Real Estate Information Archive

By the Numbers

New Home Sales numbers in the Louisville Kentucky area for December 2009 appear to have fallen. I say “appear”, because there are several reporting sources and updates may still come in. The numbers show that Home Sales for December 2009 were off 5.31% from a poor December 2008. To make matters worse, the December 2009 sales were actually better than they should have been. Remember that some of the closings in December were actually delayed from November 2009 because some mortgage companies (specifically their underwriters) dragged their feet approving home buyer’s loans and some appraisers slowed their pace to the speed of a snail.

The Big Picture

Up until December 2009, the picture looked rosy. Louisville Real Estate Sales started to climb steadily in June.  Thanks to the $8000 first time home buyer’s tax credit, a new home construction tax credit and low interest rates we could say with confidence that the home sales recovery was well underway in Louisville Kentucky.  As the deadline for the first time home buyers tax credit approached in November, home sales were actually brick. November Home Sales were actually up 57.16% (by one reporting services account) over November 2008.

What Happened

Even though our lawmakers extended the $8000 first time home buyers tax credit and added an additional $6500 tax credit for home owners (living in their current home 5 years) who wanted to move, sales in December fell flat. The urgency to buy and close before the original tax deadline was gone. The need to take advantage of the free money from Uncle Sam could be put on the back burner for the time being.

2010 looks ripe for a comeback

Our phones are ringing at the Medley Sokoler team office with requests to see properties; our websites are humming away with buyers looking for a good deal. Those are 2 good indicators that 2010 could end up being a recovery year for the real estate Industry in Louisville. Some new home builders we work with are starting new construction and interest rates are staying stable (at least as of this New Year’s Day writing) more good news for the housing industry. We also expect to see a lot more homes coming onto the market as sellers regain confidence in the market.

A word of caution to all would-be sellers

 Make sure your home has been staged properly and repairs have been made, make sure your realtor has done a through competitive market analysis (CMA) to determine an accurate price. Appraisers are watching prices closer than ever before; buyers are shopping longer and taking more time than ever to find the best home in the best condition with the best price. Only the most competitive homes will sell and only the correctly priced homes will pass the scrutiny of the appraiser.

Spurred on by the $8000 first time home buyers tax credit, Louisville home sales jumped by a whopping 40 Percent in November when compared to a November 2008! Many of the sales were in the $100,000 to $200,000 price range, the target of first time buyers.  Sellers of those homes moved up as homes in the $200,000 to $300,000 price point also did well.

Not All The News Is Good 

Homes going under contract slowed during the month of November as the original 1^st time home buyers tax credit deadline neared. Early in November the tax credit was extended to the end of April 2010 (to be under contract) and the end of June 2010 (to be closed). The extension took the pressure off buyers and the search for homes by first time  buyers slowed.  Officially the number of homes going under contract was up 11% in November over November of the year before.

Looking Forward To December 

Because of tighter mortgage requirements and slower appraisals of homes, sales in December should be better than expected. Those two factors delayed closings that were supposed to have occurred in November. The slowdown will help boost December 2009 numbers and give a false sense of recovery. Unless we see more buyers come into the market during December and January, Home sale figures for the beginning of 2010 could fall far short of hopes and expectations.

Other Tax Credits

The local and National media have done little to promote the brand new $6500 tax credit for home owners who have owned their home for 5 years or more and buy their next home. Additionally we’re seen little publicity surrounding the $5000 new construction tax credit in Kentucky. 

For more information head to www.weselllouisville.com.

November 2009

November 2008

Have you heard some of these so-called business experts on cable TV who say the $8000 first time home buyers tax credit has done nothing to help home sales or the economy? To them I simply ask what rock are you living under?

New Louisville Kentucky home sales figures for the month October tell a very positive story. The number of homes sold in October 2009 was up 21 % over same time in 2008. Homes going under contract in October 2009 were up 37 % over the year before.  Now you cable-TV business experts, please read the following sentence carefully, the majority of the homes that are selling are in the price range of first time buyers. Get it? No? Read the raw data below, the numbers tell the story.

For the rest of us tracking home sales, it’s pretty obvious that the $8000 tax rebate has helped home sales and the economy. Especially when you consider that many of the home buyers spend the tax credit money on fixing up the new house, buying new furniture and TV’s and more. Now the government is about to expand the credit. That could go a long way to helping our economy over the slower winter home sales months. The numbers for October 2009 also show that the average selling price of homes in our area was up about ten thousand dollars from the year before. The bad news is that the time it takes to sell a home was up.

Still the overall trend is good and may continue if our lawmakers read the numbers and keep their TV’s tuned to anything other than those self proclaimed Cable TV business experts!

 October 2009

October 2008

Great news for Louisville Home owners and anyone looking to buy Louisville Real Estate. A new report published today by U.S. News and World report picks Louisville Kentucky as one of the “10 Cities primed for a Real Estate Recovery”!  The article sites the fact Louisville’s real estate market never saw double digit appreciation so there was less room for Louisville Home prices to fall. On a negative note the article points to the recent Ford Motor plant layoffs and cutback in manufacturing. But also points to the recent UPS expansion and attendance at job fairs has been on the decline. Louisville was included in the “10 Cities primed for a Real Estate Recovery “article along side cities like Birmingham Alabama,  Philadelphia Pennsylvania and  Portland Oregon. Our Medley Sokoler team has been very busy the past couple of days with 5 contracts accepted in 4 days. As of this writing, the $8000 first time home buyers tax credit will end at the end of November, so first time buyers should be looking for a home now. To contact the Medley Sokoler Team call (502) 376-5483 or head to www.weselllouisville.com or www.louisvillehomestoday.com.

It’s the home sale version of the cash for clunkers car rebate!  Louisville area home sales for the month of July jumped through the roof in July of 2009. Our area saw a 21% increase in home sales from July 2008 but were still 13% below the levels of July 2007 (before the housing market tanked).

 Another great sign that the Louisville housing market is going in the right direction, homes going under contract in July 2009 compared to the year before were up 32%.

The peak performing home prices were in the 100,000- 160,000 and 200,000-250,000 price ranges. Clearly the $8000 first time home buyers tax credit and lower interest rates played a major part in the homes sales increase and at the same time the people living in those entry levels homes were able to buy their next home which would typically be in the 200,000-250,000 price point.

The numbers show that the tax credit is a winner and along with the success from the cash for clunkers car traded-in program that was extended again this past Friday, our government should realize that extending and expanding the home buyer tax credit program would go a long way to moving the housing market and economy into the recovered category!  

For more information about The Medley Sokoler Team, head to www.weselllouisville.com

 July 2008

Linda is about to move into her new Louisville home! We closed on it yesterday and because she’s a first time buyer, Linda is now able to get back $8000 on her taxes. She can amended her 2008 tax return and get it back within a couple of months or wait until next year and file the tax credit with her 2009 taxes. Either way Linda is off to a great start and the Medley Sokoler team was glad to be a part of it. We wish Linda the very best and we’ll always be here for her. For more information on The Medley Sokoler team and Louisville Real Estate, call 502-376-5483 or visit one of our websites: www.weselllouisville.com or www.louisvillehomestoday.com .

Greg and Erin are 2 of Louisville’s newest homeowners. In addition to buying a great home, the couple will also get back $8,000 thanks to the 1^st time buyer’s tax credit from the federal government. We always wonder how our team does. From looking, to negotiating to closing we what our clients to be happy with the louisville real estate they purchase! Greg and Erin were free to say anything they want about the Medley Sokoler team. For more information about us head to www.weselllouisville.com