August 2013 Your Home Newsletter

The Housing Market and Home Interest Tax Deduction

The housing market and when it will recover has been a topic of conversation for several years.  I am excited to announce a 32% increase in home sales for July 2013 (590) over July 2012 (446). This was the highest number of NKY home sales in six years (August 2007) when 616 home sales were recorded. Housing statistics in every category were up this month, positioning Northern KY for another year of housing boom over the housing bust from 2008-2011. For the month of July, NKY celebrated 2+years where home sales have increased-year over year. Average home prices rose 6.5% to $159,610 for July, and days on market were 11 days better than we saw last July. Highest sales volume since August 2007, higher average and median prices, and lowest days on market since 2006 all signal the rebound of consumer confidence in housing.

We are experiencing the best period in over five years and based on what it means to the overall economy of our area and the US as a whole, we cannot allow anything to slow or stop it.

An item of great concern in State and Federal tax reform is Mortgage Interest Deduction (MID).  This has long been a benefit to home owners in decreasing their tax liability, and improving the equity in their home.

A perception exists that the MID is a Realtor issue, or a builder issue. It is an “everybody” issue. Studies by the University of Kentucky and the National Association of Realtors®, done for the Kentucky Association of Realtors have brought forth some interesting points.
Consider:
  • Home ownership helps build long-term wealth and net-worth. The money you spend builds personal equity and provides the opportunity to own a home free and clear by the time you retire.
  • 71% of Kentuckians own homes. That translates to 1.2 million home owners. For every two homes sold, one job is created, and each purchase generates as much as $60,000 in economic activity.
  • Home owners create safe, strong and stable neighborhoods for their families. Home owners are more likely to get involved in community groups and to vote. Children of homeowners do 23% better in school.
  • 62% say that eliminating the state mortgage interest deduction would have a negative impact on the housing market in Kentucky.
If tax reform detrimental to home ownership is enacted, the average home owner will pay $5,000 more in taxes.  What does this translate to?  Approximately $100 dollars less discretionary funds to spend each week.
This means:
  • Dining out
  • Movies
  • Sports Events
  • Clothing purchases
  • Home entertainment
  • Automobile expenses
  • Less travel
  • Recreation-Sports and fitness clubs
  • Home improvement
  • . . .and everything else you spend $100 dollars a week for - And the merchants and their employees that provide the goods and services.
Please visit the Kentucky Homes Matter website for more information, and to sign the petition.
You are urged to contact your legislator and strongly protest any reform in the tax codes that would have adverse effect on housing.
Here are several ways to get in touch with Frankfort. 
Find a list of email addresses here.  http://www.lrc.ky.gov/Whoswho/email.htm
Find your Kentucky legislator. http://www.lrc.state.ky.us/Legislators.htm 
List of legislators sorted by county.  http://www.kar.com/uploads/49/File/Legislative%20Toolkit/STATE%20LEGISLATORS

 

Fast Fact

27 percent of garages contain space for three or more vehicles.

Source: 2011 American Housing Survey, published July 2013, U.S. Department of Housing and Urban Development

 

Breathe Easy!

 

Outdoor pollution and smog can wreak havoc on your health, but contaminants inside the home can be just as harmful. Experts at WebMD offer these suggestions for improving indoor air quality.

·        Dust mites and mold love moisture. Use a dehumidifier (and an air conditioner during summer months) to help reduce moisture and control allergens. When cooking, running the dishwasher or bathing, turn on an exhaust fan or open a window to remove excess moisture. Be sure the clothes dryer is vented to the outside, and fix plumbing leaks to prevent mold from forming.

·        Make your home a no-smoking zone. Secondhand cigarette smoke contains more than 4,000 chemicals and can increase the risk of respiratory infections, asthma, cancer and sudden infant death syndrome in children. If entertaining guests who smoke, request that they do so outdoors.

·        Test your home for radon. This colorless, odorless gas is produced from the natural decay of uranium found in soil and seeps into the house through cracks and holes in the foundation. A radon test is easy and inexpensive to use, and can help you find the source of radon.

·        Replace laundry products and soaps containing synthetic fragrances with scent-free or naturally-scented laundry products and mild cleansers. Refrain from using aerosol sprays, such as furniture polish, hair sprays and air fresheners. Open the windows and let in fresh air so toxic chemicals don’t build up in your home, and use an air conditioner to keep rooms well ventilated.


Taking these simple steps will help you and your family breathe easier.

 

Area Home Sales Statistics for Northern Kentucky and Greater Cincinnati

If you would like more information about sales in your specific community, send me an email at mikebeckerhomes@fuse.net and let me know how I can help you.

 

Northern Kentucky

I am excited to announce a 32% increase in home sales for July 2013 (590) over July 2012 (446). This was the highest number of NKY home sales in six years (August 2007) when 616 home sales were recorded. Housing statistics in every category were up this month, positioning Northern KY for another year of housing boom over the housing bust from 2008-2011. For the month of July, NKY celebrated 2+years where home sales have increased-year over year. Average home prices rose 6.5% to $159,610 for July, and days on market were 11 days better than we saw last July. Highest sales volume since August 2007, higher average and median prices, and lowest days on market since 2006 all signal the rebound of consumer confidence in housing.  Now is a great time to buy or sell a house – call me if I can help you!

July 2012

July 2013

% change

Residences sold

446

590

32.29%

Average price

$149,863

$159,610

  6.50%

Median Price

$130,000

$136,000

  4.62%

Average days on market

85

74

 

Year to Date 2012

Year to Date 2013

% change

Residences sold

2845

3331

17.08%

Average price

$145,580

$154,857

  6.37%

Median Price

$128,000

$135,000

  5.47%

Average days on market

96

87

 

Cincinnati

 

July 2012

July 2013

% change

Residences sold

 1783       

2347 

  26.0%

Average price

165,821 

178,238 

    7.5%

Median Price

 $130,000    

 $143,800

  10.6%

Average days on market

 75

 58

 

Year to Date 2012

Year To Date 2013

% change

Residences sold

 10,717    

 13,162

 22.8%

Average price

 $154,448

 $166,642    

   7.9% 

Median Price

 $$122,000    

 $132,800

    8.8%

Average days on market

 81    

 70

 

 

 

Kid Friendly Moving

Planning a move is often difficult, but planning one with children is even harder. Kids and teenagers aren’t always thrilled by the prospect of moving to a new home, especially in a new location away from their friends, but these steps you help ease the transition, say experts at Parents.com and TLC.

·        Start by getting the kids involved in the house-hunting process. Take them to see the homes you are considering buying, or show them photos or a virtual tour. Learn as much as you can about the community and the neighborhood.

·        Get the kids involved in de-cluttering the home. Go through the house, room by room, and have them identify what items they want to discard and what they want to keep. 

·        Let kids map out their new room, and choose the colors to decorate it. If they want, let them help arrange and decorate other rooms in the house. For teenagers, set a budget and let them pick out colors, linens, rugs and furniture, and encourage them to shop at thrift stores for knick knacks.

·        Once you have moved, plan a welcome party and invite a few neighbors with kids to get acquainted. Tour the new neighborhood to locate places of interest to children, such as a playground, school, library, and movie theater.

 

Moving is never easy for kids, but these ideas can help them look forward to their new home.