Wakefield,Reutlinger AND COMPANY/REALTORS

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REAL ESTATE
A Publication of Wakefield, Reutlinger and Company/Realtors Vol. 1 No. 28 February 2011

Residential Market Outlook:

Virtuous or Vicious? By Robert Freedman

The elements At the root of these gains is continuing improvement

needed for a 2011
housing recovery
are lining up, but
business spending and consumer confidence could
spin the cycle into an undesired direction.
It’s slow. It’s uneven. But it’s there: the home sales
recovery.
"There will be two steps forward, one step back, with
sizable local market differences," says NATIONAL
ASSOCIATION OF REALTORS® Chief Economist
Reasons to Buy a Lawrence Yun, " but the trend nevertheless will be a
Home in 2011 rise in home sale activity in the upcoming years."
Michele Lerner, author of Home- Yun is forecasting 5.2 million existing-home sales in
buying: Tough Times, First Time, 2011, up from 4.8 million last year. He also expects
Any Time, offers reasons why real modest improvement in prices—a rise of about 1
estate is likely to improve in 2011. percent this year on a national basis. That would be
▪ Mortgage rates will stay low. the first in what Yun says will be a series of small but
Even with rates climbing — steady gains in the years ahead that will eventually
maybe to as high as 6 percent by
2012 — they are still well below bring home sales back to a period of normalcy.
in the overall economy. Yun is estimating modest
2.5 percent growth in the country’s gross domestic
product in each of the next two years, job gains of
about 1.5 million in the same time frame, and a
slowly improving jobless rate, which he projects will
dip from a stubbornly high 9.6 percent in the latter
part of 2010 to a better but still-high 8 percent in 2012.
This is what Yun calls the "virtuous cycle" that resi-
dential real estate started entering a few months after
the home buyer tax credit ended in the middle of
2010. At that time, home sales took a big hit, drop-
ping 27 percent in July. But in August, sales picked
up again, under their own steam, and have been
gaining ever since without the aid of subsidy.
Will Businesses Pony Up?
Will Low Prices Spur Recovery?
What About Inflation?
To learn the answers to these questions - go to
http://www.realtor.org/rmonews_and_commentary/articles/2011/1101_2011outlook

where they have been historically.

▪ Tax cuts could help. Extending
the tax cuts could encourage a
more rapid recovery for the econ-
Louisville
Year to Date at a Glance
Real Estate UPDATE
omy. Sales by Price Range-Single Family Residential & Condo
▪ Americans want to be home Price Range Statistics 2009 2010 % Change Units Sold Single Family & Condo Jan 1st –Dec 31st
owners. A recent Fannie Mae
survey showed that Americans still Up to $199,999 8,958 8,298 ‐7.49%
believe a home is a safe and desir- $200,000‐$399,999
able investment. 2,261 2,609 +15.4%
▪ Builders are about to begin $400,000‐$599,999 336 393 +17.0%
building. Home builders have
been sitting on the sidelines. This $600,000‐$999,999 105 122 +16.2%
year, they think pent-up demand $1,000,000 + 28 18 ‐35.7%
will create an appetite for new homes.
▪ Homes are shrinking. Homes Total Average Selling Price Jan 1st –Dec 31st
11,688 11,440 ‐2.1%
are getting smaller, which has
made them more affordable. Month at a Glance
Residential Sales Stats Single Family Residential & Condo
2008 2009 2010
Houses Sold 11369 11649 11442
Average Selling Price $165,735 $158,161 $166,333
ALL THE WAY HOME...425-0225 Median Selling Price $134,900 $132,000 $138,000
Interest rates are inching up but still fantastic
historically. Take advantage of the situation and
move! It’s a great time to buy a house.

This is not intended to solicit a currently listed property. Information

is deemed reliable, but not guaranteed.

retirement system. Also, the property

Kentucky’s Homestead must be owned, occupied and main-
Exemption Rises $300 tained by the taxpayer as a personal
residence on the Jan. 1 assessment
The Kentucky Department of Revenue has set the date. Disabled people younger than
homestead exemption for property taxes for 2011 65 must apply annually, with the
and 2012. exception of service-connected totally
The maximum homestead exemption on real estate disabled veterans of the U.S. Armed
owned by qualified people was set at $34,000 for the Forces.
two-year tax period, according to a news release.
That’s a $300 increase above the 2009-2010
exemption of $33,700.
Fo r mo re details on the ho me-
stead exemption, call me. Business First Inspiration
The homestead exemption, which lowers the amount Important Information About The First Time
of property value subject to taxation, is adjusted
Ahead
Homebuyer Tax Credit According to Pantone, a
every two years to adjust for inflation. For 2010, If you received a First Time Homebuyer Tax Credit
provider of professional color
the exemption will mean state and local property when you purchased your home, you must remain in
tax savings of an estimated $155 million for about that home for at least three years. According to the standards for the design
400,000 elderly or disabled Kentuckians, the Internal Revenue Service, if you sell that home or it is industries, the color trends
department said. for 2011 include grape, deep
no longer your primary residence, you’ll have to repay periwinkle blue, cadmium
To qualify for the exemption, a taxpayer must be at
least 65 years old during the tax period or must be the entire credit. For more information, visit green, antique moss and
classified as totally disabled by a public or private www.irs.gov/cp03b. gold, silver, and copper me-
tallic's. Pantone forecasts
Property Value Assessment FEATURED PROPERTY
nine color palettes for home
furnishings and interior
Appeal Process - Be Prepared! design. The nine palettes
for 2011 include:
Have you ever considered appealing your property
Simply Stated: dusty rose,
assessment? This process changed a few years ago,
and there is only a small window each year to appeal To see all our avocado, antique moss, deep
to the PVA (Property Valuation Administration) if you periwinkle blue, warm taupe,
feel the assessment of your property is too high. and angora white.
Some areas in Louisville have experienced a decline Style and Substance: jet
in value over the last few years, and the PVA may not
Properties For Sale black and metallics of gold
reflect that. and silver, subtle blue and
During the open appeal period (Spring), a form will frosted gray, purples, and
be available on the PVA web page. You may type in Visit our Website wine-ish brown.
the appeal form online and then print it, or print Clarity: cool blues and
out the form and then complete it by hand. Docu‐
greens, pure white, mystical
mentation that supports your opinion of value
must be submitted with the Appeal form. WRrealtors.com mauve, violet, and Tibetan red.
You may want to consider getting your docu‐ Fragments: amber, grenadine
mentation together now so you’ll be prepared red, hot pink, baked clay,
when the short window opens in the Spring. Call me citron, grape, cadmium green
and I can help you with an evaluation of your home. and bright gold.