Specializing in Relaxed Living

Total inventory continues to rise, however this is to be expected in our traditional best selling season. Total solds are up about 6% from last year. New pendings (under contract up 60% from the previous year, with average selling prices also up (and let me stress this -- FROM LAST YEARS PRICES). New listings are up over the last three months from moth to month, however they are down 11% from the previous year. Consumer confidence is slowly stairstepping upwards, CPI back up in the 2-3% range, however overall unemplyment remains above 10%, while job formation total numbers are still minus, the upward trend continues.

Meaning, when looking at supply and demand, we are seeing a reduction in the overal number of homes for sale as compared with the Huge inventory we had last year, and the numbers of pendings continue to increase. As this trend comtinues over several months, we may indeed have a confirmed bottoming out of the market, but it is still too early to call it a "turn around" even though all the indicators are going in the right direction.

3/20/2010 Barbara Corcoran's 7 best selling tips (I just HAD to share this with y'all, it is SOOOOO true!)

Today Show's real estate expert Barbara Corcoran offered the following suggestions for sellers in today's marketplace. Called the "Seven Best Tips for Selling Your Home", they are:

              Under-Price your home by 10%
              Fix up and Pre-Inspect
              Make rooms look bigger
              Get more Light
              Look and Smell Clean
              Improve Curb Appeal
              Take Great Photos

Confused by any of this? Call us today and we'll give you the reasoning behind each suggestion.

For several months now, I've been advising our active clients that the financial part of their purchase or sale would soon be impacted by changing federal programs. We all knew that there was a definite end to the First Time Home Buyer Incentive and the Seller's Tax Rebate (April 30th). One of the other programs is the US Department of Agriculture's Rural Development Loan Program (USDA) which provided 100% financing for eligible properties and eligible buyers, and in some cases, in excess of 100%. Well, late last week we got the news that this popular program was running out of money, so applicatoins were being shut off. That occurred on Friday. As I've always said, the most important part of homebuying is to get the financing in order first, because it take the most time and effort.

Will Mortgage Rates increase? We're at 4.5 - 4.75 (one of the lowest 30 year fixed rates in decades) . The Fed is in the final three weeks of a mortgage-buying initiative that began more than a year ago. In all, the Fed plans to buy $1.25 trillion in mortgage-backed securities. The central bank is down to the last $30 billion or so of these purchases. Afterward, it will be up to investors to buy mortgages and keep home loans available. All things considered, this is a prime time for the rates to change, and a terrific time to buy a house. Lots to choose from, cheap mortgage money is availabe (at the moment), and prices are deflated because of the overly abundant supply.

The overall housing market seems to be "bouncing along the bottom". As of the end of January, all the significant indicators from our FMLS system, are way better than last year at this time. Inventory is significantly down, Solds are down only slightly, Pendings are up, as is average sales price, New listings are down sightly, as are expireds and withdrawns. All this indicates a better overall market right now (relatively less to choose from). We expect that as we get further into Spring, we'll see these numbers change significantly.

December economic indicators show consumer confidence on a steady rise since October, and a bump in inflation to the 2.7% level. The unemployment and job formation numbers are encouraging, signalling a glimmer of good throughout the economy. As the economy gets better, some inflation increase is to be expected.

All things considered, these numbers reinforce our feeling that we are "bumping along the bottom of the market", but that it may be premature to actually call it a "turnaround". There's still a huge supply of "shadow inventory", foreclosures being held by banks, that is not on the market. As inventory continues to decrease, and the economic indicators increase, we'll probably see some of that shadow inventory appear on the market as competition.

Whether buying or selling, as our client, we'll provide more detailed information and specific recommendations.

Mortgage rates ended 2009 above 5 percent, with Freddie Mac reporting 30-year fixed rates at an average 5.14 percent -- still very affordable by historical standards. Although higher long-term borrowing costs late in the year could signal further increases for 2010, new data from Wells Fargo, JPMorgan Chase and the Mortgage Bankers Association indicates more borrowers are refinancing into 15-year loans in hopes of paying off home debt faster. According to MBA, 15-year fixed loans accounted for nearly 20 percent of refinance applications in October 2009 -- up from 9.1 percent in October 2008 and compared to 7.5 percent in October 2007.

Housing Outlook: Four articles in the weekend editions of the Post looked at various aspects of the housing market. Columnist Benny Kass said he sees improvements in the housing market but still possibilities for fraud and problems with commercial real estate. Another story looked at tentative signs of healing in the housing market in the new year. A third story said recent regulatory guidance has outlined the dangers of reverse mortgages. A fourth said all-cash investors are snapping up cheap property and helping clear out the excess supply in the housing market but at a cost to traditional home buyers.

I've highlighted the last article because it points to the fact that right now there is a tremendous opportunity for both the investor as well as the owner-occupied purchaser in the market. The competetion between these two groups of buyers is taking most of the more desirable properties off the market. And this is going to continue through the rest of the current market swing. If you're wanting to take advantage of the first time homebuyer credit or the seller tax credit, YOU MUST ACT NOW and get your property under contract well before the deadline, since many lenders will stop accepting new loan applications well in advance of the April 30 deadline. ALSO, Cash is King, and there are many more cash buyers out there right now, locking in the good properties. Waiting will cost you money. Call us today and lets get started!

One of my clients on Lake Lanier asked why his house wasn't worth as much as he thought it was. I responded by telling him that just like the other areas of the country, a house is only worth what a buyer is willing to pay for it. While all of us lakeside homeowners have had certain prices in our minds for a long time, selling a lake house requires that you understand the financial climate of the area before you decide to put that "For Sale" sign in the front yard. Just like any other market, if the houses that are selling have the same features yours does, but they've all sold in the $300-400k range, you can bet that if your asking price has a 6 in front of it, it's probably going to sit there a while.

As a homeowner thinking about selling your home, you absolutely MUST understand several simple but unwavering laws of economics that govern real estate sales. When I interview a homeowner about selling their home, my first duty is to educate them as to the selling environment that we have, the marketing principles that come into play, and several rules of human nature that guide home buyers. Only in this way can my future client really make sound judgements about selling their investment.

So what's the scoop on lanier homes right now? In the last several months, most of the homes that have sold were financially distressed, and many more are being offered as pre-foreclosure and/or short sale. One of my colleagues said that the slow market was in part due to lenders requiring more than 20% down payment on properties that historically have been well north of the sixes. My response was that there are plenty of buyers out there with the funds to put down the historically required 20%. Those same buyers who were shrewd and/or smart enough to save that money in the first place are also the ones playing the waiting game and buying the distressed properties at bargain basement prices. Until the distressed (financially) lake homes get taken off the market, slow numbers of sales will continue, and unfortunately lots of other homes will remain unsold.

So if you're one of our neighbors on the lake (and its great to live on a full lake, isnt it?) and you're thinking about cashing in your investment, take the time now to CALL US PLEASE, and lets talk about how to do it right, to maximize your profits in the selling environment we currently have.

On Tuesday Sept 22nd, Today Show's real estate expert Barbara Corcoran offered the following suggestions for sellers in today's marketplace. Called the Seller's Deadly Sins, these are typical pitfalls that sellers should avoid when trying to sell their homes with or without the assistance of a Realtor:

               Being Insulted by a low offer
              Waiting for a better offer
              Hanging around at your open house
              Limiting hours a house can be shown
              Leaving closets a mess
              Not making needed repairs
              Not getting rid of extra STUFF
              Haggling over the price of extra items
              Posting bad pictures online
              Trying to negotiate your Realtor's fee.
              Emptying your house of furniture.
       Confused by any of this? Call us today and we'll give you the reasoning behind each suggestion.

8/7/09: Initial stats indicate that in some areas of the Metro, the available inventory of homes is decreasing markedly and sales are levelling out or slightly increasing. While it is still too early to say anything definitive about July stats (it usually takes several weeks before all the changes are updated and verified), the initial indication is that we may be bouncing along a bottoming of our market. This, by itself is good news. It's even encouraging when you look at some areas and subdivisions very closely, and you may see some indications of activity (new building starts). Overall, Actives are down 2500, Pendings are down 700, Solds are down 180 from this time last month.

For a long time the Atlanta Metro has been designated a "declining market" by national mortgage agencies such as Fannie Mae and Freddie Mac, as well as many other lenders. The upshot of the federal designation has been a tightening of credit rules, the most obvious impact is the requirement for a larger down payment for both conventional loans (minimum 10%) and FHA loans (5-7.5%). As the market continues to level off, that designation should change from "declining" to "stable". Once that occurs,. we should see a slight loosening of credit requirements, bringing good news to buyers. The proof is in the pudding: if the August sales numbers rise, it would be a positive step for market turnaround and eventual recovery. Buyers, call us now for an update!

For Buyers: Get pre-qualified now before the rush starts. Call us today! For Sellers: If you have your home priced for the market, you should see an increase in showings throughout the rest of August. If not, then your house is still overpriced. Call us today and get a reality based recommendation on pricing and selling your home.

But why aren't home sales improving? Simple answer, the data being reported is several months old, and it takes a while to complete statistical analyses. So just llike declaring a recession, we wont know if we've bottomed out until well after the fact. And many of the great deals for buyers will be gone by then. In reviewing month to month data, I see a slowing of price declines, a slight decrease in inventory levels, and an increase in numbers of sales. Which, if after 5-6 months of consistently the same movements, will officially signal a "trend." We currently have historically extremely high inventory levels, and until prices come down to the point that buyers see value in their home purchase, we'll not have a turnaround in the market.

There are very simple, but consistent rules that guide the housing market. The first is that Buyers will not Buy until they see value in their decision. The number of Buyers remains fairly constant, but the numbers of houses that are priced right for the market goes up and down. Homes that are in top condition and priced competitively for the market, get sold evey day. The second rule is that as soon as your house goes on the market, the current buyer pool has already seen everything else available and will know instantly if your home is overpriced. The third rule is that if you overprice your home, it will take longer to sell and will sell for less than if you had priced it right to begin with.

My goal is to educate my sellers so that they make sound decisions when marketing their home. Once you understand the above market principles and others, you will have the tools to make good decisions on how to price your home so that it sells in the time frame you want. Sometimes, my clients decide NOT to put their homes on the market, once they understand the market conditions and the environment they are about to enter. I would rather have my clients decide not to list their property, rather than list it and be disappointed with the outcome.

The $4 trillion housing headache; Fortune
House prices are taking a long ride in the wayback machine. Unfortunately, Americans' housing-related debt isn't going anywhere fast. Prices in big U.S. cities posted their biggest-ever decline in the first quarter, according to the most recent S&P/Case-Shiller National Home Price index. After nearly three years of declines, house prices nationwide are back at 2002 levels -- and still falling.

BofA giving munis first shot at REOs; Inman News
Bank of America says it will give municipalities receiving neighborhood stabilization grants a "first look" opportunity to purchase bank-owned properties before they are listed on multiple listing services and public sites. The bank said it's streamlining the process for municipalities to purchase properties from its real estate-owned (REO) portfolio to help them leverage federal grants and minimize the impact of foreclosed homes on surrounding property values.

New bill gives prime borrowers a pass; Inman News
A competitive mortgage market that would work for borrowers requires an effective system of mortgage disclosures and a set of transaction simplification rules to equalize the playing field between borrowers and loan originators. As indicated last week, an effective disclosure system would require that Congress remove itself from disclosure operations, eliminate all existing congressionally mandated disclosures, which are largely useless, and entrust sole responsibility to one agency that would set and revise the required disclosures as needed. Last week, I lamented that HR 1728 did not fix any of the deficiencies in the system of mandatory disclosures, but simply added more disclosures to an already excessive pile.

First-time homebuyers can get short-term loans for $8,000 tax credit; USA Today
Thousands of first-time homebuyers will be able to get short-term loans so they can quickly make use of a new $8,000 tax credit. The Federal Housing Administration on Friday released details of a plan in which borrowers who use FHA loans can receive the credit before they complete their taxes. The FHA had no estimate of how many borrowers would qualify. But the agency, which backs about a quarter of new-home loans, is projected to guarantee about 2.2 million loans in the next budget year.

FHA Extends Credit to Purchase; Investor’s Business Daily
The U.S. government has agreed to "monetize" its new tax credit for first-time home buyers so that it can be put toward actual purchase costs. To qualify, borrowers must have an FHA-insured loan and contribute a minimum down payment of 3.5 percent. HUD Secretary Shaun Donovan said that by allowing home buyers to use the tax credit for their purchase, the housing market can be stabilized more quickly.

Credit Unions in Alliance See Mortgage Volume Rise; Washington Business Journal
Residential mortgage lending volume has rocketed 242 percent in the first quarter from a year ago for credit unions participating in a mortgage alliance between Fannie Mae and the National Association of Federal Credit Unions. More consumers are looking to refinance into lower mortgage rates, and the alliance allows credit unions to sell mortgages directly to Fannie Mae in order to obtain money to meet the demand.

Genworth Helping Clients Stave Off Foreclosure; Richmond Times-Dispatch
Genworth Financial Inc. has stepped up its efforts to help people avoid foreclosure, having arranged more than 15,400 "workouts" nationwide during the year ended March 31. That is a 66.7-percent increase from the year before. For the Virginia-based mortgage insurer, these workouts make sense in that they have prevented foreclosure on more than $2 billion of mortgage debt.

Consumers Invited to Comment on FTC Rulemaking on Deceptive Mortgages; Ecommerce Journal
The Federal Trade Commission is considering a rule that would create standards for the practices of companies providing foreclosure rescue and loan modification services. The public has until July 15 to comment on the Mortgage Assistance Relief Services rulemaking -- which would restrict or prohibit firms from seeking advance fees for services, in an attempt to protect homeowners from unscrupulous businesses. The FTC also is giving the public until July 30 to comment on the Mortgage Acts and Practices rulemaking, as it seeks to determine whether rules are needed to protect consumers from practices throughout the life cycle of a home loan.

Home Prices Fall in First Quarter; Pace of Decline Lessens Considerably; Ris Media
U.S. home prices fell in the first quarter of 2009 according to the Federal Housing Finance Agency’s (FHFA) seasonally-adjusted purchase-only house price index (HPI). The previously announced, but revised January and February indexes showed increases in house prices, which were offset by a March decrease. The purchase-only HPI, calculated using home sales price information from Fannie Mae and Freddie Mac-acquired mortgages, was 0.5% lower on a seasonally-adjusted basis in the first quarter than in the fourth quarter of 2008. This decline was much more modest than the 3.3% decline in the prior quarterly period. Over the past year, seasonally-adjusted prices fell 7.1% from the first quarter of 2008 to the first quarter of 2009.

Fed Mortgage Efforts Prove Costly; Wall Street Journal
Since fall 2008, the Federal Reserve has purchased more than $480 billion in mortgage-backed securities and more than $130 billion in Treasury bonds in an effort to hold down mortgage rates; but with the 30-year fixed rate rising above 5 percent in the most recent week, experts say the central bank's purchase program has had a limited impact. A J.P. Morgan Chase & Co. analysis of the Fed's portfolio shows it is approximately 10 percent underwater and would suffer a $5 billion loss if these investments were marked to market. Although the Fed's per-borrower cost is about $2,500, according to the report, its purchases have assisted 2 million borrowers in refinancing who otherwise could not have.

Mortgage Delinquencies Increase Again; Wall Street Journal
TransUnion.com reports that the number of borrowers at least two months behind on their mortgage payments increased for the ninth consecutive quarter, to 5.22 percent. The first-quarter U.S. average is 14 percent higher than the fourth-quarter average and 62 percent higher than during the same period a year earlier. Furthermore, TransUnion.com reports that the quarterly delinquency-growth rate is almost twice that seen during 2001's recession. Geographically, delinquency rates were highest in Nevada and Florida and lowest in North Dakota.

Why Some Say Brokerage Model Still Can Rebound; American Banker
Although the economic downturn and mortgage crisis have reduced loan brokers' share of the business, experts believe they have a future -- but they may have to alter their business models. Fannie Mae and Freddie Mac's Home Valuation Code of Conduct, possible reform of the Real Estate Settlement Procedures Act, a move to prohibit yield-spread premiums and a decrease in available warehouse credit all pose challenges; but experts say brokers able to arrange FHA and VA loans will survive. In response, brokers increasingly are considering mergers with retail mortgage chains, joining net branch outfits or forming other joint ventures; and some brokers are taking steps to become mortgage bankers.

As we've talked about before, nobody was ready to call it a recession until they were sure, and could pinpoint the start of it. Part of that problem was in the fact that it takes a number of months with all the negative numbers to come in, for economists to actually have good data to use. And, most of the data has about a 6 month lag time before it's available. Finally, those negative numbers have to be in place a minimum of five months in a row in order to establish a verifiable trend. Well, today they finally did, and pinpointed December 2007 as the official start of the recession.

Interestingly enough, that month also coincides with one of the data points we use from the Case Schiller Housing price index report, published monthly. While most of the nation was showing negative numbers from as early as June 2006, the Atlanta Metro didnt really start the slide until August 2007. And 5 months after that gives us December.

So for all you sellers, we've been able to accurately identify the fair market value of your homes throughout the period by simply looking at the various factors in play, applying other comparables in your neighborhood, and figuring out what your home should have sold for, but didnt, because it was priced wrong for the current market. Today's index is right around 106.65, a long ways from the index in August 2007 of 136.47. In November 2000 the index was 106.04. It's not pretty, but it's the truth. Many industry experts anticipate that after the eventual turnaround, it may take 2-3 years to recover to November 2008 levels, and up to 7 years for prices to recover to our 2007 peaks.Give us a call and we'll explain it to you.

If you're a seller it's way past time to take a realistic view of the market. We can help you do that with the understanding of the current market's dynamics. If you're a buyer, now's a great time to lock in a very attractive mortgage and the lowest price in a home that you'll see for a very long time to come. Call us today, lets get started!

Looking back at the stats for November (just posted) there are some areas of Atlanta that are demonstrating a positive market, specifically Fulton County, and some sectors of Cobb. In these areas, we can see that we have an appreciating market, meaning the number of sales is greater than the number of new listings, and the total number of listings has been going down for several months. This is good news for some sellers, since a decreasing inventory, and more sales means a better opportunity to sell a home.

The skeptics will say that this is just a bump in the road, and frankly they may be right. However, we've just entered the traditionally good time of year to sell a home, and many companies are still moving their corporate folks around, meaning more quality buyers in the marketplace, and competition will heat up for the next several months. If you tried to sell last year and took your home off the market, now's the time to get back into the competition before the active buyers decide on someone else's house.

CNBC just reported that the top ten places where home prices will rebound first are: Albuquerque, Charlotte, San Antonio, Portland, Austin, Slat Lake City, Colorado Springs, Minneapolis, Atlanta and Oklahoma City. In Atlanta, despite some of the highest foreclosure rates in the country, the Atlanta Metro is the destination for a large number of company relocations which will help Atlanta absorb many of the market shocks that other parts of the country cannot cope with. The common thread is jobs, and with Atlanta's strong and varied job market, the housing sector benefits greatly, as compared with other cities that have a lot of their jobs embedded in the construction industry. Click here for the video.

9/6/08: Thinking of selling in a tough Buyer's Market? The top 5 home improvement ideas, and the bottom 5.

Today Show's real estate counselor Barbara Corcoran provided the worst and best home improvement ideas to help sell your home in this tough buyers market we have.

       New Home Office, $27,193, .57
       Backup Generator, $13,657, .58
       Sunroom Addition, $69, 817, .59
       Add New bath, $59,435, .66
       Add New Master Bath, $98,863, .69

The Best Five:
       Add New Deck, $10,347, .85
       Kitchen Remodel, $21,185, .83
       New Vinyl Siding, $9,910, .83
       New Wood or Vinyl Windows, $10,510, .8
       Bathroom remodel, $15,789, .78

Click here to read about UBS's take on the top five markets to show housing market recovery (Including Atlanta) as well as the worst five.

June's smart numbers indicate a hint of good news. Even though we continue to have record numbers of homes for sale (15 months supply for singe family detached and 14 months supply for condos), average prices, while still lower than a year ago, are now showing signs of strengthening. Overall, the houing market continues to be driven by supply and demand, as well as the overarching economy and, you guessed it, oil prices. This data, now over a month old, should be viewed with an eye toward what's happening "on the street" right now, as more buyers are out with agents, looking at houses and making offers. If you're a seller in today's market, you should have a solid understanding of the current market dynamics and a strong relationship with your Realtor. If you're a buyer, talk with your agent about the motivation of the sellers whose houses you are looking at. Not everyone is in a "must move" situation, and many sellers don't have to sell their homes at a deep discount. If you dont have a Realtor, call us and we'll halp you understand the concrete realities of the different buying and selling opportunities that abound in today's marketplace.

Although the MLS systems are reporting continued downward numbers of May's closings in all categories for the 22nd month in a row, the June market is more active when I talk with other agents and brokers in the area. What's that you say? A market turnaround? No, I wont put my finger on that statemnt just yet, but the recent increase in buyer and seller activity is what I've been saying all along. That the Atlanta is in better shape than what the national headlines have been reporting. And we'll continue to have a moderately controlled real estate market. I'm not saying there aren't deals to be had, because there are a lot of very motivated sellers out there. And at the same time, there are a lot of sellers who are not being forced to sell, and are holding prices firm. June contracts (I've written three myself) are going to be expressed in July and August closings, so watch for numbers increases then.

Dave Ramsey, on CBS Early Show, 6/24/08, says Atlanta is one of the top six local economies that is actually doing very well. The five worst areas of the country (California, Arizona, Nevada, Michigan and Florida) are skewing the data nationally. The six best areas: Dallas, Houston, Atlanta, Nashville, Kansas City and Manhattan, are doing quite well. "For most people this may represent an opportunity ... Real estate is a local economy." As a buyer, "It's a great time to buy" especially in those depressed areas where bargains can be had. Click here. to see his video (you'll have to wait through the 30 second leading commercial).

Combine all this with the fact that long term mortgage rates have inched up a wee bit, you can quickly see that the landscape is changing as I described below: inventory will begin to shrink, and while some buyers sit on the sidelines waiting for the bottom, their price advantaves get wiped out by the mortgage rate increases. Now is still a great time to buy!

5/30/08:Today Show's Barbara Corcoran, Real Estate consultant, recently talked about the bottoming out of the national housing market. In a nutshell, she said she didnt know, but thought that we were near the bottom, nationally. Locally there's a lot of buying and selling going on, and not just for foreclosures. Just like a recession, we really dont know we're there until it's long past. So what does it mean to sellers and buyers? Well, it means that if you wait too long, hoping to get the very lowest price for the property, some "not-so-good" things are likely to occur. First, you may miss the best possible price because someone else buys that property or the sellers stiffens his stance. Second, all the time you're waiting around, the interest rates are changing, and in a few weeks or months, the rate you get when you finally decide to write that offer, is now higher than you could have had months earlier, meaning you now have to pay more over the next 30 years for that mistake.

5/30/08:Bad News Only sells Newspapers. I'm convinced of that, and together with many others in the industry, we KNOW that the real truth in our Atlanta market is that we continue to have a stable market environment. For many years, we have had reasonable growth in housing prices, not the crazy headline-grabbing fortune-hunter queep of the west coast or other overpriced areas. Just simple strong, steady, predicatable appreciation in our market. And that stability is being reflected in stable home prices throughout all price ranges.

Recently, Seth Weissman, senior counsel to the Georgia Association of Realtors, teamed up with Prudential Gerogia CEO Dan Forsman, to publish a very informative and insightful article published in the AJC here. (If the link's broken, the text of the article is here. Take the time to read and digest this article, and I'm sure you'll agree: real estate continues to be the most stable investment in your wealth building portfolio. And Atlanta continues to be a great place to build that portfolio!

4/30/08:Atlanta Gets Top Marks Good News in our Housing market!
No. 1 - Best Cities for Relocating Singles 2007, Worldwide ERC and Primacy Relocation, Mobility magazine
No. 2 - Top State Business Climate Rankings, Site Selection magazine, Nov. 2007
No. 4 - Best Cities for Jobs 2008, Forbes.com Jan. 2008
No. 6 - Best Places for Business and Careers, Forbes.com Mar. 2008
No. 8 - 10 Best Golf Cities in America, Golf Magazine, Golf.com, Nov. 2007
No. 10 - Most Affordable Places to Live Well, Forbes.com, Nov. 2007

3/11/08: The fallout from last year's credit industry continues to have rippling effects throughout the housing market, and impacts both buyers and sellers here in Atlanta. Newly instituted rules from many lenders are making it tougher for buyers to get financing, and many are requiring more down payment committment from the buyers due to the way Appraisers are now conducting business. Again, as we've said so many times before, it is vitally important that you talk with us, your agents for life, as well as your lender, WELL IN ADVANCE of starting the house hunting process.

ATLANTA's UPCOMING HOUSING SHORTAGE!: While the national news media headlines continue to forecast doom and gloom, recent reports from the new homes community indicates that the Atlanta area may experience a SHORTAGE of new homes as soon as late fall or winter. Interesting, but also totally understandable. If you look at the housing supply numbers (new housing starts, permit applications, and zoning requests), and compare this with the demand numbers (numbers of sales compared to this time last year), you can quickly deduce that demand is continuing at about the same rate (due in part to builder incentives to reduce inventory). The result is a slow shrinking of the available housing supply (currently at about 11 months). So do the math: Since many builders have slowed/stopped their pipeline production, as housing supply decreases, and demand remains the same, once the supply shrinks to a more competitive balance, prices on new construction will rise.

Buyers need to act now: If you've been fence sitting for a while saying "I'll just wait til this thing bottoms out and then buy at the low", consider the following Time Magazine Article here. And if you fully understand what's happening in the new homes market, you'll also understand that fence sitting is soon going to cost you instead of helping you. There's a lot more to this story, and our clients have the advantage of knowing what these factors are, and how they are going to affect their real estate prospects in the near future. Give us a call and we'd be happy to brief you on the full details, including how to get a free $35,000 basement plus other incentives.

1/11/08: The last few months have seen an overall shrinking of the available buyer pool, and resultant slowdown of sales, purely as a result of the numbers (oversupply of houses, smaller number of buyers). So the housing market here continues to be sluggish. That's sluggish, not declining, or dead, or in trouble, or receeding, or any of the other negative adjectives that have meen making news headlines around the country. And remember, that's exactly what sells newspapers, and sponsor's advertising -- shocking headlines. True, while many parts of the country have seen a decrease in home prices over the past several months as compared to the previous year or two, overall the housing industry nationwide, over the longer term, has reinforced the smart investment strategy of buying homes as the most predictable, steady, and successful way of improving one's net worth. Dont be afraid of shocking headlines. That's what they are meant to do, is shock you.

Now, having said that, our Atlanta market has had the benefit of slow but continued steady appreciation for most types of real estate. Some slices of the single family market have not fared well, such as the condos/townhomes. In the single family detached segment, this modest appreciation of 3-5% per year, over time, results in a solid payback at the time of sale. If you try to sell after only 2 years, without any significant improvements in the property, you'll be lucky to recoup your investment, after marketing costs. Unfortunately many sellers are pushed into a sale before they can fully realize a good return on their investment, and then blame the market for their "losses". Let's be realistic about things: Failing to plan ahead and understand the dynamics of the market is dangerous, and not getting reliable advice and guidance at the earliest possible moment is foolhardy. Sellers who take the time to talk with us about their particular situatioin can reap the benefits of quality decision making and maximize their investments.

Total homes sales in the area continue to be steady. While new home builders have seen a significant slowdown in sales, many have countered the trend by offering incentive packages worth many thousands of dollars, to keep sales flowing. As a business, the larger builders have no choice but to keep their production line going, keeping Atlantans in work and continuing to pump money into the local economy. Some national and regional builders have had to reorganize certain portions of their corporations in order to better deal with the decreased revenue stream, and others are making deals on the products they have in standing inventory. Meaning NOW is a GREAT TIME TO BUY ! !

The resale market is directly affected by the new homes market, and continues to show steady, though reduced, sales numbers. Additionally, many homeowners have not been able to obtain their desired listing prices. However, homes that are in show condition, and are priced At Market Value, continue to sell on a regular basis. Those homes that are priced unrealistically just sit on the market and are passed up by the buying public. Every overpriced home only helps the ones that are priced right sell quicker.

The outlook for the Atlant market is a good one for 2008, and I'll refer you to John Adams' article from last week's AJC entitled 2008 prognosticators show existing home sales going up. As you read this article, understand that our housing market is directly affected by the health of our economy, and a strong indicator of that is the number of people being relocated into the Atlanta area. And these numbers have continued to rise, indicating a strong and health job market. Meaning, NOW is a GREAT TIME TO SELL ! !

8/18/07: With the recent announcement of Homebanc's bankruptcy filing, many homeowners are asking questions about the loans they have with Homebanc. Rest assured, these loans will continue in place, and most, undoubtedly, will be sold to another mortgage entity. These homeowners should continue to send their mortgage payments to the current address they have been. You'll be notified by mail when the servicing organization for your home loan is changed, and the new address to mail your mortgage payments.

What does this mean to buyers who have not yet closed? A Lot! As the mortgage industry tightens it's lending standards, buyers who were previously pre-qualified or even pre-approved may find themselves not being able to qualify for a loan. Most no-doc or lo-doc loans are gone. Most 100% financing arrangements are gone, and the credit scores for qualifying for a loan are rising. Loans will be harder to get as lenders will be looking harder and harder at credit history, available cash, and monthly ratios.

Buyers need to get their financial house in order before looking for a home. We recommend starting preparations a year in advance for first time borrowers, 6 - 9 months in advance for current homeowners planning a move. Why? Call us and we'll explain!

7/15/07: This is a great time to buy or sell a house. But with over 100,000 homes currently for sale, buyers have a lot to choose from. Smart sellers are going with full service brokerages to list their homes, understanding that only the best full service brokers can expose their homes to the most qualified buyers in the marketplace. Most discounters, FSBOUs and menu-driven brokerages simply cannot deliver the vast array of marketing tools that it takes to draw in the buyers to your particular home. At Coldwell Banker, our sellers understand that their homes have to be in top shape in order to draw in the buyers. There are so many other homes now on the market, that are in terrific shape, that buyers are only going to view "Market Ready" homes. They instantly know if the seller has skimped on preparation, and these "sub-standard" homes get passed by and linger on the market unsold. Call us today and we'll help you get your home ready for these challenging market conditions.

6/3/07: There's been a late spring "rush" of buyers all over the Altanta Metro writing offers and buying houses to lock in the deals available. With over 65,000 homes for sale (that's just the listed ones!), there are plenty to pick from, and many sellers realize what it means to be competitive in a market like this. If you're thinking of selling, and dont understand the previous sentence, you need to call us NOW, before you start planning your next move. Many delusional sellers think they can sell a lackluster house using dated marketing techniques, and are dumbfounded when they realize the truth, often too late to sell their house this season. This is a very very strong Buyers market, and the new homes companies are aggressively pulling in buyers with huge incentives and broker bonuses. Resale owners need strong representation and savvy agents, like us, to successfully sell their homes.

5/1/07: We're well into the Spring market and many homes have already been bought and sold. There's not many buyers left, and the relocation Buyers have come and gone. Sellers, be warned! If your home isnt in "Show Condition", and isnt priced right for the market, there's a good chance that the buyers will pass it by and you'll be left to swelter in Atlanta's summer heat one more time.

1/25/07: The holidays are over and the spring relocation market has definitely started. Buyers and their agents are all over the area, showings are up everywhere, and contracts are being writtten. Homes that are in show condition and are priced right are getting all the action. If you are thinking about selling this year, we need to list your home as soon as possible. Traditionally this activity will start a marked slow-down in a few weeks, and all the highly motivated buyers who have their financing in place, will have already bought something else, and will be out of the market. As a seller, if you wait too long, there may not be other buyers for your home. If you're a buyer, the newly approved 2007 GAR Sales Contract requires you to start your financing coordination much earlier than before. No longer can you afford to wait to find a house before you call a lender and start your loan paperwork. If you're one of our clients make sure you read the "Insiders Guide to the Real Estate Contract" for a discussion of key new changes to the contract. This report is in our reports section and is restricted access only for our current clients. If you're not one of our clients, call us today, and lets get you off the bench and into the game.

Although the housing market is cooling off in some areas of the country, our Atlanta market continues to remain stable and firm. Atlanta maintains a healthy job market, is a regional and international hub. The Atlanta metro area has diverse selection of housing choices — intown condos and lofts, affordable suburban communities, upscale golf and country club, prestigious Buckhead estates --and Atlanta still offers some of the best housing values in the nation. According to SmartNumbers, Days on Market for existing homes sold in the metro area actually decreased by 2 days for the first six months of 2006 compared to the same period in 2005; the price for an existing home sold increased by more than 4% over the same period — from $205,740 to $214,560.

Kiplinger’s Personal Finance Report placed Atlanta fourth on its “50 Smart Places to Live” list based on affordability and livability. Nationally-known accounting firm KPMG calls Atlanta the “least costly place to do business among 23 metro areas with populations greater than 1.5 Million”. Between 1990 and 2000, the 55-74 population group grew by 23.8% in Georgia, the 7th largest growth rate in the nation; forecasters expect this rate to be even higher for the current decade thanks to hurricanes and rising housing and insurance costs in Florida and other Gulf states.

Forbes.com places Georgia as 10th in the nation as a “Best State for Business”; Atlanta ranks 15th among metro areas. The study measures variables such as business cost, labor, regulatory environment, economic climate, growth prospects and quality of life. US News and World Report recognizes four of our area universities: Georgia Tech ranks 8th on the top public universities, Emory is 18th and University of Georgia ranks 60th. The J. Mack Robinson School of Business at Georgia State ranks 24th among public universities.

I've talked with a lot of people from various parts of Florida and many tell me the same thing. One broker, who was interested in the horse farm, told me that she cant get ANY of her listing shown, let alone sold. Thats in the Tampa area. Several other buyers in our area have told me the same thing, their market is very very slow right now. Our analysts have told us that the Florida seaboard market (most particularly eastern side), is beginning to feel the "Big Market" deflation, after many years of steeply inflated prices, now the steam is going out. To me that means if you want to make a move this year, it'll take a significant reduction in the expected sales price/profits of a property, and give up a little more than planned, just to get it sold in the near term. The alternative is to wait it out, hope for all hurricanes to miss the state, and hope that investors/buyers start liking Florida living once again. That could be a while ...

Fortunately our real estate market has been and continues to be stable. Our appreciation continues to be around 4-6 percent per year, unlike some of the crazier markets that are now starting to feel a crunch. Our economy has steadily recaptured the jobs we lost in the 2000-2002 dot com bust, but now we're not seeing an evenly balanced market anymore, where both buyers and sellers have advantages.

However with that being said, we've continuously had an oversupply of homes on the market and there's no let-up. Many owners who are in a "must move" situation either hold firm on their prices, or have enough flexibility to offer incentives to buyers and/or their agents, so that their property becomes more appealing to the buying public. We've seen television sets, major appliances, closing cost assistance and increased commission rates all used to make a particular home more atractive to the few number of buyers currently available. Sellers who still hang onto "old thinking" that they can get a "deal" fail to understand the market environment that they're in. They are "Penny wise and Dollar-foolish". Homes listed with discounted commission rates (anything below 3 percent) dont get the buying traffic becuase there are so many other homes that are priced more competitively. Most of those "old thinking" owners watch as the buying public passes them by and their house sits on the market with no showing activity. In today's market it takes a right-priced home, in perfect "show" condition, and a seller who is ready to offer incentives to close the deal. The oversupply of houses is easily demonstrated by an "Absorbtion Rate Analysis" for your area.

While the metro Atlanta area continues to be filled (ie replacement housing only, new construction replacing older "scrapers"), the outlying counties still have plenty of land, and new home starts continue at a steady pace. However, price increases in materials have pushed new home costs a bit higher. Even the builders arent making any more money than they did before, it's just costing them more for materials. When you have a $5000 increase overnight for wiring, the sales price goes up and the builders cant absorb it.

Want to know what the leading economic forecasters from the Dean Terry School of Business are saying? Well, Dr George Benson recently addressed the upcoming Georgia outlook, growth rate, commercial real estate vacancy rates, major industries like air transportation, technology and hospitality, and travel and tourism, and the higher education crisis. Our clients are privvy to these and other insights that will affect not only the real estate market but many facets of our local economy.

There are many new homes builders in the Atlanta area, and while prices were usually significantly higher inside the "Perimeter" than throughout the surrounding areas, this dynamic is starting to change with larger homes being built with more features and benefits outside the perimeter. One thing is certain, lots inside the perimeter are scarce and hard to find. Typically we can find very affordable housing (new construction) under $200k within a reasonable commute distance. For Condos, it's an entirely different story, with some of the smaller units going for under $100k (resales). Call us for the straight talk on condo ownership in the Metro area. As with any real estate purchase, there are a lot of variables that must be considered, and we're ready to help you address those.

If you're moving across town or across the county, we can help with all aspects of your real estate needs. Having relocated 17 times in the past 26 years, we're experts at what it takes for a successful move. We can also help you sell your present home, no matter where in the Atlanta area you live.
We've helped people buy and sell homes from Douglasville to Suwanee. And if you need our help selling your home in another state, we can quickly find a quality real estate professional close to where you live, and have them contact you for a "no-obligation" consultation.

Tony & Marti Giacobe
Coldwell Banker Residential Brokerage
1735 Buford Hwy, Ste 125, Cumming GA 30041
Phone: 770-889-3051 Fax: 770-889-6871

Tony:
Voicemail: 678-947-7465
Email:

Marti:
678-947-7411
Email:

Disclaimer: If your property is currently listed with a real estate broker, this is not a solicitation to list with us. It is not our intention to solicit the offerings of other real estate brokers. We are happy to work with them and cooperate fully. Additionally, the information contained in this resource disk is subject to change without our knowledge. You should verify all the information using outside sources to ensure currency. This is not a legal representation, in any manner, of the community, or the individual properties located in the community. Copyright 2009 Coldwell Banker Real Estate Corporation. Coldwell Banker is a registered trademark of Coldwell banker Corporation. An Equal Opportunity Company, Equal Housing Opportunity. Independently owned and operated by NRT, Inc.