Area Real Estate News & Market Trends

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

Jan. 2, 2020

2020 Outlook: Real Estate Market Forecast

2020 Outlook: Real Estate Market Forecast



We’re in the midst of the longest economic expansion in U.S. history, and economists think there’s still room to grow. A recent survey by the National Association for Business Economics found that experts believe the U.S. economy will remain positive throughout 2020.1


Still, given that recessions are a natural (and necessary) part of a business cycle, we know this period of growth will inevitably end. So you may be wondering … how will an eventual recession impact the real estate market?


Many Americans assume a recession would lead to a decline in housing prices like we saw during the Great Recession of 2008. But the real estate market crash we experienced wasn’t typical. In fact, the last recession wasn’t typical at all. It was the worst economic downturn since the Great Depression of the 1930s.


ATTOM Data Solutions analyzed real estate prices during the last five recessions and found that, in the majority of cases, home prices actually went up. Only twice (in 1990 and 2008) did prices decline, and in 1990 it was by less than one percent.2


So what can historical precedent—combined with today’s data—tell us about the future of real estate? Here’s where experts predict the housing market is headed in 2020 and beyond.



HOME PRICES WILL KEEP RISING

 

 



Economists predict U.S. housing prices will continue to rise, regardless of a recession. In fact, property data firm CoreLogic forecasts a faster rate of growth for home prices in 2020 than we saw in 2019, with the biggest gains at the lower end of the market.3


Arch MI Chief Economist Ralph DeFranco expects entry-level home prices to increase faster than incomes this year, making it even more difficult for many first-time buyers to afford to enter the market.4


“Low interest rates and a shortage of starter homes will continue to push up prices,” predicts DeFranco. “This is especially the case for lower price points, since builders have tended to focus on more expensive, higher-profit houses and less on replenishing low inventories of entry-level homes.”4


“Real estate is on firm ground with little chance of price declines,” said National Association of Realtors Chief Economist Lawrence Yun. "However, in order for the market to be healthier, more supply is needed to assure home prices as well as rents do not consistently outgrow income gains.”5


What does it mean for you? If you have the ability and desire to buy a home now, don’t let a fear of recession or falling prices hold you in limbo. Economists expect home values, as well as rent prices, to continue rising. So you’ll likely pay more the longer you wait.

 



INVENTORY CONSTRAINTS WILL CONTINUE

 


According to Redfin, Americans are staying in their homes longer. In 2019, the average homeowner had resided in their home for 13 years, up from just eight years in 2010. That means there are fewer homes available today for those who want to buy.6


It’s possible that an increase in new construction could offer some relief. The National Association of Realtors (NAR) expects single-family housing starts to total one million this year, the highest level since 2007. And NAR Chief Economist Lawrence Yun predicts the average price of new construction will decline slightly as builders shift to building smaller, more affordable homes.7


However, these efforts may not be enough to meet current demand. “Despite improvements to new construction and short waves of sellers, next year will once again fail to bring a solution to the inventory shortage,” predicts Realtor.com Senior Economist George Ratiu. “In 2020, we expect inventory to struggle to grow and could instead reach a historic low level.”8


What does it mean for you? If you’re looking to buy a starter home, be prepared to compete for the best listings. Start your search early, and if you’re up against a deadline (like a new baby), build in plenty of time to find the right home. We can help you assess your options, including new construction and up-and-coming developments.


MORTGAGE RATES WILL REMAIN LOW



Mortgage rates have declined more than a full percentage point since November 2018, when they hit a recent peak of 4.94%.9 The Mortgage Bankers Association predicts rates will remain low, at around 3.7%, through mid-2021.10


While it may not seem significant, on a $200,000 30-year fixed-rate mortgage, that lower rate means buyers could save around $145 on their monthly payment and more than $52,000 over the life of their mortgage. Lower mortgage rates make homeownership more accessible and affordable for buyers.


Although economists expect mortgage rates to stay low, they caution against waiting to act. Economic factors, shifts in supply and demand, or unforeseen impacts of the November election could cause rates to rise unexpectedly. “We recommend borrowers with long-term plans of staying in their homes to lock in a low rate now because there’s no telling how long these low rates will last,” warns Preetam Purohit, a capital markets trader at Embrace Home Loans.11


What does it mean for you? If you’re looking to buy a home, act soon to lock in a historically low mortgage rate. It will minimize your monthly payment and could save you a bundle over the long term. And if you plan to stay in your current home for a while, consider whether it makes sense to refinance your mortgage at today’s lower rates.



MILLENNIALS WILL DRIVE THE MARKET



Millennials are expected to account for more than half of all mortgages this year, outnumbering Generation X and Baby Boomers combined. It’s not surprising, considering their age and stage of life. In 2020, the largest cohort of millennials will turn 30, and the oldest millennials will turn 39.8


"Family changes tend to drive home-buying decisions," explains Realtor.com Chief Economist Danielle Hale. "Millennials are going to be active in the housing market not just because they're just at the age when they're thinking about becoming first-time home buyers, but they're also in the age range when they're having kids."12


Younger millennials flocked to urban centers that offered easy access to work, shopping, and restaurants. But high prices, lack of square footage, and subpar schools are driving millennials out to the suburbs as they begin to marry and expand their families.


In response, a new model for suburban living has emerged. “Hipsturbias,” or mixed-use communities that bring the live/work/play concept to the suburbs, were recently named one of the top real estate trends for 2020 by the Urban Land Institute.4


What does it mean for you? If you’re a millennial who has been priced out of urban living or is looking for more space for your growing family, a number of suburbs in our area have a lot to offer. We can point you towards the communities that will best meet your needs. And if you’re a homeowner with plans to sell, give us a call. We know how to market your home to millennials … and can help you sell quickly for top dollar by appealing to this leading market segment!



WE’RE HERE TO GUIDE YOU



While national real estate numbers can provide a “big picture” outlook, real estate is local. As local market experts, we can guide you through the ins and outs of our market and the issues most likely to impact sales and home values in your particular neighborhood.


If you’re considering buying or selling a home in 2020, contact us now to schedule a free consultation. We’ll work with you to develop an action plan to meet your real estate goals this year.


 


Sources:

NBC News -
https://www.nbcnews.com/business/economy/what-impending-recession-new-survey-shows-most-people-think-they-n1098511
Curbed -
https://www.curbed.com/2019/1/10/18139601/recession-impact-housing-market-interest-rates
HousingWire  -
https://www.housingwire.com/articles/corelogic-expects-home-prices-to-do-this-in-the-next-12-months/
Forbes -
https://www.forbes.com/sites/alyyale/2019/11/15/2020-housing-outlook-expert-predictions-for-mortgage-rates-home-prices-tech-and-more/#343ea4522935
National Association of Realtors -
https://www.nar.realtor/newsroom/expect-continued-economic-growth-slower-real-estate-price-gains-and-small-chance-for-recession-in
Redfin -
https://www.redfin.com/blog/homeowners-staying-in-their-homes-longer/
HousingWire -
https://www.housingwire.com/articles/builders-are-coming-to-the-housing-markets-rescue/
Realtor.com -
https://www.realtor.com/research/2020-national-housing-forecast/
YCharts -
https://ycharts.com/indicators/30_year_mortgage_rate
MBA Mortgage Market Forecast November 2019  -
https://www.mba.org/news-research-and-resources/research-and-economics/forecasts-and-commentary
Dallas Morning News -
https://www.dallasnews.com/sponsored/real-estate/2019/11/23/experts-predict-where-mortgage-interest-rates-land-in-2020/
Realtor.com -
https://www.realtor.com/news/trends/biggest-changes-coming-in-2020-real-estate-and-tips-for-buyers-and-sellers/





 

 

 

Posted in Market Updates
Dec. 22, 2019

Useful Technology for Every Room in the House

If you are looking for a new and useful gadget for your home this holiday season? If so, check out our list of the hottest home technology offerings. We’ve selected a few of our favorites for every room in the house.

These smart systems and devices add comfort, convenience, and a “cool factor” that will delight your friends and family.  So think about who you know that loves the latest gadgets … or add a few of these to your own wish list!

Entryway

Smart Lighting

Ring, a company best known for its video doorbells, has added smart lights to its series of integrated devices. The Ring Smart Light System includes motion sensors, pathlights, spotlights, and even step lights, which can be turned on and off using voice commands when paired with an Amazon Alexa device. Users may opt to receive a notification when motion is detected on the premises, and—if integrated with Ring security cameras—access a live video stream for an added layer of security. Systems start at $69.99.

 

Video Doorbell

Video doorbells have become an increasingly popular security enhancement for homes, and for a good reason. Homeowners can detect activity at their front door while away, view visitors via video stream, and communicate without opening the door. Since Ring released its first smart doorbell in 2013, a number of competitors have entered the market. The Nest Hello Video Doorbell has some unique features—like facial recognition, package detection, and pre-recorded quick responses—that place it near the top of the pack. Retails for $229.

Smart Lock

Smart locks are a great way to ensure your friends and family are never left out in the cold, and the August Smart Lock Pro+ Connect is among the most highly rated. It’s one of the easiest models to install because it pairs with an existing deadbolt. The Smart Lock Pro enables a user to lock and unlock their door remotely with an app on their phone. And with the auto-lock/unlock feature, it can be set to open automatically upon approach and relock after entry. Retails for $279.

 

LIVING ROOM

These fun and functional gifts are perfect for anyone who is big on style—but short on time.

 

Automated Planter

Caring for household plants is easier than ever with the latest advancements in technology. Perfect for frequent travelers or forgetful friends, the Dewplanter uses moisture in the air to water plants without manual intervention. Now nature lovers can enjoy the beauty and health benefits of houseplants without the hassle. Plus, for each unit sold, the company pledges to plant a tree somewhere it’s needed. Retails for $69.50.

Smart Art

Instead of buying your favorite art lover a single painting, why not give him or her 30,000? With the Meural Canvas, you can access an extensive collection of artwork from around the world to display digitally in your own home. Meural utilizes proprietary technology to deliver an anti-glare matte display that automatically adjusts to the lighting in the room. Personal artwork and photographs can be showcased, as well. Retails for $445 with annual membership.

 

Motorized Shades

Motorized window coverings aren’t new, but a lower price point and enhanced features have helped to boost their popularity. The latest Motorized Shades from Somfy can be preprogrammed to raise or lower at certain times of day or controlled on-demand via a remote, smartphone app, or voice command when paired with Amazon Alexa or Google Home. They can also be set to operate automatically in response to the amount of sunlight or temperature of the room. Contact a dealer for pricing.

 

KITCHEN

These kitchen gadgets make life a little easier and a lot more enjoyable. They’re perfect for your busiest friends and family members!

 

Pressure Cooker

Have you jumped on the multi-cooker bandwagon yet? If so, you know how fast and simple these multifunctional appliances make meal preparation. The InstantPot Duo is a pressure cooker, sauté pan, steamer, slow cooker, rice cooker, food warmer, and yogurt maker all-in-one. It reduces cooking time and lowers energy consumption. Who wouldn’t love one of these versatile tools? With numerous cookbooks and blogs devoted to InstantPot recipes, the meal options are virtually endless. Retails for $99.95.

Cocktail Machine

Cocktail connoisseurs will appreciate the ease and convenience of the Bartesian Premium Cocktail Machine. Listed among “Oprah’s Favorite Things” for 2019, the Bartesian mixes drinks with the touch of a button. Simply fill the canisters with base spirits, choose a cocktail capsule, and the machine does the rest. Now you can mix a margarita, whiskey sour, cosmopolitan, and other favorites as easily as you brew a cup of coffee. Retails for $349.

Smart Refrigerator

Kitchens are often called the “heart of the home,” and a new refrigerator from Samsung aims to be the hub. The Samsung Family Hub Refrigerator helps busy families stay organized. Grocery shopping becomes a breeze with built-in cameras that allow owners to peek inside their fridge from anywhere. The interactive touchscreen displays pictures, notes, and reminders for family members. And the integrated SmartThings app enables users to control smart devices and appliances from a central point. Base model starts at $3,099.

 

BEDROOM

Almost nothing beats a good night’s sleep. Help your loved ones wake up refreshed with these smart devices for the bedroom.

 

Baby Sleep Soother

As any parent knows, when your baby isn’t getting sleep, neither are you. Help everyone in the family catch some z’s with a Bubzi Co Soothing Owl. This cuddly creature plays lullabies while projecting a starry scene on the bedroom wall to calm young children and help them drift off to sleep. And for every purchase, Bubzi Co makes a donation to Postpartum Support International. Retails for $30.95.

 

Sunrise Alarm Clock

Know someone who hates getting up in the morning? Alarm clocks that utilize light instead of a noisy alarm can provide a more peaceful transition in and out of sleep. The Philips SmartSleep Connected Sleep and Wake-Up Light includes customizable sunrise and sunset simulation, guided breathing exercises, and sensors that track room conditions, like temperature, humidity, noise, and light. Retails for $199.95.

 

Smart Thermostat

Temperature fluctuations during the night can disrupt sleep. The Nest Learning Thermostat uses smart technology to track a user’s preferences and build a schedule around them. Homeowners can place one of its integrated sensors in their bedroom to maintain a consistent temperature throughout the night. And Nest thermostats cut energy consumption, so they’ll rest easier knowing they’re saving the planet and money on utility bills . Retails for $249.

 

 

BATHROOM

Bathrooms don’t have to be boring. Technology can add flair to the daily routine.

 

Waterproof Speaker

Music enthusiasts and podcast fans will enjoy streaming their favorites in the shower with a wireless waterproof speaker. The Ultimate Ears Wonderboom 2 is a mid-priced and versatile option that can go from the bath to the beach. It packs an impressive 13-hour battery life in a small, portable case that’s waterproof, dust-proof, and floatable. Retails for $99.99.

 

Digital Smart Scale

A scale isn’t an appropriate gift for everyone, but diet and fitness enthusiasts may appreciate the high-tech features available with the Withings Body+. It tracks weight, body water, and fat, muscle, and bone mass for up to eight users. It can also be set to display local weather and the previous day’s step count. Customized pregnancy and baby modes make this a suitable choice for a growing family, as well. Retails for $99.95.

 

Vanity TV Mirror

For a truly luxe bathroom addition, consider an integrated vanity television mirror. The Seura TV Mirror seamlessly incorporates video into a bathroom vanity. It’s vanishing glass technology makes it possible to view the television through a mirror. When turned off, the screen completely disappears. Add lighting or a custom frame to complete the look. Starts at $3,099 for a 19” display.

 

 

OUR GIFT TO YOU

Are you considering a permanent technology upgrade for your own home? Give us a call first! Buyer expectations and preferences vary depending on price point, architectural style, and neighborhood. We can help you determine how the enhancement will impact the value of your home before you make the investment.

Jan. 7, 2019

Greater Lexington KY - January 7th

Daily Inspiration

Life is 10% what happens to you and 90% how you react to it. 

                                         Charles Swindoll

Daily Home

Home for Sale on 148 Manitoba

Thinking About Selling?? Find your estimated Value 

Daily Lexington Lunch Idea

South Side
Little Caesars - 
3601 Walden Drive - 859.273.7300
     4 piece deep dish pepperoni pizza & a 20 oz. drink.... only $5.00 

North Side
Liberty Road Cafe - 720 Henry Clay Blvd - 859.621.1550
     Fire smoked Ham & Swiss with lettuce & tomato.... only $5.00 
Daily Dog

Daily Trivia

What US State is home to the Sundance Film Festival?  
(answer below)
Daily Birthdays
  • Kenny Loggins, singer - 70
  • Katie Couric, TV host - 61
  • Nicolas Cage, actor - 54
  • Jeremy Renner, actor - 47
  • Lauren Cohan, actress - 36
Trivia Answer - Utah 
The Digs Group
The Digs Group
859-474-1133
Sept. 5, 2018

Rector Hayden Realtors - Woodford County Real Estate Report

Woodford County Real Estate Report - Sept 2018

This real estate report includes Versailles and Midway KY residential sales reported by the local MLS.

As of the 1st of September 2018 there were 95 residential properties for sale in Woodford County. 

Some price points only have 1 month or less of inventory. The 120,000 to 179,999 price range only has 1 month or less of inventory.  That means that homes in this price range usually stay on the market for 30 days or less.

Rector Hayden - Woodford County KY - Real Estate Report

Thinking about selling?  Feel free to contact us.

Jeri Hartley - 859-489-6252

 

Sept. 4, 2018

Greater Lexington Real Estate Report for September 2018

Welcome to the Greater Lexington Kentucky Market Report

Hello my name is Jody Moore with Rector Hayden RealtorsRector Hayden has been a name in Central Kentucky since April 1969. If you are curious about the average home sales price I have put together this Market Report for you.

If you are thinking about buying or selling I'd be glad to help you with any and all of your real estate needs.››

Average Home Sales Prices (YTD)

Average Home Prices in Fayette County Kentucky - Lexington KY 
2018(YTD) - $242,914
2017 - $231,403
2016 - $216,268
2015 - $212,084

Average Home Prices in Jessamine County Kentucky
2018(YTD) - $254,825
2017 - $229,444
2016 - $226,216
2015 - 220,506
Search Homes For Sale in Nicholasville KY

Average Home Prices in Woodford County
2018(YTD) - $246,345
2017 - $259,216
2016 - $221,445
2015 - $209,709
Search Homes For Sale in Versailles KY

Central Kentucky Residential Homes   Areas (1-40)

Average Sale Price History

1970 - $41,577   1997 - $116,996
1971 - $43,942 1998 - $124,616
1972 - $44,714 1999 - $130,773
1973 - $47,952 2000 - $136,958
1974 - $49,431 2001 - $139,771
1975 - $52,918 2002 - $146,447
1976 - $54,260 2003 - $153,861
1977 - $57,028 2004 - $161,956
1978 - $59,489 2005 - $170,716
1979 - $65,148 2006 - $174,498
1980 - $71,740 2007 - $174,063
1981 - $74,482 2008 - $169,461
1982 - $75,877 2009 - $164,273
1983 - $75,308 2010 - $167,919
1984 - $82,992 2011 - $164,240
1985 - $83,243 2012 - $168,439
1986 - $87,960 2013 - $170,092
1987 - $93,766 2014 - $175,555
1988 - $96,178 2015 - $182,958
1989 - $99,806 2016 - $189,331
1990 - $101,991 2017 - $199,252
1991 - $102,938 2018 (ytd) - $207,641
1992 - $104,036
1993 - $105,993
1994 - $108,451
1995 - $113,278
1996 - $114,603
 
Aug. 29, 2018

Drakes in Nicholasville

Drake's

Drakes new building in Nicholasville is coming along nicely!!!

Drakes in Nicholasville