About Pulaski County, KY

Christmas At Home, And Other Places, For ERA Home Towne Realty And Auction:

Brothers, I have started our 12 days of Christmas as the song goes a little early this year. The whole month of December is family packed with activities and there doesn’t seem to be enough hours in the days.

JR, Cherry, and I started the season right after Thanksgiving with a little decoration on the house exterior and interior. I decided to put up lights this year. Well—we got them on the roof, and after all the work of putting them on the roof, we tried to turn them on. Duh—they didn’t work! Well, I had to get two different workers on two different occasions, to climb up and trouble shoot. Well, half of the lights work now. Hopefully—I can get someone to replace the other half before Christmas, or we’ll have an unbalanced—weird looking roof.

The night before last, Cherry tried to put up a Christmas tree. It went well until our two young Maine Coon cats saw it. They decided that the cords were good to eat. So, we’re not going to have a tree this year—oh, well.

Yesterday, JR and I went to the Chamber Christmas Auction. A member on the auction committee told me that nearly ten thousand dollars was raised for scholarships for local students. I bought 2 Chamber wreaths (picture) and hung one in the office. It made me feel in the Christmas spirit. Danny Ford did a great job calling the Auction.

Speaking of the great jobs for the season, last night we had the annual Lake Cumberland Association of Realtors’ Banquet. Out outgoing President, Donnie Foster, provided very entertaining musical groups and the food was great! BBT, I believe, provided that—great job guys!

The banquet hall was full of a lot of good, determined realtors who have survived some tough times, like many Americans, but seemed eager to plunge forward and serve their customers. Our new Lake Cumberland Association President, Ron Shaw, made a great uplifting speech and seems ready to help us all.

Well, closings are up some. The news on Wall Street seems better. So, there is a lot to be thankful for, not just in Real Estate, but life in general. It is great to be alive during the Christmas Season. I still have several more things to do before the 25^th. The Lions’ Club Banquet is at my house this year. The Sunday School banquet is at Cumberland Falls. Presents to buy or let Cherry buy. And family and friends to celebrate with! Of course, I’ll probably work right up to the last minute!

I have an exciting group of new realtors to mentor, and I am looking forward to them joining our office. Altogether, this is a Great Christmas Season for us at ERA Home Towne Realty and Auction. Thanks to everyone for making it so!!

I know with all the economic downturns and upheaval that many people have a negative feeling about the Real Estate Market. Indeed, in the past two years many agents have fled the industry or simply quit working very hard. However, I can honestly say they quit too soon.

Signs are good for a steady recovery in the market. 2010 performed a lot better than 2009 or 2008. Most of the agents in my office did decent in 2010. We sold homes in all price ranges, particularly the modest to middle ranges. I want to say it was a banner year, but positive strides occurred.

If you have ever considered a career in real estate, now is as good a time as any to make the move. There are many reasons to start now. Reason #1, the number of real estate agents in our area is at an all time low. So, opportunities await if you are ambitious and dedicated. The second reason is that buyers are starting to come out and buy. Interest is still low and it is still a buyer's market, so those realtors who work can make significant sales.

My company, ERA Home Towne Realty and Auction, offers the prospective realtor many reasons to come on board. We offer a reimbursement program for going to Real Estate School. We mentor and work with all our new agents, so that they have an opportunity to succeed. We offer a very competitive pay-scale. An agent at ERA Home Towne Realty and Auction can make money several different ways, including both Real Estate and Auctioning.

If you are interested in starting an exciting career that may lead to great fulfillment, call us today at 606-875-1221. or e-mail philip.losey1@era.com

Stoy by Phil Losey Senior

LAST YEAR'S STATISTICS 1/1/2010 thru 12/31/2010

Price Range Current# Of Av.# of Sales Selling Price Remaining #

Listings Per Month % of List Price Months

Jan. 2011 & Avg Days Inventory

On Market

0-$75,000 125 167/12=13.9 Information not 8.9

75-$100,000 98 86/12=7.1 available 13.8

100-$150,000 174 162/12=13.5 12.8

150-$300,000 211 150/12=12.5 16.88

300-4million up 79 16/12= 1.3 60

MARKET OBSERVATIONS FOR 2010

The market news for 2010 is not great for the Somerset-Lake Cumberland Region. However, it is better than the market in 2009, in general. After carefully examining our new MLS system, I came up with some interesting information. The system does leave some to be desired in data, but still had some useful information.

In 2010, all the offices sold a total of 581 homes that were reported in the MLS.At this time, there are 723 units on the market. To analyze sales, a little better, I broke homes down into 5 housing categories; as you can see from the chart. Homes from $0 to $75,000, sold at a rate of about 13.9per month, on average; this doesn't take into account seasonal variations. We have about 9 months inventory left in this category. The low middle group of $75,000 to $100,000, sold at a rate of 7.1 per month-again there is no accounting seasonal variation. We have about 14 months of inventory left over in this category. Homes which I arbitrarily labeled the middle group, from about $100,000 to $150,000, had 162 sales, or divided by 12, about 13.5 sold per month, not counting the season. This category has nearly 13 months of inventory left. Homes I called upper middle, from $150,000 to $300,000, sold at a clip of about 12 per month, leaving out the seasonal variable. There is still a 10 month supply ofthese homes available at this time. Homes over $300,000, as you would expect, sold the least with only about 1 and a half selling per month. Seventy-nine of these bigger homes are still on the market. This category has about 60 months of inventory left.

At first glance, and adding this to the national statistics, you could conclude that the market is still a buyers' market with a lot of inventory especially in the upper price ranges. However, a lot of houses sold last year, particularly in the three what I call bargain categories. Indeed, all categories had some positive results. Personally, one of the things I liked the best about 2010, had to do with lenders becoming more aggressive and helping buyers find loans. I sure don't like all the additional red tape, but overall, it seemed lenders were helpful and encouraging. Another thing that I liked, was the government extending the tax credit well past the first quarter last year. This really gave us, in the industry, a needed shot. Speaking of shots, interest remains low and prices on homes have held steady or declined. So if you're in the market for bargains, come out and start looking now! On a personal note, I am pleased with the accomplishments of my ERA Home Towne Realtors. We helped a lot of people, both buyers and sellers, find good deals, as I am sure a lot of other companies did, too. We here, at Home Towne Realty and Auction, are looking forward to an even better 2011. Thanks to all the customers and realtors we worked with in 2010.

The Lake Cumberland area Real Estate Market has exciting opportunities for both new and experience agents. ERA Home Towne Realty and Auction a innovative and dynamic company is growing and is looking for the Maverick individual to grow with the company. 2010 was slow nationally, however ERA Home Towne Realty and Auction improved compared to 2009. All the full time agents and auctioneers at ERA Home Towne Realty and Auction had an successful 2010 selling year at ERA Home Towne Realty and Auction. ERA Home Towne Realty and Auction combination of Real Estate sales and Public Auction sales gives people who think outside of the box a multi-facetted approach to income earning potential. Join our team so we can show you the way to be successful.

E-mail or call us today to inquire about an exciting career opportunities.

Philip.losey1@era.com Or Call 606-679-7895

Philip.losey@era.com

Phil@erahometownerealty.com

(Story BY Philip H Losey JR -- Realtor / Auctioneer --- ERA Home Towne Realty & Auction)

2010 is the time to buy a new construction! Due to the current economic conditions buying a high priced new construction is the way to go. With interest rates at a historical low, it is time to buy a new construction before the potential inflation hits the economy. The media has sent the message that the foreclosure market is growing and buyers are encouraged to buy bank owned homes. Buying foreclosed property, is a mistake when new constructions are a better buy and are also currently discounted. Despite the fact that building materials are high, already-built new constructions are the way to go. The homes that are already built, called spec homes, are the way to go, because many builders are not looking to make a profit in today's current economic situation. Consumers should use a realtor in their purchase in order to get added protection and the best deal. The final question is where to invest in the market; and the answer is where the fewer sales are being made and that is high priced homes.

The time is now, during this buyers market, to buy a new construction, because there is a good chance that inflation will soon occur. Interest is currently at a historic low 4.5% at 30 year loan with a loan to value of 97% as of August 9^th 2010. In 1980, when the economy was suffering a down turn, the interest rate was at 16% and inflation in 1980 was at 13.5%. I am no economist, but it seems logical that a buyer should buy now, because when the economy comes back it is likely that inflation could occur. I am basing my thoughts that there has been so much deficit spending that inflation is a natural side effect. "The total deficit for fiscal year 2009 was $1.42 trillion, a $960 billion increase from the 2008 deficit." (Wikipedia the free Encyclopedia, http://en.wikipedia.org/wiki/2010_Unitied_States_federal_budget). So for consumers who buy at this year's price with low demand, it makes sense that you will gain built in equity. When inflation hits, the economy prices will go up, along with demand. Those who buy now at low interest rates and lower prices will gain equity as a result of the economy.

With the current economic realities consumers should look to buy newly constructed, as opposed to buying foreclosed properties. In this economy, new construction supply is up and demand is down, so you can get a good deal according to national statistics. "Overall construction spending rose in June, driven by record government spending, the U.S Department of Commerce reported Monday. Spending on single-family residential structures, declined 0.7 percent in June, the first time that number has gone down in a year."(Daily Real Estate News August 3, 2010.) Many buyers believe buying foreclosed property are better deals than new construction, however in reality new house are the best deal. New constructions have many advantages compared to the bank owned property sales. With a new construction, you are getting new instead of a property that may have problems or potential problems, resulting from previous owner neglect. In Kentucky, new construction has a 1 year builder's warranty that is required from the day of the sale closing. This means for one year builders will correct mistakes that come up. Also, items such as appliances, and heating and air systems, have manufacture warranties too. The money saved on buying a bank owned property is often not saved during the repairs and rehab that must be done as a result of the property's condition. Another advantage of new constructions, is the fact that you can get into them with less hassle than foreclosed properties. On new construction, you can put up a small deposit; and in Kentucky, often with KHC loans; you can still get into the home with little or no down payment. On a foreclosed property, an individual will have to put up a large deposit and have to wait for a long period of time for the contract to be accepted. Often closing a foreclosed property can take longer than a traditional sale.

Consumers often do not want to buy a newly constructed home, because these buyers have read that building materials are up so the buyers assume that prices on new constructions must also be up. Due to the current economy being slow, there are many newly constructed Spec Homes that were built when materials were cheaper. Builders, who have built what is called Spec homes, have already discounted their properties to get them sold. Many builders understand the slow economy and are no longer seeking profit; they are just trying to get their inventories cleared so as to remain in business. Another advantage to buying a new construction is that if you do not qualify now a builder might do a Lease with an option to buy. If you can not qualify for a loan due to you current credit score, often in one to two years you will, so you can buy a home under a lease with an option to buy. Under this program, the builder will have you put a down payment down, which comes off the purchase price, and then you can rent for one to two years until the buyer can qualify for a loan. In two years, the buyer buys the house at the price it was two years ago. Many times the property has appreciated more than the original contract price, giving the buyer a great deal and equity.

For the protection of the consumer who is looking for a quality Spec home and a good deal, the best way to accomplish this is through a Realtor. Realtors are in contact with most of the builders on an everyday basis, and a realtor knows how the system works. Your Realtor knows which builder offers the best deal on the spec home sale. The fee that is paid to the Realtor is worth the money because the realtor's contract knowledge of negotiation gets you, the buyer, the best deal out there. Realtors often due 30 or more deals each year and can often out negotiate the builder and get the realtor commission plus the buyer's price at the same time. To protect the buyer's interests, the Realtor can make sure in the contract that all the inspections are taken care of, the property is completely finished before closing, and that the transaction is closed quickly.

The best investments are on the larger homes that are newly constructed. There are many homes on the market but where you want to buy is in the price range where the demand is low. In my area, for instance, the median price home is $125,000 and most of the current sales are in the price range of $100,000 to $200,000. There are few sales from $300,000 to $500,000 in the Lake Cumberland area so, when the values go up with inflation, the greatest monetary gains in equity would be in the higher priced homes. See my attached Market Facts & Figures (figure 1) for how my local economy is working.

(Figure 1)