Groundbreaking ceremonies for the much anticipated Museum Plaza skyscraper are set to occur this Thursday, October 25, 2007. More details here.
It's exciting to me to see what's happening in downtown Louisville. The naysayers were many with regard to this project at its inception, but it certainly appears the promise of such a huge undertaking will come to fruition.
Monday, October 22, 2007
Wednesday, October 17, 2007
Metro Housing Corp. Stats
Here are some interesting statistics just released by Metro Housing Corporation regarding the Louisville Metropolitan Statistical Area. It's an interesting read that basically reaffirms what we pretty much already know: Foreclosures are increasing, as are rents. There's good info about income vs. rental cost. Check it out.
A Peak at the Million Dollar Home Market in Jefferson County
In some areas of the country, $1,000,000 won't get you much as far as housing is concerned(Manhattan for example), while in other areas, Million Dollar homes are relatively scarce. The Louisville Market has its fair share, but they are not at all prevalent. I thought it might be interesting to see how this tiny segment of the Louisville Market has evolved since 2000.
My research is based on the Greater Louisville Multiple Listing Service's records. I culled the sales of Million Dollar Homes from each year since 2000, and compared the data. Included are sales of new & existing homes & condominiums that sold for $1 Million Dollars or more. Excluded are raw acreage/land sales or any parcels or properties that could be developed for commercial use (including larger condominium conversions). Only properties located within Jefferson County were included.
Here are the results:
Year--# of Sales---Low--------High--------Average----Median
2000-----12-----$1,000,000---$2,275,000--$1,360,352--$1,190,000
2001-----13-----$1,060,000---$2,250,000--$1,333,846--$1,250,000
2002-----16-----$1,008,212---$2,098,000--$1,319,388--$1,168,750
2003-----13-----$1,000,000---$1,525,000--$1,234,904--$1,225,000
2004-----19-----$1,000,100---$2,250,000--$1,368,598--$1,200,000
2005-----39-----$1,000,000---$2,650,000--$1,442,262--$1,300,000
2006-----31-----$1,000,000---$2,880,500--$1,393,704--$1,195,000
2007*----38-----$1,000,000---$2,250,000--$1,308,770--$1,233,210
*=through 10/17/07. Additionally, there are 4 PENDING sales that would qualify upon closing.
Currently, there are 83 properties listed for sale that meet the criteria. At the current pace, that's over two years worth.
Since I'm not much of a proponent of looking at an entire metro area as one market, I broke down the areas in which these Million Dollar sales occurred. Here is a geographical description of each area represented in the Louisville Area:
Area 00: The Central Downtown Business District, loosely defined as north of Broadway, east of 9th St., south of the Ohio River, & west of Baxter Ave.
Area 01: Old Louisville/West Louisville/Shively, loosely defined as south of Broadway, east of 44th St., north of I-264, & west of S. Brook St.
Area 02: Butchertown/Highlands/Germantown, loosely defined as north of I-264, east of I-65, southwest of Lexington Rd.
Area 03: Brownsboro Rd./Crescent Hill/St. Matthews, loosely defined as east of Story Ave., south of the Ohio River, west of Rudy Ln. at I-264, north of I-64 at Cannons Ln.
Area 07: Fern Creek/Hikes Point/Jeffersontown
Area 08: Douglas Hills/Hurstbourne/Middletown Anchorage
Area 09: Anchorage/Lyndon/Prospect/River Rd.
Year-----Area------# of sales
2000----- --00------------0
2000--------01------------0
2000--------02------------2
2000--------03------------3
2000--------07------------1
2000--------08------------0
2000--------09------------6
Year-----Area------# of Sales
2001-------00-------------0
2001-------01-------------0
2001-------02-------------0
2001-------03-------------4
2001-------07-------------0
2001-------08-------------5
2001-------09-------------4
Year-----Area------# of Sales
2002-------00-------------0
2002-------01-------------0
2002-------02-------------0
2002-------03-------------4
2002-------07-------------0
2002-------08-------------5
2002-------09-------------7
Year-----Area------# of Sales
2003-------00------------0
2003-------01------------0
2003-------02------------2
2003-------03------------2
2003-------07------------1
2003--------08-----------6
2003--------09-----------3
Year-----Area------# of Sales
2004------00-------------1
2004------01-------------0
2004------02-------------2
2004------03-------------2
2004------07-------------0
2004------08-------------6
2004------09-------------8
Year-----Area------# of Sales
2005-------00------------0
2005-------01------------0
2005-------02------------2
2005-------03------------12
2005-------07------------0
2005-------08------------8
2005-------09------------17
Year-----Area------# of Sales
2006-------00------------5
2006-------01------------0
2006-------02------------2
2006-------03------------9
2006-------07------------0
2006-------08------------4
2006-------09------------11
Year-----Area------# of Sales
2007-------00------------0
2007-------01-------------1
2007-------02------------7
2007-------03------------6
2007-------07------------0
2007-------08------------5
2007-------09------------20
Current Active Listings FOR SALE
Area 00: 4
Area 01: 1
Area 02: 3
Area 03: 18
Area 07: 3
Area 08: 21
Area 09: 33
So What Does It All Mean?
I'd say the data suggests that purchasing a home for over $1 Million Dollars is a bit of a risk in the Louisville Market. Don't get me wrong, it's encouraging that the total number of sales of these type properties is increasing. The values on the other hand are fairly flat, so be sure to have the home in tip top condition when needing to sell. Buyers in this range demand a lot and at times are hard to come by. Despite the challenges, this segment of the market is doing better than others in the area. More on that later...
My research is based on the Greater Louisville Multiple Listing Service's records. I culled the sales of Million Dollar Homes from each year since 2000, and compared the data. Included are sales of new & existing homes & condominiums that sold for $1 Million Dollars or more. Excluded are raw acreage/land sales or any parcels or properties that could be developed for commercial use (including larger condominium conversions). Only properties located within Jefferson County were included.
Here are the results:
Year--# of Sales---Low--------High--------Average----Median
2000-----12-----$1,000,000---$2,275,000--$1,360,352--$1,190,000
2001-----13-----$1,060,000---$2,250,000--$1,333,846--$1,250,000
2002-----16-----$1,008,212---$2,098,000--$1,319,388--$1,168,750
2003-----13-----$1,000,000---$1,525,000--$1,234,904--$1,225,000
2004-----19-----$1,000,100---$2,250,000--$1,368,598--$1,200,000
2005-----39-----$1,000,000---$2,650,000--$1,442,262--$1,300,000
2006-----31-----$1,000,000---$2,880,500--$1,393,704--$1,195,000
2007*----38-----$1,000,000---$2,250,000--$1,308,770--$1,233,210
*=through 10/17/07. Additionally, there are 4 PENDING sales that would qualify upon closing.
Currently, there are 83 properties listed for sale that meet the criteria. At the current pace, that's over two years worth.
Since I'm not much of a proponent of looking at an entire metro area as one market, I broke down the areas in which these Million Dollar sales occurred. Here is a geographical description of each area represented in the Louisville Area:
Area 00: The Central Downtown Business District, loosely defined as north of Broadway, east of 9th St., south of the Ohio River, & west of Baxter Ave.
Area 01: Old Louisville/West Louisville/Shively, loosely defined as south of Broadway, east of 44th St., north of I-264, & west of S. Brook St.
Area 02: Butchertown/Highlands/Germantown, loosely defined as north of I-264, east of I-65, southwest of Lexington Rd.
Area 03: Brownsboro Rd./Crescent Hill/St. Matthews, loosely defined as east of Story Ave., south of the Ohio River, west of Rudy Ln. at I-264, north of I-64 at Cannons Ln.
Area 07: Fern Creek/Hikes Point/Jeffersontown
Area 08: Douglas Hills/Hurstbourne/Middletown Anchorage
Area 09: Anchorage/Lyndon/Prospect/River Rd.
Year-----Area------# of sales
2000----- --00------------0
2000--------01------------0
2000--------02------------2
2000--------03------------3
2000--------07------------1
2000--------08------------0
2000--------09------------6
Year-----Area------# of Sales
2001-------00-------------0
2001-------01-------------0
2001-------02-------------0
2001-------03-------------4
2001-------07-------------0
2001-------08-------------5
2001-------09-------------4
Year-----Area------# of Sales
2002-------00-------------0
2002-------01-------------0
2002-------02-------------0
2002-------03-------------4
2002-------07-------------0
2002-------08-------------5
2002-------09-------------7
Year-----Area------# of Sales
2003-------00------------0
2003-------01------------0
2003-------02------------2
2003-------03------------2
2003-------07------------1
2003--------08-----------6
2003--------09-----------3
Year-----Area------# of Sales
2004------00-------------1
2004------01-------------0
2004------02-------------2
2004------03-------------2
2004------07-------------0
2004------08-------------6
2004------09-------------8
Year-----Area------# of Sales
2005-------00------------0
2005-------01------------0
2005-------02------------2
2005-------03------------12
2005-------07------------0
2005-------08------------8
2005-------09------------17
Year-----Area------# of Sales
2006-------00------------5
2006-------01------------0
2006-------02------------2
2006-------03------------9
2006-------07------------0
2006-------08------------4
2006-------09------------11
Year-----Area------# of Sales
2007-------00------------0
2007-------01-------------1
2007-------02------------7
2007-------03------------6
2007-------07------------0
2007-------08------------5
2007-------09------------20
Current Active Listings FOR SALE
Area 00: 4
Area 01: 1
Area 02: 3
Area 03: 18
Area 07: 3
Area 08: 21
Area 09: 33
So What Does It All Mean?
I'd say the data suggests that purchasing a home for over $1 Million Dollars is a bit of a risk in the Louisville Market. Don't get me wrong, it's encouraging that the total number of sales of these type properties is increasing. The values on the other hand are fairly flat, so be sure to have the home in tip top condition when needing to sell. Buyers in this range demand a lot and at times are hard to come by. Despite the challenges, this segment of the market is doing better than others in the area. More on that later...
Monday, July 09, 2007
What is that?
I take pride in the pictures I take of properties I represent. Pictures of a property are crucial in attracting today's home buyer. In fact, I've spoken with quite a few buyers who won't even consider looking at a home unless the on-line listing features interior photographs of the property. So when I was alerted to this website created by a Wisconsin REALTOR & featuring some of the worst real estate pictures he's been able to compile, I had to post it here. Having viewed hundreds of terrible real estate photos myself, I empathize with his viewpoint. Enjoy!
Friday, June 29, 2007
Tips on Real Estate Investing: Foreclosures
There's news everywhere regarding the national foreclosure rate. From today's REALTOR Magazine On-line, here are some solid tips, the best of which is simply that just because a property is a foreclosure doesn't mean it's a good deal, should you decide to invest in a foreclosure:
7 Tips for Foreclosure Property Investing
With foreclosures rising nationwide, prices falling, and inventories swelling to historic levels, investors with a discerning eye and knowledge of the foreclosure process can build a profitable portfolio of distressed properties, says James Saccacio, CEO of RealtyTrac, which tracks foreclosure data.
Saccacio offers this basic advice to foreclosure investors:
— REALTOR® Magazine Online
7 Tips for Foreclosure Property Investing
With foreclosures rising nationwide, prices falling, and inventories swelling to historic levels, investors with a discerning eye and knowledge of the foreclosure process can build a profitable portfolio of distressed properties, says James Saccacio, CEO of RealtyTrac, which tracks foreclosure data.
Saccacio offers this basic advice to foreclosure investors:
- Know your market. The most important tool in your real estate investing toolbox is knowledge of the area where you plan to invest.
- Develop an appropriate investment strategy. Find an investment strategy that will work in your market, and then do what it takes to implement that strategy.
- Make the foreclosure process work for you. Decide what foreclosure buying technique works best with your investment strategy and your strengths as a person.
- Scrutinize each deal. Many real estate investors wrongly assume that if a home is in foreclosure it's a good deal.
- Rely on a trustworthy team. You'll be in over your head if you try to do all the work involved in foreclosure investing on your own.
- Network with banks and lenders. In a slow real estate market, banks and other lenders are saddled with larger inventories of foreclosed properties and will be more motivated to sell those properties at bargain prices.
- Act quickly, but don't be in a hurry. A slow real estate market gives you the upper hand as a buyer, but you'll still need to act quickly to get the best deals.
— REALTOR® Magazine Online
Thursday, June 28, 2007
Thoughts on Real Estate Licensing
Many industries struggle to maintain a certain level of professional respect, however, some lines of work such as real estate sales & insurance sales, seem to have never quite gotten past the point of being a punchline. Nowadays, marketing is everything. Look at lawyers, dentists, & other medical specialists, professions where even the thought of advertising used to be offensive. There are commercials everywhere, and not only is it becoming accepted, it's becoming absolutely necessary to the vitality of many of these practitioners. Granted, there are still those who do quite well for themselves and are completely referral-based (my dentist comes to mind), but these examples have built practices the hard way through years of grinding it out, one client at a time. I'm not trying to draw a direct parallel between law or medicine & selling real estate, but some of the challenges to answering the perception question are similar.
Consider the following article written by former National Association of Realtors Chief Economist, Dr. John Tuccillo. The perception of the profession of selling real estate will not graduate beyond an "anybody can do it" sort of hobby until changes are made regarding entry into the occupation. During the "boom years", this mentality was only bolstered as huge ranks of people jumped into the art of selling real estate with both feet. It was easy to make a quick buck. As 2007, however, is half over, many agents are struggling to make a living as the market downturn is affecting marginal producers. Perhaps the downturn will weed out many agents, which at least in theory, could be a good thing. Or, perhaps it will be a catalyst to a greater change in how people become real estate agents.
Many agents, including myself, have been screaming for higher standards for gaining a real estate license since way before 2007. It is absurd to think that someone who has as much influence on what, in many cases, is the largest financial transaction many people will ever make can gain the ability to do this through attending 90 hours of academic classroom material, passing a test, & paying some fees. Large brokerages have been fueled by attracting huge numbers of agents knowing that even the least capable agent might fall into a deal or two in one year, but is this really good for the industry? The above referenced article appears to answer that question directly. Let's hope its merits produce better agents & a better, more legitimate industry as a whole.
Consider the following article written by former National Association of Realtors Chief Economist, Dr. John Tuccillo. The perception of the profession of selling real estate will not graduate beyond an "anybody can do it" sort of hobby until changes are made regarding entry into the occupation. During the "boom years", this mentality was only bolstered as huge ranks of people jumped into the art of selling real estate with both feet. It was easy to make a quick buck. As 2007, however, is half over, many agents are struggling to make a living as the market downturn is affecting marginal producers. Perhaps the downturn will weed out many agents, which at least in theory, could be a good thing. Or, perhaps it will be a catalyst to a greater change in how people become real estate agents.
Many agents, including myself, have been screaming for higher standards for gaining a real estate license since way before 2007. It is absurd to think that someone who has as much influence on what, in many cases, is the largest financial transaction many people will ever make can gain the ability to do this through attending 90 hours of academic classroom material, passing a test, & paying some fees. Large brokerages have been fueled by attracting huge numbers of agents knowing that even the least capable agent might fall into a deal or two in one year, but is this really good for the industry? The above referenced article appears to answer that question directly. Let's hope its merits produce better agents & a better, more legitimate industry as a whole.
Wednesday, May 30, 2007
Catching Up: 1st Quarter Comparison '06 & '07
40205: SOLD 1/1/06-3/31/06
Total # of Sales: 66
High: $543,000
Low: $110,000
Median: $190,000
Average: $203,552
40205: SOLD 1/1/07-3/31/07
Total # of Sales: 53
High: $795,000
Low: $118,000
Median: $226,000
Average: $248,097
------------------------------------------------------------------------------------------------
40206: SOLD 1/1/06-3/31/06
Total # of Sales: 28
High: $510,000
Low: $68,800
Median: $174,750
Average: $183,932
40206: SOLD 1/1/07-3/31/07
Total # of Sales: 57
High: $475,000
Low: $ 36,000
Median: $145,000
Average: $172,841
------------------------------------------------------------------------------------------------
40207: SOLD 1/1/06-3/31/06
Total # of Sales: 73
High: $675,000
Low: $129,000
Median: $198,000
Average: $220,741
40207: SOLD 1/1/07-3/31/07
Total # of Sales: 99
High: $1,260,000
Low: $120,500
Median: $ 206,500
Average: $260,356
------------------------------------------------------------------------------------------------
Total # of Sales: 66
High: $543,000
Low: $110,000
Median: $190,000
Average: $203,552
40205: SOLD 1/1/07-3/31/07
Total # of Sales: 53
High: $795,000
Low: $118,000
Median: $226,000
Average: $248,097
------------------------------------------------------------------------------------------------
40206: SOLD 1/1/06-3/31/06
Total # of Sales: 28
High: $510,000
Low: $68,800
Median: $174,750
Average: $183,932
40206: SOLD 1/1/07-3/31/07
Total # of Sales: 57
High: $475,000
Low: $ 36,000
Median: $145,000
Average: $172,841
------------------------------------------------------------------------------------------------
40207: SOLD 1/1/06-3/31/06
Total # of Sales: 73
High: $675,000
Low: $129,000
Median: $198,000
Average: $220,741
40207: SOLD 1/1/07-3/31/07
Total # of Sales: 99
High: $1,260,000
Low: $120,500
Median: $ 206,500
Average: $260,356
------------------------------------------------------------------------------------------------
Tuesday, May 29, 2007
Catching Up: 4th Quarter '06 & '05 Comparison
40205: SOLD 10/1/05-12/31/05
Total # of Sales: 76
High: $775,000
Low: $84,900
Median: $183,000
Average: $204,160
40205: SOLD 10/1/06-12/31/06
Total # of Sales: 75
High: $1,000,000
Low: $119,900
Median: $218,000
Average: $236,577
------------------------------------------------------------------------------------------------
40206: SOLD 10/1/05-12/31/05
Total # of Sales: 57
High: $1,470,000
Low: $29,000
Median: 182,000
Average: $236,695
40206: SOLD 10/1/06-12/31/06
Total # of Sales: 39
High: $1,150,000
Low: $68,204
Median: $185,500
Average: $253,126
------------------------------------------------------------------------------------------------
40207: SOLD 10/1/05-12/31/05
Total # of Sales: 101
High: $1,950,000
Low: $132,000
Median: $228,000
Average: $307,640
40207: SOLD 10/1/06-12/31/06
Total # of Sales: 84
High: $2,350,000
Low: $120,000
Median: $209,000
Average: $281,013
------------------------------------------------------------------------------------------------
Well, the 40205 zip remained incredibly strong in the year over year comparison. Total of sales were basically unchanged, but median & average prices were up dramatically. Prices in 40206 were up, but sales were down noticeably. The 40207 zip was dismal, posting lower total sales & prices.
Total # of Sales: 76
High: $775,000
Low: $84,900
Median: $183,000
Average: $204,160
40205: SOLD 10/1/06-12/31/06
Total # of Sales: 75
High: $1,000,000
Low: $119,900
Median: $218,000
Average: $236,577
------------------------------------------------------------------------------------------------
40206: SOLD 10/1/05-12/31/05
Total # of Sales: 57
High: $1,470,000
Low: $29,000
Median: 182,000
Average: $236,695
40206: SOLD 10/1/06-12/31/06
Total # of Sales: 39
High: $1,150,000
Low: $68,204
Median: $185,500
Average: $253,126
------------------------------------------------------------------------------------------------
40207: SOLD 10/1/05-12/31/05
Total # of Sales: 101
High: $1,950,000
Low: $132,000
Median: $228,000
Average: $307,640
40207: SOLD 10/1/06-12/31/06
Total # of Sales: 84
High: $2,350,000
Low: $120,000
Median: $209,000
Average: $281,013
------------------------------------------------------------------------------------------------
Well, the 40205 zip remained incredibly strong in the year over year comparison. Total of sales were basically unchanged, but median & average prices were up dramatically. Prices in 40206 were up, but sales were down noticeably. The 40207 zip was dismal, posting lower total sales & prices.
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