Join state and local REALTOR^® associations across the country in hosting the nation’s largest open house campaign Saturday and Sunday, April 20-21, 2013

For one weekend in April REALTORS^® will hold open houses in neighborhoods from coast to coast, bringing value to both buyers and sellers. The event also provides a tremendous opportunity to promote the benefits of homeownership and continue an open dialogue with consumers about the housing issues that matter most to them.

Cornerstone Group Realtors will have 4 homes open throughout the Metro area!  1034 Lydia Street in Germantown, 1341 S. First Street in Old Louisville, 127 E. Ormsby Avenue in Old Louisville and 8027 Aspen Glen Drive in Fern Creek.  Come out and visit our Realtors and bring all your home questions.  All our agents are qualified Buyer’s Representatives!

For more information on how to get involved contact your local Cornerstone Group REALTORS^®  Office at 502-414-1446 or contact Ton Ali, Broker/Owner at 502-386-6244 or email Ton@CGR-KY.com.  See open houses on CGR-KY.com or visit LouisvilleRealtors.com.

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Although our market wasn’t as hard hit as some back in 2008-2009, we still saw a bit of a correction.  2011 marked an increase in private party real estate transfers indicating the market was beginning to stabilize.

Banks have also loosened mortgage lending thanks to an injection of capital into the market.  Although some banks are still conservative and are requiring more stringent documentation, they are lending more.  Craig Spencer, of the local Cole Taylor Mortgage branch, a division of Cole Taylor Bank based in Chicago, says that although they continue their efforts to ensure borrowers are qualified, they’ve added many programs to assist buyers including the USDA or Rural Housing program with no down payment.  You can still purchase a new or pre exciting home with less than the traditional 20% down payment.

The local economy has played an important role. Fortunately, Louisville’s job market is relatively stable compared to the state or country as a whole with some of our largest employers in industries that are expected to remain stable as the overall economy continues to improve.  These industries include healthcare, online order fulfillment, and automotive manufacture.

Market statistics have continued to improve from last year’s numbers including total sales, average sales price and total average days on market.

Our market is not without its challenges.  Our housing inventory is down almost 30% over previous highs in the last few years, but that does include a reduction in distressed properties.

Another challenge is the misconception that it’s become a buyer’s market.  Some buyers feel they can low ball (an offer >10% less than asking price) sellers and try to dictate terms.  Although we still have lower prices and low interest rates, homes that are well priced and in good condition are selling quickly and often times have multiple buyers making offers.

Although prices are rising, that’s been more significant in areas where sales have traditionally been strong like the Highlands and St Matthews.

I’ve spoken to many Realtors at our local board and there’s increased optimism.  Many have said this year’s sales have been strong so far and it’s expected that this year will be one of the strongest we’ve seen in a while.

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The reports focused on the fact that many foreclosed homes are being purchased by hedge funds as rental investments. I have clients building their own personal rental portfolios with choice distressed properties. The issue in our area is there are few good distressed homes and competition is strong. There are many investors and families looking to make these homes their primary residence.

The other side of the report was how investors are getting a lot of these homes because buyers, looking to make these homes their primary residence, can’t qualify for loans. That part of the story I had an issue with.

I have always liked working with first time home buyers. There are some who are not ready when I meet them, but are working toward getting qualified. Others have been saving and keeping their credit clean in hopes of purchasing while prices are low and money is cheap.

The report went on to say that banks are not flexible and it would take a credit score of 750 or higher to be able to qualify for a mortgage.

That may be the case for some loans at some institutions, but each market is different. Many areas have development funds, community banks and brokers with programs to qualify buyers with credit scores below 750.

I think it can be very discouraging for buyers who hear these national reports that generalize or throw out numbers like that. Like myself, I think the majority of Realtors in our area have lender partners with programs to assist buyers with credit scores below 750, not to mention FHA, VA and USDA loan programs that can assist buyers with lower credit and limited down payment funds.

If you would like to purchase a home, but are not sure if you qualify, call us, fill out the contact form  and let us help you get pre-qualified. See if you have some work to do or if you’re ready to purchase your dream home!

Mortgage Calculator

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Elaine Ann Crowder

My artwork strongly deals with lens of perception. I believe that every person should and will have a different viewpoint based on his or her gender, race, and socioeconomic status. The kaleidoscope of these impressions is what makes us innately human. I have simply used art as pathway to convey my viewpoint.

I am a mixed media artist who primarily works on canvas. In my painting I use acrylics, soft sculpture, watercolor, casting, gouache, pigments, encaustics, etc. I also paint sheets of clear acrylic resin, weave in the winter, do some sculpture, and make paper and soap. I am constantly pushing my mediums to new limits. I am a student of mistake and primarily self-taught.
I have also been an art facilitator for the disabled. I believe that each person has the ability to make an artistic statement. To me the goal of art facilitation is about helping the client find his or her voice.

Written by: Stacey Lee Crowder

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Artwork: Elaine Ann Crowder
Written by: Stacey Lee Crowder

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BY CRAIG SPENCER, COLE TAYLOR MORTGAGE

It’s often said that the American dream is to own a home with a yard and a white picket fence. In fact, it’s become a bit of a stereotype. But like many stereotypes, it is grounded in truth. Besides the sense of security, what makes owning a home so attractive is that, for most Americans, this is their entrée into the world of investing.

Why is homeownership such a good investment? Over time, as your mortgage balance decreases, your equity increases — even if the value of the home fails to follow. And equity means money you can quite literally take out of your home to use as needs arise.

No matter how much rent you pay over the course of your lifetime, you never establish equity.  However, keep in mind that if the value of your home decreases, you could end up owing more than your house is worth.

In addition to equity, you can benefit financially from home ownership because of the tax breaks. Homeowners can claim federal mortgage interest deductions that aren’t available to renters.

In addition, the profit you get from selling your home may be exempt from the capital gains tax you would pay on profits earned from an ordinary investment.

Under the current tax code, a married couple filing jointly can pocket up to $500,000 of gain without owing any federal income taxes from a home sale if they have owned and used the home as a principal residence for two out the previous five years. Unmarried or married taxpayers filing separately can pocket a gain of up to $250,000 without owing any federal income tax.

Homeowners can also leverage their real estate investments by using borrowed money to their financial advantage. When you buy a home, you generally make a cash down payment up to a specified percentage, depending on the lender’s requirements. The balance is financed through a mortgage. Over the next few years, assuming the value of your home increases, it is now worth more than you originally paid. When you later decide to sell, after you pay off your original mortgage, you will realize a profit equal to the percent of increase in the value of the home. That’s what is known as leveraging debt to make a profit.

MORTGAGE INTEREST DEDUCTION BASICS:

Most peopel know there are tax benefits to having a home mortgage.  Here are the mechanics:

To claim mortgage interest deductions, you must file your taxes on form 1040 and you must itemize deductions.

You must have a legal obligation to pay the mortgage. In other words, you cannot deduct mortgage interest paid for example, on your parents’ home unless you  have a legal duty to pay.

Your mortgage interest deduction may be limited to your adjusted gross income is over $166,800 for most taxpayers in 2009 ($83,400 for married couples filling separately).

Your mortgage must be a secured debt, which means that the home is collateral which could be sold to settle the debt.

The mortgage must be on a qualified first or second home. It can also be a boat, mobile home, house trailer, condominium, cooperative, or similar property, which has cooking, sleeping, and toilet facilities. Certain other exceptions apply.

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Home purchases, construction and prices are gradually but consistently increasing.

Sales of new homes in the United States rose almost 4% in July to match a two-year high reached in May, the latest sign of a steady recovery in the housing market.

The Commerce Department reported that new-home sales reached an adjusted annual rate of 372,000, the same as in May, which was the highest since April 2010.  Sales have increased about 25% in the last 12 months even if from some of the lowest levels historically. We’re still not at a level anyone would say constitutes a healthy market.

One trend impacting sales is inventory.  There aren’t many newly built homes available. New homes for sale dipped last month to 142,000, the lowest on record.

Although I have recently worked with builders who are building in moderately priced developments and have limited inventory, in our market, most new home builders are building as consumers commit to purchase as opposed to building on spec and having homes ready for buyer to close on within a 30 day period.

Past increases in affordability have driven a steady if moderate increase in the housing market.  Many buyers are tired of waiting and, with historically low interest rates, are making the decision to get into the housing market.  That trend impacts both new and existing home sales, but as I mentioned earlier this month, the NAR has reported existing home prices are starting to rise in some areas as distressed homes are purchased and become a smaller segment of home purchases.

Another hurdle to sales is that many people perceive a difficulty qualifying for home loans.

Although banks have tightened credit standards for mortgages, according to a report last month by the Federal Reserve, there are programs that can assist buyers, in certain areas and with certain income levels, to purchase with lower credit scores and less cash for down payments.  Coupled with rates in the mid 3% range for 30 year loans, more people who didn’t think they could buy a home are now able to qualify.

Most would agree that the housing market has a long way to go to reach a full recovery.  Home sales remains well below healthy levels, but growth in the housing market will likely add to economic growth in 2012 for the first time in seven years.

Home purchases, construction and prices are gradually but consistently increasing.

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Nationwide, home prices have risen 2.5% from June, 2011 to this past June.  Mark Fleming, chief economist for CoreLogic, indicated that home prices are responding positively to reductions in both visible and showdown inventory over the past year.

Shadow inventory are homes that are ready for sale, but haven’t yet reached the MLS services. These are typically bank owned or REO properties.   A reduction in Shadow inventory is a good sign because It’s an indicator that there will be less distressed homes on the market helping to keep current home prices and appreciation up.

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The jobless rate had been as high as 9.6% in the last year.

The national employment rate also remained at 8.2% from May 2012 to June 2012, according to the U.S. Department of Labor.

In June 2012, Kentucky’s work force was 2,068,524, an increase of 2,622 people compared to the previous month, according to a news release.

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