Rates may be up but that doesn’t mean there’s no demand

By Mike Hall, Broker/Agent/Owner

The housing market: “Weakening doesn’t mean crashing.” - Fortune

Getting a contract on your home today is still a faster turnaround than you might expect – at around one month. While the current interest rate could slow it down, it may also balance out the extreme height of the home buying frenzy making it easier for home buyers to purchase a home.

According to Fortune, the metric to watch is months of supply at the current selling rate which incorporates the supply and demand sides of real estate. The ratio represents the number of months it would take to sell all homes currently on the market (supply) at the current pace of purchases (demand). Even now, it takes around one month to sell a home but a truly “balanced” market is around six months.

Keep in mind that timeline may vary depending on the type of home you’re selling. A home that’s less than $200,000 will often sell more quickly than a $1 million dollar home. The more expensive the home, the more it can vary in features and style. Does it have a pool? Is there room for a pool? What is the style of the home?

With the landscape changing for buyers and sellers, it’s important to have a real estate agent you trust to navigate the journey. If you want to take advantage of selling your home quicker than average, reach out to a Red Edge agent today.

[Source: Fortune.com]

It’s a Good Time to Sell

Buyers are looking for houses!

By Mike Hall, Broker/Agent/Owner

Now might be the best time to sell your house!

While people are staying home, watching the economy, and proceeding with caution, many motivated buyers are still looking for homes. There is a fear among sellers, though, that this is not a good time to put their house on the market. The result is a severe shortage of available homes to buy in Louisville. Now just might be the ideal time to sell your house!

Our agents will be able to tell you if someone is looking for a house just like yours, and the whole process could involve minimal showings resulting and a good price without the burden of extra competition. Contact an agent today to see if this might be the very best time to sell your house!

Five Reasons Why December is a Great Month to Find a Home

By Mike Hall, Broker/Agent/Owner

December can be a great time for a savvy, adventurous buyer!

If you’re in the market to find your next home, sweet home, don’t let the weather in December send you into hibernation. Here are five reasons why December might just be the best time to buy!

1. Less competition! Most potential buyers lay low in the colder months, so it’s not as likely that you’ll be competing with 10 other offers two hours after a house hits the market!
2. Tax benefits! If you close on your house before the end of the year, you’ll be eligible to deduct some of those costs from your tax return.
3. Motivated sellers! If the house is on the market in December, the seller is probably looking to make a deal. You can help give one another a very happy holiday!
4. Realistic expectations! Without the distractions of blooming landscaping, you can get a clearer look at the true attributes of the home. Plus, you get to observe how well the heater works, if the windows are letting in a draft, and if the neighborhood streets are cared for well in less ideal weather.
5. You can lock in low rates! The rates can change quickly, so if the winter is offering you low rates, you can snatch them before a new year brings higher interest.

Of course, the downside to shopping in winter is that there might just be fewer options available. But you might just find that dream home you’ve been waiting for. There’s no place like home for the holidays!

[Source: MoneyTalkNews]

Ask the right questions before biting the bullet.

by MIKE HALL, Owner/ Broker/ Agent

Louisville homes are a hot commodity these days. While Louisville waits for sellers to list their homes, hungry buyers are left to consider fixer uppers. The following list will help you evaluate whether or not all that elbow grease is really worth it.

Price
Does the selling price account for how much work needs to be done? How tricked out are the homes in the neighborhood? Are they priced similarly? Louisville neighborhood comps are a window into just how much you should be paying. One of our agents would be happy to help you determine the price point.

Imagination
When you love the bones of the home, it’s easier to imagine it with upgrades. Can you picture this room after you take out that wall? Can you see past the ugly kitchen into your custom chef’s haven?

Must-haves
What would it take to make this house move-in ready? Does it need a little TLC or a full renovation? The home’s price plus the cost of renovation should put you near neighborhood values.

Convenience
Fixer uppers require flexibility. Can you handle a renovation? Do you want to? Do you plan to live in the house while you renovate? Be honest with yourself about what you can manage.

Purchasing a Louisville fixer upper is a big decision, but you don’t have to do it alone. Contact Red Edge Realty to help run the comps and evaluate the market. We can even recommend a few contractors. Let Red Edge help you find your perfect fit.

Don’t lose hope yet- just a few days to go!

by MIKE HALL Owner/Agent/Broker

According to the Greater Louisville Association of Realtors, home sales in Louisville are up 12.7 percent compared to last year. Usually there is a typical boom of homes sold during the summer months, with a dip in the fall. However, many still hope to find their new home before 2016 hits. With only a couple days to go until New Year's, you would be surprised at the couples and families currently shopping for a home in Louisville’s real estate market.

Sales have only peaked since the recession began in 2008, with this year marking as the highest in home sales since then. August was the only month that dipped lower than last year, every other month stretching further ahead. So don’t get wintertime blues if your home has not yet sold. It's already a fact that sales outnumber last year.

What the overlapping trends mean.

By: MIKE HALL, Owner/Broker, Agent

This year, I've read many articles stating that the Louisville market is great - sales are up! People are buying! Then all if a sudden, I read that the market is low on actual homes for sale, which doesn't seem to go along with the latter, or sound so positive.

So how does this work- what do these seemingly conflicting points mean exactly?

With few homes to choose from, the prices become more competitive. When no one else in your neighborhood has a home for sale, your price point suddenly sets a nervous twinge to buyers wanting to start a life in that particular area.

It might be a great time to put your home on the market, but maybe more difficult to buy at a good price point. That is, unless you have a trusty real estate agent by your side. If you have someone who really know what they're doing, and how the market is fluctuating, you will rest assured you are getting a solid deal. I would not go home buying alone, especially with the current competitive market. Vise versa, if looking to sell, make sure you're getting your money's worth with a second, educated opinion.

Depends on where you live ... Hint: East End saw biggest gains

by MIKE HALL Owner/Broker/Agent

The price of coffee has gone up. The price of gas has definitely gone up. But what about the price of homes in your area? Usually, yes, home prices do increase over time but by how much largely depends on where you live in Louisville's Jefferson County.

Tre Pryor of ReMax Champions has been at it again analyzing some data that goes back to 2004. From his analysis, you can see a couple themes emerge:

1. If you own a home on the East End - St. Matthews, Prospect, Crescent Hill and Springhurst name a few, home prices have jumped over 25 percent in the last 10 years.

2. Most other places saw more moderate growth, hovering around 15 to 18 percent including Jeffersontown, Fern Creek and the Highlands.

3. Downtown has gone up, up, and up. While the sample size is small (as Tre points out), this area has seen a 144.2 percent gain. Wowza! That's a good indicator for a hunger for home ownership in the downtown area.

If I didn't mention your neighborhood, check out the full article.

Stats to make you smile.

by MIKE HALL Owner/Broker/Agent

A recent report from the National Association of Realtors released some statistics that show home buying is on an upward trek. A few highlights from a story published by the National Mortgage News includes:

• Closings on existing properties, which usually occur a month or two after a contract is signed, rose 5.1 percent to a 5.35 million annualized rate.
• The share of first-time buyers matched the highest level since September 2012.First-time buyers accounted for 32 percent of all purchases in May, up from 27 percent a year earlier.
• Compared with a year earlier, purchases increased 5.1 percent in May before adjusting for seasonal variations.
• The median price of an existing home rose 7.9 percent from May 2014 to $228,700. The appreciation was led by a 10.2 percent year-to-year advance in the West and a 9.4 percent gain in the Midwest.
• Prices have been bolstered by a dearth of supply on the market. The number of previously owned homes for sale rose 1.8 percent in May to 2.3 million.
• At the current sales pace, it would take 5.1 months to sell those houses, compared with 5.2 months at the end of the prior month.

Tacking on extra dollars to your home could cost you

by MIKE HALL Owner/Broker/Agent

If you're home is valued at $150,000 but you decide to price it $160,000 to see if anyone will bite, you could wind up feeling the pinch.

Selling home is more than dollars and cents. It's also about timing. And time equals money. If you're selling because of a divorce or an estate, often time pricing a home at the tippy-top of what it's worth can cost you emotional expense as well as unforseeable maintenance costs.

Selling a home for $160,000 five days after being on the market is not the equivalent of selling the home after five months. Keep that in mind when pricing your home to sell. Let an experienced agent, like me, help you determine what your home is worth.

Louisville housing inventory dips as selling season kicks off

by MIKE HALL, Broker/Owner/Realtor

Trying to determine who holds the power in real estate is really about numbers. The more houses on the market, the more bargaining chips a buyer has. The fewer houses on the MLS, the seller usually comes out on top.

For Louisville, we're almost at a crisis.

We only have a little over 3,000 homes for sale right now in Jefferson County, which is pretty stinking low for a market this size.

What you can do: If you're considering selling your home, now is seriously the time. Buyers don't have as much inventory from which to choose and you can possibly command a higher price or even find yourself in the midst of a bidding war. (Yes, that happens.)

If you're a buyer: Be patient. Nothing ever stays the same for long. Plus, enlist my help and we'll scour the city to find the home you're looking for.

Considering buying a Louisville home? Three things to keep in mind.

Full disclosure: I'm a real estate agent who makes a living helping people like you buy and sell houses. So, of course it's in my interest for you to buy a home. But is it in your best interest? Here's a question to ask yourself and a couple things to think about.

1. Do you have a good credit score? If so, you'll likely be able to get a lower monthly mortgage payment than what you pay in rent. This is one of the benefits of living in Louisville - real estate is relatively cheap.

2. Interest rates are crazy-low. Seriously. When interest rates are low, you can save anywhere from $30,000 to $60,000 over the life of your loan. This is a great time to buy and lock in a low rate.

3. Sellers are in the mood. Between March and May, you'll find the most houses on the market. You'll have a better chance of finding your dream home if there's plenty of inventory from which to choose.

Louisville: The City where Buying is Cheaper than Renting

An economist on Trulia recently sliced and diced some data to determine if renting or buying is the cheaper option. It largely depends on where you live.

Some major cities, it's a pretty tough call - New York, L.A. and San Francisco take a little more calculation to determine if buying is less expensive than renting.

But for most midwest markets - Louisville being one - it is really economical to buy. In fact the article includes an interactive map that shows it's 40 to 60 percent CHEAPER to buy in Louisville compared to renting.

Do you think bike lanes help or hurt the neighborhood?

A hot topic for some of Louisville's council members involves two wheels and some pavement - bike lanes.

On the downside, people often get frustrated when they get behind a cyclist.  Bike lanes open up the road, but the expansion to include the bike lane could be worrisome if you're trying to sell your home.

As Louisville elevates its status as a healthy place to live, adding bike lanes where appropriate bolsters that image and makes the city attractive for people who are considering a relocation to the metro.

What do you think? Are bike lanes a positive or a negative when it comes to your neighborhood?

Don't Buy a For Sale by Owner House without an Agent before Reading this

Many people are tempted to attempt a real estate transaction without the help of a licensed real estate agent.  I get it - to a certain extent.  

Before deciding to go it alone for probably the biggest transaction of your life think about this:

1. Agents know the local Louisville real estate market.
2. Agents can help set your expectations.
3. Agents are good negotiators.
4. Agents know the step-by-step process navigating through repairs recommended by the home inspector.
5. Agents are the expert leaving you with less worry. 
6. Most For Sale by Owner Sellers will pay a Buyer's Agent

All continues to be good for the Louisville housing market.   Prices are up 3.3% over a year ago as reported by CoreLogic. 

Click here for a link to the article in Business First.   

Here at Red Edge Realty we are selling more homes than ever and many homes are getting multiple offers within the first few days.

Now is a great time to sell.  If you have any interest in selling or buying a home feel free to reach out to me at MikeHall@RedEdgeLIve.com or click here to go to my web page where you can download my listing presentation and see all the houses sold for the year.  

I’ll take my statistics sunny side up, thank you.  For those of you who need a long drink from the glass is half full Kentucky bourbon, sip on this good news. 

Real estate in Louisville is swinging back into action.  I’ll shoot you straight though.  Is it back to pre-recession days – no.  Is it moving that way – yes.  The Courier Journal just published an article last week that should be very encouraging to those of you who are ready to list or ready to buy. Click here for the article in the CJ 

For buyers, you’re looking at historically low interest rates.  A first time home buyer in the CJ says that he found it to be cheaper to make monthly mortgage payments compared to paying rent.  You can figure out how much you can afford by using my mortgage calculator.

Browse for homes in your price range by inputting your search parameters on our Property Tracker, which is updated daily from the Louisville MLS

If you need help buying or selling then click here, or email me at MikeHall@RedEdgeLive.com.  You can also call me at 502-509-5131.

I've sold nine houses since January 1st so the market is looking even better in 2013 so far.

Thanks,

Mike Hall

Principal Broker/Owner

Red Edge Realty

The sky isn’t falling anymore for Louisville Homes for Sale.  In fact, the sky just got a little bluer.  With November’s home sale stats on the uptick, I’m happy to report 15 percent more homes sold in November 2012 than in the same month last year in the Greater Louisville area.   Click here for the full report.

Secondly, buyers are paying more for those houses –about 8 percent more than November 2011.  So, 2013 may be the year to list your home if you’ve been hesitant to take that journey in the past couple years. 

I’m here to help.  Not only is the economy improving for Louisville home sales, but I can also help you tweak your home to get higher sale price when you do decide to sell. 

Mike Hall

Principal Broker

502-509-5131

About Me Link

Louisville Home Sales have increased 14.8% through Sept 2012.

The Louisville housing market continues to perform well with year-to-date sales of 9602 homes/condos through the end of September vs. 8361 sales in 2011 over the same time period.  

The average sales price of $168,767 is up 2.7% over the 2011 average of $164,303.  Click here for a graph.  

Homes put under contract in September are also up 20% vs. September 2011 so the closings this fall should continue to increase the percentage of improvement.  This is shaping up to be the best year since 2007,

Record low interest rates and improved consumer confidence are contributing to this increase.  If you are thinking about buying then I can't imagine the timing getting any better.  There is a shortage of good quality homes that are priced right so if you see something come on the market that looks good you better get out there and take a quick look.  I have had many homes end up in a multiple offer scenario.

If you see a home on this site you want to view just click on "Schedule Showing" and that will send the home to me and I'll be glad to set it up for you.  Call 502-509-5131 at any time or email MikeHall@RedEdgeLive.com if you have any home buying or selling questions.

Mike Hall

Principal Broker/Owner

Red Edge Realty

Louisville Home Sales have increased 13% through June 2012

2012 year-to-date home and condo sales in the Greater Louisville area are at 5884 units through June 30th which is 13% above the 5207 homes sold through the same period last year.   Prices are also up 3.82% to an average sales price of $166,467 from $160,349 in 2011.   June 2012 unit sales were up 6.5% over June 2011 sales.

The average sales price of $166,467 are now back to 2005 levels.   Prices peaked in 2007 at an average sales price of $166,467.

Click here for the graph showing the trends since 2003.   Many properties are selling in less than a week and getting multiple offers.   All is a good sign our market is returning to a healthier state and looking good for the future.