Leading up to 2014 real estate experts had very high expectations for the year’s market performance. Throughout the first half of 2014, however, those expectations were not met. Despite the lag in activity in the beginning months, which is likely due to the harsh winter weather and high consumer doubt, over the summer the national housing market has shown a steady increase in activity. HomeServices of America has developed and released a national perspective of the residential housing market, stating “we anticipate a robust second half of 2014” as housing inventories approach healthier levels.
During and after the recession, housing marketing throughout the country had an extremely high amount of distressed properties. It was private equity and investors that primarily drove the real estate market into recovery. This tactic of fueling market recovery, however, was a short-term resurgence. While investors removed a large amount of distressed properties from the market—which helped return property values to where they should be—once they did, recovery depended on the more traditional cycle. Fortunately, consumer confidence is on the rise. This is vital for the real estate market, because if people are fearful about buying and selling homes, than they simply won’t. According to HomeServices of America along with this increase in consumer confidence, the real estate activity is being led more by homeowners, instead of driven by investors or banks dealing with distressed properties. They have noted that more consumers are buying homes as their own residences and more homeowners are selling their own properties. This trend is a great sign that the real estate market will only continue to thrive.
The housing industry is made up of a number of segments, each of which is experiencing different paths to recovery. For example, luxury properties have displayed a strong sense of recovery, with good sales recorded in many markets nationwide; however, the sales of mid-priced residential properties have not been showing the same enthusiasm. Buy looking at the most recent price-branded reports for the Louisville, Southern Indiana, and Elizabethtown markets shown at the bottom of this post, you see that the majority of homes that sell in the area are in the $125k-$150k range, with less than 3% of homes selling for more than $500k in the Louisville market. This could be why we hear of many other markets undergoing a quicker recovery than we are.
Strong sales of luxury properties is most likely due to a number of factors that affect the buyers and sellers in this market segment. A large portion of this segment are made up of first-time homebuyers who are struggling with getting a loan due to strict credit standards and student loan debts, which has recently shown a dramatic uptick cross the country. The mid-market segment is also facing lower inventory levels which cannot keep up with the demand that is higher than other market segments. Real estate experts are hopeful that these issues will subside, especially as more and more buyers are seeking professional and quality loan officers to assist them through the process of getting a mortgage loan. With the guidance and expertise of such loan officers, more homebuyers are taking the right steps, such as getting pre-qualified for a mortgage prior to shopping for homes.
Americans are beginning to once again become confident and enthusiastic towards real estate. According to a 2014 survey by Gallup, more Americans consider real estate to be the best long-term investment, ranking above gold and stocks. The fact that consumers are still seeing the value in homeownership is a great indicator that things will continue to improve. While we are still a ways away from achieving full recovery, the signs are pointing in the right direction. Assuming that job creation and the overall economy will continue to grow, the momentum of real estate market is anticipated to continuously pick up speed through the rest of 2014.
The Semonin Realtors® all-company event held yesterday, August 20th, at Kingpin Lanes was nothing less than a huge success and a whole lot of fun! From 10a.m. to 2p.m., Semonin staff, agents, families, and clients put their bowling shoes on and enjoyed a great afternoon of fun, food, and strikes! Funds raised by bowlers, raffle tickets, and a bake sale exceeded $2,500 for Habitat for Humanity.
We had over 90 participates and gave away over 60 raffle prizes. We would like to thank everyone who helped us make this great event a success, with a special shout out to King Pin Lanes and their wonderful staff and to 2-10 warranty for sponsoring this event and allowing us to give 100% of all the proceeds to Habitat for Humanity. We can’t wait to start building our 17th Habitat home next month!!
To view the full photo album visit our Facebook Page!
Matt Kinsey, a former Army sergeant and member of the Wounded Warrior Amputee Softball Team, and his girlfriend Christina were the recipients of a remodeled house courtesy of Wells Fargo. Matt and Christina received the keys to the house yesterday, enabling them to see it for the first time. Semonin agent Jay Wyzard was instrumental in the process. Matt is most deserving of this fantastic house in New Albany and Semonin is honored to have had a special part in it.
At Semonin Realtors, we strive to lead differently, teach relentlessly, and serve passionately. To be able to give back to those who serve our country is so meaningful to the Semonin family. In further efforts to assist our military moving in or out of the Kentuckiana region, Semonin Realtors participates in the U.S. Military of the Move program to say thank you to all our service men and women. This program allows military active duty, retired (20 years of service) and wounded warriors to earn cash back when they buy or sell a home with Semonin Realtors®.
After winning the last $10,000 drawing, Phil Miller, of Semonin Realtors, never thought he would win it AGAIN at the very next event! But that is exactly what happened at the 61st Semonin Realtors Winner’s Circle drawing, held July 15, 2014. Thirty agents from around the area were entered into the drawing after selling a property registered in the Semonin Realtors Winner’s Circle program. Phil won the grand $10,000 prize, plus a $500 bonus for being both the listing and selling agent on the property drawn as the winning entry.
For many, 4th of July weekend is always a highlight of the summer. Some leave town, some stay at home to light sparklers with the kids. Whatever you do, it is a holiday worth celebrating! For those of you who have yet to make plans, there are tons of things going on around town! Click here for a couple of events taking place in the Louisville area this holiday weekend.
Months of Inventory as of June 15, 2014
What is Months of Inventory? This term considers the amount of inventory currently on the market and the recent demand shown by buyers. As you can see from the graph in the image, the months of inventory in the Louisville market is currently around 5.3. This means if no more inventory were to come of the market, it would take approximately 5.3 months for buyers to purchase everything that is currently listed. This number indicates that we are in a seller’s market right now. Often in this kind of market, seller’s experience multiple offers and sell their homes in less time and for more money. If you have been thinking about selling, now is the time to get your house listed!