Louisville Properties Blog
Louisville Properties Blog

Louisville Properties Blog

Top 4 Things Home Inspectors Look For

Most people understand the importance of having your home inspected by a professional before you buy a new property. Home inspectors have years of experience and specialized training so they know what to look out for in aging homes and what problems are likely to appear. Here are the top 4 things home inspectors generally look for, so you'll be better informed the next time you buy a home.

 #1 Structural Problems

 Structural problems can include anything from a settling foundation, a house built on a grade, or physical problems with a home. Structural problems are important to identify not only for safety reasons but because they tend to be larger in scale and can potentially cost big bucks to fix. A couple hundred dollars for a home inspection could save you thousands if the inspector finds a cracked foundation, unstable patio, or drainage issues.

 Home inspectors will have seen hundreds, if not thousands, of different style homes in your area. This gives them a wealth of knowledge on what you could expect from your property. Often times, if an inspector finds a problem with a home you can use this information as leverage to reduce the buying price or even have the seller pay for part of the repairs.

 #2 Plumbing

 Plumbing is a very important factor to check over when buying a new home. Plumbing problems can be hard to identify and locate because most plumbing is hidden behind finished walls. Not only does this mean it could be months or years before you locate that small leak, it also means fixing small problems requires you to tear down and rebuild finished rooms.

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Getting Rid of Movers Anxiety

Moving can be an anxiety-inducing process for most people. Relocation can be so overwhelming. It can make you feel like your head is going to explode. It involves taking care of many small details. It involves handling a lot of bigger tasks as well. Moving can be enough to make even the calmest people feel a little uneasy. If you want to do away with anxiety during the moving process, however, there are numerous easy things you can do. Feeling comfortable and at ease can make the moving process markedly smoother. A relaxed mood can make everyone around you feel a lot better as well.

Prepare, Prepare and Prepare Some More

Ample preparation is important for people who want to keep anxiety episodes at bay. If you feel 100 percent ready to take on all of the vital tasks that are part of the moving process, you won't be as prone to feelings of helplessness and vulnerability. Insufficient planning can make you feel out of sorts. It can force you to rush and do things at the last minute as well. That's always a recipe for mistakes galore. Make sure to purchase all of your necessary supplies long before you have to begin the packing process. Take the time to research all of the most reputable professional moving companies in your area, too. You don't want to have to settle for a moving company that isn't up to par. The more pressed for time you are, the more anxious you'll feel.

Recruit the Help of Your Pals

There's no doubt that relocation is a tough and stressful project. That's why you should never be afraid to ask for help from the people you trust...

What Seniors Should Ask Themselves When Purchasing a New Home

While some seniors believe that once they reach a certain age their home buying experiences are over, many are realizing that it doesn’t have to be this way. There are plenty of reasons for seniors to want to purchase a new home, but there are also some significant barriers that may arise. When deciding on the prospect of buying a new home, here are some important questions seniors must ask themselves.

What is my primary reason for moving and how do I buy smartly?

Before buying a new home, you need to know exactly why you’re doing so. With hundreds of thousands of dollars on the line in the transaction, it’s important to be 100% sure that the home you’re moving to represents a better living situation than the home you’re leaving.

If you’re moving because you want to downsize, make sure that the home you’re buying fits your living necessities. In other words, downsize enough to make the move worth it but don’t give up so much space that you feel cramped or find yourself having to get rid of too many of your belongings. Think carefully about how much square footage you use in your current home, and how much you can comfortably part with.

If you’re moving for mobility reasons, make sure that the new home will accommodate you. Does it have stairs? Is the outdoor area hard to navigate? Are the pathways in the new home large enough to accommodate mobility aids? There are ways to get help paying for home modifications....

What You Need to Know When Obtaining Financing for a Rental Property

Investing in the rental property business is one of the best decisions you can ever make. If you do it well, you multiply your wealth, create passive income, and also secure a great future for you and your dependents. However, the road to such financial freedom is not devoid of hurdles. For instance, having enough funds is one of the many aspects needed to profit on your investment. Many real estate investors, therefore, view financing as an attractive option.Signing agreement

First-time owners, however, find the idea of obtaining funding a bit daunting and confusing. Where can I get the funds, how easy will it be, how do I determine who is a good money lender, what requirements must one fulfill? And so on, are just some of the many questions that run through their minds.

The following article aims to help out such a person by shedding light into what an investor needs to know when looking for financing for his or her property.

Things to Consider Before Obtaining Financing for Rental Properties:

You must set aside a sizeable down payment

Many financial institutions will demand that you raise a considerable amount of down-payment, which is a percentage of the total financing you need. First-time homeowners, nevertheless, mistakenly think that their mortgage insurance will be sufficient to cover their investment property. However, reality soon dawns on them that it is not. For this reason, any prudent investor will set aside a significant amount...

Restoration Services: What To Do In the Event of Water Damage

Water damage to your Louisville property can be devastating, especially when it is unexpected. In order to prevent additional and future problems, you need to quickly contact an experienced Louisville commercial water damage restoration service provider to deal with the damage as soon as possible.

Steps to Take For Water Damage

Water damage can arise from a variety of different causes, such as severe weather, burst pipes, roof damage, and water leaks. These situations pose a serious risk to your property that is apparent. However, in other situations, it may be harder to find the evidence of water damage. Regardless of what type of water damage you are facing, it is imperative that you handle the problem quickly as possible.

Although Louisville commercial water damage restoration and clean up is best handled by professionals, below are some steps you can take to help avert further disaster:

  1. Access the source of the damage. Knowing the source of the damage will allow you to identify the problem and help reduce the overall damage. For example, if the water damage was caused by a leaking pipe, you can close the main water valve.
  2. Turn off the electricity. Turning off the electricity will prevent devastating problems by not allowing the water to mix with electricity.
  3. Dry out the area. After you have stopped the inflow of water, you need to dry the wet area as much as possible and as quickly as possible to avoid other problems such as mold.
  4. Assess the damage. Water damage clean up is a big job, especially when there is major damage.

Call The Louisville Commercial Water Damage Restoration Specialists!

If you have water damage and need a professional to expertly deal with the problem, call the ...

Historic Piece of Louisville Real Estate Receives Recognition at Last

A parcel of land called "the single-most important piece of real estate" in Louisville by one local historian is finally getting the recognition many feel is long overdue. The former site of Fort-on-Shore, the first mainland building and settlement in Louisville, has long been overlooked as other nearby Revolutionary War sites received recognition over the years. At long last, that slight is being corrected, thanks to the efforts of local historians. A state historical marker was dedicated on the site in the Shippingport warehouse district west of downtown between the Ohio River and Main Street. The historians wanted to correct the mistaken assumption that nearby Fort Nelson was Louisville's first settlement on the mainland. The new historical marker rightly indicates that Fort-on-Shore was built in 1779, a full three years before Fort Nelson was built. Local historian and Metro Councilman Tom Owen hoped that the new designation would spur interest in redeveloping the Shippingport area. He said, "There have been so many dreams about reclamation there." If you've been dreaming about reclaiming a piece of Louisville real estate for yourself, let the experts at Louisville Properties help you achieve your dream. We've been helping people in the area buy and sell residential and commercial real estate in the Louisville area for years. We value our relationships with local residents and businesspeople, and we have our own history, a history of outstanding customer service and always going the extra mile for our clients. If we can help you find the perfect piece of Louisville real estate or the perfect buyer for your real estate, please give us a call at 502.744.9504 today, and let our expertise help you make it happen!...

Local Building Reopens With New Purpose and a Very Different Clientele

A small building on McHenry Street that once housed the offices for the Louisville Textile Mill reopened recently with a very different purpose. The building in Louisville's Germantown neighborhood is the new home of Germantown Daycare, which will be able to care for up to 115 children between the ages of six months and 12 years old. The building's owner, Richard Morris, took extra care to retain the building's unique character during recent renovations. He said, "We left a lot of the art deco decor here and many of the outdoor features. When we came in and looked around, it was several smaller rooms that led into a bigger room. It just seemed to lend itself to what we needed." The new daycare opened on September 20, but renovating the 37,000-square-foot building presented some very serious obstacles for the new owners. Walls up to a foot thick required removal to create play areas for the kids, and obtaining zoning approval for the renovations and the building's new purpose presented challenges as well. Residents of the Germantown and nearby Schnitzelburg neighborhoods rallied for the new owners, leading a petition drive and contacting city officials to allow the new owners to proceed with plans. Area residents said that a nearby daycare is essential for the young families moving into the area and are very pleased that this resource is now available for their community. In a time when residents and the Louisville real estate market are struggling with so many difficulties, this story is a fine example of the good things that can happen when people work together toward a common goal. If your goal is to find the perfect piece of Louisville real estate for your next home or business, call us at Louisville Properties today at 502.744.9504!...

Home Prices Drop 3.2 Percent in Third Quarter

Real estate analysts from the Federal Housing Finance Agency are claiming that lower demand and the expiration of the homebuyer tax credit are continuing to put downward pressure on home prices across the country. Home prices fell 3.2 percent in the third quarter of 2010, down significantly from the same quarter in 2009. The agency said that Atlanta suffered the greatest decline in prices among the 25 largest metropolitan areas of the country with a 10 percent drop in home prices. San Diego posted the biggest gain with a 4.6 percent jump. Overall, home prices fell in 40 states compared to the third quarter of 2009. Idaho, Georgia, Arizona, Oregon and South Carolina led the declines in residential real estate. One analyst had an especially gloomy forecast for the nation's home prices for 2011. Celia Chen, a Housing Analyst with trend watcher Moody's Analytics, did an interview before the release of the Federal Housing Finance Agency's report. She said, "Our overall expectations for home prices is that they'll drop by another eight percent by the third quarter of next year." We'll have to wait and see whether or not Ms. Chen's dire forecast is accurate, but it is certainly an accurate snapshot of the current mood of home sellers whose homes have been languishing on the market for months. If you're trying to sell your Louisville home and are looking for an experienced, proactive Louisville real estate agent to help make that happen, please give us a call today at 502.744.9504. Louisville Properties has been helping people sell Louisville homes in all kinds of market conditions for years, and we use our resources and experience to help sellers find qualified buyers. For more information, give us a call or fill out our contact form. We look forward to hearing from you!

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Commercial Real Estate Investors Embrace 'Buy and Hold' Strategy

Savvy investors looking for relatively stable places for their capital to appreciate are increasingly looking at commercial real estate. With interest rates close to zero and Treasury bills yielding next to nothing, investors are betting that the country's commercial real estate markets will eventually rebound. Many are investing in distressed commercial properties and projects and taking a 'buy and hold' strategy until the market improves. Prices in commercial real estate have shown modest gains recently according to the CCIM Institute and the Real Estate Research Corporation. Analysts have been urging investors to sell in recent months and take advantage of modest gains in their investments. However, it appears that few are heeding this advice and are slowly adding more commercial property to their portfolios. Frank Simpson, 2011 President of the CCIM Institute, is one expert urging investors to continue holding onto their investments. In a recent statement, he validated the prevailing wisdom of making careful investments and holding onto them until the market rebounds. He said, 'Though much uncertainty remains in the overall economy, transaction trends for commercial real estate continue to improve. The challenge for investors remains finding the right properties at the right price with the best return potential.' As Louisville commercial real estate experts with years of experience helping investors find properties for their businesses and long-term investment goals, we agree with Mr. Simpson. That old saying about buying at the bottom of the market and waiting until it rebounds is definitely true in the current Louisville commercial real estate market. We have been helping savvy investors find business and investment opportunities for years and have seen many commercial real estate market cycles wax and wane. Let our experience and knowledge of Louisville commercial real estate inform...

Foreclosures Rates Down Slightly But Remain a Persistent Problem Across the Country

Figures provided by the Mortgage Banker's Association suggest that mortgage delinquency rates declined a bit in the third quarter of 2010, but warn that the coming winter will show little improvement for homeowners struggling to make house payments. The Association reports that foreclosures "declined last quarter amid hints of improvement in the job market, but headwinds from defaults and a rising rate of new foreclosure applications keep the housing outlook muddied." Real estate website Zillow.com's foreclosure figures differed from the Mortgage Banker's Association. They reported that foreclosures have reached a new peak in the U.S. since 1.17 in every 1,000 homes either are in the foreclosure process or perilously close. They report that high negative equity rates, which increased in the third quarter from 22.5 to 23.2 percent, will continue to drive foreclosures and "will be weighing on housing demand for the next few years." Zillow's Real Estate Market Reports publication had additional bad news for the nation's housing market. They said, "Home value depreciation began to accelerate again in September, fueled by lower transactional volumes and increased inventory levels. Home values dropped 0.4% from August to September and 4.3% from September 2009. With home values 25% below their peak and 51 consecutive months of declines, the length and severity of the current downturn is fast approaching the length and depth of the Depression-era housing declines. From the end of 1928 to the end of 1933 (60 months), nominal home values fell 25.9% according to Robert Shiller's reconstruction of long-term home price appreciation in the United States." While the Louisville real estate market has been somewhat insulated from the worst of the foreclosure crisis, it is not immune. If you're thinking of investing in foreclosed or non-foreclosed Louisville real estate as your primary residence or as income...

Safety Tips for Your Louisville Home This Holiday Season

As we get closer to Christmas and New Year's Day, we thought we'd pass along some holiday safety tips to keep your family and Louisville home safe and happy this holiday season. Let's start with the Christmas tree. If you're buying a live tree this year, make sure that you do the following:

  • Buy a fresh tree with needles that bend and are not easy to pull out.
  • Keep the base of the tree immersed in water at all times to keep it as fresh as possible and give your Louisville home that great piney smell.

Check all your strands of lights for frayed ends, exposed wires or cuts. For all trees, make sure to remember these things:

  • Use only indoor light strands on your tree.
  • Don't overload outlets by plugging in multiple power strips or extension cords.

Also, bear in mind that thieves can be as busy during the holiday season as you are! Follow these tips to make your Louisville home less attractive to thieves:

  • Vary your daily routine as much as possible and practical.
  • Leave a TV or radio on, and use timers on lamps (remember to adjust these every few days).

Never post that you're going to be out of town on your Facebook page or any other social media outlets. ·    Ask trusted neighbors, friends or family members to housesit or stop by frequently while you're away. All of us at Louisville Properties want to wish you and yours a very safe and happy holiday season. If you're thinking about buying or selling a Louisville home, please give us a call at 502.744.9504 or fill out one of our contact forms for a fast reply! Happy Holidays everyone!

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Home Prices Drop 3.2 Percent in Third Quarter

Real estate analysts from the Federal Housing Finance Agency are claiming that lower demand and the expiration of the homebuyer tax credit are continuing to put downward pressure on home prices across the country. Home prices fell 3.2 percent in the third quarter of 2010, down significantly from the same quarter in 2009. The agency said that Atlanta suffered the greatest decline in prices among the 25 largest metropolitan areas of the country with a 10 percent drop in home prices. San Diego posted the biggest gain with a 4.6 percent jump. Overall, home prices fell in 40 states compared to the third quarter of 2009. Idaho, Georgia, Arizona, Oregon and South Carolina led the declines in residential real estate. One analyst had an especially gloomy forecast for the nation's home prices for 2011. Celia Chen, a Housing Analyst with trend watcher Moody's Analytics, did an interview before the release of the Federal Housing Finance Agency's report. She said, "Our overall expectations for home prices is that they'll drop by another eight percent by the third quarter of next year." We'll have to wait and see whether or not Ms. Chen's dire forecast is accurate, but it is certainly an accurate snapshot of the current mood of home sellers whose homes have been languishing on the market for months. If you're trying to sell your Louisville home and are looking for an experienced, proactive Louisville real estate agent to help make that happen, please give us a call today at 502.744.9504. Louisville Properties has been helping people sell Louisville homes in all kinds of market conditions for years, and we use our resources and experience...

Prices for Commercial Real Estate Rose Sharply in September

A report recently published by Moody's Investors Service and Real Estate Analytics LLC states that prices for commercial real estate in the U.S. jumped a record 4.3 percent in September from the previous month. This represented the first gain in commercial real estate values since May and was a much-needed bright spot in an industry plagued by empty floors in office buildings and empty storefronts in malls and downtown shopping districts. While down a staggering 43 percent since their peak in 2007, commercial real estate prices showed a 0.3 percent year-over-year increase from the previous September. However, analysts were quick to downplay the significance of September's numbers. Nick Levidy, Managing Director for Moody's, warned that the jump in prices is not an indication of better times ahead for the commercial real estate industry. He said the recent volatility in prices "are due in part to the uncertain macroeconomic environment and the effects of a thin market with low transaction volumes." In our area, Louisville commercial real estate prices are down, but not as sharply as many areas of the country since we are somewhat insulated from the wild swings that have roiled many markets. This provides stability and makes commercial real estate in Louisville an attractive investment for business owners looking to expand operations. It is also a viable option for real estate investors looking for income property and a safe place for their money to appreciate. If either of these scenarios describes your situation and you're looking for the area's best selection of Louisville commercial real estate, please browse the pages of our site and call Louisville Properties at 502.744.9504 for more information. Let our expertise and knowledge of the Louisville real estate markets be the catalyst for your success!...

Deal for Downtown National City Tower Could Be the Biggest Louisville Real Estate Deal in Years

The Louisville commercial real estate market could see its biggest sale since 2004 when the $115 million, all-cash sale of the National City Tower downtown is complete sometime in December. One of several "trophy towers" across the country that are defying downward trends in the commercial real estate markets, the National City Tower most recently sold in 2005 for $95 million. According to insiders, a real estate investment trust based in Newport Beach, CA, KBS Realty Advisors Cos., has a contract to buy the tower from Meridian Investment, Inc. The tower is located in Louisville's central business district and is considered a very attractive investment as it is currently 94 percent leased. This is a notable exception to many office towers that are struggling with vacancies. Towers such as our National City Tower are more than graceful additions to our skyline; they are important magnets for business development, and they enhance the value of nearby properties. While we don't help clients buy and sell huge downtown office buildings, we do make our own contributions to the Louisville real estate market. We have been helping people buy and sell homes, duplexes, apartment buildings and a wide range of commercial properties for years, and we are proud of the services we provide to our clients. We offer many different flexible services to help you find a qualified buyer for your home, and we use our experience and resources to help buyers find the perfect Louisville real estate for their needs. If you're thinking of buying or selling real estate in the Louisville area, call Louisville Properties first at 502.744.9504....

Property Management Courses Grow in Popularity

During a down real estate market in which wary buyers prefer to rent instead of making the large financial commitment of buying a home, property management has become a hot topic in real estate circles. A wide range of different property management courses, from one-day seminars to weekend classes to weekday lectures and full 11-week courses, are popping up in many areas of the country. Many real estate professionals struggling with plunging home sales and lower incomes are taking to courses to expand their services offered to clients and improve their revenue streams. Even newcomers to the real estate business are enrolling in these classes as a way to build and grow an investment portfolio while they pursue a new career path. Prospective property managers are learning a variety of skills including the following:

  • Tenant screening
  • Advertising and marketing
  • Rent collection and disbursement
  • Property maintenance
  • Preparation and management of legal documents
  • Income and expense report production
  • Other essential facets of this growing industry

Here at Louisville Properties, we think it's great that more people are getting into the property management business. Competition makes us better at what we do, and we welcome newcomers to the Louisville property management community. We don't perceive it as a threat because, as the old saying goes, there's no substitute for experience, and we have been providing flexible, customizable property management services in Louisville for a very long time. We offer property owners a full suite of different property management services to meet their unique needs. If you're a property owner looking for professional, experienced Louisville property management services that solve problems for you instead of making them, please call us today at 502.744.9504....

Louisville Home Sales Drop 29 Percent as Sales Slump Continues

September sales of Louisville homes continued the recent slump with Louisville real estate agents selling 29 percent fewer homes and condos than they did the previous September.  Members of the Greater Louisville Association of Realtors cited the expired first-time homebuyer tax credit and job uncertainty as the chief reasons for lower home sales. The decrease in home sales began last July here and in many housing markets across the country, and September's drop in sales reflected the steepest drop so far this year. Despite the three-month slump in sales, some Louisville real estate agents were quick to note that Louisville home sales for the year are still up overall from 2009's sales. They also pointed out that median home selling prices are up sharply from last year's $132,450 at this time to this year's $138,000. Home sales across the country dropped 19 percent in September year-over-year and reflected the caution many prospective buyers are exercising due to job losses and other economic uncertainty. Louisville home sales may be slumping over the last three months. However, steadily increasing median home selling prices indicate that the local housing market is fairly resilient and now may be the right time to invest in homes as a primary residence or income property. The people who aren't buying homes are renting, and the rental trend has been growing for the last couple of years. If the volatility of the stock market and low yields on T-bills have you looking for other investment opportunities, call us today at 502.744.9504and let us know how we can help. We look forward to hearing from you!

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Price for Heating Louisville Homes Will Climb 12 Percent This Winter

Louisville area residents who are customers of LG&E can expect to see higher heating bills this winter. The utility company recently told customers that it will hike prices for natural gas by 12 percent to defray the costs of a price increase from their supplier. A LG&E representative told reporters that a typical Louisville residential customer can expect to see his or her monthly bill to climb an average of $7.33 to about $66.96 per month. The company bases that estimate on average usage of 7,000 cubic feet of gas per month. Despite the price hike, LG&E officials claim their energy prices will still be the second lowest in Kentucky. Customers may find some solace in knowing that LG&E sells natural gas at their cost to customers, so padding their margins is not the driving factor of the rate increase. The utility company does, however, earn a profit on delivery charges for providing gas and electricity. LG&E is not the only Louisville-area utility company charging higher gas prices this winter. Columbia Gas and some other utilities have announced price increases that reflect higher costs. This news is one of many reasons to hope for a mild winter this year. If you're looking for energy-saving tips to save money on utility bills all year 'round, please check out other blog posts here on our site. Many of the most effective energy-saving tips cost little or no money and begin paying for themselves right away. If you're in the market for newer, energy-efficient Louisville homes, we can help with that, too! Browse the Louisville real estate listings on our site from the comfort of your own home, and when you're ready for a tour, just give us a call at 502.744.9504!

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Retired Engineer Helps Build Louisville Homes for Habitat for Humanity

Here's the kind of story that's always welcome. Eighty-two-year-old Middletown resident Bob Haswell recently received a 2010 WLKY Bell Award for community service. Since 1991, when he retired as a mechanical engineer at Smurfit-Stone Container Corp. on Westport Road, Haswell has been helping the local chapter of Habitat for Humanity build homes. He has driven nails, framed windows and doors, laid flooring and invested his time in more than 200 of the Habitat homes built in the area since 1991. "You can really see you did something at the end of the day," he said. Haswell is one of 4,000 local volunteers who spend Fridays and Saturdays building houses for low-income families who also must help build their homes before they can move in. Despite his considerable accomplishments for Habitat for Humanity and other local charitable organizations, Haswell avoids the spotlight and prefers to go about the business of helping people. We salute Bob and wish him many more years of good health and success building Louisville homes for grateful area families. If you're thinking about buying or selling a Louisville home and are looking for a real estate professional to help you along, call us today at 502.744.9504 or fill out a contact form. We are longtime residents of the Louisville area and have decades of experience helping people buy and sell residential and commercial property. We offer a wide range of different professional real estate services from property management to flat-fee brokerage and much more. Please give us a call today, and give us the opportunity to help you!...

Mortgage Bankers Association Predicts Slowdown in Mortgage Refinancing

In a time when home sales are down, buyers are nervous, and many homeowners are eager to take advantage of near record low mortgage rates. Mortgage refinancing has been a vital revenue stream for lenders. However, the Mortgage Bankers Association (MBA) is predicting that that stream will slow to a trickle if mortgage rates climb to around five percent by the end of 2011 as the MBA foresees. Compared to rates just a few years ago, five percent is still a very attractive interest rate, but MBA trends suggest that any time rates increase by even a modest amount, interest in refinancing plummets. They report that members will refinance $921 billion in mortgages in 2010, and that volume could drop to a third of that figure in 2011. The MBA is also projecting that new home purchase mortgages could show modest signs of improvement in the near future. They project that this portion of the mortgage market will grow by as much as $146 billion in 2011 to reach a total of $626 billion. They expect the volume of new home sales will rise about two percent, but average home prices across the country will drop by one percent. Time will tell if the MBA's predictions will be true, but they have been tracking these metrics for a very long time and have a vested interest in making accurate projections. As the owner of Louisville real estate, you have a vested interest in getting the best price possible for your property, and we can help. Our knowledge of the Louisville real estate market combined with our internet marketing skills, database of properties for sale and other advantages for sellers make us a worthy choice to help you find a qualified buyer for your property. If you're thinking of selling, call the Louisville real estate experts at Louisville Properties today at 502.744.9504!...

How Foreclosures Affect Home Prices

There is plenty of evidence here in the Louisville real estate market and elsewhere that foreclosures have a negative effect on home prices, but researchers at Harvard and MIT wanted to know precisely how much. They analyzed years of home sales data in Massachusetts and found that foreclosed homes sell for an average of 27 percent less than homes that have mortgages in good standing or are owned outright. They also looked at how a foreclosure affects the selling prices of nearby homes and found that a non-foreclosed home takes a one percent hit in selling price for each foreclosure within 250 feet. The higher the number of foreclosed homes on a block, the higher the negative, cumulative effects on sale prices of homes on the market. Daniel Hartley, an economist with the Federal Reserve Bank of Cleveland, recently used the Harvard and MIT study in a study of his own on how foreclosures affect neighborhoods. He calls foreclosures "disamenities' and notes that other factors shape the effect of foreclosures. He said: "In neighborhoods with low vacancy rates (tight markets), foreclosures lower the prices of nearby single-family houses by way of the supply effect. I estimate that housing prices within 250 feet of a foreclosure are lowered by about 1.6 percent per foreclosure through the supply effect, while the disamenity effect is about zero. In contrast, in neighborhoods with high vacancy rates ("looser" markets), foreclosures lower prices of nearby single-family houses by way of the disamenity effect. I estimate that housing prices within 250 feet of a foreclosure are lowered by about two percent per foreclosure through the disamenity effect, while the supply effect is about zero." We have stated many times that, while not immune to the effects of foreclosures, the Louisville real estate market has been spared the worst of the problems that are affecting many other housing markets across the country. This is good...
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