Southern Kentucky Real Estate News

Top 10 Halloween Safety Tips

2011-10-31T07:12:00.000-07:00

Top 10 Halloween Safety Tips

Trick-or-treating can be one of the most fun Halloween events for your kids. However, it can also be potentially dangerous because it happens outside in the dark. Here are some Halloween safety tips to make sure your kids come home safe and happy:

1.Never go into a stranger’s house – Only get candy from houses that give it to you at the door. If someone invites them in, tell them to just say “no, thanks” and leave immediately.

2.Use the buddy system – Kids should never go trick or treating without a sibling, friend, or parent. If they are going out without parents, make sure you know the area where they will be trick-or-treating.

3.Set a curfew – If you aren’t going trick or treating with your kids, set a time that they need to be home by or a time for them to check in with a phone call. That way, you know that they are safe.

4.Eat a snack / dinner before trick or treating – By eating something beforehand, your kids won’t be as tempted to eat their treats before they come home…which leads to the next tip…

5.Always cross streets at interections and walkways – Make sure your child knows how to cross a street and to only cross at designated intersections.

6.Always check candy before giving it to your child – Make sure none of the candy is open or looks like it was tampered with. If you have small children, make sure the candy is not a choking hazard.

7.Steer Clear of Vacant or Poorly Lit Homes.

8.Wear something reflective in your costume and carry a flashlight – It’s going to be dark out by the time you go home, so make sure cars can see you at night. Put reflective tape on the costume and trick or treating bags.

9.Create well fitting costumes – Kids will be running from house to house, so make sure their costume is suitable for running. Make sure face marks still allow your child to see their full range, make sure capes are not too long to trip over, and ensure any swords are not too sharp. Have them wear gym shoes.

10.Choose flame resistant materials for costumes – Since there can be candles and other open flames at houses, choose a fire resistant material for costumes to avoid burn injuries.

To fix the economy, first fix the housing market

2011-10-03T12:13:00.001-07:00

There's no way the U.S. can get back on track without a cure for what's killing real estate.

By John Cassidy, contributor

FORTUNE -- Is this a great country or what? At the start of last year, a friend of mine, the proprietor of a small business that has suffered badly in the recession, entered a trial mortgage-modification program. A few months later the bank told him that his application for a government-assisted refinancing rate had been turned down -- his house was too far underwater. He had bought it during the boom for $220,000, putting down $30,000, and then spent another $45,000 doing it up. Now it's worth about $100,000. Once his monthly payments were set to go back up (his mortgage rate is 6.5%), my friend stopped paying them and waited for the foreclosure and eviction notices to arrive. A year and a half later he is still inhabiting his own home and watching the mail.

Whenever I hear somebody saying that growth is about to pick up, I think about my friend and the roughly 11 million homeowners whose mortgages are worth more than their homes. Some of them are still making their monthly payments. Some, like my pal, are living for nothing. The drip-drip foreclosure crisis shows how, six years after the bursting of the real estate bubble, the U.S. residential real estate market is still a mess. And without a genuine revival in housing, it is hard to think we will ever get a self- sustaining recovery.

Sure, the news that President Obama and the Republicans are talking about enlarging this year's payroll tax cut and extending unemployment benefits through 2012 is good news. The last thing the economy needs is a $250 billion hit to spending, which is what doing nothing would amount to. But where are the serious proposals to revive the housing market? It's as if both parties have agreed to drop the issue.

Housing isn't just another industry: It's a driving force for the entire economy. Residential investment accounts for up to a quarter of overall capital investment. House prices have a big influence on consumer spending -- for every $1,000 the value of his house falls, a homeowner tends to cut his outlays by about $50 or $60. And falling property tax revenues are decimating many towns and cities. How bad is it out there? New-home construction is running at less than a third of its pre-recession level; in August it fell again. Existing-home sales picked up a bit, but that was largely because of bottom-fishing investors who are betting prices can't go any lower. Let's hope they are right. Nationwide, according to the S&P/Case-Shiller index, prices are down 6% over the past year and down 32% since the first quarter of 2006.

I'm not saying that fixing the housing market is easy. If it were, somebody would have done it. But to begin with, we could make the much-maligned Home Affordable Refinancing Program (HAMP) work better. Generally, anybody who is current on payments and whose home is worth at least 80% of the outstanding loan is eligible to participate. But many homeowners have been put off by the red tape and by additional charges that Fannie Mae and Freddie Mac, which ultimately own or insure many of the mortgages, have imposed on applicants.

Then there are folks whose mortgages are way underwater. One option: Force the banks to foreclose on them and get the whole nightmare over with. But that would dump yet more properties on the market. A better solution, which has never seriously been tried, would be to expand the mortgage-modification program, offering interest rate reductions and principal write-offs in return for options on the upside value of the property. For example, the government and the bank could reduce my friend's mortgage to $150,000 -- 150% of the property's current value -- but demand half of any profit he makes when he eventually sells the property.

The details would need working on -- there's a tradeoff between maximizing uptake and minimizing rewards to irresponsible borrowers -- but surely it is worth trying. Three years of fiddling with the housing problem haven't gotten us very far.

--John Cassidy is a Fortune contributor and a New Yorker staff writer.

This article is from the October 17, 2011 issue of Fortune.

Before You Choose Foreclosure!

2011-10-03T09:12:00.000-07:00

BEFORE YOU CHOOSE FORECLOSURE, CONSIDER A SHORTSALE!

House Is Gone but Debt Lives On By JESSICA SILVER-GREENBERG

LEHIGH ACRES, Fla.—Joseph Reilly lost his vacation home here last year when he was out of work and stopped paying his mortgage. The bank took the house and sold it. Mr. Reilly thought that was the end of it.

In June, he learned otherwise. A phone call informed him of a court judgment against him for $192,576.71.

It turned out that at a foreclosure sale, his former house fetched less than a quarter of what Mr. Reilly owed on it. His bank sued him for the rest.

The result was a foreclosure hangover that homeowners rarely anticipate but increasingly face: a "deficiency judgment."

Remains of the Debt
Take a look at the homes in Lehigh Acres, Fla., where borrowers have been sued for deficiency judgments in the first seven months of 2011 and 2010.

View Interactive
..Forty-one states and the District of Columbia permit lenders to sue borrowers for mortgage debt still left after a foreclosure sale. The economics of today's battered housing market mean that lenders are doing so more and more.

Foreclosed homes seldom fetch enough to cover the outstanding loan amount, both because buyers financed so much of the purchase price—up to 100% of it during the housing boom—and because today's foreclosures take place following a four-year decline in values.

"Now there are foreclosures that leave banks holding the bag on more than $100,000 in debt," says Michael Cramer, president and chief executive of Dyck O'Neal Inc., an Arlington, Texas, firm that invests in debt. "Before, it didn't make sense [for banks] to expend the resources to go after borrowers; now it doesn't make sense not to."

Indeed, $100,000 was roughly the average amount by which foreclosure sales fell short of loan balances in hundreds of foreclosures in seven states reviewed by The Wall Street Journal. And 64% of the 4.5 million foreclosures since the start of 2007 have taken place in states that allow deficiency judgments.

Lenders still sue for loan shortfalls in only a small minority of cases where they legally could. Public relations is a limiting factor, some debt-buyers believe. Banks are reluctant to discuss their strategies, but some lenders say they are more likely to seek a deficiency judgment if they perceive the borrower to be a "strategic defaulter" who chose to stop paying because the property lost so much value.

Enlarge Image

CloseEdward Linsmier for The Wall Street Journal

Truck driver Ray Falero of Minneola, Fla., faced a 'deficiency judgment' for debt left when a foreclosure sale of his house in Orlando, Fla., didn't cover all he owed.
.In Lee County, Fla., where Mr. Reilly's vacation home was, court records show that 172 deficiency judgments were entered in the first seven months of 2011. That was up 34% from a year earlier. The increase was especially striking because total foreclosures were down sharply in the county, as banks continued to wrestle with paperwork problems that slowed the process.

One Florida lawyer who defends troubled homeowners, Matt Englett of Orlando, says his clients have faced 20 deficiency-judgment suits this year, up from seven during all of last year.

Until recently, "there was a false sense of calm" among borrowers who went through foreclosure, Mr. Englett says. "That's changing," he adds, as borrowers learn they may be financially on the hook even after the house is gone.

In Mr. Reilly's case, "there's not a snowball's chance in hell that we can pay" the deficiency judgment, says the 39-year-old man, who remains unemployed. He says he is going to speak to a lawyer about declaring bankruptcy next week, in an effort to escape the debt. The lender that obtained the judgment against him, Great Western Bank Corp. of Sioux Falls, S.D., declined to comment.

More
California Pulls Out of Foreclosure Talks
.Some close observers of the housing scene are convinced this is just the beginning of a surge in deficiency judgments. Sharon Bock, clerk and comptroller of Palm Beach County, Fla., expects "a massive wave of these cases as banks start selling the judgments to debt collectors."

In a paradox of the battered housing industry, trying to squeeze more money out of distressed borrowers contrasts with other initiatives that aim instead to help struggling homeowners, including by reducing what they owe.

The increase in deficiency judgments has sparked a growing secondary market. Sophisticated investors are "ravenous for this debt and ramping up their purchases," says Jeffrey Shachat, a managing director at Arca Capital Partners LLC, a Palo Alto, Calif., firm that finances distressed-debt deals. He says deficiency judgments will eventually be bundled into packages that resemble mortgage-backed securities.

Because most targets have scant savings, the judgments sell for only about two cents on the dollar, versus seven cents for credit-card debt, according to debt-industry brokers.

Silverleaf Advisors LLC, a Miami private-equity firm, is one investor in battered mortgage debt. Instead of buying ready-made deficiency judgments, it buys banks' soured mortgages and goes to court itself to get judgments for debt that remains after foreclosure sales.

Silverleaf says its collection efforts are limited. "We are waiting for the economy to somewhat heal so that it's a better time to go after people," says Douglas Hannah, managing director of Silverleaf.

Investors know that most states allow up to 20 years to try to collect the debts, ample time for the borrowers to get back on their feet. Meanwhile, the debts grow at about an 8% interest rate, depending on the state.

Enlarge Image

CloseMelissa Golden for The Wall Street Journal

Retiree Julia Ingham of Gaithersburg, Md., faced a judgment related to a foreclosed property in Lehigh Acres, Fla.
.Mr. Hannah expects the market to expand as banks "aggressively unload" their distressed mortgages in the next year, driving up the number of deficiency judgments being sought.

They are pretty easy to get. "If the house sold for less than you owe, the lender wins, plain and simple," says Roy Foxall, a real-estate lawyer in Fort Myers on Florida's west coast.

Mr. Foxall says five deficiency suits were filed against his clients this year, and he couldn't poke any holes in any of them. Lenders typically have five years following a foreclosure sale to sue for remaining mortgage debt.

Mr. Englett, the Orlando lawyer who has handled 27 such suits for homeowners in the past 21 months, says he didn't get the bank to waive the deficiency in any of the cases, but did reach six settlements in which the plaintiff accepted less.

Florida is among the biggest deficiency-judgment states. Since the start of 2007, it has had more foreclosures than any other state that allows deficiency judgments—more than 9% of the U.S. total, according to research firm Lender Processing Services Inc.

A loan-deficiency suit can yank borrowers back to a nightmare they thought was over.

Ray Falero, a truck driver whose Orlando home was foreclosed on and sold in August 2010, says he thought he was hallucinating when, months later, he opened the door and saw a sheriff's deputy. The visitor handed him a notice saying he was being sued for $78,500 by the lender on the home purchase, EverBank Financial Corp., of Jacksonville, Fla.

"I thought I was done with this whole mess," he says.

Mr. Falero, 37, says he was about nine months behind on his loan when the bank foreclosed. Before it did, he bought another home in Minneola, Fla., where he now lives and where he says he is up to date on mortgage payments. Like Mr. Reilly, Mr. Falero says he didn't swell the foreclosed-on loan through refinancing or home-equity borrowing.

Leftover Debt
Some of the 41 U.S. states where lenders can pursue deficiency judgments:

Florida

Georgia

Illinois

Michigan

New Jersey

New York

North Carolina

Ohio

Pennsylvania

Texas
.EverBank won a deficiency judgment on Mr. Falero's Orlando loan. Mr. Falero and his lawyer are fighting to reduce the amount owed. EverBank declined to comment on his case.

Credit unions and smaller banks are the most aggressive pursuers of deficiency judgments, a review of court records in several states shows.

At Suncoast Schools Federal Credit Union in Tampa, Jim Simon, manager of loss and risk mitigation, says the institution has a responsibility to its members, and that means trying to recoup losses by going after loan deficiencies. He calls such legal action the credit union's "last arrow in the quiver."

The biggest banks appear to have stayed largely on the sidelines as they deal with the foreclosure-paperwork mess. One big bank, J.P. Morgan Chase & Co., "may obtain a deficiency" judgment in foreclosure cases but will "often waive" the leftover debt when a homeowner agrees to a so-called short sale of a house for less than is owed on it, a bank spokesman says.

Among the hardest-hit spots in Florida is Lehigh Acres, a 95-square-mile unincorporated sprawl of narrow, cracked-pavement streets about 15 miles inland from Fort Myers.

Lehigh Acres was carved out of scrub land and cattle farms in the 1950s by a Chicago businessman, Lee Ratner, who had made a fortune on d-CON rat poison, says Gary Mormino, a history professor at the University of South Florida in St. Petersburg. Before he died, Mr. Ratner sold prefabricated houses to families hungry for a slice of paradise.

Decades later, Lehigh Acres (population 68,265) attracted people eager to cash in on the housing boom, even though it is distant from the sugary white beaches on the Gulf of Mexico. Speculative investors bought more than half of homes sold in Lehigh Acres in 2005 and 2006, Bob Peterson, a real-estate agent, estimates.

Many of those stucco homes now stand empty, priced at about a third of the value they had at the peak of the housing boom, which was often around $300,000.

In the first seven months of this year, courts entered 42 deficiency judgments in Lehigh Acres, for a total of $7 million, up from 26 judgments for $4.6 million in the same period of 2010, according to a Wall Street Journal analysis of state-court records.

Fifth Third Bancorp, of Cincinnati, filed for the largest share of deficiency judgments in Lehigh Acres last year. The bank declined to comment.

"It's eerily quiet around here," says Jon Divencenzo, who bought a house in Lehigh Acres at a May foreclosure sale for $50,000. Some nights, he says, the only sounds are rustling pine trees and the idling car engines of former homeowners circling the block to glimpse what they lost.

The hard-hit area reveals a sharp contrast in homeowners' attitudes toward deficiency judgments.

Julia Ingham invested in four Lehigh Acres properties in June 2005, hoping to "drum up some real money for retirement."

All have since been foreclosed on by lenders, says the 62-year-old retired programmer for International Business Machines Corp.

A credit union, after selling one of the foreclosed houses for less than the debt on it, obtained a deficiency judgment against Ms. Ingham for $181,059.54. She worries she could face such judgments on the other properties, too.

Ms. Ingham says when she bought them, she misunderstood how much her investments put her on the hook for. Her builder, she says, promised she could invest $10,000 in four properties and then flip them for a profit. Ms. Ingham says deficiency judgments punish borrowers who were taken advantage of by lenders and builders.

Catherine Ortega, who owns a Lehigh Acres home around the corner from one of Ms. Ingham's foreclosed homes, says banks should leave people like her former neighbor alone. "Those people have suffered enough," she says.

In July 2005, Mr. Reilly took out a $223,000 mortgage to build a vacation home here, about 160 miles from his primary home in Odessa, Fla. He was laid off just as construction was being completed.

Mr. Reilly says he is current on the loan on his primary residence but couldn't afford the vacation home's $1,200-a-month loan payment. Great Western Bank, which is owned by National Australia Bank Ltd., foreclosed on his house in Lehigh Acres in July 2010.

Mr. Reilly, who was a mortgage broker before his layoff, says he knew that deficiency judgments were possible after a foreclosure but didn't expect to face one because he doesn't have any financial assets, and you can't get "blood from a stone."

Alfredo Callado, who lives next door to Mr. Reilly's former house, is unsympathetic. Like Ms. Ortega, Mr. Callado is troubled by the crime that a neighborhood full of empty houses attracts. He started watching over Mr. Reilly's former house to ward off thieves who steal air conditioners from vacant properties.

Mr. Callado, sitting on a lawn chair in his driveway, says lenders should use deficiency suits to punish defaulting homeowners for the damage they do to neighborhoods, including driving down property values.

"You have to make them pay for what they do to those of us left behind," he says.

General Motors Announces CORVETTE C7 to be Built in Bowling...

2011-05-04T11:27:00.000-07:00

National Corvette Museum: General Motors Announces C7 to be Built in Bowling...:

The General Motors Corvette Assembly Plant was packed full of community and state leaders, GM officials, media and supporters of Corvette today in hopes of good news with regards to the future of Corvette and Bowling Green. It was good news indeed as GM North American President Mark Reuss took to the podium and announced their plans to invest $131 million in the Bowling Green Assembly Plant, "This facility is particularly thrilling for me to be at because I've had Corvettes, in fact, Corvette is one of the reasons why I went to work for the company a long time ago," said Reuss.

"It's a thrill for me to be here today in Bowling Green as the bearer of good news at one of our very best facilities building" our most iconic car," Reuss said. "When I say our most iconic car, I really mean America's most iconic car."

Reuss then cut to the chase and made the announcement everyone had been hoping for, "I'm here to announce that GM will invest $131 million in Kentucky to ensure that the next generation Chevrolet Corvette will be produced by this team, in this plant, in Bowling Green - the Home of Corvette.

Reuss's announcement was met by resounding applause, cheers and a standing ovation

"Thank you to you because you are the reason and the quality and the innovation and the craftmanship that happens here is a direct reflection of our re-investment, but more importantly as much money as that is, we really are adding about 250 jobs to the area..."

Reuss said the current generation will continue for about two more years while work happens behind the scenes work will begin to update the facility and ensure the Corvette will continue to be the true American sports car built here for many years to come. The C7 model is predicted to be debuted Spring of 2013 for a 2014 model year Corvette.

"As you know Bowling Green is a special place and not just to me and to GM but to Corvette lovers around the world. This place is THE mecca for those who appreciate true affordable sports car performance and they come from the four corners of the globe to see what you do here," said Reuss. "It is amazing and it is inspiring and it is very American. "

Reuss added that they come to see the birthplace of the American car that holds it own against Porsche, Ferarri, BMW and the rest of the legendary European sports car makers, both on the street and on the track. "They come to see how on earth Americans can build such a car... a car that meets and beats the best in the world, and the world has to offer, although typically the world has to offer theirs at a MUCH higher price point."

Reuss praised the craftsmanship of the Bowling Green Assembly Plant, that the plants in Italy wish they could match. He added that though GM boasts the Corvette getting 27 miles per gallon, that he had a Corvette in school and would get better than that - 29 miles per gallon from Detroit to Nashville. "Like the ad says, you are building rockets."

"Unlike any other facility in North America your doors are open to our customers who make pilgrimmages to Bowling Green to see their car being built, meet the people, and visit the National Corvette Museum." Reuss also praised the Museum pointing out that it is not funded by General Motors. "I'm one of the lovers of the Museum and the heritage of Corvette and this state means a lot to me personally."

Reuss closed his presentation saying "Tadge and the team are doing the next generation Corvette and it will thrill all of the sports car drivers of the future and it will be built right here." He added that this is just one of their ongoing investments of billions of dollars in their US facilities, keeping and creating jobs for their American workers.

Later in the presentation Kentucky Governor Steve Beshear named Reuss a Kentucky Colonel, presenting him with a framed certificate and mint julep cup.

Watch a complete video of Reuss's speech on the National Corvette Museum's You Tube channel at www.youtube.com/corvettemuseum. High res images are also available for download at:
https://picasaweb.google.com/corvettemuseum/GMC7Announcement

General Motors Corvette Plant in Bowling Green Kentucky to Undergo Major Renovation

2011-05-04T11:19:00.000-07:00

General Motors Corvette Plant to Undergo Major Renovation

Corvette Assembly to Add 250 New Jobs, Invest More Than $131 million

BOWLING GREEN, KY - Governor Steve Beshear today joined community leaders and officials of General Motors in Bowling Green to announce the company will refurbish its Bowling Green facility, adding a new vehicle product program -- the next-generation Chevy Corvette -- creating 250 new jobs and a capital investment of more than $131 million.

"Kentucky has a longstanding, mutually beneficial relationship with GM and this significant investment further demonstrates the strength of our partnership," said Governor Beshear. "We are proud to be the exclusive home of the Corvette and look forward to continuing that tradition for years to come with the launch of the next-generation Chevy Corvette. We appreciate GM's continued confidence in Kentucky's workforce and business climate."

Governor Beshear met with senior GM executives last week in Detroit, Mich., to discuss the company's potential investment in Bowling Green. Warren County Judge Executive Michael Buchanon and Bowling Green Area Chamber of Commerce President & CEO Ron Bunch, CEcD also attended the meeting to emphasize the community's support for the project.

Refurbishment of the plant, which will include new manufacturing machinery, equipment and tooling will commence this spring. The new Corvette model is expected to hit dealer showrooms in mid-2013.

"Our announcement today is possible thanks to our great partnership with the Commonwealth of Kentucky, the Bowling Green community and the UAW," said Mark Reuss, GM North America president. "It represents our commitment to this plant, this area, and this nation."

General Motors began production of the Corvette in Bowling Green in 1981. The one million square-foot plant on 212 acres has remained the exclusive home of the iconic Corvette for 30 years and currently employs nearly 500 people. In 2010, the plant produced 15,791 Corvettes.

GM's presence has a tremendous impact on Kentucky's economy and is a major part of Kentucky's rich automotive history. It was for this reason that in 2010, legislation was passed naming the Corvette as Kentucky's official state sports car.

With this expansion, the South Central Kentucky region has announced the creation of 638 jobs and a capital investment of more than $158 million in 2011, already surpassing annual figures from previous years. Adding to the broad base of existing employment at the Corvette Assembly Plant, the 250 new jobs will create an additional 140 indirect jobs and $7.9 million in retail spending.

An economic impact study performed by the Cabinet for Economic Development shows the number of direct, indirect and induced jobs that will result from GM's existing and new employment in Bowling Green is nearly 1,950 jobs. Those jobs will provide an annual $222 million boost to Kentucky's Gross Domestic Product.

GM's local plant has a tremendous impact on the economy in Bowling Green and South Central Kentucky. Not only are automotive suppliers located here to serve the GM plant, but car dealerships, tourism and many other markets also benefit from being located in the same region as the Corvette. In turn, they support GM's continued investment in the community by promoting the plant and taking pride in its location here.

To encourage the investment by GM, the Kentucky Economic Development Finance Authority preliminarily approved the company for tax incentives up to $7.5 million through the Kentucky Business Investment (KBI) program. The performance-based incentive allows GM to keep a portion of its investment over an eight-year period through corporate income tax credits and wage assessments by meeting job and investment targets.

KBI is a part of Incentives for New Kentucky (INK), which was enacted by Governor Beshear and the state legislature, including Representatives Johnny Bell, Jim DeCesare, Jody Richards and Wilson Stone of Warren County, in June 2009 to revise previous incentive programs and create new incentive opportunities for economic development. Support given by these local legislators, as well as Senator Mike Wilson, to INK has enhanced business attraction, retention and expansion efforts throughout South Central Kentucky.

"Bowling Green has been proud to be home to General Motors' Corvette plant since the 1980's, and we're grateful for all this company does for our economy," said Bowling Green City Mayor Joe Denning. "The Corvette is a symbol of this community, and we look forward to many more years of partnership with General Motors. We congratulate the company on the announcement today."

Through a Job Development Incentive Program, the City of Bowling Green has established incentives that encourage economic development. The program helps maximize state incentives for companies creating new jobs in Bowling Green, such as GM's announcement today.

"It's an incredible honor for our community to be linked to the Corvette, and we want to continue our strong partnership with General Motors in the future," added Warren County Judge Executive Michael Buchanon. "We're proud to show our appreciation for the economic impact that the local plant makes on our region. We also thank Governor Beshear, our federal and state legislators, and our Chamber of Commerce leaders for the resources they have provided to General Motors to assist in meeting the company's needs."

"The Chamber is a proud supporter of GM and is honored to be able to assist them in meeting any needs they might have. We congratulate the company on today's announcement, and we look forward to continuing our partnership with them," said Rodney Rogers, Chamber Board of Directors chairman.

Rogers continued, "We also thank the City, County and State for partnering with the Chamber on this and all other economic development projects. Their work is invaluable in supporting our community's business-friendly atmosphere."

For more information on the Bowling Green GM plant, visit www.bowlinggreenassemblyplant.com.

Information on Kentucky's economic development efforts and programs is available at www.ThinkKentucky.com.

A detailed community profile for Bowling Green (Warren County) can be viewed at http://thinkkentucky.com/EDIS/cmnty/index.aspx?cw=067.

Bowling Green is a Top-Ranked Metro by Site Selection Magazine

2011-03-07T12:44:00.000-08:00

Bowling Green is a Top-Ranked Metro by Site Selection Magazine

BOWLING GREEN, KY-Site Selection Magazine's March 2011 issue has recognized Bowling Green for an impressive 2010 in economic development projects. Amongst metropolitan areas with populations under 200,000, the city was ranked as third in the nation for its number of industry expansions and locations in 2010. Bowling Green is the only Kentucky metropolitan area other than Cincinnati/Middletown (Ohio, Ky., Ind.) to be listed in the magazine's Top 10 metropolitan areas by number of projects this year.

Site Selection ranked Bowling Green as No. 3 in the nation for its 12 expansion and location projects in 2010, with the city following behind No. 1 Lake Charles, La. and No. 2 Altoona, Pa. This year's ranking is the highest to date that Bowling Green has received from the magazine, and this is the third time in four years that Bowling Green has been listed in Site Selection's Top 10 Metros by Number of Projects.

"Site Selection is one of the premier magazines for the economic development industry, and we're proud to see our city and region receive national recognition for economic development projects," explained Ron Bunch, CEcD, president and CEO of the Bowling Green Area Chamber of Commerce. "It's an honor to be ranked in the magazine once again, especially at such a high level, and we are eager to continue our work to market South Central Kentucky to the world."

Site Selection publisher Conway Data's yearly analyses are regarded as "the industry scoreboard" by corporate real estate analysts. The magazine's circulation base consists of 44,000 executives involved in corporate site selection decisions. To determine the rankings, Site Selection utilized Conway Data's database to track industry location and expansion projects on a state and metropolitan area level. Qualified projects include those that meet at least one of three criteria: (1) involve a capital investment of at least $1 million, (2) create 50 or more jobs, or (3) add at least 20,000 square feet of new floor space.

In 2010, the Chamber participated in 21 economic development projects, 15 of which were expansions. These projects announced 1,653 new and retained jobs and a capital investment of more than $241 million for South Central Kentucky, and they will create an additional $140 million in annual economic impact. These are the highest job and capital investment figures that the Chamber has experienced to date. Below is a list of the announced projects that the Chamber supported in 2010.

New Projects

Integrated Pharmaceutical Company (Barren County) - $5.1 million capital investment, 100 new jobs
Certifed Flux Solutions (Butler County) - $863,000 capital investment, 12 new jobs
Renaissance Industries (Edmonson County) - $1 million capital investment, 15 new jobs
Kentucky Chrome Works LLC (Hart County) - $2.6 million capital investment, 80 new jobs
Medina Blankings (Shiloh Industries, Inc.) (Warren County) - $9.9 million capital investment, 60 new jobs
Pure Power Technologies (Warren County) - $884,440 capital investment, 10 new jobs
Expansion Projects

Amneal Pharmaceutical Company (Barren County) - $6.6 million capital investment, 48 new jobs
Corvac Composites LLC (Butler County) - $8.1 million capital investment, 75 new jobs
Gulfstar Energy (Butler County) - $5 million capital investment, 7 new jobs
Sister Schubert (Hart County) - $33.2 million capital investment, 65 new jobs
American Howa Kentucky (Warren County) - $11.5 million capital investment, 86 new jobs
Bando USA (Warren County) - $7 million capital investment, 15 new jobs
Country Oven Bakery (Warren County) - $10.6 million capital investment, 33 new jobs
Fruit of the Loom (Warren County) - $47 million capital investment, 600 new jobs
Magna Car Top Systems (Warren County) - $952,775, 30 new jobs
NASCO (Warren County) - $10 million, 206 retained jobs
Owl's Head Alloys Inc (Warren County) - $3 million capital investment, 30 new jobs
SCA Personal Care (Warren County) - $44.1 million capital investment, 65 new jobs
Sun Products Corporation (Warren County) - $23.9 million capital investment, 73 new jobs
Topura America Fastener (Warren County) - $9.3 million capital investment, 30 new jobs
Xhale Inc (Warren County) - $175,000 capital investment, 13 new jobs
As projects are completed, South Central Kentucky will see more residents, additional tax revenues, and increased sales because the impact of new manufacturing jobs carries through the region into all industries. For example, 100 manufacturing jobs in Warren County will create $15.96 million in economic impact for all industries, and that number continues to grow each year. One hundred new manufacturing jobs created in 2010 will have a 10-year cumulative impact of more than $196 million.

"It is great to once again be ranked in Site Selection for our many projects," said City of Bowling Green Mayor Joe Denning. "These rankings give our city national recognition and create top-of-mind awareness for professionals throughout the economic development industry."

Site Selection also recognized Glasgow (Barren County) as a top micropolitan area by number of projects. With three projects, Glasgow tied for 41st with cities in Georgia, Indiana, Ohio and Pennsylvania, among others.

"Rankings in Site Selection bring attention to the economic development progress being made by South Central Kentucky," said Warren County Judge Executive Michael Buchanon. "Because of our regional approach, we understand that a ranking for Bowling Green or for Glasgow is not limited to only those municipalities. Growth in one county equals growth for the entire region."

"Congratulations again to our economic development leaders in the region for their 2010 achievements," said 2011 Chamber Board of Directors Chairman Rodney Rogers. "It's an honor to be a part of a nationally recognized community like ours, and we look forward to continuing the tradition of delivering value to our current and expanding industries, as well as attracting new investments to the region."

The article and rankings can be viewed in their entirety at www.siteselection.com.

Governor Beshear Announces NHK of America Suspension Components

2011-02-07T13:57:00.000-08:00

NASCO investing $20 million to construct second facility, create up to 108 new jobs

BOWLING GREEN, KY - Gov. Steve Beshear today joined community leaders and executives of NHK of America Suspension Components (NASCO) to announce the company will invest more than $20 million to construct a new 50,000 square-foot manufacturing plant at its current location in Bowling Green. As a result of the expansion, the Japanese automotive supplier will add up to 108 new jobs over the next several years to its existing workforce, which is currently just over 200 employees.

"Kentucky is proud to have a longstanding corporate citizen such as NASCO reaffirm its commitment to our state by making new investments and creating new jobs," said Gov. Beshear. "The Commonwealth has long been a hub for automotive manufacturers and suppliers and this expansion further strengthens our footprint in the automotive industry."

Established in Bowling Green in 1986, NASCO has become one of the world's largest manufacturing plants for suspension coil springs for passenger cars and light trucks. It is also a leading supplier of trunk lid torsion bars and stabilizer links for the North American automotive industry. The new facility, which is expected to be completed by October of this year, will manufacture motor armature parts for electric and hybrid vehicles.

"The new plant is a major investment in metal stamping technology and our Japanese parent company NHK Spring decided to locate it here in Bowling Green, Kentucky," said Fumiaki Kimura, president of NASCO and New Mather Metals in Franklin, Kentucky. "We are very excited to have been awarded the opportunity to build something new here in Bowling Green and create new jobs. We are grateful to the Commonwealth of Kentucky for providing tax incentives to help offset some of the costs of building and operating the new plant."

NASCO was the first Japanese company to locate in Bowling Green. With these investments, the company's total investment in the community will exceed $150 million. Construction will begin immediately and is scheduled to be completed by October of this year. Initial hiring is expected to begin at the end of 2011.

"This is really good news for Bowling Green, Warren County and our region of the state," said Rep. Jody Richards of Bowling Green. "It further confirms what we have long believed: that our area is business friendly and a true hub for the automotive industry."

"Since opening their first plant in 1987, NHK of America has grown into a leading corporate citizen in our community," said Rep. Jim DeCesare, of Bowling Green. "Their growth has helped lead to better high-paying jobs, which have helped support improvements in our schools and our economy. I am pleased that NHK will be expanding and creating more than 100 new jobs, which means they will continue to call Bowling Green home for years to come."

"NASCO's expansion announcement is another reminder of the value that industries find in locating facilities in Warren County and South Central Kentucky," said Warren County Judge Executive Michael Buchanon. "We thank NASCO for its announcement today and for doing business here for nearly 25 years."

"The city of Bowling Green congratulates NASCO on its expansion announcement," said Bowling Green Mayor Joe Denning. "NASCO continues to be a strong contributor to our local economy, and we're thrilled that the company will expand operations here."

The Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved NASCO for tax incentives up to $2.5 million through the Kentucky Business Investment program. The performance-based incentive will allow NASCO to keep a portion of its investment over a 10-year period through corporate income tax credits and wage assessments by meeting job and investment targets.

KEDFA also approved NASCO for tax benefits up to $294,000 through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing equipment.

These incentive programs are a part of Incentives for New Kentucky (INK), which was enacted by Governor Beshear and the state legislature, including Representatives Johnny Bell, Jim DeCesare, Jody Richards and Wilson Stone of Warren County, in June 2009 to revise previous incentive programs and create new incentive opportunities for economic development. Support given by these local legislators, as well as Senator Mike Wilson, to INK has enhanced industry attraction, retention and expansion efforts throughout South Central Kentucky.

When hiring is complete, the economic impact of NASCO's expansion will create an additional 32 jobs in the community. Additionally, the expansion will increase retail spending by more than $1.9 million. Bowling Green and Warren County will see an increased collection of more than $67,000 in residential property tax, and the county's commercial and industrial property tax will grow by more than $139,000.

Sitel, Best Buy ink deal for Call Center in Glasgow, KY

2011-01-24T10:25:00.000-08:00

By LISA SIMPSON STRANGE
Glasgow Daily Times The Glasgow Daily Times Thu Jan 20, 2011, 10:39 AM CST

GLASGOW — A well-known retailer of electronics and entertainment products has announced the company will be locating support services in Glasgow during the next few months, which will mean more than 500 additional jobs for the community’s workforce.

Best Buy Co. Inc. made public Wednesday that the business has signed a deal with Sitel, a leading global business process outsourcing provider, to set up call center operations at the Sitel facility adjacent to the Western Kentucky University-Glasgow Campus off Roseville Road.

Representatives from Best Buy did not respond to inquiries about the deal before press time.

It’s been a long and sometimes frustrating road for local and state officials in bringing the Sitel facility and the right client to the community. After two years of negotiations with the state of Kentucky, Sitel announced in July of 2007 that it would be building the call center in Glasgow. Construction began a year later during the summer of 2008 and was completed in January of 2009.

Dave Garner, president and CEO of Sitel, visited the community that month to tour the new building and announce his company’s plans for the site. At that time he thought Sitel would be able to find one or more clients for the facility quickly, according to a previous Glasgow Daily Times article. The task proved to be more challenging than he imagined.

Because of the local facility’s proximity to the company headquarters in Nashville, Sitel officials had previously said they wanted the operation in Glasgow to be a showplace with just the right client that they could bring prospective customers to see.

Working behind the scenes, local officials in conjunction with Sitel representatives brought multiple potential customers, including ones such as Apple, to tour the building and the community during the past two years, but in spite of their efforts no deals were signed.

Timothy Miller, the new Sitel site director for the Glasgow facility, said his company had received significant support from the local community and its representatives during the long process and he singled out former Mayor Darrell Pickett and IDEA Executive Director Dan Iacconi, along with Vicky Wade with the Office of Employment Training and Lisa Bosnell with WKU-Glasgow as being instrumental in sealing the deal with Best Buy.

“They were very helpful and welcoming. A lot of time, effort and energy has been put into this and I think we finally have the right fit for the center,” Miller said.

“It’s how my last day of work was spent. Bringing jobs to Glasgow is still important to me,” Pickett said Wednesday afternoon.

He and Iacconi used the last few days of 2010 to work with representatives from Best Buy and Sitel to finalize negotiations that had been ongoing for some time.

Officials with Best Buy were very pleased with their visit to the community, according to Miller and now that a contract has been signed, the hiring process for employees will begin very soon.

“It will move very quickly over the next few months. Hopefully, by the end of July we will have achieved the goal of more than 500 employees,” he said.

To help that process, Sitel will have a career open house at the facility next week on Tuesday from 9 a.m. until 3 p.m. and Wednesday from 9 a.m. to noon. The company is looking for employees with good people skills more than anything else because they will be dealing with warranty-related customer service issues.

“We need people who provide friendly customer service ... have warmth. We can train them on the technical side. They will need to have basic keyboarding skills. We’re also hiring for management positions, so we’re looking for those particular skill sets as well,” Miller said.

Sitel representatives are hoping for 1,500 to 2,000 applicants for the two-day career open house next week. Miller said people were already stopping by the Sitel building at 101 Hilltopper Way to make inquiries, but he stressed the best way to apply is online at www.sitel.com in the “Careers” section before the open house.

The Bad Jobs Report Wasn't All Bad -- Mortgage Rates Fell

2010-02-01T15:07:00.000-08:00

Despite the headlines, it’s important to remember that December’s jobs report wasn’t all bad news.

Sure, the economy shed 85,000 jobs last month and the Unemployment Rate failed to dip below 10%, but for home buyers and rate shoppers , the news was just fine.

The soft employment data led mortgage rates lower, making homes more affordable for buyers.

There are two sides to every economic coin.

Since early-2008, the U.S workforce has been closely tied to home financing. As the economy slowed and jobs were lost, Wall Streeters pulled money from the risky stock markets and moved it to of the relative safety of bond markets, instead.

Safe haven buying led mortgage bond prices higher which, in turn, caused rates to fall. Mortgage rates fell to 6 all-time lows in 2009. In a related statistic, 4.2 million jobs were lost last year.

And this is why Friday’s non-farm payrolls report was so good for buyers.

See, in November, the economy added new jobs for the first time since 2007, housing looked strong, consumer confidence was growing. The safe haven buying reversed and mortgage rates took off. Analysts believed the nation’s economic turnaround was complete.

But now, after December’s jobs report returned to the red, Wall Street is forced to rethink its position. Safe haven buying is back and mortgage rates are lower because of it.

Over the next few months, expect a lot of this back-and-forth action in rates. In general, positive news for the economy will be met with higher mortgage rates and negative economic news will be met with lower mortgage rates. There will be exceptions, but the general rule should hold.

Fannie Mae Announces 3.5 Percent Seller Assistance on HomePath® Properties

2010-02-01T06:48:00.000-08:00

Incentive Part of Ongoing Effort to Stabilize Neighborhoods

WASHINGTON, DC — Fannie Mae (FNM/NYSE) announced today that people purchasing a Fannie Mae-owned HomePath® property will receive up to 3.5 percent of the final sales price to be used toward closing cost assistance or their choice of appliances. The offer is available to any owner-occupant who closes on the purchase of a property listed on HomePath.com before May 1, 2010.

"Attracting qualified buyers to the market and reducing the inventory of vacant homes is critical to stabilizing neighborhoods and helping the market recover. Many families are taking advantage of the federal homebuyer tax credit to buy a new home so this is a great time for Fannie Mae to offer some additional help," said Terry Edwards, Executive Vice President of Credit Portfolio Management. "Homebuyers have the option to choose between financial assistance toward closing costs or new appliances for their home."

Properties eligible for this incentive are listed on HomePath.com and most listings include detailed property descriptions, photographs, community and school information and more. In addition, many Fannie Mae-owned properties are eligible for special HomePath Mortgage and HomePath Renovation Mortgage financing which offers homebuyers an opportunity to purchase with as little as 3 percent down.

Simple Tips to Save Money

2010-01-18T10:29:00.000-08:00

If you’ve weathered this past year’s wallet-squeezing, here’s some how-to advice for keeping more money in your pocket now that the New Year has arrived.

Use, don’t lose, those new gift cards. In California, most gift cards cannot have expiration dates or fees, unless clearly stated on the card itself. But if a store goes bankrupt, or if the card is issued by a mall or a bank, your card could be subject to service fees and expiration dates. Another money-saving tip: If your gift card balance is below $10, you can receive it in cash.

Guard against “free trial” offers that stealthily set you up for automatic debits or credit card charges. According to consumer warnings from the Better Business Bureau, Federal Trade Commission and Visa Inc., some companies offering free trials—on everything from colon cleansers to debt reduction plans—also create automatic deductions for special “services” or subscriptions. Read the fine print before opting for any “free trial” offers.

Calculate how quickly you can pay off credit card debt, especially after holiday spending. Use an online credit card calculator, such as at bankrate.com or credit.com. According to the California Society of CPAs, if you’ve got a $5,000 balance with an 18% interest rate and make only monthly minimum payments, it will take 12.5 years to pay off the card. And you’ll pay $2,916 in interest. If you get a year-end gift or bonus, consider applying it to your January balances.

Reduce your cell-phone bill. Eliminate services you don’t need or want: insurance, roadside service, ring tones, texting. Or if you or your kids are continually hit with too many fees for text messages, switch to an unlimited plan. Don’t use your cell phone much? Consider switching to a prepaid phone.

Sweep up energy savings. Just a few household changes can save hundreds of dollars a year. If you replace 20 household 100-watt light bulbs with 27-watt fluorescent bulbs, you’ll save $277.30 a year, according to SMUD (Sacramento Municipal Utility District). Shorter showers can save, too. A family of three dropping shower times from 17 minutes to 11 can save $100.20 a year, not to mention conserving gallons of water.

Say thanks to all the new federal tax breaks, including those for purchasing a home, buying a car, paying college expenses or adding household energy improvements. “There’ve been a lot of things loosened up for consumers this year,” said John Hogg, who oversees 16 Jackson-Hewitt tax preparation offices in Sacramento. “Many of these credits have never been available before; others, like the new home buyer’s credit and college tuition credits, are worth more this year than last. If people take advantage of these, their tax liability could be significantly less for 2009.”

The first-time home buyer’s credit increased to $8,000 and was extended to April 30, 2010. Existing homeowners who haven’t purchased a home in the last three years can get a maximum $6,500. The tax credit for college students has been extended to a full four years and up to $2,500 annually, including textbooks. The vehicle sales tax deduction applies to any new purchase made by Dec. 31 this year.

For families, there’s also the child-tax credit and the earned income tax credit (EITC) for low- income households. For instance, a married couple with three children and family income of $22,000 could qualify for a federal refund of more than $9,000 through the combined credits. Due to layoffs and furloughs, many families with reduced incomes may qualify for the first time this year, Hogg said.

Stay healthy: That’s one of the surest ways to save. And if you have a flexible spending account through your employer for health care expenses, don’t forget to submit your receipts for reimbursement by Dec. 31 or your company’s deadline. If you fill out the correct paperwork, you’ll get a nice check in the mail.

Ignore unsolicited e-mails, calls or letters asking for personal financial information. Phony messages pretending to be from the IRS, FDIC and your bank can siphon money faster than you can click open their fraudulent online messages.

Laugh: We’ve all made spending bloopers. If you want to share yours or ogle those of others, go to www.spendster.org, the “online confessional for bad spending.” Sponsored by the National Endowment for Financial Education, it’s a lighthearted look at how we can learn from our mistakes.

(c) 2009, The Sacramento Bee (Sacramento, Calif.).

By Claudia Buck Print Article
RISMEDIA, January 12, 2010—(MCT)—

Distributed by McClatchy-Tribune Information Services.

Read more: http://rismedia.com/2010-01-11/simple-tips-to-save-money/#ixzz0czS5nwQb

Program 3648 Representative Mark Tyree Providing Big Help to Homeowners in Small Towns - FOXBusiness.com

2010-01-13T14:43:00.001-08:00

BOWLING GREEN, K.Y., Jan 11, 2010 (GlobeNewswire via COMTEX) ----Mark Tyree of Coldwell Banker Legacy Group partnered with Program 3648, a privately-sponsored, nationwide initiative to help homeowners avoid foreclosure, in November of 2008. Mark's efforts under the initiative have positively impacted the lives of many residents in small cities surrounding Bowling Green, Kentucky. In total, Mark Tyree has successfully assisted 20 families with short sale work-out solutions that prevented the families from going through the painful foreclosure process. Tyree is presently helping 26 additional families with many more on the horizon.

Debbie, one homeowner that Mark Tyree helped to avoid foreclosure, recently went through a divorce and as a result, could no longer afford the mortgage payments on her home. The stress of her circumstances began to be lifted from the moment she received a letter from Mark explaining that through Program 3648 he was volunteering his time and resources to help her at no cost whatsoever. She stated that she felt much better after speaking to Mark for the first time. She said, "Mark was a really big help. He was responsive to my needs and always answered my questions in a way I could understand. He did all the work for me; He was just a friend while I went through a difficult process. I felt much better once he solved my situation."

Tyree has only been a Realtor for three years, but since partnering with Program 3648 his Real Estate business has taken off. He states, "Leveraging with Program 3648 has given me the tools I need to reach distressed homeowners and then help them get a fresh start and rebuild their lives."

Program 3648 trains licensed real-estate professionals in most markets throughout the country. These licensed agents then act as a "ground army" of volunteers, reaching out to homeowners who may need assistance. Under Program 3648, Certified Program 3648 Representatives (CPR's), offer to help homeowners, at no cost whatsoever, avoid foreclosure and take advantage of any servicer or government incentives that apply to their particular situation. Allen Ciarlante, Mark Tyree's Program 3648 Transaction Coordinator states, "The best thing about Mark Tyree is that he really goes the extra mile for the homeowner. If I ever need any additional documents or information to complete the deal for the homeowner, I can always count on Mark to get me what I need right away. He is a pleasure to work with."

Co-founder of Program 3648 Jeremy Bowman states, "Hundreds of real-estate professionals throughout the country, like Mark Tyree, have responded to the call to action and are going above and beyond to help homeowners through one of the most difficult processes of their lives. Without them, we would be severely limited in our ability to penetrate most markets and help relieve distressed homeowners of their potential foreclosure." With certified representatives now positioned in most markets nationwide, Program 3648, along with their Representatives, stands poised, ready, and eager to help any homeowner who wants help.

The Program 3648 logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6979

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: Program 3648

CONTACT: Program 3648
Cindy Thompson, Director of Administration
1.502.301.8865
1.800.915.1988
cindyt@program3648.org
(C) Copyright 2010 GlobeNewswire, Inc. All rights reserved.

Program 3648 Representative Mark Tyree Providing Big Help to Homeowners in Small Towns - FOXBusiness.com

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Homeowners – Exterior Remodeling Projects Prove Best Bang for Your Buck

2010-01-04T09:19:00.000-08:00

RISMEDIA—Despite a slow market and a slight decrease in the resale value of most remodeling projects, Realtors report that the smartest home improvement investments may also be some of the least expensive. Results from the 2009 Remodeling Cost vs. Value Report show that small-scale exterior projects are the most profitable at resale, according to estimates by Realtors who completed a recent survey.

On a national level, eight out of the top 10 projects in terms of costs recouped were exterior replacement projects that cost less than $14,000. Certain types of door and siding replacements, as well as wood deck additions all returned more than 80% of project costs upon resale. A steel entry door replacement–a new addition to this year’s list–recouped 128.9% of costs, followed by upscale fiber-cement sliding replacements at 83.6%. Wood deck additions recouped 80.6% of costs.

“Once again, this year’s Remodeling Cost vs. Value Report highlights the importance of a home’s first impression,” said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz. “With exterior projects returning a high percent of project costs upon resale, Realtors can help give your home curb appeal while adding value to the real estate transaction.

The 2009 Remodeling Cost vs. Value Report compares construction costs with resale values for 33 midrange and upscale remodeling projects comprising additions, remodels and replacements in 80 markets across the country. Data are grouped in nine U.S. regions, following the divisions established by the U.S. Census Bureau. This is the 12th consecutive year that the report, which is produced by Hanley Wood, LLC, was completed in cooperation with Realtor Magazine, as Realtors provided their insight into local markets and buyer home preferences within those markets.

On a national level, the project with the biggest improvement from 2008 was the attic bedroom addition, recouping 83.1% of remodeling costs compared to 73.8% in 2008. The only other interior project that landed in the top 10 was a minor kitchen remodel with 78.3% costs recouped.

Other exterior projects in the top 10 include midrange vinyl and upscale foam-backed vinyl sliding replacements, which returned more than 79% of costs. In addition, several types of window replacements–midrange wood, midrange vinyl, and upscale vinyl–all returned more than 76% of costs upon sale.

Similar to last year’s report, the least profitable remodeling projects in terms of resale value were home office remodels and sunroom additions, returning only 48.1% and 50.7% of project costs.

Regionally, cities in the Pacific states of Alaska, California, Hawaii, Oregon and Washington once again outperformed the rest of the nation in terms of remodeling costs recouped upon resale. The West South Central region of Arkansas, Louisiana, Oklahoma, and Texas; the East South Central region of Alabama, Kentucky, Mississippi and Tennessee; and the South Atlantic region of the District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia also performed relatively well.

The regions that generally returned the lowest percentage of costs were New England (Connecticut, Massachusetts, Maine, New Hampshire, Rhode Island and Vermont), East North Central (Illinois, Indiana, Michigan, Ohio and Wisconsin), West North Central (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota), and the Middle Atlantic (New York and Pennsylvania).

Golder commented that remodeling projects are just one of many factors that contribute to a home’s overall resale value. “As the first, best source for real estate information, Realtors are experts in providing insight into what projects and investments will make a difference in your house. It’s important to consult with a Realtor who can explain the variety of factors that affect a home’s value, such as location, condition of surrounding properties and the regional economic climate,” she said.

For more information, visit www.realtor.org [2].

Posted By susanne On December 23, 2009 @ 4:07 pm In Homeowner's Toolkit,

U.S. Bank Announces Plans to Bring More than 50 New Jobs to Bowling Green

2009-12-21T12:55:00.001-08:00

BOWLING GREEN, KY – U.S. Bank plans to bring more than 50 new jobs to Bowling Green, starting in the first quarter of 2010 when U.S. Bank will renovate and expand its 3170 Louisville Road Mortgage Operations Center. It will bring the total number of U.S. Bank employees to more than 300 in the area, nearly 170 at the mortgage service center and 130 working at U.S. Bank’s 15 local branch offices.

"We're very pleased to partner with our colleagues at U.S. Bank Home Mortgage to expand an already significant employee base in the Bowling Green area," said Craig Browning, U.S. Bank regional president for South Central Kentucky. "This expanded U.S. Bank Service Center illustrates our growth and commitment to this area in the form of new jobs and a new future for this existing facility. Our region produces high quality and caring employees that we are most proud to be associated with in serving our customers. We wish to extend a special thanks to city, county and Bowling Green Area Chamber of Commerce officials for their interest and contributions during our evaluation process."

Dan Prather, senior vice president of U.S. Bank Home Mortgage added, “We selected Bowling Green to grow our mortgage loan, servicing and production call center because we were excited and impressed with the labor quality in this community, and we expect to draw top rate job applicants from the community, including graduates of Western Kentucky University.”

Prather said that interested persons can apply online at usbank.com/careers.

“We congratulate U.S. Bank on the expansion of their existing mortgage call center here in Bowling Green,” said City of Bowling Green Mayor Elaine Walker. “We’re proud they saw our city as the best location for this expansion, and we thank them for their continued support of our community.”

“This is an exciting day for Bowling Green,” said Todd Davis, 2009 Board of Directors Chairman of the Bowling Green Area Chamber of Commerce. “U.S. Bank has made a commitment to this community through its work in bringing more high quality, good paying jobs with benefits. They chose to expand here because of our pro-business policies and highly skilled workforce. These are the assets we will continue to promote as we find responsible solutions to our current economic challenges.”

U.S. Bank also recently expanded its Owensboro mortgage service center, just 70 miles north, to accommodate up to 1,000 employees.

Around the Home – 10 No-Cost Tips for Saving Energy

2009-12-14T08:18:00.000-08:00

Looking for fast, free ways to save on energy around the home this winter? According to Tom Kraeutler, host of the nationally-syndicated home improvement radio show, The Money Pit, there are many common-sense things you can do everyday in your home to lower energy bills.

Tip #1 – Lock your windows. Don’t just close them, but lock them to create an airtight seal that keeps out air leaks and drafts.

Tip #2 – Plug power-draining computers and electronic equipment into a power strip with a switch, so they can all be easily turned off when not in use.

Tip #3 – Turn off lights when leaving a room.

Tip #4 – Get free solar heat by opening the blinds and shades during the day.

Tip #5 – Chill out and do your laundry in cold water.

Tip #6 – Add a sweater and lower the thermostat. For every degree you lower your thermostat, you may be able to save 5% on heating costs.

Tip #7 – Run only full loads in your dishwasher.

Tip #8 – Remove lint often from your clothes dryer and its outside vent. And, run your dryer in the evening, when the extra heat helps warm your house.

Tip #9 – Close the doors (and the heating vents) in rooms with minimal use, like walk-in closets, laundry rooms and guest bedrooms, to reduce heat use in those areas.

Tip #10 – Snuggle up under more blankets at night and turn your heat down lower to reduce energy costs.

“Small things can add up to big energy savings in the home,” says Kraeutler. “You’ll be surprised to find your energy bills dropping by 20, 30 or more dollars each month when you consistently make the effort.”

Bowling Green is a Best Place to Launch a Small Business

2009-12-10T13:43:00.000-08:00

BOWLING GREEN, KY-Once again Bowling Green has been recognized for its positive environment for small business. CNNMoney.com recently released its "Best Places to Launch" list--ranking the best large, middle and small population metropolitan areas for small business start-ups.

Bowling Green ranked 12th in the small cities list (populations under 250,000), placing it in the ranks with cities such as Sioux Falls, S.D.; Dubuque, Iowa; and Abilene, Texas. No other Kentucky city was ranked in Bowling Green's small cities category.

CNNMoney notes, "While some entrepreneurs prefer to locate near major cities, others opt for the intellectual spark and intimacy of college towns and other small, close-knit communities. One size doesn't fit all, so our list is divided into three tiers: small, midsize and large metro areas."

The full rankings can be found online at http://money.cnn.com/smallbusiness/best_places_launch/2009/full_list/top_small.html

CNNMoney ranked the cities based on factors such as per capita income, hourly wages, workforce quality, crime rates, taxes and foreclosures, as well as population size. Partnering with the Ewing Marion Kauffman Foundation and enlisting the help of Robert Fairlie, an economist and leading scholar of entrepreneurship at the University of California, Santa Cruz, CNNMoney developed the list of the most business-friendly communities in America.

"Once again Bowling Green is receiving national attention for its ideal business climate," said Bowling Green Mayor Elaine Walker. "Small businesses thrive here, especially because of our strong network of business leaders through the Chamber and other organizations, and we're thrilled to see our name on another prestigious list."

Warren County Judge Executive Michael Buchanon agreed with Mayor Walker, "The entrepreneurial spirit thrives in Bowling Green and the entire South Central Kentucky region, so it's no surprise that we're being recognized for our small business environment."

According to the U.S. Census Bureau 2007 County Business Patterns, there are 2,704 small businesses with one to 49 employees in the Bowling Green metropolitan statistical area (MSA). The city's small business growth rate from 2004 to 2007 was 4.2% compared to the Best Places' average of 5.6%.

CNNMoney links Bowling Green's appeal to the downtown redevelopment project with the newly built Bowling Green Ballpark, Circus Square and the planned performing arts center. Other attractions include Fruit of the Loom and the Corvette plant as two of the MSA's largest and most well-known employers, as well as the city's ideal location off of Interstate 65. The article also listed the city's shift toward high-paying technology jobs, recognizing the state-of-the-art Kentucky Transpark and Western Kentucky University's small business and high-tech business incubators within the University's Center for Research and Development.

"Small businesses are an integral part of our community," said Todd Davis, 2009 Chamber Board of Directors chairman. "At the Chamber, we're proud to recognize small businesses through Small Business Appreciation Week, our CEO Roundtables and the Strategic Business Alliance. We work closely with WKU, as well as other organizations and educational institutions, to assist with resources for current and future small business owners."

Governor Beshear Announces Start Up of Kentucky Copper in Morgantown

2009-12-10T11:23:00.000-08:00

India-based Copper Company to Create 106 New Jobs, Invest Nearly $32 Million

FRANKFORT, KY- Gov. Steve Beshear and Cabinet for Economic Development representatives today joined community and company officials in Butler County to announce that India-based Chandra Proteco Ltd. will start up a manufacturing operation in Morgantown under the name Kentucky Copper Inc. The new company will create 106 new jobs and invest nearly $32 million in the Commonwealth.

"The start-up of Kentucky Copper in Morgantown will create more than 100 direct jobs and a tremendous economic boost for not only Butler County, but for all of south central Kentucky," said Gov. Beshear. "Kentucky is proud to partner with Chandra Proteco on this new investment and will continue to work with the company to establish and grow its operations in the Commonwealth."

Chandra Group has been in the field of copper and copper cable business for more than 40 years and specializes in transposed cable and railway cables for traction. With more than 500 employees in India, the company's facilities are spread over India, Europe, Africa and China.

"We are delighted to bring the extensive experience of our parent company, Chandra Copper, to Kentucky along with a commitment to be an active part of the community and the Commonwealth of Kentucky," said Mukul Gupta, president of Kentucky Copper.

Kentucky Copper will be located in a 163,000 square-foot facility on Veterans Way and will include warehousing, manufacturing and office space, as well as a technology center. The company will manufacture products to be used in power transformers, energy transmission and distribution applications, as well as high-speed trains. Three product lines will be phased in and will produce magnet wires, profile and trolley wires and continuously transposed conductors.

The Kentucky Economic Development Finance Authority preliminarily approved Chandra Protecto Ltd. for tax benefits up to $6 million under the former Kentucky Rural Economic Development Act.

"We wish Kentucky Copper much success as they open their facility here in Butler County," said Butler County Judge-Executive David Fields. "The Bowling Green Area Chamber of Commerce introduced this company to our community through our involvement in the South Central Kentucky partnership, and we appreciate their work on this project as Kentucky Copper is a welcome addition to Butler County, particularly because of the 106 new jobs it will create."

"We're grateful for Kentucky Copper's investment of nearly $32 million in our community, and we look forward to working with Kentucky Copper in the future. We wish them as much prosperity as possible as we welcome them into our community," said Morgantown Mayor Eva Hawes. "We also thank the Bowling Green Area Chamber of Commerce's work in bringing this project to our community."

This announcement is one of only three announcements made in the Commonwealth in which a new industry has announced more than 100 new jobs this year.

Morgantown and Butler County are members of the South Central Kentucky Economic Development Partnership and its international-award-winning Menu of Services Program, designed and led by the Bowling Green Area Chamber of Commerce. Through this partnership, the Chamber worked with the state to assist in locating Kentucky Copper in Morgantown, providing the services of tenured economic development professionals.

Todd Davis, chairman of the Chamber Board of Directors, said, "We are proud to have introduced Kentucky Copper to South Central Kentucky. We draw no distinction between county lines in our South Central Kentucky partnership, enabling us to ensure that a client's needs are met. A new industry location in one county is a success for all counties involved."

Davis continued, "Morgantown, Butler County, South Central Kentucky and the Commonwealth are all winners because Kentucky Copper chose to locate in our region."

BGHS Among Top High Schools Nationwide

2009-12-10T11:14:00.000-08:00

Bowling Green High School Receives Third Medal from US News and World Report

For the third consecutive year, Bowling Green High School is at the top of the class among high schools nationwide. Today, US News and World Report released their annual list of America’s Best High Schools. The top 100 high schools in the nation were awarded gold medals, the next 561 silver, and an additional 1,750 bronze. BGHS is one of only 8 high schools in Kentucky to earn a Silver Medal. There were no gold medals awarded in the Commonwealth.

Principal Gary Fields attributes Bowling Green High School’s most recent recognition to the work of everyone in the Bowling Green City Schools Purple family. He says, “I hope everyone takes personal pride in making this honor possible for our school. Our work from preschool to high school, and the support of our alumni and community, has led our students to achieve great things.” He also adds, “It is a great day to be a PURPLE.”

US News and World Report used a three-step formula to calculate the list of top schools. First, they measured how students performed on state tests, adjusting for student circumstances. Next, they evaluated the performance of each school's disadvantaged students. Finally, they looked at the school’s success in providing college-level coursework such as Advanced Placement courses.

BGHS has approximately 1,075 students enrolled in grades 9-12. Of the student population, 34% are minority students, and 44% are eligible for free or reduced lunch. Kentucky Core Content Test results from 2009 confirm Bowling Green High School is performing above the state average in all content areas.

Currently, Bowling Green High School offers 17 Advanced Placement Courses, which are open to all students. In the spring of 2009, 26% of BGHS students completed at least one Advanced Placement exam. Results from the College Board Exams show 62% of those students earned college credit.

US News and World Report will publish the America’s Best High School rankings in the January 2010 issue. Printed copies will be available to subscribers and on newsstands on or around December 17.

For more information, visit:

http://www.usnews.com/listings/high-schools/kentucky/bowling_green_high_school

$5,000 New Construction Buyer Tax Credit

2009-07-23T06:46:00.000-07:00

On June 26, 2009 as a result of a special legislative session, Governor Beshear signed into law HB3, which contains incentives for new home purchasers. This measure recognizes the importance of putting people back to work in the hard hit construction industry as a means of increasing economic activity and tax revenues. We compliment the Legislature and Governor for their progressive recovery plan. A summary of their plan is below and detailed components of the bill follows

* In effect from July 26, 2009 to July 26, 2010. The new home must close during this period.

* Purchasers of new homes during that period will receive up to $5,000 non-refundable tax credit (non-refundable means that the credit will go against a tax liability to the state. i.e. if your state tax liability is only $4,200 you can only take a tax credit of $4,200, if your state tax liability is $6,2000, you can only take $5,000).

* The new home buyer must live in the home for at least two years or pay back the tax credit to the state.

* There is a total program cap of $25 million (5,000 homes or more depending on size of actual credits). The tax credit is over when that cap is reached or July 26, 2010 whichever comes first.

* Purchases are defined as anyone other than first time home buyers.

* The new home must be the home owner’s principal residence. A new home is defined as either detached or attached and has never been occupied.

* Within seven calendar days after purchase of a qualified residence, the qualified buyer shall submit a completed application for the new home tax credit on forms provided by the Kentucky Department of Revenue.

* The Department of Revenue will create a web site to explain the credit to the public and to keep track of the amount of the program cap dollars remaining.

Watch for additional information as the final regulations are published and check with your tax advisor to conform eligibility and benefits of the program

REALTORS® SAY HOUSING INCENTIVES HELP ECONOMY, SMALL BUSINESSES

2009-07-23T06:34:00.001-07:00

Having a sound and well-functioning real estate sector is critical to our country’s economic growth and development, as well as the growth and sustainability of many small businesses, according to the National Association of Realtors®.

In testimony on Capitol Hill before the House Committee on Small Business, NAR President Charles McMillan noted that the real estate industry supports millions of jobs and services. “By enacting provisions that stabilize America’s real estate markets, you are helping small businesses and America’s communities thrive and prosper,” said McMillan, a Realtor® and broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth.

NAR shared its belief that the 2009 stimulus legislation has proven helpful to small business owners - which includes many Realtors® - most notably by beginning to stabilize the housing market and stimulate the economy. “Along with other tax bills passed in 2007 and 2008, the 2009 stimulus legislation included a number of provisions that are helping the nation recover,” McMillan said.

The focus of NAR’s testimony was on three provisions that are having a positive impact on the real estate industry - the first-time homebuyer tax credit, the elimination of the mortgage cancellation tax, and the SBA loan programs.

The 2009 stimulus increased the amount of the homebuyer tax credit to $8,000 and eliminated the repayment feature of the credit. It also extended the program up to December 1, 2009. “It appears the tax credit is now being embraced based on the number of inquiries we and our members are receiving and the increased activity in the first-time homebuyer market,” said McMillan.

NAR has asked Congress to take steps to ensure the tax credit continues to stimulate the housing market and help families achieve the dream of homeownership. “We hope Congress will extend the tax credit through next year and make the credit available to all purchasers of primary residences,” McMillan said. “Additionally, to be fair, we’d like the repayment requirement from the 2008 stimulus bill to be eliminated so families are not penalized for buying their home just a few months before the new legislation went into effect.”

The second provision is the Mortgage Cancellation Relief Act passed by Congress in 2007. The tax relief has been extended through 2012, but NAR would like to see this become permanent. “It just doesn’t seem right to further penalize a family that has acted responsibly and has lost their home or been forced into a short sale because of market conditions. Eliminating the tax on the excused debt will help many families begin to recover more quickly and maybe will allow them to once again own a home,” McMillan said.

Lastly, NAR addressed the Small Business Administration loan program that provides fee waivers for some of its SBA programs and new loan programs and raised guarantees. “We applaud these efforts,” McMillan said. “However, the SBA often deems independent contractors, which most Realtors® are, ineligible for its programs and its standards are not always evenly applied across regions.” Realtors® and other independent contractors are often denied access to SBA programs. NAR asked Congress for assistance in making these loans available to more small businesses helping them to grow and prosper.

“NAR thanks you for all of your efforts to date. We stand ready to work with Congress and the Obama administration in any way possible to find further solutions to stabilize the real estate market and restore a strong marketplace and economy,” said McMillan.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.2 million members involved in all aspects of the residential and commercial real estate industries.

W.W.C.D. - What Would Cramer Do?

2009-06-15T07:33:00.000-07:00

W.W.C.D. - What Would Cramer Do?
Jim Cramer from Mad Money talks about the "housing bottom"? Encouraging message or just spin? What do you think? Have you seen any upturn in your activity

The Realtor's Toolbox: Monday Morning Match

2009-06-15T07:23:00.000-07:00

The Realtor's Toolbox: Monday Morning Match

Regina Brett's 45 life lessons and 5 to grow on
Posted by Regina Brett September 20, 2007 14:03PM
Originally published in The Plain Dealer on Sunday,May 28, 2006

To celebrate growing older, I once wrote the 45 lessons life taught me.

It is the most-requested column I've ever written. My odometer rolls over to 50 this week, so here's an update:

1. Life isn't fair, but it's still good.

2. When in doubt, just take the next small step.

3. Life is too short to waste time hating anyone.

4. Don't take yourself so seriously. No one else does.

5. Pay off your credit cards every month.

6. You don't have to win every argument. Agree to disagree.

7. Cry with someone. It's more healing than crying alone.

8. It's OK to get angry with God. He can take it.

9. Save for retirement starting with your first paycheck.

10. When it comes to chocolate, resistance is futile.

11. Make peace with your past so it won't screw up the present.

12. It's OK to let your children see you cry.

13. Don't compare your life to others'. You have no idea what their journey is all about.

14. If a relationship has to be a secret, you shouldn't be in it.

15. Everything can change in the blink of an eye. But don't worry; God never blinks.

16. Life is too short for long pity parties. Get busy living, or get busy dying.

17. You can get through anything if you stay put in today.

18. A writer writes. If you want to be a writer, write.

19. It's never too late to have a happy childhood. But the second one is up to you and no one else.

20. When it comes to going after what you love in life, don't take no for an answer.

21. Burn the candles, use the nice sheets, wear the fancy lingerie. Don't save it for a special occasion. Today is special.

22. Overprepare, then go with the flow.

23. Be eccentric now. Don't wait for old age to wear purple.

24. The most important sex organ is the brain.

25. No one is in charge of your happiness except you.

26. Frame every so-called disaster with these words: "In five years, will this matter?"

27. Always choose life.

28. Forgive everyone everything.

29. What other people think of you is none of your business.

30. Time heals almost everything. Give time time.

31. However good or bad a situation is, it will change.

32. Your job won't take care of you when you are sick. Your friends will. Stay in touch.

33. Believe in miracles.

34. God loves you because of who God is, not because of anything you did or didn't do.

35. Whatever doesn't kill you really does make you stronger.

36. Growing old beats the alternative - dying young.

37. Your children get only one childhood. Make it memorable.

38. Read the Psalms. They cover every human emotion.

39. Get outside every day. Miracles are waiting everywhere.

40. If we all threw our problems in a pile and saw everyone else's, we'd grab ours back.

41. Don't audit life. Show up and make the most of it now.

42. Get rid of anything that isn't useful, beautiful or joyful.

43. All that truly matters in the end is that you loved.

44. Envy is a waste of time. You already have all you need.

45. The best is yet to come.

46. No matter how you feel, get up, dress up and show up.

47. Take a deep breath. It calms the mind.

48. If you don't ask, you don't get.

49. Yield.

50. Life isn't tied with a bow, but it's still a gift.

To reach this Plain Dealer columnist:

rbrett@plaind.com, 216-999-6328

How to Price Your Home in Today’s Market

2009-06-01T10:56:00.000-07:00

When we meet with prospective home buyers, one of their first questions is inevitably, “How low below the asking price should I expect to pay?” Our answer is always the same… it depends! Some homes are priced fairly and others are grossly overpriced. Wecannot recommend a generalized strategy as we need to weigh the merits of each home individually against their prices.

When our team members work with a seller to list their home, our strategy is to determine the home’s approximate market value, and then offer it for sale for as close as possible to (or even slightly below) that number. This strategy is especially important in a declining market. If we were to tack on an extra 10% of “wiggle room” onto our asking price, and then the market dropped 5%, we would be 15% above the market. The larger the gap between market value and asking price, the greater the chance that the right buyers will not see your home. Rather, buyers in the market for a more expensive home will see yours, and it will pale in comparison to the competition. The most effective strategy is to price slightly below the market so your home is the “best in its class.”

How We Determine a Home’s Value
When evaluating a home’s market value, we consider the following factors:

1. Availability and pricing of similar properties - Is the home unique or are there many like it for sale? If there are others for sale, how do they compare? What would it cost to get those homes to the same condition as yours, and vice versa?

2. Condition - Unless it is a very unique property, buyers in today’s market will discount the value of a home that requires more than simple cosmetic work. On the other hand, a home that offers popular amenities and is tastefully decorated will stand out among the competition.

3. Utility of Floor Plan - When we value a property, we look at the utility of the floor plan. For example, a three bedroom house with two bedrooms on the second floor and the third in the lower level would appeal to fewer people than a three bedroom house with all three bedrooms upstairs. A deck can be a plus, but less so if it is only accessible by walking through the master bedroom. Also, a kitchen with a large pantry would have more appeal than a kitchen with minimal storage.

4. Location - This used to be the single most critical criteria in evaluating home values, but as our city grew and neighborhood boundaries blurred with new development popping up all over, buyers were more willing to sacrifice location for value. Still, there are certain factors (like being near an El track, a bar, or on a busy street) that will negatively impact market value. Likewise, certain locations still command a premium.

There are some factors that are irrelevant to market value. They include:

1. How much you paid when you bought the property?

2. How much you spent improving the property?

3. How much you owe against the property (mortgages and/or equity lines)?

4. The amount you hope or need to get from the property’s sale

Why Testing the Waters Doesn’t Work
Sometimes sellers ask if we can just “test the market” at a price that we both know is above their home’s market value. There are several reasons why this is a bad idea including the following:

1. Your home gets the most visibility the first time you list - and you only get one first time. There are buyers out in the market who have seen everything else, and they are waiting for “the right” home to come on the market. If your home is overpriced, those buyers are less likely to see it, and they may not be around to take a second look after you reduce your price.

2. Based on our experience, the longer your home is on the market for sale, the less negotiating leverage you have. Buyers will discount your asking price (even if it has been adjusted) if there is a lengthy market time, as it is their “proof” that the home is overpriced.

3. You may ultimately get less when you sell, than if you had priced it correctly in the beginning. We have seen sellers put their homes on the market with ambitious prices, receive offers, and turn them down because they were to low relative to their asking price. Subsequently, the offers stopped coming, the prices have been reduced to below what the sellers previously turned down, and they are still carrying the property. This is a slippery slope to be avoided.

4. Selling it is only half the battle. Once under contract, your home needs to appraise for the price on the contract, or the buyer will have to put more money down toward the purchase. Even if we are lucky enough to get someone to pay an over market price, there is a good chance the sale will fall apart or the buyer will renegotiate price when they receive their appraisal.

Why the Right Agent Can Mean the Right Price
So, how does your real estate agent evaluate competing inventory, condition, utility of floor plan and neighborhood? In smaller communities, agents can be familiar with each home that is available or sold recently because the total scope is manageable. But, in our area, where there are hundres of properties on the market at any given time. It is impossible to have physically inspected every home. So, we rely on our experience and on the information and photos found in our Multiple Listing Service (MLS). Sometimes we also reach out to agents who have sold similar properties and ask them for help so we can make an accurate comparison.

Note that while past and current sales data is available in the MLS, not every agent will interpret it the same way. The “lens” through which we see sales data will be colored by our overall experience, as well as by our level of expertise in the property type, in the price range, in our knowledge of the neighborhood, and our overall outlook. For example, an agent who is an expert at valuing a farm property may not be qualified to value a luxury home. So, in searching for an agent to sell your home, be sure to ask for a list of properties these agents have sold in the last two years, and verify that they have related experience.

Final Notes
It is critical to understand that while we have the tools to help you estimate market value, it is only a momentary assessment. Pricing in this market is highly volatile. We will put a home on the market based on our estimate of value, but the following week the family who lives on the same street may decide to put their home on the market at a price that is $20,000 below yours. Assuming the condition is equal, the value of your home will drop by at least $20,000, perhaps more. You need to work with your agent to continually monitor the market once you have listed your home to make sure your pricing is still competitive. If not, immediately adjust in an increment that will allow you to reach a new audience (at least 5%).

The good news is that in the Southern Kentucky there are still plenty of buyers. If your home is in good condition, priced at or below its current market value, and there are not too many like it for sale, you should get showings and even offers.

ECONOMISTS' COMMENTARY: INFLATION OUTLOOK

2009-04-23T11:24:00.000-07:00

ECONOMISTS' COMMENTARY: INFLATION OUTLOOK

Deflation has arrived but inflation could be flaring up in a couple years. The latest March consumer price index showed the first decline over a 12-month period since the Eisenhower administration. With rising unemployment and excess industrial capacity there is virtually no pressure for wages or prices to rise. The first order of business – from the Federal Reserve point of view – is to stop the deflation from spiraling down, which could lead to years of a Japanese-style economic stagnation. The mindset in this situation would be one of ‘why buy now if I can buy just about every consumer product at a cheaper price later?’ However, postponing purchases freezes economic activity.

The Fed has been madly pumping out money to help kick-start the economy and to help ease the credit crisis. The Fed’s balance sheet has grown exponentially in the past year to now more than $2 trillion. This money is essentially off the printing press. Over the short term, more money into the system and easier borrowing standards will inevitably stimulate the economy. However, too much money for too long in the system will spark inflation. Prices of just about everything – from hamburgers and airfares to tuition and wages - will rise. In addition, if (or perhaps I should say ‘when’) inflation does rise – say 5 percent or even closer to double-digits – there will be distinct winners and losers.

The big winners will be property owners. Paper money will lose its purchasing power, but real tangible assets will rise in value. Real Estate, by nature, is imbedded with commodities, and is sitting on land, which cannot be printed off a printing press. As it has happened around the world throughout history and more specifically during the 1970s and early 1980s in the United States, property values rise with consumer price inflation.

The big losers will be those who need to borrow money. High inflation automatically brings high interest rates. Lenders will charge a higher rate to compensate for the loss in purchasing power. Be it a homebuyer or small business owner or even the government, those who need to borrow at that time will face burdensome interest payments.

It is possible that we will not see inflation when the economy gets back on track. The Fed may be able to mop up the cash that was distributed. However, some of the money printed, without being too technical or using jargon-like acronyms such as TALF (Term Asset-Backed Securities Loan Facility), was for the longer-term where the Fed cannot automatically soak up the cash. That leaves a distinct possibility of inflation picking up due to too much money chasing around the economy. The economy, though growing, will also be operating sub-optimally because high inflation introduces unnecessary uncertainty for business start-ups and entrepreneurs.

What is the bottom line? Yes, inflation could be contained. However, it is also possible for it to get out of hand. If that happens, property owners will be in the winner’s circle. Those property owners who locked-in low mortgage rates will further benefit from constant loan payments independent of future inflation. However, homebuyers, property owners, and other borrowers at the time of high inflation will be shut out of the market because of exorbitantly high interest rates.

Todd G. McKissick, CRE, CFA, CCIM, FRICS
McKissick & Company, Inc.
Real Estate Economics
tmckissick@mckissickco.com
678.296.5091

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Governor Beshear announces help for first-time home buyers

2009-04-23T08:11:00.000-07:00

Governor Beshear announces help for first-time home buyers

FRANKFORT, Ky. – Gov. Steve Beshear announced today a special initiative by Kentucky Housing Corporation (KHC) to offer up to $4,500 for down payment and closing costs for first-time home buyers who obtain a KHC home loan. The program will begin on May 1, 2009 and continue through Nov. 30, 2009.

The First Home Advantage Program provides a second mortgage with principal and interest payments deferred until July 1, 2010 for KHC-approved, first-time home buyers.

“For many first-time home buyers, the biggest barrier to homeownership is the ability to pay upfront expenses, such as the down payment and closing costs,” said Gov. Beshear. “The innovative First Home Advantage Program will not only help qualified Kentucky home buyers overcome this barrier and realize their dream of owning a home, it will hopefully reinvigorate the housing market help get our economy moving in the right direction.”

The First Home Advantage Program offers a 10-year loan that defers payment with a zero percent interest rate until July 1, 2010. After the initial deferment period, the loan will fully amortize over ten years at the rate of 6 percent. If the borrower pays off the loan before July 1, 2010, KHC will forgive $300 of the principal balance.

The American Recovery and Reinvestment Act of 2009, signed into law by President Barack Obama on February 17, 2009, provides first-time home buyers with an $8,000 tax credit. After purchasing their home, home buyers have the opportunity to file for the housing tax credit provided by the stimulus on their 2009 tax returns and use the tax credit for the repayment of the First Home Advantage Program loan to take full advantage of the prepayment incentive.

“We want to do everything we can to help Kentucky homeowners purchase their new homes,” said Richard L. McQuady, chief executive officer of KHC. “The First Home Advantage Program allows home buyers to take advantage of every opportunity available to them in these difficult times.”

In order for home buyers to qualify for this program, they must obtain a KHC first mortgage through a KHC-approved lender, be a first-time home buyer, meet KHC income and purchase price guidelines, and have a 620 minimum credit score.

To learn more about KHC’s homeownership programs, visit their Web site www.kyhousing.org.

J.M. Smucker Company to Bring Jobs to Scottsville

2009-02-13T09:42:00.000-08:00

Governor Beshear Announces the J.M. Smucker Company to Bring 25 Additional Jobs to Scottsville
Contact:

FRANKFORT, KY - Gov. Steve Beshear and Economic Development Cabinet Interim Secretary Larry Hayes today announced J.M. Smucker LLC will add a new production line to its Scottsville plant, investing $3 million dollars and creating an additional 25 jobs in the community.

"We're delighted with the positive news resulting from the success and growth of The J.M. Smucker Company plant in Allen County," said Gov. Beshear. "Kentucky is proud to partner with the company and community to bring this additional investment and jobs to the South Central Kentucky region."

The announcement comes after the Kentucky Economic Development Finance Authority approved J.M. Smucker LLC for tax incentives up to $550,000 under the Kentucky Rural Economic Development Act, an incentive program designed to increase manufacturing employment in the state.

Currently, 288 employees work at the Scottsville plant, which makes Smucker's Uncrustables frozen peanut butter and jelly sandwiches. The additional line will bring a new "grab and go" waffle product to the plant.

"The addition of the new Snack'n Waffles line to our Scottsville facility will allow us to better meet the needs of our consumers while continuing to grow the successful operation already in place there," said Maribeth Badertscher, director of corporate communications for The J.M. Smucker Company. "We are pleased to be adding these 25 new jobs and to be continuing to build our strong partnership with Scottsville and Allen County."

"The Smucker's plant is a great asset for Scottsville, Allen County and the entire South Central Kentucky region, and I am excited about the new product the company will be making in Allen County," said Richie Sanders, director of economic development for Scottsville and Allen County. "By adding another 25 jobs to their facility here, they are creating more wealth for our area and are making a positive impact on our community."

"Today is a great day in our community because of Smucker's commitment to bring additional jobs to Allen County," said Jordan Clarke, chairman of the Allen County Economic Development Authority. "We're grateful to Smucker for the opportunity it is creating for our citizens."

"We are dedicated to helping our businesses and industries grow in Allen County," said Judge Executive Bobby Young. "It's a great day when we can announce that one of our longstanding industries has decided to bring more jobs to our county."

Scottsville Mayor Rob Cline agreed. "With this announcement, Smuckers demonstrates its commitment to residents of Scottsville and Allen County. We're excited that they have decided to create more jobs here, and we're very appreciative of their decision."

Allen County is part of the South Central Kentucky regional partnership, taking advantage of the enhanced marketing package offered by the Bowling Green Area Chamber of Commerce.

"The South Central Kentucky partnership was formed to help bring in new industries and expand current industries throughout the entire region," said Todd Davis, chairman of the 2009 Bowling Green Area Chamber of Commerce, "And the whole partnership is successful when an announcement comes like the one made today."

Existing-Home Sales Post Surprising Gain Last Month

2009-01-27T18:45:00.000-08:00

Existing-Home Sales Post Surprising Gain Last Month

The National Association of Realtors reported that sales of existing homes rose to an annual rate of 4.74 million in December, from a downwardly revised pace of 4.45 million in November.

December's sales had been expected to fall to a pace of 4.4 million units. according to Thomson Reuters.

The median sales price plunged to $175,400, down 15.3 percent from $207,000 a year ago.

Analysts saw hope in the apparent pickup in housing sales and attributed the gain to lower mortgage rates.

But they cautioned that the trend would need to continue to represent a real move for the market off its low point.

"This is the first time in a while that we have seen a return to normalcy in the relationship between lower mortgage rates and increased sales. That's good news, but it may be too soon to get really excited yet," said Michael Schenk, senior economist at Credit Union National Association in Madison, Wisc.

"The problem is that the labor markets will weaken going forward. That might not completely overwhelm the effect of lower interest rates, but people are reluctant to buy a home when they think their job prospects are not so great," Schenk said.

The price drop represented the largest decline since the NAR started keeping records and probably the largest since the Great Depression, Lawrence Yun, NAR chief economist told reporters.

Economists looked at the price move as critical toward a possible housing recovery.

"While further liquidations are likely in the months ahead, the price adjustments now underway represent a crucial step toward stabilization of the housing market," David Resler, chief economist at Nomura Securities, wrote in a research note.

Analysts polled by Reuters had expected existing home sales to set a 4.40 million unit pace in December.

That was the lowest price since May 2003 and the biggest year-over-year drop on records going back to 1968.

The sales news lifted shares of home builders broadly, with Hovnanian [HOV 1.71 -0.13 (-7.07%) ] getting a 14 percent spike immediately after the report came out.

"It appears some buyers are taking advantage of much lower prices," said Yun. "The higher monthly sales gain and falling inventory are steps in the right direction, but the market is still far from normal balance conditions."

Real Estate Outlook: Change Anticipated

2009-01-21T06:28:00.000-08:00

The national economic headlines continue to be bearish, but some of the underlying fundamentals for real estate are pointing to better days ahead.

Take home mortgage rates: Last week thirty year fixed rates dropped below the seemingly-unbreakable five percent barrier for the first time on record, according to the Mortgage Bankers Association.

New thirty year loans went for an average 4.89 percent, while fifteen year loans were just above 4.6 percent.

Equally important, the outlines of the Obama administration's and Congress's plans to turn around the housing markets just became clearer. Tops on their list: Ending the foreclosure epidemics in some parts of the country through ambitious new programs designed to rework the terms of hundreds of thousands of mortgages that are now unaffordable.

In a letter to Congress last week, Lawrence Summers, Obama's nominee to head the National Economic Council, said the incoming administration plans to use portions of the remaining $350 billion in "TARP" -- or "Troubled Asset Relief Program" -- money to rework monthly payments for what Summers called "responsible home owners" now facing economic challenges in the recession.

Though Summers did not go into detail, the program is likely to be based on FDIC chairman Sheila Bair's proposed "mass-modification" concept that the Bush administration rejected last Fall.

Versions of that program might include widespread principal write-downs -- outright reductions in home owners' mortgage balances -- and guarantees to lenders in the event borrowers re-default.

The Obama administration is also likely to institute an immediate ban on all foreclosure actions, possibly for three months, and is certain to enact bankruptcy reform legislation allowing judges to modify mortgage terms to forestall foreclosures.

Why's this important for anyone involved in real estate? The key to stabilizing local markets, say most economists, is reducing the numbers of new foreclosures and other distressed-price transactions.

Foreclosures lower property values in surrounding neighborhoods, wherever they occur. That discourages potential buyers -- who don't want to plunge in as long as prices are still declining.

If the new administration and Congress can successfully reduce the numbers of new foreclosures, there's an excellent chance that the current combination of low prices and record low mortgage rates can have the effect they should be having: Spurring new sales.

Add in still another factor: Congress may create a new and improved tax credit -- one that's not repayable and covers all home purchases, not simply first-time buyers -- and we just might be looking at a FAR more positive outlook than a lot of people could imagine.

by Kenneth R. Harney

Obama on Track to Win $350 Billion from Congress for Bailout

2009-01-19T09:41:00.001-08:00

Realtors Reiterate Keys to Housing Recovery

RISMEDIA, January 15, 2009-(MCT/RISMedia)-A week before taking office, President-elect Barack Obama worked Tuesday to ensure that he’ll have more than a trillion dollars at his disposal within weeks to shore up the still-sinking economy. He appeared on track to win a quick $350 billion down payment from Congress, with more to come later. Also Tuesday in other economic efforts, National Association of Realtors President Charles McMillan addressed the House Financial Services Committee, saying that in order to move the country out of this economic crisis, Congress and the next administration must place significant emphasis on restoring confidence in the housing market.

“The housing sector is at the core of the current economic crisis,” McMillan said. “A renewed, revitalized and robust housing market is essential to generating commerce and helping families build wealth.”

Obama, with top aides in tow, worked at what one aide called a continuing high-stakes effort to assure rapid congressional support for an unprecedented outpouring of money to reverse the country’s downward economic spiral.

First, he’s trying to convince Congress to let him have the second half of the $700 billion Wall Street bailout package created last fall. Senate Democrats signaled afterward that, while they still have questions about how he’ll spend the money, they will give their OK this week so he can start tapping into the money within days of becoming president.

Second, he’s still working to convince lawmakers to approve a stimulus package that would allow him to spend upward of $800 billion over two years to create more than 3 million jobs, many of them in construction and manufacturing.

Democrats were hopeful that they could pass a bipartisan bill by mid-February, but they said that questions remained and the bill was still being negotiated. They said that Obama was willing to bargain, apparently ready to drop a proposed $3,000-per-job tax credit to businesses for jobs created or saved, for example, and to expand an energy tax credit.

“Did he close the deal? Well, he did a lot of closing today,” said Sen. Debbie Stabenow, D-Mich. “There’s no better closer.”

The more pressing issue was Obama’s urgent request, formally made by President George W. Bush on his behalf, for the remaining $350 billion in the Troubled Asset Relief Program.

Obama told Democrats that he will use the money differently from how Bush and Treasury Secretary Henry Paulson used the first half, a critically important offer to win over members of Congress who don’t think the first $350 billion was well spent or monitored.

Most notably, Obama said he’d focus more on helping homeowners avoid foreclosures, work more to help people get student loans and car loans, and make sure that the taxpayers’ money didn’t go to high salaries or bonuses for Wall Street executives.

Meanwhile, during McMillan’s testimony, he congratulated Chairman Barney Frank, D-Mass., on H.R. 384, the TARP Reform and Accountability Act, which was introduced last week. Many points in this bill reinforce NAR’s proposed recovery plan to stimulate housing investment, mitigate foreclosures, help current homeowners, and provide needed liquidity to commercial mortgage markets to ensure that financing is available.

The principle focus of NAR’s plan is to ensure that the Troubled Asset Relief Program does what it was originally intended to do - end the credit crisis and jumpstart mortgage lending. “It is imperative to get TARP back on track by targeting funds for mortgage relief, which will help lower mortgage rates and reduce foreclosures,” said McMillan. “In addition, eliminating the repayment feature of the first-time home buyer tax credit and expanding it to all home buyers; reinstating the higher mortgage loan limits for FHA, Fannie Mae and Freddie Mac; and lowering mortgage interest rates through a buy-down program will meaningfully impact the housing industry.”

“We are pleased that Congress is moving forward on these important issues. Together these actions will build a solid foundation for a housing recovery,” said McMillan.

NAR’s plan also includes keeping mortgage interest rates low, boosting home buyer confidence, and reducing the current foreclosure rate. NAR has also asked that regulators be encouraged to help financial institutions resolve problems in the short-sale process, make it easier for servicers to modify existing loans, remove unreasonable underwriting guidelines and insist that credit reporting agencies correct errors promptly.

“Low interest rates are only effective if people can get a loan. We hear every day from our members that even home buyers with good credit are having trouble getting mortgage loans. We must all work together to unclog the housing and financial system,” said McMillan.

NAR called on Congress to use current TARP dollars to not only reduce interest rates, but also fix operational issues that are preventing consumers from getting or modifying home loans. “These are critical steps that must be undertaken quickly if we are to right our nation’s housing and financial markets,” McMillan said.

NAR hailed the House of Representatives’ actions and called on the Senate to move quickly in adopting its proposal. NAR also expressed hope that the new administration will focus on a housing recovery as it moves forward with a larger stimulus package.

On Tuesday, the No. 2 official at the Federal Reserve also told Congress that it’s essential that Congress allow the second $350 billion to be spent. Federal Reserve Vice Chairman Donald Kohn also endorsed Obama’s idea of using some of the money to ward off more home foreclosures.

“Preventable foreclosures harm not only the affected borrowers and their communities but also, through their effects on the housing market, the broader economy and the financial system as well,” Kohn told the House Financial Services Committee.

While most Democrats at the lunch meeting welcomed the push against foreclosures and other changes, they told Obama that they want to see more details.

Obama, said Sen. Ben Nelson, D-Neb., “wants us to trust and verify, but I’m not sure yet what we’re supposed to verify.”

Republicans had similar thoughts: “Too general,” said Sen. John Cornyn, R-Texas.

“The American people have a lot of questions about how additional funds would be used,” said Sen. Mitch McConnell, R-Ky., his party’s leader in the Senate.

“The current administration used these funds for the auto industry, a move that I opposed,” he said. “Now congressional Democrats are urging more of the same. The American people still don’t have assurances that this money will not be wasted or misused to play favorites. So far, the incoming administration has not said whether it plans to limit funds to their original purpose or to expand their use to help specific industries.”

Obama spoke with McConnell on Monday, seeking broad bipartisan support even though he doesn’t need it. He planned to meet with other Senate Republicans later.

“We’ll be happy to listen,” McConnell said. “They’ll have a receptive albeit cautious audience.”

Ultimately, Obama doesn’t need much to get the money. Congress gave itself the power to block the second installment, but that would take majority votes in the House of Representatives and the Senate, both of which Democrats control.

10 Real Estate Resolutions For Buyers and Sellers

2009-01-19T09:39:00.000-08:00

RISMEDIA, January 12, 2009-The New Year is here, and many are more resolved than ever to achieve real estate goals that went by the wayside in 2008 due to economic and other concerns. But, what’s one to do to optimize their chances of success amid what’s still a tumultuous, highly demanding marketplace?

“While tricks of the trade abound to give buyers and sellers a leg up on the competition, there are also a number of basic pitfalls buyers and sellers should be sure to avoid lest they commence their real estate venture on shaky ground,” notes Robert Jenson, CEO of luxury Las Vegas real estate purveyor The Jenson Group.

With this in mind, Jenson offers these New Year’s Real Estate Resolutions to help buyers and sellers avoid common blunders and get the deal done:

Buyer Resolutions:

1. I Will Get Loan Pre-Approval: Many buyers want to find the “perfect” home before having their credit pulled, which can backfire when an offer is on the table and time is of the essence. It’s wise to get pre-approved for a loan even before you view your first home. Your credit report may contain inaccurate information that you were not aware of, which can be a time consuming process to rectify. Or, you might not like what loan program you qualify for, or you might qualify for a higher loan value than you thought. Ultimately, you will need a pre-approval letter with your offer, so do yourself a favor and do this in advance. It’s free, after all.

2. I Will Have Clear Goals. Create a realistic idea of the property you’d like to buy. What features are most important to you? Make two lists: one of the items you can’t live without and one of the features you would enjoy. Refine the lists as the house hunt progresses, but remember that no place is going to be 100% perfect. It is going to be up to you to put the finishing touches on and call it home.

3. I Will Not Forego Home Inspections. After your offer is accepted, set up a home inspection. It’s not uncommon to find problems, including leaky roofs, cracked walls, insect infestations and foundation problems. Hire a reputable inspector, and negotiate to get you the most for your money once the inspector’s report is final. If you negotiate repairs as part of the purchase, ask for a “walk through” before finalizing the paperwork to assure all issues are resolved to your satisfaction. Also inquire about home protection plans as part of the purchase, which may save you money in the short and long-term future.

4. I Will Diligently Shop Mortgages. A difference of even half a percentage point can mean a considerable savings over the life of a loan. For example, the difference in the monthly payment on a $100,000 mortgage at 8% vs. 7.5% is about $35 per month. Over 30 years, that’s $12,600. Be a smart consumer and comparison shop for the most favorable mortgage rates and terms.

5. I Will Use a Buyer’s Agent. Purchasing a home could be the most important and complex financial transaction you engage in, and going it alone is risky. Indeed, a buyer’s agent can save you time, hassle and thousands of dollars. Take time and care when selecting a real estate buyer’s agent - find someone you can trust, and that you have a good rapport with.

Seller Resolutions:

1. I Will Not Overprice My Home. Every seller naturally wants to get the most money for his or her product. The most common mistake that causes sellers to get less than they hope for, however, is listing too high. Listings reach the greatest proportion of potential buyers shortly after they reach the market. If a property is dismissed as being overpriced early on, it can result in later price reductions, which reflect poorly on the listing. Overpriced properties tend to take an unusually long time to sell, and they end up being sold at a lower price than they likely would have had they been priced properly in the first place.

2. I Will Not Limit Showings. Are you serious about selling your home? Then you need an open door policy and to ensure the home is ready to be shown at the drop of a hat…even if you’re not around. Pack up your valuables and provide an outdoor lockbox that real estate agents may access at their discretion. Most showings are fairly spur of the moment, and you don’t want to miss out on any qualified prospect.

3. I Will Properly Stage My Home. When attempting to sell your home to prospective buyers, do not forget to make your home look as pleasant and fresh as possible. Plant flowers, wash the windows and screens, put on a coat of new paint, lay new carpet, add furnishings and décor items, eliminate clutter and remove personal photographs from around the house. It’s time to show off your beautiful home and make someone else feel completely at home in it. First impressions are critical, so ensure the junk is packed in boxes, and all boxes are put in storage vs. the garage so the prospective buyer can properly evaluate and appreciate that part of the house, too. Clean out the closets, so they look bigger.

4. I Will Not Wait for an Offer Before Making Needed Repairs. Would you buy a Ferrari with bent rims, stained rugs and cigarette burns in the seats, even if the seller was offering a “repair credit”? Doubtful, as the buyer would have an understandable poor impression of how the vehicle was treated and assume the worst. When selling a home, eliminate any need for such credits in advance. Even before you list it for sale, hire professionals to inspect the roof, pool, and other structural elements, and for termites and other important buyer considerations. Make ALL repairs before you list the house on the market to thwart anticipated objections in advance.

5. I Will Be Aware of All Contract Terms. It is extremely detrimental to be ill-informed regarding the details of your real estate contract. Real estate contracts are legally binding documents, and they can often be complex and confusing. Not being aware of the terms in your contract could cost you thousands for repairs and inspections. Know what you are responsible for before signing any contract. Can the property be sold “as is”? How will deed restrictions and local zoning laws affect your transaction? Your real estate professional should ensure you know the answers to these kinds of questions, which can save you a considerable amount of money.

2008 Cost vs. Value Report

2008-12-01T07:58:00.000-08:00

Still Many Happy Returns for Home Rehabs

Remodeling magazine's annual report shows that maintenance-related projects and moderately priced upgrades are providing stable paybacks, even in a slower market.

By G.M. Filisko | December 2008

Despite home price drops in many cities, remodeling projects are holding their own as a way for owners to add value.

Many people are wondering where their money will be safest during these uncertain economic times. When home owners turn to you for your expert advice, counsel them that some things never change: Investing in their home still pays off.

NATIONAL ASSOCIATION OF REALTORS® statistics show that home prices have fallen by an average of 7 percent nationally in the past year. But the value of home owners’ investment in remodeling projects has declined only 3.86 percent on average between 2007 and 2008, according to Remodeling’s 2008–2009 Cost vs. Value Report.

Remodeling produces the Cost vs. Value Report each year in cooperation with REALTOR® magazine. REALTORS® responding to a survey in midsummer said home owners could expect to recoup a national average of 67.3 percent of their investment in 30 different home improvement projects. At the height of the housing boom in 2005, home owners could expect to recoup a national average of 86.7 percent on projects.

Remodeling remains hot in 10 cities, where, on at least some projects, home owners can recover 100 percent of their costs. In Charlotte, N.C., for example, decks, midrange kitchen remodels, vinyl siding, and window-replacement projects all would net more than they cost, in respondents’ estimation. High rates of recovery were seen in both strong real estate markets and weak ones.

Many cities with the highest rates of recovery were smaller—Jackson, Miss., and Billings, Mont., for example—which may point to lower labor and materials costs that are easier to recoup.

Seattle also made the list of cities with a cost recovery of more than 100 percent on decks and minor kitchen remodels. In fact, Pacific Coast cities recorded the best payback on remodeling by a wide margin, as they did in 2007. Although construction costs on the Pacific Coast are nearly 17 percent higher than national averages, the value of renovations at resale more than makes up for those higher prices.

The result is an average cost-recouped percentage that’s 14.8 percent higher than in the rest of the country. The toughest place to get your money back: Midwestern cities such as Chicago, Cleveland, Indianapolis, and Milwaukee.

Top 10 Project Paybacks

Once again, exterior remodeling projects lead the way for recovery on dollars spent in this year’s Cost vs. Value survey. When you compare the national averages, replacement projects that boost curb appeal—siding, windows, and decks—give you the greatest chance of recouping your money. Inside, only kitchen remodels can compare, at least on a national level.

1. Upscale fiber cement siding (86.7%)
2. Midrange wood deck (81.8%)
3. Midrange vinyl siding (80.7%)
4. Upscale foam-backed vinyl (80.4%)
5. Midrange minor kitchen remodel (79.5%)
6. Upscale vinyl window replacement (79.2%)
7. Midrange wood window replacement (77.7%)
8. Midrange vinyl window replacement (77.2%)
9. Upscale wood window replacement (76.5%
10. Midrange major kitchen remodel (76.0%)

The Real Deal: Examples from You

REALTORS® around the country helped us track down home owners who had recently completed remodeling projects. In all cases, the projects cost far less than the job cost estimates provided with the Cost vs. Value survey.

ATTIC-TO-BEDROOM

Location: Oak Park, Ill.

When Rick Nagle and Eileen Deamer of Oak Park, Ill., spent more than $35,000 to convert the attic of their 100-year-old home into a combination master bedroom and office, "resale value wasn’t our concern," says Deamer, a U.S. government employee and the married mother of two.

The transformation turned 600 square feet of makeshift office with a toilet in the middle of the room to a colonial-style bedroom/office with two walk-in closets and an adjoining sage green bath with a walk-in shower. To allow two simultaneous uses, pocket doors separate the bedroom and office spaces.

BATHROOM

Location: Fountain Hills, Ariz.

"This is such a crazy market to try to judge how much a renovation is worth, but having a refurbished kitchen and bathrooms makes almost any house more salable," says Shari Gay, ABR®, sales associate. The owner—Gay’s sister—added Saltillo clay floor tile throughout the 1,800-square-foot home, including the new bathroom. Bathroom finishes included a new cherry vanity cabinet, a tile shower, oil-rubbed bronze fixtures, and a soothing, sophisticated yellow color scheme, which all add up to a great look.

Total cost? About $5,000. "She’ll at least break even on the upgrades," predicts Gay. "If this were a boom market, she would get even more."

KITCHEN

Location: Honolulu

A kitchen is the heart of most homes. That’s why Hollywood set designer Wally White decided to spend most of his $15,000 renovation budget on upgrading the kitchen of his Honolulu studio condo. To spruce up the existing white cabinetry, which he left to save costs, the owner added bursts of color with celadon green granite countertops and walls painted in a complementary shade of light green. An undermounted white porcelain sink, a six-light halogen fixture on a dimmer, and brushed stainless steel faucet completed the look. It paid off.

White grossed $45,000 when he sold eight months later. "The unit sold for more than any other studio—and most of the one-bedroom condos in the building," says Susan Weinik, a sales associate with Realty Executives Oahu.

BASEMENT

Location: West Brighton, N.Y.

In a modest 1950s ranch in West Brighton, N.Y., a midrange basement upgrade suited Bernard Fallon’s mother-in-law, Ligaya Nocon, just fine. After purchasing her home "on the high end of the market," according to Fallon, broker at Fallon Associates Realty in Rochester, N.Y., Nocon kept basement renovation costs under $9,000.

She created a cottage feel by whitewashing the knotty pine paneling rather than replacing it. She also reupholstered the existing bar to cover wear and warmed up the room with wall-to-wall carpeting instead of wood or tile. "We just dressed it up for the personal enjoyment of my mother-in-law," says Fallon, "but I think it will help sell the property later."

Why Renovation Pays

Why are renovations holding their value better than home prices today? "When housing slows down, people stay put and renovate their house to make it more livable," says Paul Zuch, president of Capital Improvements, a designing, building, and remodeling company in Dallas. And by renovating before they sell, home owners get to enjoy the new space themselves, not just make the home more appealing to buyers. "It just makes sense," says Zuch.

Recent renovations also make buyers’ lives easier. "Home owners who remodel their home are providing a service to future buyers," says Eileen Nelis, a broker at Savvy and Co. in Charlotte, N.C. "When buyers purchase, they don’t want to do all that painting and remodeling, and they don’t want that price tag. They may be willing to make improvements down the line, but when they purchase, they want to open the door and have everything complete. It reduces their stress."

Making home improvements can also reduce sellers’ stress by heading off that time-honored negotiating technique—pecking away at the sales price by pointing out imperfections. "If sellers have done some improvements and dressed up their property, the improvements will help sell it," says Bernard Fallon, broker at Fallon Associates Realty in Rochester, N.Y. "If sellers don’t want to improve their property, buyers will tick off the repairs and try to take them off the price."

That doesn’t mean that every home owner should do every renovation, even in a more stable real estate market. Take Tulsa, Okla., where median home prices actually edged up slightly more than 2 percent in 2008, according to NAR. REALTORS® in Tulsa reported that, of the 30 remodeling projects surveyed, only 16 netted home owners at least 80 percent of the cost.

"Not every neighborhood will support the additional work," says Jim Hemphill, a sales associate at Coldwell Banker Select in Tulsa, "but in older, more established neighborhoods, if you redo a kitchen or bathroom or add a master bath or bedroom, you’ll get your money out."

Despite the value, the weak economy is likely to slow seller spending on remodeling, at least in the short term, predicts the most recent Leading Indicator of Remodeling Activity computed by the Joint Center for Housing Studies at Harvard University.

The LIRA for the third quarter of this year estimated that owners’ spending on home improvements will decline at an annual rate of 12 percent by the second quarter of 2009, continuing a two-year downward trend. Spending is unlikely to recover until the housing market turns around, according to the Center.

Yet, despite declines in overall remodeling dollars spent and a still shaky housing market, "people’s homes are still one of their best, most solid investments," notes Zuch. "Even though the markets have gone through some adjustments, it’s still smart to invest in your home."

COLDWELL BANKER RANKS MAJOR COLLEGE FOOTBALL TOWN’S HOME AFFORDABILITY

2008-11-18T09:01:00.000-08:00

COLDWELL BANKER RANKS MAJOR COLLEGE FOOTBALL TOWN HOME AFFORDABILITY WITH FOURTH ANNUAL COLLEGE HOME PRICE COMPARISON INDEX

BOWLING GREEN’S AVERAGE SALES PRICE IS $199,588 AND RANKS AS ONE OF THE NATION’S AFFORDABLE COLLEGE TOWNS

Bowling Green, KY (November 18, 2008) – As the college football season enters its most exciting time of the year, students and fans don school colors and cheer as their teams go helmet to helmet on the field. Celebrating this competitive spirit, especially as traditional rivals like Michigan and Ohio State play for the 105th time later this week, Coldwell Banker® jumps into the fray. The real estate company released its own set of rankings outlining the most expensive and affordable college towns across America in its fourth annual College Home Price Comparison Index (HPCI), including Bowling Green, KY.

The Coldwell Banker College HPCI study found that while the University of Alabama is ranked No. 1 in the football polls, it is hardly on the same playing field as the No. 2 team, Texas Tech University, in regards to home affordability. In this year’s College HPCI, Texas Tech comes in as the No. 11 most affordable college in terms of home prices, while Alabama rolls in at No. 59.

According to the study, the average price of a 2,220-foot, 4 bedroom 2 ½ bath home with a family room and two car garage1 in Tuscaloosa, Ala. is $251,775 while the same home in Lubbock, Texas would cost $170,700.

Meanwhile, Stanford University and the University of Akron are each frontrunners on different spectrums of the home price ranking, holding titles of the most expensive and most affordable college towns, respectively. An average home in Palo Alto, Calif., costs approximately $1.74 million while the same home in Akron, Ohio averages at $135,780 – a $1.6 million price difference.

The Coldwell Banker College HPCI specifically examines the home market to the 119 Football Bowl Subdivision (I-A) schools.

This year, the Coldwell Banker College HPCI also found that Bowling Green, KY is one of the affordable college towns in the Sun Belt Conference, with home prices in 2008 averaging $199,588. Bowling Green, KY ranks comparably with other such college towns as Syracuse, NY and East Lansing, MI.

“Real estate in college towns such as Bowling Green, KY can be a very smart investment, especially when the family’s college student can live in the home,” said John Huggins, President and CEO of Coldwell Banker Legacy Real Estate Group. Instead of pouring money into rent, students can gain a sense of responsibility, and a roommate can help cover the costs with rent payments – all while the home is appreciating in value over time. Real estate professionals have been doing this for years.”

2008 Coldwell Banker College HPCI – Highlights & Interesting Facts

• Three of the top 25 teams in the BCS standings also rank as the top 10 most affordable markets in the Coldwell Banker College HPCI – Ball State University, Texas Christian University and Oklahoma State University.

• Two of the top 25 football teams make the College HPCI top 10 most expensive list – the University of Miami and the University of Southern California.

• For the fourth year in a row, the Mid-American Conference ranks as the most affordable league, with an average home price of $207,952.

The top 10 most affordable college markets for home prices in 2008 are:

Rank School Town, State 2008 Avg. Price
1 University of Akron Akron, Ohio $135,780
2 Ball State University Muncie, Ind. $144,250
3 Texas Christian University Fort Worth, Texas $148,625
4 University of Tulsa Tulsa, Okla. $154,200
5 University of Toledo Toledo, Ohio $155,900
6 University of Houston Houston, Texas $158,412
Rice University Houston, Texas $158,412
8 University of Louisiana Monroe Monroe, La. $166,109
9 Eastern Michigan University Ypsilanti, Mich. $166,750
10 Oklahoma State University Stillwater, Okla. $170,500

The top 10 most expensive college markets for home prices in 2008 are:

Rank School Town, State 2008 Avg. Price
1 Stanford University Palo Alto, Calif. $1,740,731
2 Boston College Boston, Mass. $1,381,250
3 University of California, Berkeley Berkeley, Calif. $1,299,750
4 University of California, Los Angeles Los Angeles, Calif. $1,090,884
University of Southern California Los Angeles, Calif. $1,090,884
6 San Jose State University San Jose, Calif. $1,077,575
7 University of Hawaii Honolulu, Hawaii $780,000
8 Northwestern University Evanston, Ill. $653,750
9 University of Miami Miami, Fla. $600,000
10 University of Colorado Boulder, Colo. $578,047

The following chart ranks Football Bowl Subdivision (I-A) college football conferences by affordability:

Rank School 2008 Avg. Price
1 Mid-American Conference $231,321
2 Conference USA $235,627
3 Big 12 Conference $248,026
4 Southeastern Conference $253,169
5 Big East Conference $283,203
6 Sun Belt Conference $287,548
7 Big Ten Conference $289,629
8 Mountain West Conference $304,609
9 Independent $400,123
10 Western Athletic Conference $407,728
11 Atlantic Coast Conference $410,945
12 Pac-10 Conference $735,822

The below chart ranks the BCS Top 25 college football teams in affordability:

BCS Standing School Town, State 2008 Avg. Price HPCI Ranking
1 University of Alabama Tuscaloosa, Ala. $251,775 59
2 Texas Tech University Lubbock, Texas $170,700 11
3 University of Texas Austin, Texas $241,325 55
4 University of Florida Gainesville, Fla. $303,375 81
5 University of Oklahoma Norman, Okla. $211,357 31
6 University of Southern California Los Angeles, Calif. $1,090,884 116
7 University of Utah Salt Lake City, Utah $389,400 100
8 Penn State University State College, Pa. $311,125 83
9 Boise State University Boise, Idaho $232,750 45
10 Ohio State University Columbus, Ohio $236,924 48
11 University of Georgia Athens, Ga. $244,967 57
12 Oklahoma State University Stillwater, Okla. $170,500 10
13 University of Missouri Columbia, Mo. $205,300 28
14 Brigham Young University Provo, Utah $347,850 96
15 Michigan State University East Lansing, Mich. $196,000 23
16 Texas Christian University Fort Worth, Texas $148,625 3
17 Ball State University Muncie, Ind. $144,250 2
18 Louisiana State University Baton Rouge, La. $263,000 61
19 University of Cincinnati Cincinnati, Ohio $243,583 56
20 University of Pittsburgh Pittsburgh, Pa. $267,980 66
21 Oregon State University Corvallis, Ore. $319,967 86
22 University of North Carolina Chapel Hill, N.C. $369,966 99
23 University of Miami Miami, Fla. $600,000 110
24 University of Oregon Eugene, Ore. $341,944 93
25 University of Maryland College Park, Md. $317,750 85

The following charts rank Football Bowl Subdivision (I-A) college football conferences and independent schools. The most affordable conference is listed at the top and most expensive at the bottom. Each school in the conference is listed with the most affordable at top:

Mid American Conference Town, State 2008 Avg. Price
University of Akron Akron, Ohio $135,780
Ball State University Muncie, Ind. $144,250
University of Toledo Toledo, Ohio $155,900
Eastern Michigan University Ypsilanti, Mich. $166,750
Central Michigan University Mt. Pleasant, Mich. $182,825
Western Michigan University Kalamazoo, Mich. $221,050
Bowling Green State University Bowling Green, Ohio $223,503
Ohio University Athens, Ohio $223,925
Northern Illinois University DeKalb, Ill. $236,788
Kent State University Kent, Ohio $263,000
University at Buffalo Buffalo, N.Y. $264,900
Miami University Oxford, Ohio $276,750
Temple University Philadelphia, Pa. $511,750
Conference Average Price $231,321

Conference USA Town, State 2008 Avg. Price
University of Tulsa Tulsa, Okla. $154,200
University of Houston Houston, Texas $158,412
Rice University Houston, Texas $158,412
Marshall University Huntington, W. Va. $182,050
University of Southern Mississippi Hattiesburg, Miss. $188,035
University of Memphis Memphis, Tenn. $190,275
University of Texas El Paso El Paso, Texas $226,362
East Carolina University Greenville, N.C. $283,022
University of Alabama at Birmingham Birmingham, Ala. $303,181
Tulane University New Orleans, La. $306,900
Southern Methodist University Dallas, Texas $333,347
University of Central Florida Orlando, Fla. $343,333
Conference Average Price $235,627

Big 12 Conference Town, State 2008 Avg. Price
Oklahoma State University Stillwater, Okla. $170,500
Texas Tech University Lubbock, Texas $170,700
Baylor University Waco, Texas $184,325
University of Missouri Columbia, Mo. $205,300
University of Oklahoma Norman, Okla. $211,357
Iowa State University Ames, Iowa $213,450
Texas A&M University College Station, Texas $213,755
University of Kansas Lawrence, Kan. $239,412
University of Texas Austin, Texas $241,325
Kansas State University Manhattan, Kan. $266,921
University of Nebraska Lincoln, Neb. $281,217
University of Colorado Boulder, Colo. $ 578,047
Conference Average Price $248,026

Southeastern Conference Town, State 2008 Avg. Price
Mississippi State University Starkville, Miss. $186,383
University of South Carolina Columbia, S.C. $189,262
University of Tennessee Knoxville, Tenn. $208,637
Vanderbilt University Nashville, Tenn. $239,500
University of Georgia Athens, Ga. $244,967
University of Arkansas Fayetteville, Ark. $248,528
University of Alabama Tuscaloosa, Ala. $251,775
Louisiana State University Baton Rouge, La. $263,000
Auburn University Auburn, Ala. $282,600
University of Kentucky Lexington, Ky. $291,000
University of Florida Gainesville, Fla. $303,375
University of Mississippi Oxford, Miss. $329,000
Conference Average Price $253,169

Big East Conference Town, State 2008 Avg. Price
Syracuse University Syracuse, N.Y. $198,600
University of Louisville Louisville, Ky. $241,060
University of Cincinnati Cincinnati, Ohio $243,583
University of Pittsburgh Pittsburgh, Pa. $267,980
University of South Florida Tampa, Fla. $285,000
West Virginia University Morgantown, W.Va. $331,333
University of Connecticut Storrs, Conn. $343,067
Rutgers University New Brunswick, N.J. $355,000
Conference Average Price $283,203

Sun Belt Conference Town, State 2008 Avg. Price
University of Louisiana at Monroe Monroe, La. $166,109
University of North Texas Denton, Texas $189,000
Western Kentucky University Bowling Green, KY $199,588
Troy University Troy, Ala. $204,633
Arkansas State University Jonesboro, Ark. $208,250
University of Louisiana at Lafayette Lafayette, La. $232,467
Middle Tennessee State University Murfreesboro, Tenn. $237,800
Florida Atlantic University Boca Raton, Fla. $462,125
Florida International University Miami, Fla. $600,000
Conference Average Price $277,744

Big Ten Conference Town, State 2008 Avg. Price
Purdue University Lafayette, Ind. $184,333
University of Indiana Bloomington, Ind. $196,000
Michigan State University East Lansing, Mich. $196,000
University of Iowa Iowa City, Iowa $214,975
Ohio State University Columbus, Ohio $236,924
University of Illinois Champaign, Ill. $238,126
University of Michigan Ann Arbor, Mich. $263,783
University of Wisconsin Madison, Wis. $300,000
Penn State University State College, Pa. $311,125
University of Minnesota Minneapolis, Minn. $390,900
Northwestern University Evanston, Ill. $653,750
Conference Average Price $289,629

Mountain West Conference Town, State 2008 Avg. Price
Texas Christian University Fort Worth, Texas $148,625
United States Air Force Academy Colorado Springs, Colo. $198,500
Colorado State University Fort Collins, Colo. $230,967
University of Nevada, Las Vegas Las Vegas, Nev. $272,125
University of Wyoming Laramie, Wyo. $282,333
University of New Mexico Albuquerque, N.M. $329,185
Brigham Young University Provo, Utah $347,850
University of Utah Salt Lake City, Utah $389,400
San Diego State University San Diego, Calif. $542,500
Conference Average Price $304,609

Independents Town, State 2008 Avg. Price
University of Notre Dame South Bend, Ind. $174,000
United States Military Academy West Point, N.Y. $390,000
United States Naval Academy Annapolis, Md. $524,741
Average Price $362,914

Western Athletic Conference Town, State 2008 Avg. Price
Utah State University Logan, Utah $199,850
Louisiana Tech University Ruston, La. $228,750
Boise State University Boise, Idaho $232,750
New Mexico State University Las Cruces, N.M. $237,000
University of Idaho Moscow, Idaho $280,000
University of Nevada Reno, Nev. $302,625
Fresno State University Fresno, Calif. $331,000
University of Hawaii Honolulu, Hawaii $780,000
San Jose State University San Jose, Calif. $1,077,575
Conference Average Price $407,728

Atlantic Coast Conference Town, State 2008 Avg. Price
Clemson University Clemson, S.C. $215,960
Duke University Durham, N.C. $221,491
Wake Forest University Winston-Salem, N.C. $230,667
North Carolina State University Raleigh, N.C. $236,124
Virginia Tech University Blacksburg, Va. $302,075
Georgia Tech University Atlanta, Ga. $314,333
University of Maryland College Park, Md. $317,750
Florida State University Tallahassee, Fla. $333,250
University of North Carolina Chapel Hill, N.C. $369,966
University of Virginia Charlottesville, Va. $408,475
University of Miami Miami, Fla. $600,000
Boston College Boston, Mass. $1,381,250
Conference Average Price $410,945

Pac-10 Conference Town, State 2008 Price
University of Arizona Tucson, Ariz. $254,667
Washington State University Pullman, Wash. $285,539
Oregon State University Corvallis, Ore. $319,967
University of Oregon Eugene, Ore. $341,944
Arizona State University Tempe, Ariz. $349,350
University of Washington Seattle, Wash. $584,500
University of California, Los Angeles Los Angeles, Calif. $1,090,884
University of Southern California Los Angeles, Calif. $1,090,884
University of California, Berkeley Berkeley, Calif. $1,299,750
Stanford University Palo Alto, Calif. $1,740,731
Conference Average Price $735,822

Methodology – 2008 Coldwell Banker College Market Home Price Comparison Index:
Coldwell Banker Real Estate LLC conducted its College Home Price Comparison Index study by compiling survey data from Coldwell Banker® offices throughout the United States. Companies within the Coldwell Banker system submitted data based on the average sales price of sold listings in 2008 or a comparative market analysis of homes previously sold. Because no Coldwell Banker offices serve Tuscaloosa, Ala.; Stillwater, Okla.; Lincoln, Neb.; Charlottesville, Va.; Morgantown, W. Va., Bowling Green, Ohio; Athens, Ohio; Laramie, Wyo.; Troy, Ala.; Huntington, W. Va., Lawrence, Kan., and Ames, Iowa, the average prices reflected in the study were from local Multiple Listing Service data collected in August 2008. The criteria for the College HPCI1 subject home is: single-family dwelling, 2,200 square feet (approximately), four bedrooms, two and one-half baths, family room (or equivalent) and two-car garage in neighborhoods/zip codes within a market that is typical for corporate middle-management transferees.

About Coldwell Banker®
Since 1906, the Coldwell Banker® organization has been a premier full-service real estate provider. In 2008, Franchise Times magazine’s prestigious Top 200 issue ranked the Coldwell Banker system No. 1 in real estate for the ninth straight year and 12th among franchisors in all industries. The Coldwell Banker System has approximately 3,700 residential real estate offices and 108,000 sales associates in 47 countries and territories. The Coldwell Banker System is a leader in the industry in residential and commercial real estate, and in niche markets such as resort, new home and luxury property through its Coldwell Banker Previews International® division. It is a pioneer in consumer services with its Coldwell Banker Concierge® Service Program and award-winning Web site, www.coldwellbanker.com. Coldwell Banker Real Estate LLC is a subsidiary of Realogy Corporation, a global provider of real estate and relocation services. Coldwell Banker® is a registered trademark licensed to Coldwell Banker Real Estate LLC. Each office is independently owned and operated.

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The Time is Now for Real Estate

2008-11-17T09:59:00.000-08:00

“This is the type of Real Estate market that two years from now everybody is going to say, “I wish I had bought then.” All the factors are lining up for the next six to twelve months to be that year.

Let’s look at those factors.

Financing

Interest rates are dropping below 6% on residential mortgage loans. Rates are seldom that low and when they have reached that level, mortgage loan rates do not stay there for long. According to HSH Associates, the nation’s largest publisher of consumer loan rates (HSH.com) from mid 2003 through mid 2005 rates hovered just above and below the 6% threshold, never below for more than a few months. Before that they had not been below 6% for forty years. The most likely conclusion is that mortgage loan rates will not stay below six for long. So, Buyers would be wise to be actively looking to buy and take advantage very soon.

Mortgage money is available. Real Estate Agents and mortgage brokers from coast to coast are all telling me that there is money available with five percent down or less. The Buyers do need to have steady employment, and a reasonable credit rating. The days of Buyers needing to prove employment, have some cash on hand and credit worthiness have returned for good, hopefully. Violating those obvious principles contributed enormously to our current global financial crisis.

Requiring stability of employment, credit and some cash is not the banks being cautious. It is the way lenders have made decisions since paper money was invented. The last ten years when those fundamentals were ignored have been the exception. Bottom line, solid Buyers can get the best rates and buy at what I believe is at or near the bottom of the market.

Inventory, Foreclosures and Pricing

New home inventories are being absorbed. According to HWMarketIntelligence.com “the number of new homes for sale continues to steadily decline and have not recorded a monthly increase since May 2007.” According to the Mortgage Bankers Association the number and rate of properties entering foreclosure is slowing.

My anecdotal research from my Real Estate Agent Clients around the country is that the foreclosure properties are being purchased at a much higher rate as first time home Buyers and investors in market after market are deciding that we are near enough to bottom.

This Buyer and investor activity will create its own momentum. As more Buyers and investors choose to buy now the demand they create will stabilize and lead to market appreciation. Did people who bought at the height of the boom in late 2005 and 2006 lose equity? In most markets yes, in some markets they lost a lot. Are the Buyers who buy over the next year likely to be buying at the bottom of the market and benefit from excellent appreciation? Every indication that I see says yes.

As Real Estate Agents you need to decide if you are comfortable recommending that this is the time for Buyers to buy, that prices may be at or near the bottom. I suggest that we are at or near the bottom and the Buyers you encourage to buy over the next twelve months will be forever grateful for your advice.

Some Considerations

The Real Estate market, specifically for residential homes is typically not a speculative market. The vast majority of people buy a house to live in it as their home, not to resell it for a profit. Over the last forty years Buyers have come to expect that their home will build equity and appreciate in value. But, the decision to buy is usually based on factors other than anticipated appreciation. The Buyers you encourage to buy want to own the space in which they live. The fact that this is a fabulous time to make that decision just makes your job easier.

Second, there is a continuous demand in most markets. People graduate from school, get better jobs, get married and divorced, have children, upgrade and downsize, among dozens of other reasons that new Buyers come on the market. These life events keep occurring. However over the past two years these Buyers have paused. They still want to buy but they are waiting. Historically when there is a time that Buyers are reluctant to buy for any reason this creates a pent up demand.

As Buyers realize that it is a good time to buy but not necessarily for Sellers to sell; demand will begin to absorb and exceed supply. Over the next year or two the additional demand is likely to lead to a Seller’s market. Because of the severity and magnitude of the current housing supply this turn to a Seller’s market will likely be gradual.

The signs of this shift are occurring now, that is, the supply of new construction and foreclosure homes are being absorbed by first time Buyers, investors, and secure homeowners taking advantage of their financial strength. This spring may be the tipping point when market activity flourishes. I believe it will.

Inflation: The X Factor

I remember a rapidly inflationary period. I remember it for a funny reason. I used to drink a lot of Coca Cola. One day when I put a quarter into the machine to vend my Coke I realized that it was going to cost me forty cents. Soon after that it was fifty cents and within five years it was seventy five cents. Now it is at least a dollar. This is inflation. Your money buys less and the cost of what you buy increases.

If you owned Real Estate during this same period you were very happy because the property you owned in 1981 also doubled in price or more by 1986. That is true even if you didn’t live in a highly populated area. This inflationary period did not discriminate by locale.

Are we on the verge of another inflationary surge? I don’t know. I have been reading what I can find on this and it seems to be a largely ignored topic. I notice that gas prices are declining but not much else. I think about the trillions of dollars worldwide being spent on the bailout. The definition of inflation is when the amount of money in circulation increases and the available goods decreases. It seems to me that is what is happening.

If inflation does devalue our money then house prices, along with the price of almost all other hard goods will increase and this year’s Buyers are going to get benefit tremendously. Whether this happens or not it is time for buyers to get in the market.

First Time Buyers and Investors

For certain Buyers it is time to get active. I am saying to anyone and everyone that will listen. FIRST TIME BUYERS THIS IS YOUR TIME! The federal government is still offering a $7,500 tax credit that is scheduled to conclude in the summer of 2009. Prices and interest rates are down. If you are employed and credit worthy you can buy with a small amount of cash out of pocket. FIRST TIME BUYERS THIS IS YOUR TIME!

Another group that I am encouraging to buy now is investors of residential rental property. Investors still have to do their investment analysis. They still have to carefully look at occupancy and vacancy rates. In other words, investors have to make smart, calculated buying decisions. This is always the case.

The reason it is a good time for these investors is because the market is soft. As long as there has not been a population exodus in your community, that is, as long as people are choosing to live in your community and employment is stable, the rental property is going to sustain value. At the same time market conditions right now, with more challenging underwriting standards and only those who really need to sell putting their property on the market creates the opportunity all investors are looking for, buy low, particularly those with some cash.

Get in the Game

So, I have been telling my Agent Clients and my audiences to shout from the rooftops that first time Buyers and investors should get in the game. Call the people in your spheres of influence and your past Clients and be honest with them about whether it is a good time to sell.

At the same time encourage them to tell their relatives, friends and any one that they care about that if they are first time Buyers to call you and start looking. If they are investors with some cash suggest that they start looking for golden opportunities with you.

Look for articles from legitimate sources about what is going on with the global financial crisis. But then look at your local market and discover the opportunities for first time Buyers, investors or any other group or type of property that may be a shining beacon through the fog.

Be the optimistic and intelligent voice of opportunity and you will both survive this market you will become a roaring success as the market improves; which it will. When? For most markets, the prediction is late 2009. For some it will be spring of 2009 and for others it will be longer.

I have led Agents to success in four of these major shifts since 1979. Every one of these soft markets creates strength in those that survive it. And those who survive it by discovering the opportunities for their Clients become the highest producers and the leaders of the healthy market that is likely to be just around the corner.

By Rich Levin

NAR pushes for new housing stimulus package

2008-11-17T08:12:00.000-08:00

NAR has presented a four point stimulus plan to Congress for consideration. The current economic crisis is, at its core, the result of problems in the nation's housing and mortgage markets. This circumstance, along with the fact that housing has always lifted our economy out of downturns, makes it imperative that efforts be taken immediately to foster a housing recovery, so that a recovery of the overall economy can occur.

NAR's plan includes features such as consumer-driven provisions that eliminate repayment of the first-time homebuyer tax credit and expands it to all homebuyers, makes higher mortgage loan limits permanent, focuses the economic stabilization efforts once again on the housing and mortgage markets as opposed to providing banks with capital with no strings attached and prohibits banks from entering into real estate.

NAR strongly believes that inclusion of these priorities in a stimulus package is imperative to move our nation out of this economic crisis:

1. Remove the requirement in the current law that first-time homebuyers repay the $7,500 tax credit, and expand the tax credit to apply not only to first-time buyers but also to all buyers of a primary residence. This will help address inventory issues in many markets.

2. Revise the FHA, Fannie Mae and Freddie Mac loan limit increases to reflect the higher temporary level enacted in February. Although subsequent legislation made loan limit increases permanent, the permanent loan limits were reduced from the February levels. This has broad implication for homebuyers in high cost areas.

3. Urge the government to use a portion of the allotted $700 billion that was provided to purchase mortgage-backed securities from banks to provide price stabilization for housing. The Treasury department should be required to use the newly enacted Troubled Assets Relief Program to push banks to:

Extend credit down to Main Street, making credit more available to consumers and small businesses;

Expedite the process for short sales;

Expedite the resolution of banks' real estate owned (REOs) properties.

4. Make permanent the prohibition against banks entering real estate brokerage and management, further protecting consumers and the economy.

NAR has presented this plan to Congress and will continue to strongly pursue a special session of Congress to enact this vital housing stimulus legislation package after the national election. Housing has always help lift the economy out of downturns. It is imperative to get the housing market moving forward as quickly as possible. Congress must take immediate and specific actions to boost the confidence of potential homebuyers in the housing market and make it easier for qualified buyers to get safe and affordable mortgage loans.

Best Places to Sell a Suburban Home

2008-11-17T08:07:00.000-08:00

Best Places to Sell a Suburban Home

Sellers' markets are rare this year, but there are some suburban areas where prices are holding steady or rising and time on the market is measured in days or months, not years.

Forbes magazine took a look at the 90 days of sales activity in the 75 largest Census-defined metro areas. It narrowed its search to those communities with at least 75 homes on the market, and eliminated suburbs where it takes more than 125 days to sell an average home.

The magazine also cut out any suburb in which year-over-hear price declines were greater than 10 percent and where more than 50 percent of sellers had to reduce their asking price to sell.

What’s left? A list of the top 10 suburban markets where properties are selling at competitive prices relatively rapidly.

Berkeley, Calif.: 14 miles north of San Francisco; median home price, $799,986; 73 days
Bedford, Texas: 22 miles west of Dallas; $169,093; 84 days
Venice, Calif.: 16 miles west of Los Angeles; $1.5 million; 95 days
Kennesaw, Ga.: 28 miles northwest of Atlanta; $241,196; 104 days
Sugarland, Texas: 20 miles southwest of Houston; $265,418; 106 days
Midvale, Utah: 13 miles south of Salt Lake City; $255,003; 106 days
Matthews, N.C.: 12 miles southeast of Charlotte; $320,990; 127 days
Encinitas, Calif.: 28 miles north of San Diego; $1.23 million; 100 days
Waltham, Mass.: 26 miles west of Boston; $790,986; 79 days
Montclair, N.J.: 13 miles west of New York City; $450,761; 115 days

Coldwell Banker® Named #1 - Again!

2008-11-07T13:37:00.000-08:00

Coldwell Banker Real Estate LLC was once again named the #1 Real Estate brand by Franchise Times, making this the 9th straight year in a row!

Obama Will Support Housing, Says NAR

2008-11-07T13:34:00.000-08:00

President-elect Barack Obama is likely to make a housing market recovery a central part of his economic revival plan.

That was the assessment of NAR leaders, speaking to a packed audience Thursday at the Peabody Hotel during the opening forum of the REALTORS® Conference.

Obama has long made housing a priority, said Illinois Association of REALTORS® CEO Gary Clayton, who knows the president-elect from his days as a state senator. Clayton said with a chuckle that he now regrets not joining Obama’s weekly poker game.

In Illinois, Obama advocated tax credits for property owners and fought to end predatory lending, Clayton said. As a U.S. senator, he’s advocated for a stronger FHA and voted for the NAR-backed economic stimulus bill, which increased loan limits in high-cost areas.

NAR Chief lobbyist Jerry Giovaniello addressed election banter about Obama having a “socialist” agenda. “There’s not much left to socialize,” he joked, referring to the government rescue of Fannie Mae, Freddie Mac, insurance giant AIG, and the entire U.S. banking system. “I think Jiffy Lube may be next,” he said, to uproarious laughter.

Clayton said the real Obama is a “friendly, fun guy. He’s smart, quick, and a good listener but no pushover.” Giovaniello described Obama as “careful and cautious,” someone who will listen to all sides of an issue before making decision.

Besides winning the presidency, Democrats gained seats in both the House and the Senate. Giovaniello told the crowd that didn’t necessarily mean legislators will have an anti-business bent. A substantial number are “Blue Dog Democrats,” he said, who tend to be conservative and business oriented. And many already have sided with REALTORS® on key real estate issues.

“We made our friends before we needed them,” he said, “so thank you for being involved in the REALTOR® party.

It’s Still The Economy

Clearly the state of the economy was on everyone’s minds, and NAR 2009 President Charles McMillan asked Chief Economist Lawrence Yun about his economic outlook.

“We are in a recession,” Yun said. “In the next six months, we may lose up to 1 million jobs. But the good news is, historically housing moves independently from the economy. We are seeing a 20 percent improvement in home sales in states like California, Florida, and Virginia. The economy will not improve without a housing recovery.”

In the meantime, NAR is doing all it can to help REALTORS® through the tough times, McMillan said. Among the free resources at REALTOR.org are daily economic commentaries, an FHA toolkit, and 150 local market reports.

The association also offers a host of money-saving benefits. For more information, visit REALTOR.org/NARHelpsYou.

President-elect Barack Obama is likely to make a housing market recovery a central part of his economic revival plan. That was the assessment of NAR leaders, speaking to a packed audience Thursday at the Peabody Hotel during the opening forum of the REALTORS® Conference.

Obama has long made housing a priority, said Illinois Association of REALTORS® CEO Gary Clayton, who knows the president-elect from his days as a state senator. Clayton said with a chuckle that he now regrets not joining Obama’s weekly poker game.

In Illinois, Obama advocated tax credits for property owners and fought to end predatory lending, Clayton said. As a U.S. senator, he’s advocated for a stronger FHA and voted for the NAR-backed economic stimulus bill, which increased loan limits in high-cost areas.

NAR Chief lobbyist Jerry Giovaniello addressed election banter about Obama having a “socialist” agenda. “There’s not much left to socialize,” he joked, referring to the government rescue of Fannie Mae, Freddie Mac, insurance giant AIG, and the entire U.S. banking system. “I think Jiffy Lube may be next,” he said, to uproarious laughter.

Clayton said the real Obama is a “friendly, fun guy. He’s smart, quick, and a good listener but no pushover.” Giovaniello described Obama as “careful and cautious,” someone who will listen to all sides of an issue before making decision.

Besides winning the presidency, Democrats gained seats in both the House and the Senate. Giovaniello told the crowd that didn’t necessarily mean legislators will have an anti-business bent.

A substantial number are “Blue Dog Democrats,” he said, who tend to be conservative and business oriented. And many already have sided with REALTORS® on key real estate issues.

“We made our friends before we needed them,” he said, “so thank you for being involved in the REALTOR® party.

It’s Still The Economy

Clearly the state of the economy was on everyone’s minds, and NAR 2009 President Charles McMillan asked Chief Economist Lawrence Yun about his economic outlook.

“We are in a recession,” Yun said. “In the next six months, we may lose up to 1 million jobs. But the good news is, historically housing moves independently from the economy. We are seeing a 20 percent improvement in home sales in states like California, Florida, and Virginia. The economy will not improve without a housing recovery.”

In the meantime, NAR is doing all it can to help REALTORS® through the tough times, McMillan said. Among the free resources at REALTOR.org are daily economic commentaries, an FHA toolkit, and 150 local market reports.

The association also offers a host of money-saving benefits. For more information, visit REALTOR.org/NARHelpsYou.

REALOGY PROPOSES SHORT-TERM GOVERNMENT BUY-DOWN IN MORTGAGE RATES TO STIMULATE HOUSING MARKET AND ACCELERATE BROADER ECONOMIC RECOVERY

2008-10-29T07:14:00.000-07:00

Realogy calls for rates of 4.5% or lower on 30-year fixed rate mortgages

PARSIPPANY, N.J. (Oct. 29, 2008) – Realogy Corporation, a global provider of real estate and relocation services, today announced that the Company has approached the U.S. Department of Treasury with a practical solution to help stimulate the housing market and lead to a broader economic recovery. The Company also conducted separate national surveys with its real estate franchisees and U.S. homeowners, the results of which underscore the rationale behind its proposal.

“There are millions of credit-worthy people ready to jump back into the housing market, but they need to be motivated,” said Realogy President and CEO Richard A. Smith. “In our view, the incentive of substantially lower mortgage rates would directly stimulate the housing market — both in sales volume and price — and thus accelerate the overall U.S. economic recovery.”

Realogy’s proposal calls for a short-term government buy-down of mortgage rates to at least 4.5%, or lower, for a 30-year fixed rate mortgage (down from current rates of approximately 6.04% ). This homebuyer incentive would apply to the purchase of all new and/or existing homes sold up to $1 million in price. There are a number of ways in which the government ultimately could decide to structure and fund this program, which could be addressed as part of the stimulus packages currently being discussed in Washington. Realogy is working with a number of other organizations to carry this message forward and encourage greater dialogue around solutions aimed at boosting the economy through a direct stimulus to the housing market.

With approximately 16,000 franchised or company-owned real estate brokerage offices around the world, Realogy has a unique perspective on home buyer behavior. The Company has seen a recurring theme in virtually all 50 states –- namely, there are substantial numbers of credit-worthy buyers waiting for lower rates and stability in home prices.

“We think the pent-up consumer demand for housing, if encouraged, is more than sufficient to stabilize housing,” continued Smith. “In our view, substantially lower mortgage rates will stimulate both existing and new home sales, reduce home inventory levels, stabilize home prices and, ultimately, help the overall economy. When home sales increase, housing-related consumer purchasing follows, and we would expect this to help lead our economy to a recovery. We feel strongly mortgage rates must be lowered to stimulate a recovery.”

Residential Broker Survey — Mortgage Rate Drop to 4.5% Would Stimulate Sales:
As recently as October 15th, Realogy conducted a national survey about mortgage rates with responses from approximately 1,500 broker/owners representing 2,300 independently owned and operated residential brokerage companies affiliated with the CENTURY 21®, Coldwell Banker®, ERA®, Sotheby’s International Realty® brands.

Here are the key findings from the Realogy broker survey:
• 95% of brokers said they would expect an increase in home sales if 30-year conforming fixed-rate mortgages were available at 4.5% rates today.
• Most notably, 54% of all responding brokers said the impact of a 4.5% mortgage rate would significantly increase home sales in their markets.
• Of the brokers who answered that rates would increase, nearly half (46%) indicated that they would anticipate unit sales levels to increase between 10% to 25% if 4.5% mortgage rates were available today.

The majority of brokers also agreed that substantially lower mortgage rates would have a strong stabilizing impact on average home sales prices.
• 51% of brokers felt home prices would increase somewhat and 38% felt home prices would stay the same.
• Of the brokers who felt prices would increase or significantly increase due to 4.5% mortgage rates, 22% felt the home price increases would be in the 3% to 5% range and 13% felt it would be in the 5% to 7.5% range.

“Our franchisees are small- to mid-sized business owners who have a strong understanding of what actions would help home sales and prices in their communities, and it’s clear to them that dropping mortgage rates to 4.5%, or lower, would have an immediate impact in helping to stabilize the housing markets throughout this country,” said Smith.

Consumer Survey — Americans still place a high value on homeownership; But the state of the U.S. economy has potential home buyers on the sidelines:
During the week of Oct. 24, Realogy used Ipsos Public Affairs, a global survey-based market research company, to conduct a national homeownership survey resulting in responses from more than 1,000 current homeowners . The key findings from this consumer survey are as follows:
• Even in today’s challenging economic environment, nine out of 10 survey respondents (91%) believe that owning a home is still the best long-term investment they can make with their money.
• At the same time, 27% of U.S. homeowners surveyed said the current U.S. economic environment was causing them to put their plans on hold for the purchase of a new or existing home. This response level was consistent across the four U.S. geographic regions.

Coldwell Banker climbs real estate Web rankings

2008-10-16T13:10:00.000-07:00

Coldwell Banker Real Estate's ColdwellBanker.com Web site soared to eighth place in a monthly ranking of real estate sites by online metrics company Hitwise -- the site had sat at 18th on the list for several months.

LoopNet, a commercial real estate search site, jumped onto the top-20 list for the first time, rising from 24th place in August to 20th in September.

No other sites on the top-20 list climbed or fell more than two places in the rankings from August to September.

The market share of visits to top-ranking real estate site Realtor.com dropped from 7.04 percent in August to 6.63 percent in September, Hitwise reported.

Yahoo's realestate.yahoo.com site gained in market share, rising from 2.63 percent in August to 3.51 percent in September.

Zillow was third with 2.52 percent market share and ZipRealty was fourth with a 2.13 percent market share of site visits to real estate category sites.

Nine Web sites joined the top-100 list of real estate category sites in September that were not on the list in August. FrontDoor.com, a real estate search site and information site that is operated by Scripps Networks and integrates content from the Home & Garden Television network and the HGTV.com Web site, jumped from its 101st ranking in August to 46th in September.

Homes-justlisted.com rose from 116th in August to 66th in September, and other sites joining the top-100 list included: buyatimeshare.com (from 161st to 67th); lead.mbrokertools.com (129th to 80th); harrynorman.com (709th to 82nd); the Inman News Web site, inman.com (209th to 85th), landsofamerica.com (164th to 94th), the National Association of Realtors Web site, realtor.org (106th to 96th); and sibcycline.com (104th to 98th).

Sites that dropped off the top-100 list in September include: sublet.com (from 83rd in August to 104th in September), crye-leike.com (87th to 113th), realtyusa.com (88th to 102nd), lakehouse.com (91st to 117th), seniorhousingnet.com (93rd to 109th), circlepix.com (94th to 105th), nhmsi.com (95th to 110th), ehbsr.com (98th to 130th), and wyndhamvacationresorts.com (99th to 115th).

About 65.6 percent of all visits to real estate Web sites went to the top-100 Web sites in that category in September, Hitwise reported, with 36.8 percent of visits going to the top-20 Web sites and 25.1 percent going to the top-10 Web sites in that category, which is comparable to the August statistics.

The average visit duration to real estate category Web sites was 11 minutes, 24 seconds in September, compared with 11 minutes, 36 seconds in August, and 11 minutes, 28 seconds in July.

Coldwell Banker is the first national real estate brand to debut home search interface for the iPhone

2008-10-16T13:08:00.000-07:00

Continuing to blaze a path of innovation in the real estate industry, Coldwell Banker Real Estate LLC has become the first full-service national real estate brand to launch a customized online platform for iPhoneTM users.

The Coldwell Banker flagship Web site, coldwellbanker.com, now has a different look and feel, along with navigation specifically tailored for optimal viewing on the iPhone, most notably with the property listings search and home value estimator functions. When a user accesses the site through his or her handset, the Coldwell Banker Web site automatically recognizes that it is being accessed by an iPhone, and will serve up the special iPhone interface. iPhone users do not need to download any special software to benefit from this enhancement to the Coldwell Banker mobile technology.

“Providing easy access to real-time real estate information is critical for consumers in the home buying and selling process,” said Michael Fischer, senior vice president of marketing for Coldwell Banker Real Estate LLC. “Distribution of listings is crucial in today’s environment. Our mobile society is moving away from the desktop and utilizing cell phones and PDAs for more and more content and entertainment. With so many connecting to the Web by phone, we have to be where the consumer is in a way that makes sense.”

Those looking for a home will be able to search for homes and utilize the brand’s home value estimator. In addition, consumers will be able to enter specific search criteria such as city, state, price as well as optional filters including number of bedrooms and bathrooms. When a property is selected, iPhone users can view all of the specifications for that home and contact an agent directly.

“Now more than ever consumers want to access information about a home as they see it, pass it or hear about,” continued Fischer. “Being in front of a computer should not be mandatory.”

Earlier this year Coldwell Banker became the first national real estate brand to put its listings on in-car GPS devices through an exclusive feed to Dash Navigation. Drivers can now call up Coldwell Banker listings, map them, get directions and view other Coldwell Banker listings in close proximity.

iPhone is a registered trademark of Apple Computers, Inc.

Housing Market Should Improve With Takeover of Fannie Mae and Freddie Mac

2008-10-16T07:06:00.000-07:00

the U.S. Treasury Department announced its takeover of mortgage-finance companies Fannie Mae and Freddie Mac. From it should come a much-needed boost to the nation's housing market.

“The takeover should help stabilize the housing market on the national level which would, in turn, help us in Kentucky as well,” said Robert Damron, president of the Kentucky Association of REALTORS®. “We could see interest rates continue to fall in the coming months, financing for first-time buyers pick up and housing inventories adjust back to normal levels. All of this would help keep home prices in the state from decreasing as they did in so many areas around the country.”

Fannie Mae and Freddie Mac, which together back around $5 trillion in home loans or about half the total in the U.S., don't offer mortgages themselves. But they do play a central role in the American system of home finance. The two mortgage giants buy home loans from banks and others lenders that make the initial loans, either keeping them as investments or packaging them for resale to investors. These two government sponsored enterprises, or GSEs, have been battered in the past year by declining home prices and rising foreclosures.

Although Kentucky does see its share of foreclosures, it consistently ranks in the bottom third of all states in the number of foreclosure filings according to a report released by RealtyTrac, the leading online marketplace for foreclosure properties.

“The rescue plan offered by the federal government could significantly help those looking to buy a home or hoping to refinance their mortgages if the announced takeover continues to lower interest rates,” continued Damron. “Unfortunately, the plan will offer little, if any, help to struggling homeowners who are already behind on payments and facing foreclosure.

Barren County was ranked #5 The Progressive Farmer’s Best Places To Live in Rural America

2008-10-16T07:01:00.000-07:00

Barren County was ranked #5 in the southeast region of The Progressive Farmer’s Best Places To Live in Rural America choices appearing in the February 2008 issue of the magazine. Kent County, Maryland was the 2008 choice as the #1 Place To Live In Rural America and holds the #1 spot in the southeast region. The regional lists appear on Page 53 in the magazine.
The 2008 Top Ten List for the United States includes #1 Kent County, Maryland; #2 Ellis County, Kansas; #3 Livingston County, Missouri; #4 Obion County, Tennessee; #5 Columbia County, Pennsylvania; #6 Wexford County, Michigan; #7 Fayette County, Texas; #8 Coffee County, Alabama; #9 Gilchrist, Florida and #10, Laplata County, Colorado.

The Progressive Farmer compiles a list of rural counties based on the following criteria: home and land prices, crime rates, environment, education, economic factors, access to health care, and others. Counties are first ranked using a proprietary formula based on these statistics, then arranged again based on editorial opinion after the magazine staff travel to selected counties.

Pending Home Sales up Strongly

2008-10-15T08:17:00.000-07:00

Pending home sales activity surged as buyers took advantage of low home prices and affordable interest rates, according to the National Association of Realtors®.

The Pending Home Sales Index,1 a forward-looking indicator based on contracts signed in August, jumped 7.4 percent to 93.4 from an upwardly revised reading of 87.0 in July, and is 8.8 percent higher than August 2007 when it stood at 85.8. The index is at the highest level since June 2007 when it stood at 101.4.

Lawrence Yun, NAR chief economist, said home buyers were responding to improved affordability. “What we’re seeing is the momentum of people taking advantage of low home prices, with pending home sales up strongly in California, Nevada, Arizona, Florida, Rhode Island and the Washington, D.C., region,” he said. "It’s unclear how much contract activity may be impacted by the credit disruptions on Wall Street, but we’re hopeful most of the increase will translate into closed existing-home sales.”

The PHSI in the West surged 18.4 percent to 109.5 in August and remains 37.8 percent above a year ago. In the Northeast the index jumped 8.4 percent to 79.8 and is 2.0 percent higher than August 2007. The index in the Midwest rose 3.6 percent to 84.5 in August and is 6.6 percent above a year ago. In the South, the index increased 2.3 percent to 96.0 but is 2.1 percent below August 2007.

Yun notes the unusual timing of contract activity in August. “Home buyers in July were hampered by overly stringent lending criteria in the months before the government takeover of Fannie and Freddie,” he said. “August shows some unleashing of pent-up demand before the credit crisis accelerated in September.”

He cautioned that the sampling size for pending home sales is smaller than the track on existing-home sales, so there is more volatility in the forward-looking series. “We need to see just how much of this gain holds up,” Yun said.

NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said despite all the turmoil in world financial markets, home mortgages are available. “Mortgages have been harder to find, and availability and terms vary depending on credit score and location, but Realtors® can help buyers find reputable lenders while helping them navigate the transaction process,” he said. “The recently enacted economic stimulus package should help housing by gradually freeing the flow of credit.”

Yun now expects growth in the U.S. gross domestic product (GDP) to contract for two consecutive quarters, in the fourth quarter of this year and the first quarter of 2009, before expanding in latter part of 2009 as the housing market begins a steady improvement.

Looking at middle-ground assumptions, existing-home sales are forecast at 5.04 million this year and 5.41 million in 2009. Following national declines of 5 to 8 percent in 2008, home prices are projected to increase 2 to 3 percent next year.

New-home sales should total around 503,000 this year and 471,000 in 2009. Housing starts, including multifamily units, are likely to fall 28.2 percent to 973,000 units this year, and come in around 843,000 in 2009 as builders continue to clear the accumulation in inventory.

The 30-year fixed-rate mortgage will probably average 6.1 percent in the fourth quarter and rise gradually to 6.6 percent by the end of 2009. NAR’s housing affordability index is expected to average 18 percentage points higher this year than in 2007.

The unemployment rate is projected to average 6.4 percent in the fourth quarter and then average 6.6 percent in 2009. Inflation, as measured by the Consumer Price Index, is estimated at 4.0 percent for 2008 and 2.0 percent next year. Inflation-adjusted disposable personal income is forecast to grow 1.7 percent this year and 1.0 percent in 2009.

N.E.W. Customer Service Companies, Inc. Continues to Grow Work-at-Home Program in Bowling Green

2008-10-14T06:56:00.000-07:00

N.E.W. Customer Service Companies, Inc. (NEW), the nation's leading provider of extended service plans and buyer protection programs for consumer products, hit the ground running in Bowling Green with their work-at-home customer service program. Back on May 29th, the company announced that they would be bringing a unique opportunity to the community with their work-at-home program. The program has been so successful that the VA-based company is launching a second group of company-paid training classes beginning on October 20th. This new training class is expected to bring an additional 160 jobs to Bowling Green over the course of a year bringing the total number of jobs to 320 by May 2009.

"Bowling Green has far exceeded our initial expectations back in May at the start of the program," said NEW's Senior Vice President of Customer Experience Ray Zukowski. "The caliber of the candidates and the tremendous support and enthusiasm we have received from the community has been the deciding factor in expanding the Bowling Green work-at-home training site."

"This is the third expansion announcement the Chamber has been a part of since the beginning of October," said Bowling Green Area Chamber of Commerce Board of Directors Chairman Doug Gorman. "We're grateful to NEW for their enthusiasm and support of our community, which they're showing once again by choosing to expand their operations here."

Many new NEW employees in the area are reaping the benefits of the work-at-home program. "There are several things that I love about working for NEW," said NEW Customer Care Representative, Jonita Woodcock. "The people are great - everyone has a winning 'can do' attitude. I work from my home, which is something I have always wanted to do, and the money I save on gas really helps the budget. But, the number one thing I love about working for NEW is the extra time I have for my family."

Saving on gas is just one of the perks of these customer care positions. NEW's work-at-home program offers paid time off, comprehensive company-paid training, set work schedules, competitive hourly wage, free DIRECTV and tremendous opportunities for professional growth.

"In May we were very proud to welcome NEW to our community," said Bowling Green Mayor Elaine Walker. "Their commitment to bringing jobs to South Central Kentucky was very exciting, and now our excitement continues because NEW has announced this expansion-all due to our outstanding workforce here!"

Warren County Judge Executive Michael Buchanon agreed with Mayor Walker. "It hasn't been five months since we announced that NEW would locate here, and they've already decided to expand their workforce. Their decision is a great testament to the quality of employees offered here in South Central Kentucky," he said.

Interested job candidates can learn more about the work-at-home customer care positions by visiting www.newhomebasedccr.com. Virtual job fairs are also available on the website. Eligible candidates must have a computer and basic PC skills.

About N.E.W. Customer Service Companies, Inc. (NEW)
NEW is the leading provider of extended service plans, buyer protection services and product support, providing coverage to more than 150 million consumers worldwide. Founded in 1983 with headquarters in Sterling, Va., NEW provides award-winning, post-sale consumer care for leading retailers, consumer service providers, wireless carriers and financial services firms. NEW has expanded its product offerings and now delivers a comprehensive customer care solution that begins on day one of the product purchase and extends through the end of the product lifecycle. For more information, please visit NEW at www.newcorp.com.

First-Time Buyer Tax Credit: A Reason to Buy Now

2008-10-14T06:46:00.000-07:00

The homeownership tax credit that the federal government created earlier this year is a hard-won tool to encourage Home Buyers to jump off the fence and get into the home buying market.

When you combine the tax credit with today’s continuing low interest rates, large selection of for-sale inventory, and low home prices, many of the pieces are in place for you to buy now.

How the Tax Credit Works

The First-time Home Buyer Tax Credit was passed this year as part of the Housing and Economic Recovery Act (H.R. 3221) on July 30 and targets any individual or household that hasn’t owned a home for at least three years. Taxpayers can take the credit on their 2008 tax return if they bought their house this year after April 9.

It’s worth up to $7,500 and can be taken in a single tax year. Authorization for the credit ends July 1, 2009, so if Home Buyers wait to buy in the first half of 2009 Home Buyers can take the credit on their 2009 tax return.

The actual credit amount is set as a percentage of the home purchase amount. That percentage amount is 10 percent, so Home Buyers can get 10 percent of the home price credited against their tax liability, up to a maximum $7,500.

Income limits are $75,000 for individuals and $150,000 for households. Individuals whose income exceeds the $75,000 limit but isn’t more than $95,000 can still take the credit but on a reduced basis. The same thing applies to households earning up to $170,000.

Any house is eligible as long as it’s a primary residence and is in the United States.

Buyers Have 15 Years to Pay Back

To help keep the program cost effective for taxpayers, the federal government requires the tax credit to be paid back in small, 6.67-percent increments over 15 years. For that reason, some analysts have likened the credit to a 15-year, interest-free loan to help make home buying affordable.

There’s one restriction on the type of financing that a customers can use if they plan to take the credit. That restriction is on tax-exempt mortgage financing. That only applies if you are using below-market interest-rate financing from a public agency or nonprofit that’s funding the loan using proceeds from a tax-exempt mortgage-revenue bond issue. For most buyers, this won’t be an issue. It’s mainly an issue for low-income buyers using special mortgage financing.

The IRS Web site also offers tax-credit guidance in an article that provides answers to many frequently asked questions.

Bush reveals new steps to steady banking industry

2008-10-14T06:29:00.001-07:00

President Bush on Tuesday announced a $250 billion plan by the government to directly buy shares in the nation's leading banks, saying the drastic steps were "not intended to take over the free market but to preserve it."

Nine major banks will participate initally including all of the country's largest institutions. Some of the big banks had to be pressured to participate in the program by Treasury Secretary Henry Paulson, who wanted healthy institutions that did not necessarily need capital from the government to go first as a way of removing any stigma that might be associated with banks getting bailouts.

Bush, in brief remarks in the Rose Garden of the White House, said the government will initially buy stocks in nine major U.S. banks.

"These efforts are designed to directly benefit the American people by stabilizing the financial system and helping the economy recover," he said.

Paulson, at a news conference a short time later, said "today's actions are what we must do to restore confidence in our financial system."

"We regret having to take these actions," said Paulson. "Today's actions are not what we ever wanted to do — but today's actions are what we must do to restore confidence to our financial system."

The Federal Reserve, meanwhile, announced Tuesday that it will begin buying massive amounts of short-term debt on Oct. 27 — its latest effort to break through a credit clog. The Fed is invoking Depression-era emergency powers to buy commercial paper — a crucial short-term funding that many companies rely on to pay their workers and buy supplies. Last week the Fed said it intended to take the action but didn't specify when.

Fed Chairman Ben Bernanke welcomed all the new steps and said he believes they will help ease problems plaguing financial markets and threatening the economy. However, he also made clear that policymakers would continue to take actions as needed to battle the crisis.

"Our strategy will continue to evolve and be refined as we adapt to new developments and the inevitable set backs," he said. "But we will not stand down until we have achieved our goals of repairing and reforming our financial system and thereby restoring prosperity to our economy."

"The needs of our economy require that our financial institutions not take this new capital to hoard it, but to deploy it," Paulson said, meaning that they will use the money to bolster lending to each other and to their customers.

"Government owning a stake in any private U.S. company is objectionable to most Americans — me included," Paulson added. "Yet the alternative of leaving businesses and consumers without access to financing is totally unacceptable."

Said Bernanke: "We will not stand down until we have achieved our goals of repairing and reforming our financial system and thereby restoring prosperity to our economy."

Deed Transfers

2008-10-14T06:19:00.001-07:00

Cecil and Beverly Simmons to Jeremy Rowletts, land near Lealand Drive, $105,000.

David and Dorothy Waters to Allen and Margaret Bell Revocable Trust, land on Nutwood Avenue, $135,000.

Millard and Sue Martin to Sergio Ortega, Lot 1 Robison minor subdivision, $135,000.

Kimmel and Lloyd Ferguson to Springhill Real Estate Holdings LLC, land near U.S. 68-80, $700,000.

Ronny and Annie Milliner to Ryan and Robyn Stokes, Lot 6 Fieldstone Farms subdivision, $107,500.

DTD Inc. to William and Patsy Lawrence, Lot 62 Wesley Estates, $200,000.

Gregory and Sharon Grooms to Russell and Kathy Barton, Lot 16 Saddlebook subdivision, $141,500.

Charles and Jamie Gibbs to Kristopher and Kortney Krohn, Lot 78 Sutherland Farms, $33,000.

Blue Level Properties LLC to J.Trapper Construction LLC, Lot 58 McLellan Farms, $35,000.

Jay and Allene Linville to William and Alice Allen, land on Parkside Drive, $66,000.

Carol Wilkerson and Gerrit Hoogenboom to Carlie and Lillie Smith, Lot 106 Drakesborough, $370,000.

Brenda Jones to Leonard and Betty Young, Lot 12 Gilbert Place, $130,000.

Shannon and Deanna Basham to Morehead Mobile Home Park Inc., land in deed book 635, page 84, no tax.

Ruth Hunton to Warren and Linda Stamper, Lot 2 Hunton subdivision, $20,000.

Frank and Robin Smith to Doris Arnold, Lot 4-2 George and Barbara Cowles subdivision, $130,000.

Linda Armstrong to Mark and Leisa Rister, Lot 43 Western Hills subdivision, $153,000.

George Garrity to Patrick Garrity, Lot 1 minor subdivision plat book 14, page 153, no tax.

Patrick and Diane Garrity to Matt Hardy Homes LLC, Lot 2 Patrick K. Garrity subdivision, $37,500.

Chris and Kelly Blevins to Charles Gant, Lot 172 Countryside Manor subdivision, $98,000.

Cumberland Ridge Inc. to Bilal and Beth Ann Qamar, Lot 94 Cumberland Ridge subdivision, $36,900.

Sherron and Fred Johnson Sr. to James and Imogene Maxfield, land on Morgantown Road, $145,000.

Eleise Tabor and Eloise Tabor to Wallace Randolph Real Estate Family Limited Partnership, land on Dodd’s Alley, $67,500.

Overholt Builders Inc. to Stanley and Renee Clement, Lot 263 Fieldstone Farms subdivision, $177,950.

Kenneth and Lisa Loague to Donald and Jennifer Smith, Lot 122 Crossridge subdivision, $585,000.

David and Stacey Forney to Kenneth and Lisa Loague, Lot 155 Hunters Crossing, $307,500.

Dow futures jump 320 after 936-point gain Monday;

2008-10-14T06:08:00.000-07:00

NEW YORK (AP) -- Dow industrial futures are up 320, or 3.37 percent, this morning to 9,828, on top of yesterday's 936-point jump. Wall Street is gearing up for another surge with investors encouraged by the U.S. government's plans to spend $250 billion on buying stock in private banks.

Standard & Poor's 500 index futures rose 38.70, or 3.81 percent, to 1,055.50, and Nasdaq 100 index futures rose 35.00, or 2.40 percent, to 1,493.50.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

Fed and Other Central Banks Across Globe Cut Key Rates

2008-10-09T12:55:00.001-07:00

Working to stem a global financial crisis, the Federal Reserve reduced the benchmark federal funds rate by 50 basis points as other central banking authorities around the world enacted similar cuts in a coordinated effort to stimulate economic growth.

The Fed reduced its key rate from 2% to 1.5% as the Bank of England cut its rate from 5% to 4.5% and the European Central Bank dropped its rate to 3.75%.

Other central banks participating in the global effort include the central banks of Canada, China, Sweden, and Switzerland.

With the rapid deterioration of the U.S. financial markets, the Federal Reserve decided it could not wait until its regularly scheduled meeting on Oct. 28-29 to take action.

''The pace of economic activity has slowed markedly in recent months,'' the Fed indicated in a statement accompanying the rate cut.

''Moreover, the intensification of financial market turmoil is likely to exert additional restraint on spending, partly by further reducing the ability of households and businesses to obtain credit.''

The Fed’s action restarts the central bank's rate-cutting campaign which had been frozen in June due to concerns that those low rates would cause inflation to get worse.

The last time the Fed’s cut rates was at the end of April, capping one of the most powerful rate-cutting campaigns in decades as it scrambled to shore up the uncertain economy.

Energy prices have recoiled from record highs attained in mid-July over the past few months, allowing the Fed to have more freedom to lower rates again.

In return, the prime lending rate for millions of borrowers will decrease by a related amount on mortgages, home equity lines of credit, credit cards and other loans.

Additionally, the Fed lowered its emergency lending rate to banks by half a percentage point to 1.75%.

The Fed increased a short-term loan program on Monday to as much as $900 billion by the end of 2008 — far above even the government's bailout plan of $700 billion passed on Friday.

The next day the Fed proclaimed that it will purchase enormous amounts of corporate debt, even some of it unsecured, in hopes of replenishing the flow of money in so-called commercial paper markets.

That is where many companies turn for short-term loans to finance their most basic day-to-day operations

McCain Proposes Massive Program to Fight Mortgage Crisis

2008-10-09T12:51:00.000-07:00

After questioning earlier this year whether federal money should be used to help homeowners at all, Republican presidential candidate John McCain has announced a plan to purchase failing mortgages directly from homeowners with $300 billion in taxpayer funds.

The Obama campaign quickly denounced the proposal as “erratic policy-making at its worst.”

The Arizona Senator first announced the program during Tuesday’s presidential debate.

"I would order the secretary of the Treasury to immediately buy up the bad home-loan mortgages in America and renegotiate at the new value of those homes — at the diminished values of those homes — and let people be able to make those payments and stay in their homes," said McCain.

The proposal to buy up troubled mortgages would use nearly half the $700 billion from the recently passed bailout package to directly assist struggling homeowners, rather than focusing the federal funds towards rescuing the nation's financial markets.

"Is it expensive?" McCain asked during the debate.

"Yes. But we all know, my friends, until we stabilize home values in America, we're never going to start turning around and creating jobs and fixing the economy."

As subsequently outlined by the McCain, the program would have the federal government pay both borrowers and lenders in full, allowing the borrower refinance into an FHA-backed loan and let tenders remove the bad mortgages from their balance sheets.

Where the Hope for Homeowners program demands that lenders lower mortgage balances down to 90% of the home's current value, McCain's plan would reduce loans to 100% of a home's current value.

Under his proposal, the cost of the writedown would be picked up by taxpayers rather than by the lenders.

To qualify, mortgage holders would have to prove they lived in the home and had good credit at the time of the original loan, as well as provide evidence that they are either delinquent or likely to become so in the near future.

They would also have to prove that they had provided a substantial down payment and adequate documentation to obtain the mortgage.

Eligibility for the program would not be affected by how sensible or fair the original transaction may have been.

McCain’s announcement represents a significant reversal from the initial position he took when he delivered his key economic policy address in March.

"I have always been committed to the principle that it is not the duty of government to bail out and reward those who act irresponsibly, whether they are big banks or small borrowers," said McCain at the time.

"Government assistance to the banking system should be based solely on preventing systemic risk that would endanger the entire financial system and the economy."

As part of that speech, McCain added, "I will not play election-year politics with the housing crisis."

After McCain was roundly criticized for his hands-off approach to the crisis, he proposed a week later spending up to $10 billion for government-backed mortgages for "well-meaning, deserving homeowners" facing foreclosure.

When Obama offered a plan earlier in March that included aggressive regulation of financial institutions, relief for struggling homeowners and a $30-billion economic stimulus package, McCain criticized it as a "multibillion-dollar bailout for big banks and speculators."

"There is a tendency for liberals to seek big government programs that sock it to American taxpayers while failing to solve the very real problems we face."

To an extent, the roles played by the two candidates have reversed as the Obama campaign criticized the details of McCain’s plan for its burden on taxpayers, calling it “erratic policy-making at its worst.”

“John McCain wants the government to massively overpay for mortgages in a plan that would guarantee taxpayers lose money, and put them at risk of losing even more if home values don’t recover,” said Obama economic adviser Jason Furman.

“The biggest beneficiaries of this plan will be the same financial institutions that got us into this mess, some of whom even committed fraud.”

Although the Obama campaign argued about the details of the plan, the candidate apparently endorses the premise – having proposed it himself last month.

At a news conference on Sept. 24, Obama said, "We should consider giving the government the authority to purchase mortgages directly instead of simply purchasing mortgage-backed securities."

Less than a week later, he said he would "encourage Treasury to study the option of buying individual mortgages like we did successfully in the 1930s."

"Since this beginning of this crisis, Barack Obama has demanded that any rescue plan must protect taxpayers and ensure that they share in any profit once the economy recovers, and he worked to include that principle in the plan that passed Congress,"

According to Real Clear Politics, McCain is currently behind 5.1% in an average of national polls, and faces major challenges in several battleground states that are among the hardest hit by foreclosures.

Several states listed by RealtyTrac as among the top ten foreclosure rates in the nation are being hotly contested in the presidential race, including Nevada, Florida, Michigan, Georgia, Ohio, Colorado and Indiana.

Perot Systems Expands Bowling Green Operations

2008-10-07T09:08:00.000-07:00

The Bowling Green Area Chamber of Commerce announced today that Perot Systems Corporation is expanding its current operations in Bowling Green, adding up to 90 new jobs here for technology service desk operations. The new expansion will increase Perot Systems' total workforce in Bowling Green to more than 300 associates.

"We are very proud to call Bowling Green home to Perot Systems' service desk operations, and to join our existing team of healthcare business process solution professionals here," said Lynda Gera, service desk manager of the company's new Technology Infrastructure Solutions team in Bowling Green. "What's more, we have been very impressed by the skill and professional expertise of job candidates in the area, and have already hired more than 60 local professionals to full-time positions on the new team."

Located at the Western Kentucky University Center for Research and Development, Perot Systems currently operates an information technology service center to support the business operations of its healthcare customers throughout the U.S. Today's announced expansion will allow Perot Systems to enhance its healthcare services in Bowling Green by adding skilled technology associates to provide application re-engineering services and infrastructure services, including service desk functions.

COLDWELL BANKER® LAUNCHES NATIONAL 10-DAY SALES EVENT

2008-10-06T08:12:00.000-07:00

Coldwell Banker Real Estate LLC today announced a bold initiative to bring home buyers and sellers together and help jump-start the U.S. real estate market. Starting on October 10, 2008, the nation’s oldest residential real estate brand will kick-off its first-ever national “10-Day Sales Event” – during which participating home sellers from across the United States will reduce the listing prices of their homes by up to 10 percent. The Coldwell Banker® 10-Day Sales Event will run nationally through October 19, 2008.

“Despite the difficult headlines regarding our overall economy, the residential real estate market has been showing several positive signs over recent months that could be signaling a tipping point,” said Jim Gillespie, president and chief executive officer, Coldwell Banker Real Estate LLC. “Because of higher inventory, buyers have more homes to choose from and they can take advantage of near historically low interest rates and affordability levels that are the best they have been in years. The recent housing and economic recovery legislation also provides first-time homebuyers with the added incentive of a $7,500 tax credit.[1]

“Yet our research and discussions with our brokers and sales associates shows that in many markets sellers remain reluctant to list their homes at the proper prices necessary to attract buyers,” continued Gillespie. “It’s our hope that the Coldwell Banker 10-Day Sales Event will move buyers off the sidelines and into the market. We are embarking on this initiative – which has never been done before on a national basis – because we believe it is critical for Coldwell Banker, as an industry leader, to help serve the needs of those individuals listing homes with a Coldwell Banker broker and to help move the U.S. real estate market in the right direction.”

In a recent survey of 3,379 Coldwell Banker real estate professionals in markets across the United States, 56 percent said that listing prices in their market remain above where they need to be to attract qualified buyers. Additional findings from the survey include:

-77 percent agreed that the majority of sellers in their market still have unrealistic expectations regarding the initial listing price for their homes
-79 percent agreed that homes in their market that are priced appropriately are attracting more buyers and moving more quickly
-76 percent feel that a 10 percent or less reduction in listing prices in their area is all it will take to help push these homes over the “tipping point” to a sale

“Our brokers and sales associates agreed that, even in the current climate, it will not take much movement to attract those buyers who have been watching and waiting,” noted Gillespie. “Depending on the market, a price reduction of just 10 percent or less just may make the difference in both satisfying sellers and bringing buyers to the table.”

DESA, LLC Announces Additional Manufacturing Operations to Move to Bowling Green Headquarters

2008-10-06T07:33:00.000-07:00

BOWLING GREEN, KY-DESA, LLC announced its plans to bring more than 100 new jobs to its Bowling Green headquarters yesterday. These new jobs will come from the planned move of DESA's Power Tools Division manufacturing and distribution operations from Manchester, Tenn., to Bowling Green.

The consolidation and additional jobs in Bowling Green will provide additional manufacturing capacity to produce the new Remington Power Mower and support the continued growth of the Power Tools Division. DESA expects to add 100 new jobs to the Bowling Green headquarters over the next several months, along with additional jobs as new products from the Power Tools line are introduced into the marketplace in the coming years.

DESA, LLC is a manufacturer and marketer of electric lawn and garden tools and heating products. DESA's corporate office is located in Bowling Green, Ky., which is also home to the Retail Heating Division, the Power Tools Division and distribution. Other divisions include the Professional Heating Division and the International Division. DESA's products are marketed under the following brand names: Remington, Master, Vanguard, Reddy Heater, Comfort Glow, Design Dynamics, Outdoor Leisure, FMI and Glo Warm. The company's channels of distribution include home centers, distributors, contractors, mass merchants and hardware cooperatives.

The decision to consolidate existing manufacturing operations from Manchester to Bowling Green did not come easily to DESA; however, the company based its decision on the availability of several Lean process improvements at the Bowling Green headquarters, which will allow it to maintain a competitive edge in the power tools market.

"While this is an extremely difficult decision for everyone involved, it was required to provide the manufacturing capabilities to sustain our future growth" said Lance Servais, President, Power Tools Division. "Our headquarters in Bowling Green is growing substantially this year because of our primary goal, which is to remain the leader in the marketplace for electric lawn and garden tools and heating products."

Bowling Green Ranked 33rd Among Small U.S. Cities

2008-10-06T07:16:00.000-07:00

Bowling Green has once again been recognized for its efforts in economic development growth. The Milken Institute, an economic think tank based out of Santa Monica, Calif., recently ranked Bowling Green 33rd on their list of 124 small cities in its Best Performing Cities 2008 index. This new recognition comes closely on the heels of Bowling Green being ranked 12th on the Forbes Magazine list of the Best Small Places for Business and Careers.

The Milken Institute determined these rankings based on the creation of new jobs, the sustaining of existing jobs and the rate of economic growth. Bowling Green has put forth a large effort to expand their economic environment and has also dedicated itself to help build and maintain the economic development of the entire South Central Kentucky Region. According to Warren County Judge Executive Michael Buchanon, "The economic development efforts made here and throughout South Central Kentucky are due in large part to the strength of our business community. Industries recognize that this is a great place to do business."

With a number of new industries moving to the area, Bowling Green is diversifying their industrial environment and expanding into new areas, such as technology. Mayor Elaine Walker recently discussed Bowling Green's move toward the technological arena. "Western Kentucky University's Innovation and Commercialization Center is helping us to create high-tech businesses and is very active in trying to build a quality work force in that sector." This recognition of the importance of diversifying the industrial environment is just one of the many reasons that Bowling Green continues to expand their economic development efforts.

Bowling Green's above average performance in increasing wage salary from year to year, along with its significant population growth and relative low cost of living also help to solidify their place on the Milken's list. Doug Gorman, chairman of the board of directors for the Bowling Green Area Chamber of Commerce, emphasizes, "The Chamber works hard to recruit and retain industries in South Central Kentucky because we understand the benefits of growing business here. By maintaining a strong workforce through our recruitment, expansion and training efforts, we show our commitment to our community, not just in the here-and-now, but for the future as well."

To learn more about The Milken Institute's rankings, visit http://bestcities.milkeninstitute.org/.

American Howa Kentucky Announces Expansion of Bowling Green Facility

2008-10-06T07:10:00.000-07:00

Curtis Sullivan, chairman of the
Intermodal Transportation Authority,
congratulated American Howa Kentucky
on their expansion announcement, which
comes just over six months after the facility's
grand opening.

AHK's expansion project will add 56,000 square feet to its existing 81,294-square-foot facility, and will house three new manufacturing lines. The company manufactures various products for the automotive industry including headliners, dash insulators, and other interior items.

"We are very pleased with our facility here at the Kentucky Transpark, and we're happy to continue our investment here with this announced expansion. Our location in South Central Kentucky is ideal for our business, and we look forward to much more success here," said American Howa Kentucky, Inc. President Hiroshi Senga.

The project represents a more than $12 million investment in the Kentucky Transpark operation. The Kentucky Economic Development Finance Authority approved American Howa Kentucky for tax benefits in the amount of $120,000 under the Kentucky Enterprise Initiative Act. The incentive program allows approved companies to recoup sales and use tax for costs related to construction materials, building fixtures and equipment used for research and development.

Home Sales to Vary in Narrow Range, Then Rise in Second Half

2008-07-17T10:05:00.000-07:00

Modest near-term movement is expected in existing-home sales, with a recovery in sales seen during the second half of the year, according to the latest forecast by the National Association of Realtors®.

The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in May, fell 4.7 percent to 84.7 from an upwardly revised reading of 88.9 in April, and remains 14.0 percent below May 2007 when it stood at 98.5.

Lawrence Yun, NAR chief economist, said some pullback after a sharp increase in the previous month was expected. “The overall decline in contract signings suggests we are not out of the woods by any means. The housing stimulus bill that is still being considered in the Senate is critical to assure a healthy recovery in the housing market, jobs and the economy,” he said.

The PHSI in the West slipped 1.3 percent to 97.5 in May but is 2.0 percent higher than May 2007. In the Northeast, the index declined 2.9 percent to 77.0 in May and is 16.4 percent below a year ago. The index in the Midwest fell 6.0 percent to 78.6 and is 13.8 percent below May 2007. In the South, the index dropped 7.1 percent in May to 84.5 and is 22.1 percent below a year ago.

Yun said location has never mattered more than in the current market. “Some markets have seen a doubling in home sales from a year ago, while others are seeing contract signings cut in half. Price conditions vary tremendously, even within a locality, depending upon a neighborhood’s exposure to subprime loans.”

Double-digit pending sales gains in May from a year ago were noted in Colorado Springs, Colo.; Sacramento, Calif.; and Spartanburg, S.C.

NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said the current market offers immediate benefits and long-term value for many buyers. “Home buyers are getting a great deal right now,” he said. “Although inflationary expectations appear to be under control for the time being, sharper consumer price gains could lead to notably higher mortgage interest rates in 2009.”

Based on current indicators, the 30-year fixed-rate mortgage is forecast to rise gradually to 6.5 percent by the end of this year, and then hold at that level for most of 2009. NAR’s housing affordability index is improving this year and is likely to rise 15 percentage points to 127.0 for all of 2008.

Existing-home sales are expected to grow from an annual pace of 5.01 million in the second quarter to 5.75 million in the fourth quarter. For all of 2008, existing-home sales should total 5.31 million, and then increase 5.0 percent next year to 5.58 million.

“The speed at which home prices has declined in a few select markets is unprecedented, but the large price declines in those areas have enticed bargain hunters back into the market,” Yun said. “Interestingly, there have been reports of multiple bidding after the large price cuts, so it is possible that most of the price declines have already occurred in those markets.”

The aggregate median existing-home price is projected to fall 6.2 percent this year to $205,300, and then rise by 4.3 percent in 2009 to $214,100.

New-home sales are likely to fall 32.3 percent to 525,000 in 2008 and decline another 3.4 percent next year to 507,000. “In light of high inventory conditions, rising commodity prices and construction costs will curtail new home construction deep into 2009,” Yun said. Housing starts, including multifamily units, will probably fall 28.7 percent to 966,000 this year, and then drop another 9.0 percent in 2009 to 879,000.

The median new-home price is expected to decline 3.2 percent to $239,300 this year, and then rise 5.3 percent in 2009 to $251,900.

Growth in the U.S. gross domestic product (GDP) is seen at 1.6 percent in 2008 and 1.4 percent next year. The unemployment rate should average 5.4 percent this year and 5.8 percent in 2009.

Inflation, as measured by the Consumer Price Index, is forecast at 3.7 percent this year and 2.4 percent in 2009. Inflation-adjusted disposable personal income is projected to grow 1.5 percent in both 2008 and 2009.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

DESA Heating Products to Expand Bowling Green Facility, Move Production Back from China

2008-07-17T09:47:00.000-07:00

FRANKFORT, Ky. (July 15, 2008) - Governor Steve Beshear today joined company and community officials in Bowling Green to announce DESA Heating Products, LLC is moving manufacturing production from China back to its Warren County facility. The shift in operations will expand the company's Bowling Green workforce and create a capital investment of over $6.4 million in the commonwealth.

"DESA Heating Product's decision to move production back to Kentucky is a strong indicator of evolving outsourcing trends in the global economy," said Gov. Beshear. "We are delighted DESA will expand its Bowling Green facility to accommodate the added production, resulting in a multi-million dollar investment and several hundred new employment opportunities for the south central Kentucky region."

"The Cabinet is pleased to work with DESA Heating Products and the Bowling Green community to make this expansion possible," said Economic Development Cabinet Secretary John Hindman. "Kentucky's central location, coupled with our logistical advantages and productive workforce, make it ideal for companies relying on shipping products to customers across the globe."

Over the last year DESA has begun bringing back a significant percentage of its manufacturing from China, due to changing times in the world economy. Factors such as the continuing rise in the cost of oil, the weakening of the U.S. dollar compared to foreign currency and the recent rise in wages for Chinese workers is making manufacturing in China no longer as economical as it once was.

The continuing spikes in the cost of oil are making transportation increasingly expensive, especially for larger, heavier products such as the consumer and professional heaters that DESA produces. Bowling Green's centralized location will not only allow DESA to save on transportation costs, but will expedite the shipping process. The company now can ship products to over half of the U.S. in about one day compared to the average six to eights weeks timeframe to ship from China.

"Bowling Green, Kentucky is an ideal location for DESA Heating Products' expansion because we are located within a day's drive of 70 percent of the U.S. population, we have a large labor base with whom we have a very solid relationship, and we enjoy a low overall cost of doing business here," said Claude Hayes, president of retail heating for DESA.

"Our production team has also made a great impact in helping us to reduce costs and produce superior quality," continued Hayes. "Our team expects quality, and that expectation has helped us raise the bar in producing the best quality products with the highest level of efficiency. Our sales team has now spread our product base to most major retailers."

DESA currently employs 450 Kentuckians at its 250,000 square-foot Bowling Green plant. The company will make improvements to its existing facility, as well as add building fixtures and new equipment to accommodate the expansion.

"Our superior relationship with our workforce has been integral to our decision to expand. The partnership we have with Sheet Metal Workers Local 433 has enabled us to focus on our total quality initiative and given us the advantage of having the most productive labor force for our type of products in the nation," added Hayes.

"I'm proud that Bowling Green-Warren County is home to DESA Heating Products, LLC, one of the world's leading manufacturers of heating products used in homes and at job sites across the globe," said Warren County Judge Executive Michael Buchanon. "This expansion is not just great because of the hundreds of jobs being brought back to Kentucky, but also because it demonstrates the quality of our workforce and how a dynamic company like DESA can successfully compete at an international level."

"Today is another great day in Bowling Green as DESA makes this announcement," said Bowling Green Mayor Elaine Walker. "They have played a major role in our community and have been a great corporate citizen throughout their tenure in Bowling Green. It's exciting to know that the only USA-manufactured line of heating products are made right here in Bowling Green, and that is a truly impressive statement about the quality of the product and the commitment of DESA to our region."

Bowling Green Ranked as One of Best Small Places for Business and Careers

2008-07-17T09:44:00.000-07:00

BOWLING GREEN, KY-Bowling Green has been recognized once again for its positive business environment. Forbes Magazine recently released its list of Best Small Places for Business and Careers on www.forbes.com. Bowling Green was listed as No. 12.

Forbes determined these rankings based on cost of labor, energy, taxes and office space. Listings included rankings on cost of doing business, job growth, educational attainment and metropolitan area size. In terms of population, the list included metro areas ranging from 56,000 to 239,000. 2008 marks the 10th annual release of these rankings by Forbes.

To learn more about Forbes' rankings, visit http://www.forbes.com/lists/2008/5/bestplaces08_Best-Small-Places-For-Business-And-Careers_Rank.html.