Archive for the ‘Living in Metro Atlanta’ Category
Thursday, June 16th, 2011
The Housing Market: Spiraling Down or Recovering?
A lot is being said and reported about the “state of the real estate market.” So let me take the mystery out of the questions and put some speculation to rest. Yes, there are several positive market indicators which show that Atlanta may be in recovery.
Here’s My Recovery Recipe: 3 Ingredients
1. More Closings in 2011
First and foremost, more closings took place every month this year in 2011 than the same time last year in 2010. The tax credit was still in full effect the first part of 2010. So without a government incentive, there is a natural increase of demand in 2011 that turned into sales. Probably the biggest incentive has been the low prices and incredibly low interest rates (still in the high 4% for conforming loans).
2. Foreclosed Homes Decreasing
Second, the number of homes being foreclosed upon is also decreasing. That fact translates to less future distressed homes coming on the market months from now.
3. Less Homes On The Market (And 3 More Things To Take Note Of)
Third, the once very high inventory of homes on the market is coming down. Atlanta Metro had 11 months supply of homes on the market in December 2010. The inventory decreased to 9 months supply in May 2011. This also tells me a few things…
- More people are feeling confident in the economy that it is time to buy and take advantage the low prices and low interest rates…
- Sellers are doing what it takes to sell or they are opting to not put their house on the market…
- And houses that have tried to sell over the past year have adjusted appropriate and are getting offers.
Home Prices Still Lagging, But…
All of these facts set the stage to the market positively turning and the recovery beginning. Still lagging behind are home prices. Prices are still dropping in some aspects of the market. It may be another year before we start to see home prices increase. I attribute the low prices to distressed sales- short sales and foreclosures. 46% of all closings in the 1st Quarter of 2011 were distressed sales. That makes sense as distressed sales are often the best deals. And non-distressed sales had to compete with the distressed sale, causing home values to remain low. As these distressed sales come off the market (more are closing) and fewer distressed sales coming on (decrease in foreclosures), home prices will come up.
Atlanta Is Still Growing…
Will we be looking back a year from now with that 20/20 perspective and mark the first half of 2011 as the beginning ofAtlanta’s real estate recovery? I think so… (Remember, when you hear the national news report, they are speaking of averages. That is like saying the national temperature is 80…and all of us know that we are experiencing upper 90 degree weather these days. That being said, national averages don’t reflect reality well.) While Atlanta still needs more jobs to bring back the roaring market, we are still a growing city still attracting talent and companies. With the level of activity I’ve been seeing, I eagerly look forward to the statistics this summer will report.
What Does This Mean For Me? [Buyers, Sellers, and Homeowners]
If you or anyone you know has been on the fence to buy, this is the time to move forward. Prices are low and interest rates are at historic lows. And rent prices are starting to increase. For homeowners who want to move up in home price or move into their more permanent home, it is worth taking the hit on the list price in order to take advantage of the low price/low interest rate when purchasing their next home. Sellers should consider their local area and choose an initial listing price that reflects a high value compared to competing listings. Last but not least, should you or anyone you know finds them self in a distressed situation, there are options. I am here to help and provide a confidential consultation.
Quick Answers From Kelly
My Next Post In This Series…
Next month I’ll speak more on house prices and what areas of Atlanta are experiencing the most recovery and change. If you have questions I’d love to help you. Contact me and I’ll get back to you! Click Here: Quick Answers From Kelly
Tags: Real Estate Market Update
Posted in Living in Atlanta, Living in Metro Atlanta, Market Update | No Comments »
Tuesday, June 29th, 2010
We’ve all had it happen. We’re driving to work…Or out to meet friends…and we’re possibly sitting in Atlanta’s traffic when we hear that illustrious chime alerting us that a text message has come in. Who could it be? Is that message something important? The curiousity is getting to us. Well, starting July 1st you will now be breaking Georgia state law if you check or respond to that message.
As a Realtor who’s in my car all the time, distracted driving is an issue worthy of attention. And the temptation of checking and sending text messages is real. With the increasing number of accidents and deaths due to distracted driving, the government decided to take action. This blog is not to debate whether the law is reasonable, enforceable, or even a good idea. But I merely want to inform you of a new law that we will affect all of us.
The State of Georgia passed two new laws and it was signed into law by the Governor on June 4, 2010. The intent is to reduce car accidents caused by distracted drivers. The violation fines are substantial and take effect on July 1, 2010. And so far defined in the law, “Driving” includes sitting at a red light or stop sign. Here’s what the two laws state.
1. Senate Bill 360 (No texting while driving):
“No person shall operate a motor vehicle on any public road or highway of this state while using a wireless telecommunications device to write, send, or read any text based communication, including but not limited to a text message, instant message, electronic mail, or Internet data.”
The fine for offenders will be $150 and one point on the driver’s license.
2. House Bill 23 (No cell phone use by minors):
This new law “prohibits use of wireless telecommunications devices by persons under 18 years of age with an instruction permit or Class D license while operating a motor vehicle”.
The fines are also $150 and one point on the driver’s license.
***So next time you hear your text message chime while driving or you want to Google map your directions or use any app that gives the appearance of texting, think twice before checking or using your phone.
Tags: GA Texting While Driving Law, Georgia Texting While Driving Law
Posted in Living in Atlanta, Living in Metro Atlanta | No Comments »
Sunday, March 28th, 2010
Quite simply…it’s not too late to make the deadline for the Homebuyer Tax Credit. The deadline to qualify requires a binding sales contract signed by April 30, 2010 and the closing must take place by June 30, 2010.
With just about a month left for house hunting, it is very doable to find a home, negotiate an offer, and establish a binding sales contract. But to ensure success and ease the homebuyer tax credit deadline nerves, I recommend 3 tips.
Tip #1- Work with a knowledgeable and experienced Realtor(R). Choose a Realtor(R) that will be able to explain the area of interest, discuss current market sales, and has a proven plan for the home buying process. This will eliminate the wild goose chase and contract mishaps.
Tip #2- Do your homework. Decide what you want in your next home. Consider what you must have, what you can’t stand, and what you would like but could live without in your next home. Priorities and rank your preferences. You can start your search
Tip #3- Get Pre-approved with a reputable lender. Know your budget and what you feel would be a comfortable mortgage payment, even if you qualify for a higher payment.
So who qualifies for the Homebuyer Tax Credit?
First Time Homebuyers are anyone who has not owned a principal resident the past 3 years. The First Time Homebuyer Tax Credit is $8000.
Repeat Homebuyer Tax Credit (also called Move-Up Homebuyers Tax Credit) are for anyone who has owned and resided in the same home for at least 5 of the past 8 years. The new purchase must be for a principal residence.
The Repeat Homebuyer Tax Credit is 10% of the purchase price up to a maximum of $6,500. Unfortunately, homes over $800,000 are not eligible.
The tax credit does not have to be paid back as long as the new home is owned and occupied for at least 36 months.
The Income limitations are $125,000 for single taxpayers and $225,000 for married taxpayers filing jointly.
When this homebuyer tax credit expires…it’s gone. So don’t wait…there is still time!!
Tags: First Time Homebuyer Tax Credit, Move-Up Homebuyer Tax Credit, Repeat Homebuyer Tax Credit
Posted in Living in Atlanta, Living in Metro Atlanta | No Comments »
