Wakefield Reutlinger Realtors Sept 09 Newsletter

Wakefield,Reutlinger

W

AND COMPANY/REALTORS

m o c . s r o t l a e r R

Insider REAL ESTATE A Publication of Wakefield, Reutlinger and Company/Realtors

Vol. 1 No. 20

September 2009

Recession Ending, Rates Left Alone

Interest Rates!

The Federal Reserve ended its policy-making meeting Wednesday with the declaration that the recession is ending and it would move toward more normal policies. The Fed said, “Economic activity is leveling out.” It added that it expected inflation would remain “subdued for some time.” The Fed said it will keep the short-term key interest rate near zero, but it will end its program to buy $300 billion worth of Treasury bonds by

30 yr fixed 0 pts 5.125% 15 yr fixed 0 pts 4.375%

LOUISVILLE

As part of the national celebration of the Lincoln Bicentennial, Louisville artist, Ed Hamilton, was commissioned to design a statue of Abraham Lincoln for a new section of the Waterfront Park. The statue, unveiled in June, is seated on a stone designed by local sculptor Forest Boone. In conjunction with the Lincoln Bicentennial, the Speed Museum is having an exhibit on Ed Hamilton’s artistic journey to create the Louisville Waterfront Park Lincoln Memorial.

the end of October. Buying bonds was one of the Fed’s efforts to drive down the cost of home mortgages. “In a way, it’s more of a thumbs-up than if they had said they were continuing the Treasurybuying,” said Edward McKelvey, an economist at Goldman Sachs. “They’re saying that things are going according to plan, and that the policy is okay.” Source: the New York Times, Edmund L. Andrews 8/12/2009

Real Estate

Month at a Glance Residential Sales Stats Single Family Residential & Condo

Year to Date at a Glance Residential Sales Stats Single Family Residential & Condo

Jul - 07

Jul - 08

Jul - 09

Houses Sold

1461

1015

1276

Average Selling Price Median Selling Price

1/1-7/31 07

1/1-7/31 08

1/1-7/31 09

Houses Sold

8994

7055

6125

$181,429 $173,521 $171,793

Average Selling Price

$173,532

$168,911

$158,408

$144,900 $141,000 $140,000

Median Selling Price

$139,900

$136,000

$132,000

Units Sold January 1-July 31

Median Price January 1-July 31

WRrealtors.com

ALL THE WAY HOME...425-0225 Source: Greater Louisville MLS.

UPDATE

Average Price January 1-July 31

10 Home Sale Killers •Dirt •Odors •Old fixtures •Wallpaper •Popcorn acoustic ceilings •Too many personal items •Snoopy sellers •Misrepresenting your home •Poor curb appeal •Clutter

This is not intended to solicit a currently listed property. Information is deemed reliable, but not guaranteed.

Remodeling Cost vs. Value Report 2008‐09 Louisville, Kentucky Job Cost

Resale Value

Cost Recouped

$12,820

$4,957

69.9%

Basement Remodel

53,552

44,924

83.9%

Bathroom Addition

33,468

23,255

69.5%

Bathroom Remodel

14,413

11,973

83.1%

8,903

7,588

85.2%

Family Room Addition

70,536

48,661

69.0%

Garage Addition

49,954

34,779

69.6%

Major Kitchen Remodel

53,150

41,260

77.6%

Master Suite Addition

89,283

60,827

68.1%

Minor Kitchen Remodel

20,307

16,461

81.1%

Siding Replacement

8,994

7,610

84.6%

Backup Power Generator

Deck Addition

WHY RENOVATION PAYS Recent renovations make buyer’s lives easier. Homeowners who remodel their home are providing a service to future buyers. When buyers purchase, they don’t want to do the painting and remodeling, and they don’t want to spend the additional money. They may be willing to make improvements down the line, but when they buy a house, they want the house in move-in condition. It reduces their stress. Making home improvements can also reduce seller’s stress by heading off that time honored negotiating technique-pecking away at the sales price by pointing out imperfections. If the property has been wellmaintained and updated, the improvements will help sell it. If sellers don’t improve their property, buyers will reduce the amount of their offer by the cost of the improvements they feel are necessary. Not every neighborhood will support the additional work, but in older, more established neighborhoods, updated kitchens and bathrooms will greatly improved the chances of selling your home.

$8,000 TAX CREDIT Time is running out on the $8,000 tax credit for first time buyers. The federal government’s offer expires on November 30. Because mortgage approvals, residential inspections and other steps in the buying process typically take about two months, buyers hoping to take advantage of the incentive will need to have a contract by the end of September. Remember, to qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase. Each home buyer’s tax credit is determined by two factors: (1) the price of the home—the credit is equal to 10% of the purchase price of the home, up to $8,000 and (2) the buyer’s income— single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum tax credit. Call me with any questions. I’ll be happy to help you get moving on that or any real estate need.

What’s In Reduced Carbon FootprintHow your home and you impact the earth matters. Outdoor living - Massive fireplaces, outdoor kitchens and under-patio heating . Fully concealed appliances hidden behind concealed doors. Floating homes - Non-mobile homes are basically ranch houses sitting on stationary barges in a lake or river. Home elevators - Even builders of mid-priced homes are adding this essential for boomers wanting to age in place. Pet showers - in garages and mudrooms. Freestanding bathtubs - “bath thrones” have supplanted whirlpool baths. Bathroom suites - with flat-screen TVs & cappuccino makers.

What’s Out

Living rooms - non existing in homes. Voluminous ceiling heights waste of space. McMansions - “small is beautiful” Color Trends- Bold vivid colors mixed with some earthy, natural tones. The natural world is influencing the home pallet with handmade, undyed materials. The environment is also inspiring sky and water blues to come inside. Also be on the lookout for deep navy, inspired by the techno-world. Color scheme influences from India, China, and Latin America will be evident this year. Shimmery metallic finishes are still in, but chrome and nickel are starting to be replaced by softer shades. Copper and bronze tones are bringing more warmth to the finishes.