Three Predictions for Real Estate

3 Big Predictions REVEALED for Real Estate

By:
Daily Real Estate News 
August 2, 2012
&
Brian Summerfield, REALTOR Magazine

 

1. Rates will remain low for at least another year. 

2. No matter what happens, the government will continue to play a major role in mortgage financing.

 

3. Hard assets such as oil, gold, and real estate will probably be on the rise for some time to come. 

Read ALL the Details..... Click HERE 

What's Happening in Louisville's Market?

Market Update for Louisville, Kentucky

Market Insights:
 

• Price rebound: 68% say prices will be higher by the end of 2012.

• Today’s prices: 29% below the peak reached during the housing bubble.

• Demand for lower-priced properties: 80% of agents say it’s good or very good.

• Demand for homes in the middle-price ranges: 71% rate it as fair to good.

• Demand for high-priced homes: 58% call it poor to fair.
• Interest rates are in the high 3's and low 4's.

• Roughly one third are first-time buyers. Another third are homeowners looking to sell so they can move up or downsize. The remainder are mostly investors, who believe the market has hit bottom.

• One in five buyers pays cash, receiving an average discount of 15%.

Want to discuss the opportunities in today's market? 

MelissaPawley@remax.net

502.315.1561

Discounts We Offer

If you work with a member of the
Joe Simms Group
you get ALL of these

EXCLUSIVE BENEFITS

on top of the traditional real estate work as YOUR AGENT

• 10% discount to Lowe's (on purchases up to $10,000!!!)
  
• 10% discount to hh Gregg
• Discounts on ADT Security System's
  
• Discounts & FREE Showtime for a Year from Insight Cable
• FREE pizza the day you move from Pizza Hut
• 15% discount at Valvoline Instant Oil Change
  
• FREE boxes & discounts from A Arnold Moving Van Lines
• BUILDER price @ Trend Appliances
  
  
  ONE YEAR
  HOME WARRANTY
  
  Buyers, just remember.......
• I guarantee a ONE YEAR HOME WARRANTY on the home you purchase
  (if the seller's won't pay for it, I will!)

Has Louisville hit bottom?

What's going on with the Louisville market now?

First, let's take a look at Louisville's market over the past 40 years.

(click to view larger)

We have shown to have a fairly stable real estate market with having dropped in history only twice. Once, in 1982 the market dropped -5.14% but immediately came back the next year. This was due to the interest rates being at an all time high of 18%. That's right, 18%!!

The real estate market steadily appreciated over the next 20+ years.

In 2006 & 2007 homes appreciated less than 1%.
This was when the economy started to hit the breaks.

In 2008, Louisville's market fell -5.90%.
(At least we didn't drop 20% like Florida, California, Nevada, etc!!)

In 2009, the market dropped less than 1% again.

And................

........................2010......................

Louisville's market

APPRECIATED

+3.53%!!!!


That's right! Appreciated.
You won't hear that from the media.

Based on these historical numbers, that would mean that the Louisville market has started rising again. Therefore, we have already hit bottom and have started our rise back to normal.


This data was collected each year looking at all of the Single Family Homes that were listed and sold in the Louisville Board of Realtors' Multiple Listing Service.


As, Frank Sinatra would say,
Start Spreadin' the News!

Tax Credit Deadline Extended

CAN YOU STILL GET YOUR $8,000?

Washington, D.C.
July 01, 2010

The National Association of Realtors® today commended Congress for timely passage of two bills to extend the home buyer tax credit closing deadline and reauthorize the National Flood Insurance Program. Both bills, strongly supported by NAR, had cleared the House earlier and were passed by the Senate last night. They now head to the president for his signature.

The tax credit closing deadline and the NFIP reauthorization were extended to September 30. NAR worked closely with congressional leaders on both sides of the aisle to enact these important pieces of legislation. Extending the tax credit closing and flood insurance deadlines will help provide additional stability to real estate markets across the nation, NAR said.

“What a great way to begin celebrating our nation’s most patriotic holiday by opening the door to the American dream of homeownership to thousands of home buyers who would have been shut out of the homes of their dreams through no fault of their own,” said NAR President Vicki Cox Golder, owner of Vicki L. Cox Real Estate in Tucson, Ariz.

“We know that up to 180,000 home buyers eligible for the tax credit are rejoicing this morning. And we all thank both houses of Congress for their work to ensure passage of both bills,” Golder said. She singled out Senate Majority Leader Harry Reid (D-Nev.), Senate Minority Leader Mitch McConnell (R-Ky.), Senate Banking Committee Chairman Christopher J. Dodd (D-Conn.), Senator Johnny Isakson (R-Ga.), House Majority Leader Steny Hoyer (D-Md.), Congresswoman Shelley Berkley (D-Nev.) and Congressman Joe Courtney (D-Conn.) for their efforts to extend the tax credit closing deadline.

The passage of H.R. 5623, the Homebuyer Assistance and Improvement Act, applies the homebuyer tax credit closing deadline extension only to homebuyers who have ratified contracts in place as of April 30, 2010, but could not close before June 30. The legislation is designed to create a seamless extension of the new closing deadline for eligible transactions to September 30. There will be no gap between June 30 and the date the president signs the bill into law.

Article Provided By: Realtor.org

Melissa Simms
RE/MAX Associates
MelissaSimms@remax.net

Must Read Rules if You're Buying a Home.....

THE 10 COMMANDMENTS OF REAL ESTATE
When Applying For a Mortgage


Compliments Of:
Bev Leonhardt, Senior Loan Officer
American Mortgage Service Company


Thinking of buying that new refrigerator for the home you are purchasing?
Considering opening that 0% interest credit card at Best Buy?
THINK AGAIN.....otherwise you may not get that home you've written a contract on.

1. Thou shalt not change jobs, become self-employed or quit your job.

2. Thou shalt not buy a car, truck or van (or you may be living in it)!!

3. Thou shalt not use credit cards excessively or let current accounts fall behind.

4. Thou shalt not spend money you have set aside for closing.

5. Thou shalt not omit debts or liabilities from your loan application.

6. Thou shalt not buy furniture.

7. Thou shalt not originate any inquiries into your credit.

8. Thou shalt not make large deposits without checking with your loan officer.

9. Thou shalt not change bank accounts.

10. Thou shalt not co-sign a loan for anyone.


Melissa Simms
RE/MAX Associates
Louisville, Kentucky
MelissaSimms@remax.net

Pending Home Sales Rise for 3rd Straight Month

PENDING HOME SALES ON AN UPSWING

May 4, 2010----Pending home sales increased again in March, affirming that a surge of home sales is unfolding for the spring home buying season, according to the National Association of Realtors®.

The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in March, rose 5.3 percent to 102.9 from 97.7 in February, and is 21.1 percent above March 2009 when it was 85.0; this follows an 8.3 percent increase in February. The data reflects contracts and not closings, which usually occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, said favorable affordability conditions have been working with the tax credit. “Clearly the home buyer tax credit has helped stabilize the market. In the months immediately following the expiration of the tax credit, we expect measurably lower sales,” he said. “Later in the second half of the year, and into 2011, home sales will likely become self-sustaining if the economy can add jobs at a respectable pace, and from a return of buyer demand as they see home values stabilizing.”

The PHSI in the Northeast declined 3.3 percent to 75.1 in March but remains 27.2 percent higher than March 2009. In the Midwest the index increased 1.2 percent to 98.9 and is 18.5 percent above a year ago. Pending home sales in the South jumped 12.7 percent to an index of 121.2, which is 28.3 percent higher than March 2009. In the West the index rose 1.9 percent to 99.9 and is 8.8 percent above a year ago.

Read More

Written By: Walter Molony, Washington
Date: May 4, 2010
Article & Video Courtesy of: National Association of Realtors

New Listing off Smyrna Rd-$146,900

Just Listed!

6513 Daverman Court

$146,900

For a Virtual Tour....Click Here

• Tastefully Decorated Brick Ranch Home

• 3 bedrooms & 1 1/2 baths

• Approx 1700 finished sq ft (400 in lower level)

• New Carpet & Paint Throughout

• Huge Eat-In Kitchen w/White Cabinetry & Lots of Storage

• Dining Area Overlooks Patio & Private Backyard as well as Common Area

• Formal Living Room

• Master Bedroom with Private Half Bath

• Partially Finished Basement w/Huge Family Room & Recessed Lighting

• Fenced Yard Overlooks Common Area

• Conveniently located near Snyder Freeway

• Home sits on a quiet cul-de-sac

• Seller to Furnish a One Year Home Warranty

• Average LG&E bill for Seller is $70/month
  
  
  

Want to check out this home for yourself?

Call Me!

Melissa Simms @ 502-386-8739

Melissa's Easy & Delicious Lemon Coolers

LEMON COOLER COOKIES

Best quick dessert that everyone will love, if you can even get them out the door!
~Great for a memorial day cookout, bridal shower, or just to give to your favorite friends~

Ingredients:

• 1 package Duncan Hines Lemon Cake Mix
• 1 Tbsp. lemon juice
• 2 eggs
• 1/2 confectioner's sugar
  
  

  Directions:
  

  1. Preheat oven to 350 degrees.
  2. Mix cake mix, eggs, oil and lemon juice in a large bowl.
  3. Roll dough into teaspoon size balls & put in fridge for at least 1 hour.
  4. Put 1/4 C. confectioners sugar in a ziploc bag.
  5. Toss the balls in the confectioners sugar & place on parchment covered cookie sheets.
  6. Cook for 8 minutes. (Bottom will be light brown, sides crispy)
  7. Remove from oven and sprinkle rest of confectioners sugar on tops.
  

  
  
  

  Enjoy!
  

New Listing! 10802 Linn Station Road

WELCOME HOME!

10802 Linn Station Road
Louisville, Kentucky
$230,000

Take a Virtual Tour....Click Here

• Conveniently located off of Shelbyville Road and Hurstbourne Lane.
• Spacious 2 story home in GREAT move-in condition.
• Eat-in kitchen with white cabinetry, dishwasher, spacesaver microwave, range (refrigerator is negotiable).
• Formal living room, formal dining room, entry and powder room with hardwood flooring.
• Family room with gas log fireplace, berber carpet. Spacious master bedroom with separate bath.
• Second floor features 3 additional bedrooms and full bath.
• Full unfinished basement, 2 car side entry garage. All new insulated windows, new garage door, all updated mechanicals.
• Gazebo stays, but hot tub is negotiable.
• Beautiful landscaped and lightscaped backyard with 6' wood privacy fence surrounding
• This home is tastefully decorated and ready to move into.
• Quick possession!
• SELLER HAS SIGNED UP FOR ONE YEAR HOME WARRANTY FOR BUYER WITH Home Buyers Resale Corp.
  

Interested in a private showing?

Call Me!

Melissa Simms
Realtor @ RE/MAX Associates
Cell: 502-386-8739
MelissaSimms@remax.net

Top 10 Mistakes of First Time Buyers---Are You Guilty?

What are the 10 Mistakes of First-Time Home Buyers?

1. Not knowing how much house you can afford.
Maybe you've seen the shows on HGTV with a huge eat-in kitchen, nice granite countertops, chef quality appliances, and all the bells & whistles. When you get out looking you may end up at the top of your price range, but still disappointed in what's being offered on the market. Realize that you need to know what price range you can afford and then look at what homes in that price offer. Make sure you get pre-approved prior to looking. Don't even know someone to talk to in regards to financing? Ask your Realtor. That will probably be one of their first questions anyways, "Are you pre-approved?"

2. Assuming foreclosures are great deals.
Just because the previous owner owed more on the home than what it's listed for before the bank took it over doesn't mean it's worth that much now. Have your agent check the comparable homes in the neighborhood. Check the police reports for crimes in the area, this will give you a good idea if the neighborhood is also on a downward slope.

3. Letting your true feelings show.
So, you found the home you love and you are willing to pay the asking price or more. If you are working with an agent on the buying side, then it's ok to tell them you really want this home. That way they can let the selling agent aware of interest and if other offers come in you will be made aware as well. You don't want to tell the selling agent how you feel about the home, or else you will end up paying your top dollar.

4. Failing to find a good buyer's agent.
Your agent has a fiduciary responsibility to you as their client. Rely on them for their knowledge of mortgage loan officers to help you get pre-approved. Your agent should also know loan officers in the business that specialize in they type of financing that you need.

5. Underestimating the costs of owning a home.
Make sure you set aside at least 1% of the purchase price of the home for incidental repairs that may occur over your period of ownership. Since you are a first time buyer, and will have to spend money on new items for the home, your agent should ask for a one year home warranty when writing the offer so that you know if anything major occurs in the first year, you will be covered and only have to pay a small deductible. If you want to extend the warranty, you will have to extend that with the company directly.

6. Failing to budget for property taxes.
Every homeowner has to pay them, it's just the amounts that are different. Make sure you know prior to writing an offer if the home has a Home Owners Association. If so, then you will have to pay a yearly fee to the HOA in addition to the property taxes. Instead of paying one large sum of money out for the taxes once a year, ask your mortgage lender about having the taxes included in your monthly payment.

7. Assuming your first offer will get accepted.
Just because it's a buyers market, doesn't mean you can get the home for dirt cheap. You are still buying an investment. Seller's have their home priced at what they expect to start the negotiations. If they are reasonably priced then don't give them such a low ball offer that it offends them. Maybe the home needs some major repairs; get some quotes for these and send them in with the offer. That may help the seller come down in price a bit. Just like you may not want to pay full price for the home, the sellers don't want to sell the home for an unreasonably low price.
If the sellers are priced right and it's getting a lot of activity, then consider making them a very good offer. This will make the neogiating process go a little bit faster and help you to get the home before someone else does.

8. Skipping the inspection.
Never, never, never buy a home without knowing what work it will need. Even if the home is sold as-is, have a licensed inspector check the home for major/minor issues so you know what you are facing if the deal does go through. If the home is a "regular" sale, then make the contract contingent on inspections. That way if you find a few issues that need fixing, you can send a request for repairs to the sellers asking them to fix the items on the list that are of most importance to you.

9. Doing too much too fast.
Don't overextend yourself when looking or buying a home. After you get an accepted offer, don't run out and buy lots of large appliances or open more lines of credit. This may not only overextend your current bank account, but it may also cause you to no longer get financing. When you are pre-approved, that is based on your accounts and income as of that day. The less you go splurge, the better. I have recently heard of a pre-qualified buyer that got an accepted contract on a home, went out and bought a new refridgerator, and then found out, because of that purchase he was no longer qualified to buy. Ouch!

10. Failing to include a contingency clause in the contract.
Make sure your agent puts an inspection contingency in the contract. Also, make sure that your agent protects you with a financing contingency, so that way if the interest rate shoots up overnight, you do not have to buy the home unless you are ok with the new rate.

List of 10 Mistakes From: Smart Money
By: Lisa Scherzer /Published: April 2, 2010

Explanations & Examples:
Melissa Simms @ RE/MAX Associates
Louisville, KY
MelissaSimms@remax.net

Greenspan Reports:

HOUSING WILL COME BACK

March 24, 2010-----Former Federal Reserve Chair Alan Greenspan told officials in Mexico on Wednesday that he believes U.S. home prices have hit bottom. However, home owners are still unnerved by the decline in value, and until prices stabilize, the economy will remain weak.

"We will not be out of this crisis until home prices truly stabilize in the United States. They appear to have stabilized, but they are very fragile," Greenspan said in a televised interview.

"Eventually housing will come back; it can't get any lower," he added.

Source: Reuters News (03/25/2010)


More Real Estate Daily News: Realtor.org

Are McMansion's Loosing There Appeal?

LIVING SMALLER

Thursday, January 18, 2010

Are McMansion's loosing there appeal to the masses?

Is the small cottage with the white picket fence making a comeback?

It looks like home buyers are able to live in a smaller space and fix it up with all the bells and whistles. Many homeowners are paying attention to what buyers want and what the design shows are telling viewers; light, tranquil colors look best in smaller spaces. Homeowners are learning to work within their space to give it a modern appeal with a comfortable feel.

The average home sizes are declining. This may have to do with the current tax credit being offered, many first time home buyers are jumping into the marketplace. Someone purchasing their first home is most likely going to be buying one that is a modest price and size. Whether first time buyer, divorcee's, aging baby boomers, or just downsizing on size & mortgage payment; many are finding creative and beautiful ways of taking their smaller space to a whole new level.




LIVING BIG IN A SMALL HOME
"Although the average square footage of a new house is still double what it was in 1960, in the last year, it decreased slightly to 2,215 square feet from a high of 2,277 square feet in 2008, according to data from the U.S. Census Bureau. While the decrease doesn’t approach mid-20th century levels, it is the first drop in house size since the recession of the early 1980s." Read More.....

Article Source: Realtor Magazine
Issue: February 2010
By: Maggie Sieger

How is Louisville Divided Up?

DIVISION OF LOUISVILLE METRO AREA
&
SURROUNDING COUNTIES

Monday, January 11, 2010---Whether you've tried looking for homes online or even picked up the very thin Courier Journal Real Estate Section to see what's for sale, you may have been confused on the breakdown of the Louisville Metro area and surrounding counties.

MAP KEY- Major Areas & Neighborhoods

Area 1:
Algonquin
Old Louisville
Parkland
Portland
Shivley

Area 2:
Audubon
Butchertown
Bonnycastle
Camp Taylor
Cherokee Triangle
Germantown
Highlands
Phoenix Hill

Area 3:
Brownsboro-Zorn
Clifton
Crescent Hill
Indian Hills
St. Matthews

Area 4:
Chickasaw
Shawnee

Area 5:
Auburndale
Beechmont
Cloverleaf
Iroquois Park

Area 6:
Bashford Manor
Buechel
Fern Creek
Newburg
Okolona

Area 7:
Bon Air
Hikes Point
Klondike
St. Regis Park
Jeffersontown

Area 8:
Douglas Hills
Hurstbourne
Middletown
Plainview
Lake Forest
Lyndon
Oxmoor Woods
Polo Fields

Area 9:
Anchorage
Prospect
Hunting Creek
Indian Springs
Springhurst

Additional Area Codes-
Area 11: Bullit County (Mt. Washington, Shepherdsville, Hillview, Brooks)
Area 12: Other Kentucky Counties
Area 13: Indiana
Area 14: Other States
Area 16: Hardin County
Area 20: Oldham County North of I-71
Area 21: Oldham County South of I-71
Area 30: Shelby County (Simpsonville & Shelbyville)
Area 17: Spencer County ( Fisherville & Taylorsville)
Nelson County (Cox's Creek & Bardstown)

Will There Be Snow for Christmas?

DREAMING OF A WHITE CHRISTMAS?
Nicholas K. Geranios---Lexington Herald Leader---November 26, 2009

The National Climatic Data Center studies the chances of a white Christmas in various U.S. cities. For the period 1988-2005, the agency found that the probability of having an inch of snow on the ground on Dec. 25 ranged from 100 percent in Fairbanks, Alaska, to 1 percent in Phoenix.

For Lexington, the probability is 10 percent, the lowest among Kentucky's largest cities. Covington and Paducah are highest, at 17 percent, followed by London, 16 percent; Bowling Green, 14 percent; and Louisville, 13 percent. Read More

Merry Christmas!

Melissa Simms
RE/MAX Associates
MelissaSimms@remax.net

Tax Credit Extended & Expanded! 2009/2010

NATIONAL REAL ESTATE NEWS:

Bringing the Dream of Homeownership Within Reach

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:

• Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
  
• Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.
  

Find Out More!
The Extended Home Buyer Tax Credit: The Basics for REALTORS, Homebuyers, and Home owners from the National Association of REALTORS.

Photo & Article Courtesy: National Association of Realtors

Finding Your Dream Home

HOW TO:
FIND YOUR DREAM HOME

November 3, 2009---You may think that you are not picky on what you want in a home, but I bet you do have certain criteria that will determine the home you ultimately decide upon. Go ahead, be picky! After all, it is one of the largest purchases you ever make in your life. Real estate is ALWAYS a good investment if you are planning on living somewhere at least 5 years. Otherwise, you should rent.

Answer these questions:

1. What area(s) of town do I like best?
2. How much do I care about living close to work or school?
3. Do I need to live close to the interstate or expressways?
4. Do I want to live within a specific neighborhood?
5. Do I have a preference on construction: brick, vinyl, stucco exteriors?
6. How many bedrooms do I want at a minimum?
7. How many full bathrooms do I want at a minimum?
8. Do I want a newer construction home with all the amenities or a charming older home?
9. Do I like traditional two-story, ranch, tri-level, shotgun or contemporary style homes?
10. Do I need a basement?
    
11. Do I care if it is unfinished, partially finished, or fully finished? Walkout?
12. Will I be ok with a laundry in the basement or do I need it on the 1st floor?
13. Do I need a garage or will I be ok with parking on the street or in the driveway?
    
14. What type of garage? 1 car, 2 car, 3 car, attached, detached?
15. Do I need some yard for kids, gardening, etc. or is a condo/patio home a better choice for my lifestyle?

Now, take that list and read over your wish list. Are all of your answers possible to find in a home within the price range that you are looking to buy? Maybe you know that one of your answers is more of a "bonus" feature versus a "must-have". An in-ground pool would be nice to have for guests and kids, but it is probably not a necessity in your next home.

Pick out the features that you absolutely will not compromise on. Now send this list to your Realtor. It will help them to narrow down your search and send you the homes that best fit your wants & needs. You should still tell your Realtor what bonus features you would love to have, that way they can send you any listings that come on the market containing these dream home desires.

You may not find a home that has every single feature you originally set out to find, but you will love it all the same!



Melissa Simms
Realtor @ RE/MAX Associates
Louisville, Kentucky
Email: MelissaSimms@remax.net

Let's Move!

REASONS TO BUY A HOME THIS YEAR

September 3, 2009

1. Large Inventory of Homes
The news continuously puts fear in consumers with their gloom and doom stories, many times on a national level. This year has brought out more sellers than normal with people loosing their job, thus loosing their home due to improper guidence from day 1.

Compare 2008 to 2009
(Single Family Residential, Area 7 & Area 8, $120,000 to $160,000, 3 bedrooms, 2 baths)
With 124 homes for sale on the market, on average from September 2008 through August 2009, there is a good selection of homes to choose from that fit your specific wants and desires.

2. Mortgage Rates Are At a 30 Year Low

As you can see from the chart above, interest rates were at their peak in the 1980's ranging anywhere from 13% to 17%. Why? High interest rates were needed to counteract the rapid rise in inflation. In the current market, we are seeing interest rates around 6% for a 30 year fixed mortgage.

3. Home Are More Affordable Than Ever

According to the National Association of Realtors chief economist, Lawrence Yun, “Housing affordability has been at record highs this year with the added stimulus of a first-time buyer tax credit.”

Full Article from NAR: Pending Home Sales on a Record Roll

Melissa Simms
Realtor
RE/MAX Associates- Louisville, KY
MelissaSimms@remax.net