
Your yard may not be as big as you think
Fences, sheds would have to be demolished if they are in a utility easement
Don't get a surprise you can't live with!
Saturday, November 10, 2007
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