Kentucky REALTOR® News
- Call for Action: Reauthorize the National Flood Insurance Program (NFIP)
- June 20, 2018
The National Flood Insurance Program (NFIP) will expire on July 31, denying necessary insurance coverage to homeowners and buyers in more than 20,000 communities nationwide. Congress must act now to reform and extend the NFIP.
As the leading advocate for private property rights and housing issues, NAR supports long-term reauthorization and reform of the National Flood Insurance Program before it expires on July 31.
America’s 1.3 million REALTORS value the NFIP as a critical tool to help protect homeowners and ensure access to affordable flood insurance. In fact, as flood insurance is required for a mortgage across 22,000 communities in America, a prolonged lapse in authority could jeopardize the sale of up to 40,000 homes per month in the United States.
While every day brings us closer to NFIP expiration, the urgency of its reauthorization is not new to Congress or anyone reliant upon the flood insurance program.
KYR is offering the chance to win a FREE registration to the KYR Annual Convention in Louisville this September, valued at $139. Any member who participates in this CFA will automatically be entered to win, and the winner’s name will be drawn at random at the conclusion of the CFA. Also, you can help your board win too. KYR is offering $100 gift cards in each of the board categories (small, medium, and large) with the greatest member participation in the CFA.
DID YOU KNOW:
- Over the last 40 years, Kentucky experienced over $328 million in paid out damages for flooding. This included 23,898 total losses.
- Kentucky has almost 21,000 homes that maintain flood insurance and owners pay almost $20 million in premiums.
- Kentucky home owners have over $3.5 billion in flood insurance coverage on properties across the state.
- Since 2008, NFIP has been extended 23 times and shut down for a combined period of 2 months.
- More than 5 million Americans in 22,000 communities nationwide rely on the National Flood Insurance Program (NFIP).
- Floods are not just coastal issues. In fact, floods accounted for 73% of federal disaster declarations between 2008 and 2017.
Why renew NFIP?
Flood insurance isn’t just for coastal properties - inland areas flood, too. And if the NFIP lapses, up to 40,000 transactions per month could be affected.
The National Association of REALTORS® supports several revisions to the program:
- Reauthorizing and gradually strengthening the NFIP so it’s sustainable over the long run
- Encouraging the development of private market options to offer comparable flood insurance coverage at lower cost than NFIP
- Providing federal assistance to high-risk property owners, including guaranteed loans, grants, and buyouts to build to higher standards and keep insurance rates affordable
- Providing fair flood insurance rates that better reflect the property’s flood risk
- Improving flood map accuracy so fewer property owners have to file expensive appeals
In addition to participating in the Call for Action, we are asking for your help in promoting this to other members.
Help Kentucky reach a 20% response rate so our voice is heard on this important issue
- Click here for the NFIP Resource page
- Click here for the CFA Toolkit
- Click here for the REALTOR Action Center Facebook page that includes shareable graphics and information
- Click here for communication materials and talking points
- Click here to find out how Kentucky is doing compared to other states
- Click here to find out how your local association is doing compared to others in Kentucky
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Sign up for REALTOR Party Mobile Alerts and take action on important issues facing real estate. Mobile alerts come to your mobile phone and only take a second to respond. These matter to legislators when dealing with issues like MID, flood insurance and more. Text REALTORS to 30644.
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- Real estate sales in Kentucky see first increase in 2018
- June 5, 2018
April's volume is the highest ever for the month
In a reversal of course and going against the national trend, Kentucky’s housing sales were up in April for the first time in 2018 and the first increase since October 2017.
Real estate sales reached 4,545, which is a 7.4 percent increase over April 2017 and an all-time high for the month. Year-to-date, homes sold are still down less than 1 percent over last year with only 79 less transactions in the first four months of 2018 compared to the same period in 2017.
“We are now in the prime home buying and selling season,” said Steve Cline, 2018 president of Kentucky REALTORS®. “In fact, April was the first increase in sales the state has seen since October 2017. Inventory issues have really limited the ability for buyers to make a move, but pent up demand seems to be driving the market. This month showed a significant decrease in days on market and inventory which means homes aren’t staying on the market very long. The next few months will provide a better outlook on where Kentucky may land for the year in real estate.”
Going into the busy real estate period, days on market dropped 3.4 percent to 115 days in April from 119 last year and down from 120 days in March. Inventory across the state fell almost 10 percent from a year ago, with only 3.8 months of inventory on hand. There was a slight decline in housing inventory to this point in the year, with 3.8 months of supply for March, a decrease of 5 percent over last year and down 2.1 percent to 4.7 months, for the quarter. Year-to-date, days on market is down 4 percent compared to 2017 and inventory is down 3.6 percent, reaching 4.57 months overall.
Nationally, home sales slid 1.4 percent in April, but home prices were up 5.3 percent over a year ago. Properties typically stayed on the market for 26 days in April, which is down from 30 days from two months ago and 29 days a year ago. Fifty-seven percent of homes sold in April were on the market for less than a month. Total housing inventory at the end of April increased 9.8 percent, but is still 6.3 percent lower than a year ago.
Lawrence Yun, NAR chief economist, says that the homes available for sale are going under contract at a rapid pace. Since NAR began tracking this data in May 2011, the median days a listing was on the market was at an all-time low in April, and the share of homes sold in less than a month was at an all-time high.
Prices in Kentucky rose 7 percent year over year, reaching a median of $136,250 in April, making it the highest ever recorded for that month and the third highest median price ever in Kentucky. April’s median price was 3 percent higher than the previous month in March. Year to date, the median home price of $127,659 is 7 percent higher than it was at this time in 2017, putting it on pace to break another annual record. Total sales volume was another April record, reaching over $880 million, an increase of more than 14.6 percent over the $768 million sold in April 2016, the previous record for the month.
“Throughout the state, the housing market is still very hot as more and more people are wanting to take advantage of Kentucky’s affordable housing prices while interest rates are still low,” said Cline. “The national picture shows a cooling off of pending sales, but the south, which includes Kentucky, is still higher now than it was this time last year. From what I am seeing across the state, demand for homeownership is very robust and will continue that trend for some time.”
Kentucky REALTORS® is one of the largest and most influential associations in Kentucky. Founded in 1922, Kentucky REALTORS® represents more than 10,800 REALTORS® who are involved in all aspects of real estate, including residential and commercial real estate brokers, sales agents, developers, builders, property managers, office managers, appraisers and auctioneers.
To view housing statistics for the state, as reported to Kentucky REALTORS®, visit housingstats.kyrealtors.com.
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