Real Estate Information

We always wonder how we performed as a Real Estate team. Now that we have a video portion to our blog I decided to ask clients. Sure they know they're on camera but I think a viewer could tell if clients are being forced to say something they don't believe in. :

I have a new Hero in the blogging world. Ian Watt is a Canadian Realtor who does what seams like a daily Video Blog. I love new ideas and Ian gets my vote for best idea of January 2009!

Looking back at the month of December 2008 shows some areas of town performing well even is this slower economy. The sales figures below show that lower priced homes continue to sell if priced correctly. Still many point to the Louisville Kentucky Housing Market as an island of stable home prices compared to much of the rest of the nation. One report on the website Reed Construction Data says “Buffalo, Dallas, Houston and Louisville are representative of local housing markets that largely avoided the home price bubble and the ensuing bursting of the bubble.”.

Writer Jim Haughey is right on the money. Louisville continues to be a good investment.

01-Dec-2008 - 31-Dec-2008

                     Residential Unit Sales        Total   Unit Sales

                      0-2        3         4+      Resid     Condo/    Total

 PRICE CLASS/TYPE    Bedrm     Bedrm     Bedrm     Sales     Co-Op     Units

 $29,999 OR UNDER      30        14         8        52         0        52

 $30,000 -  $39,999    10         6         2        18         1        19

 $40,000 -  $49,999     6         4         1        11         0        11

 $50,000 -  $59,999     2        11         1        14         0        14

 $60,000 -  $69,999     5         5         2        12         5        17

 $70,000 -  $79,999     8         2         3        13         3        16

 $80,000 -  $89,999     2        12         2        16         5        21

 $90,000 -  $99,999     2        18         4        24         5        29

$100,000 - $119,999     5        32         9        46        17        63

$120,000 - $139,999     7        24         2        33         6        39

$140,000 - $159,999     2        27         5        34         4        38

$160,000 - $179,999     1        20         3        24         2        26

$180,000 - $199,999     2        14         9        25         6        31

$200,000 - $249,999     0        25        26        51         6        57

$250,000 - $299,999     0         6        11        17         1        18

$300,000 - $399,999     0         5        17        22         2        24

$400,000 - $499,999     0         3         7        10         0        10

$500,000 OR OVER        0         1        11        12         0        12

Total Types:           82       229       123       434        63       497

Average Price:     $57,444  $139,386  $272,269  $161,564  $135,703  $158,286

Median Price:     $127,500  $127,500  $220,000  $124,869  $117,500  $122,000

Average DOM:           60        77        85        76       102        79

Average CDOM:          74        90       128        98       143       103

The news is not earthshaking! New home sales numbers for December 2008 are just out for Louisville and they are as you might expect.  The number of homes sold was down 25% from December 2007.  Still, look at this a different way, 718 homes sold in December 2008, (compared to 964 in December 2007), means homes are selling.  What buyers are looking for is a stable economy, deals and great interest rates.  Many believe a new administration will stabilize the economy and allow the lower home prices and interest rates to do their job.   

What sellers need now more than ever is to correctly price their home and then marketing that includes high quality pictures and video TV stories about the home to bring in buyer eyeballs.  The Louisville Courier-Journals’ Alex Davis recently wrote a story about aggressive marketing and included us and 2 of our successful sellers in 2008 (Lori Dougherty and Robert and Adele Koch). You can read that story here. 

The average sales price of a home was down about $15,000 from a year before. But remember, included in that number are 202 foreclosures/short sales which were sold at anywhere between 10 and 50 percent below market value. 

It’s the foreclosures and short sales that are forcing down area prices here in Louisville and around the United States. Of the buyers out in the market this new years day, many are looking for bargains and believe a foreclosure or short sale is the place to get them. Unfortunately, once buyers get in to see a home in foreclosure and realize the work needed to return the home back to a livable condition, the deal is not as good as once thought! 

The good news for home buyers (and sellers) right now are interest rates.  As of this writing rates for a 30-year fixed mortgage were 5 percent. A 15-year fixed mortgage was hovering at 4.75. As we move into 2009, many believe the lower rates will motivate buyers to make a purchase. 

We love first time buyers! This week after several months of looking for a home, negotiating the best contract and then repairs our first time Louisville Kentucky buyer is on the road to closing. Our client picked one of the most gorgeous homes in one of the top neighborhoods in the Louisville area. The 78 year old Highlands home had just about completely restored. But an inspection found a number of items that still needed some work. To our buyers credit she was patient and let us go through the normal negotiating process for the repairs. The seller on the other side was also an agent and knew the value of her home. Yet through calm negotiations on both sides an agreement for repairs was reached this past week and we’re on to closing.

We love stories like this, our first time home buyer has worked hard over the past years to save enough money to put a good size down payment on the home. She has searched for the perfect home for a while and now she’s found it. We’ll return to the home with our inspector before closing to confirm all repairs have been made. We want to make sure our client has nothing but happiness in her new home! Seeing our clients smile really makes our job enjoyable!

Norine and I are just back from a very exciting brainstorming session in Columbus Ohio. Imagine being surrounded by some of the top Real Estate agents on the eastern half of the U.S. with the goal of using new technology to its full potential in 2009 for buyers and sellers.   This one day seminar produced pages of plans and ideas. To say the meeting was a success is an understatement!

Included in our group: 

Sam Miller (Mt. Vernon, OH)

Jodi Bakst Chapel Hill, NC

Mike Parker (Florence KY)

Wayne Turner (Hendersonville TN)

Kevin Hildebrand (Cincinnati, OH)

Cathy Russell (Lafayette, In)

Kirk Greer (Virginia Beach, VA)

Jason O’Neil (South Tampa, FL)

Bob and Norine Sokoler (Louisville, KY)

John Jones (Murfreesboro, TN)

Everything from web marketing to keeping clients up to date on market changes was discussed. As Jodi Bakst wrote in a recent blog entry “I’m proud that the leaders in my business are so forward-thinking and hands-on in their approaches to making their businesses successful”.  We agree Jodi; it’s thrilling to see so many people excited about the use of technology and helping clients! We think the information we brought back will go a long way to help our clients looking for homes in Louisville Kentucky. For more of our featured listings go to www.weselllouisville.com.

We hope this finds you excited about low interest rates...ours has dipped to close to 5% and tomorrow (Tuesday) we may see them drop even more. Additionally, if you’re a first time buyer you can still get in on the $7500.00 tax credit.

Home sales in Florida and California are already showing small signs of recovery. Many believe interest rate drops will do the same for sales here in Louisville.

We hope your search is going well and we have been of help to you in 2008.  We look forward to serving you in 2009.

Call me on my cell phone at (502)376-5483 if you would like to have any details on the great news or to see homes. 

Our team is standing by !

No.. not off a building or a bridge! 4.5% interest rates may be around the corner. What does this mean to you? If you’re planning to buy a home; start looking! Planning to sell a home; get ready to list it! If you have a mortgage rate of 5.5% or more and you plan to stay in your home for several more years you need to be ready to re-finance. 

CNN is reporting that Lobbyists are pushing the Treasury Department to buy down interest rates.  Cnn’s says “Similar to an effort unveiled last week by the Federal Reserve, the proposal calls for Treasury to buy securities backed by 30-year fixed-rate mortgages from Fannie Mae and Freddie Mac.” That proposal caused an immediate drop in rates of at least ½ point.

We’re already getting calls from perspective home buyers with questions, so here are some answers and food for thought.

Here are some quick numbers; a $200,000 mortgage at 6.5% makes your monthly mortgage (minus homeowners insurance) approximately $1,514.14 a month. If your mortgage was at the current rate of 5.75% your payment would be approximately $1,417.15 monthly. But a $200,000 mortgage at 4.5% drops your payment to $1,263.37 a month. That’s a $250 a month savings!

As of right now CNN says “Spokeswomen from Treasury and the Federal Housing Finance Agency, which oversees Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500), declined to comment.”

But this may be more than just running an idea up a flag pole and looking to see home many people salute. It’s a great idea and if current homeowners can save money on mortgages it could help pump money back into the economy. For anyone trying to sell property it’s a breath of fresh air.

Call your mortgage company and let them know you want to be notified if/when the drop occurs so you can lock in. Call us if you want to see any home in the Louisville / Southern Indiana area. (502) 376-5483 or go to www.weselllouisvillehomes.com. 

The Medley Sokoler Team created the Foreclosure Relief Team a little more than a month ago. At the moment they are trying to help more than 20 homeowners facing foreclosure.

The reasons for a foreclosure numerous, loss off job, adjusting interest rate on a mortgage, medial problem, divorce even death of a spouse, The end result is usually the same, Foreclosure will force you out of your home, ruin your credit rating and potentially effect current or future employment.  Amazingly 7 out of 10 homeowners facing foreclosure never contact their bank or a Realtor to get out from under the problem.

That is the reason The Medley Sokoler Team at RE/MAX Properties East created the Foreclosure Relief Team. Real Estate Agents Bob and Norine Sokoler have been trained through the Certified Distressed Property Experts in Florida (C.D.P.E) and along with local attorneys and negotiating staff are working to get help for homeowners facing foreclosure.

Team leader Bob Sokoler says “there are several ways to help people facing foreclosure the most effective way is a short sale. That get the home owners bank to accept an offer on the property from a buyer that’s less than what is owed to the bank”.  The team takes the time to help a homeowner facing foreclosure weight their options. Bob says “we would love to help Louisville homeowners stay in their home, there are several options that would allow them to do that but it’s not always possible”. 

The Foreclosure Relief Team does not charge homeowners for the team’s services.

You can reach the Medley Sokoler Team and The Foreclosure Relief Team at RE/MAX Properties East by calling (502) 992-4203 or visiting either www.weselllouisville.com  or www.louisvillehomestoday.com or http://www.louisvilleshortsalehelp.com.

Did you know that 7 out of 10 homeowners facing foreclosure never get help from their lending institution to work out a payment plan, or a realtor who can help sell their home in a Short Sale.

The problem is going to get worse as more and more homeowners are heading towards foreclosure. A new article published on Housingwire.com  has the title “Subprime Mortgage Delinquencies Building, Again”. The article points to another wave of upcoming foreclosures. Help may be coming is some form, an article published yesterday on Inman.com says “nearly $4 billion in federal grants will be spent to help state and local governments buy foreclosed and abandoned homes” The big problem is that for thousands of area homeowners in financial trouble, foreclosure may seem like a viable option. STOP! Before you make that decision you need to know the consequences of a foreclosure on your personal life (yes I said life) and the alternatives.

Foreclosure will affect you for years to come. For example:                  

1)    Some employers now run credit checks on their employees and a foreclosure can put your current position in jeopardy!

2)    A foreclosure is one of the top items that will put a potential new hire in jeopardy if the perspective employer runs a credit check.

3)    If you have a security clearance or government position or you’re in military or law enforcement a foreclosure could affect your status, you may be shocked to find out your job or clearance could be in jeopardy.

4)    You’ll have to disclose the foreclosure on any mortgage and many job applications.

5)    A foreclosure can haunt you for years, starting with your credit scores being lowered by 300+ points.

6)    You’ll be ineligible for a government insured loan for 5 to 7 years (only 2 years in a short sale).

7)    You may end up with a Deficiency Judgment (the mortgage company can still attempt to collect the money they lost from you).

Need help? I’m a realtor at RE/MAX Property East and a C.D.P.E. Certified Distressed Property Expert.  Visit http://www.LouisvilleShortSaleHelp.com or Contact Bob at http://www.weselllouisville.com/ or bob@bobsokoler.com.