North Atlanta Real Estate Voice

Archive for the 'Market Trends' Category

Cobb County, Georgia Housing Market Review

The most common questions I am asked are: Is the market getting any better and is activity picking up?  The problem in providing an answer is that is really depends on the day you ask.  Over the last 6 – 9 months, there really has been any consistent trend in the market.  Some weeks see lots of activity and interest while others have no activity.  It has been this lack of consistency that has made this such a difficult market.

On the positive side, we have low interest rates, an $8000 federal tax credit for first time buyers, an $1800 Georgia state tax credit for all buyers and a buyer’s market.  On the negative side, high unemployment, low consumer confidence and a credit crunch have kept buyers from jumping back into the market.

To get a clear picture of the Cobb market, I have broken down the sales trends for 2006 through April 2009.  The charts below show the data for East and West Cobb separately.  East Cobb consists of mostly unincorporated Marietta and parts of the city of Marietta.  West Cobb consists of the other half of the city of Marietta plus the cities of Kennesaw, Acworth, Powder Springs, Mableton, Austell, Smyrna and Vinings.

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Sales of Existing Homes Rises 5.1% in Feb 2009

The National Association of Realtors said Wednesday said its seasonally adjusted index of pending sales for previously occupied homes rose 2.1 percent – in line with expectations – to 82.1 in February from January’s record low of 80.4. An index that tracks signed contracts to purchase previously occupied homes rose in February from a record low a month earlier as buyers took advantage of deeply discounted prices and low interest rates.

Typically there is a one- to two-month lag between a contract and a done deal, so the index is a barometer for future home sales. Because of falling home prices and mortgage rates, homeownership is more affordable than it’s been since at least 1970, the trade group said. Hopes have been growing that home sales, while still severely depressed, may be finally showing signs of life. Sales of existing home sales rose 5.1 percent in February, the largest increase in nearly six years. READ THE REST OF THE STORY

Home Values Survey Shows Discrepancy Between Sellers’, Buyers’ and Agents’ Perceptions of the Housing Market

Homegain, a real estate related website, recently released the results of an extensive nationwide survey of Realtors on home prices and values.  The results show generally that  Realtors are of the opinion that home sellers believe their homes to be worth more than Realtors and homebuyers believe that they are worth.

A recent Zillow poll showed that sellers were no longer ‘in denial’ regarding the U.S. housing slide. The latest HomeGain survey, however, underscores that while homeowners may be aware of falling home prices around the country, many believe that the slide doesn’t apply to their homes. Our survey shows that homebuyers and Realtors are telling homeowners their homes are worth considerably less than homeowners think they are.  I will outline the results of the survey and provide my interpretation of the results. READ THE REST OF THE STORY

American Recovery and Reinvestment Act of 2009 – What We Actually Got

After all the speculation and promise that this bill would jump start the economy, here is a breakdown of what’s included in the bill.

H.R. 1, the “American Recovery and Reinvestment Act of 2009,” passed the House on February 13, 2009, by a vote of 246 – 184. Later that day, the Senate also passed the bill by a vote of 60 – 38. The President signed the bill on February 17, 2009. The bill is a $780 billion package, with roughly 35% of the package devoted to tax cuts (mostly for 2009) and the rest to spending intended to occur in 2009 and 2010. READ THE REST OF THE STORY

Atlanta Ranked As Third Most Vacant City In US

We don’t typically use vacancy as a measure in the residential real estate market.  That term is more common in commercial real estate or the hotel industry.  Having been a hotelier for 15 years, I get flashbacks when I start to hear about vacancy rate and unoccupied rooms (or homes).

According to an article at Forbes.com, Atlanta ranks third behind Las Vegas and Detroit.  Not exactly the company we are striving to be associated with.  According to the article, the national rental vacancy rate is 10.1% up from 9.6% a year ago; while homeowner vacancy is up from 2.8% to 2.9%.  Still, these trends are not good as empty houses can have an impact on the surrounding homes and areas.

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2009 Housing Stimulus Amendments and What They Mean To You

Stimulus, stimulus, stimulus.  It seems that Congress is finally going to do something that actually help the American people and economy.  Right now, several stimulus packages are being debated.   Here are the current amendments being considered:

$15,000 Tax Credit

This amendment was offered by Senator Johnny Isakson (R-GA), with Senator Joe Lieberman (I-CT) as a co-sponsor that would extend and expand the home buyer tax credit.
As it currently stands, the Senate has voted and passed an amendment to the economic stimulus package that will give up to $15,000 tax credit towards a new home.
The proposed amendment details are as follows: READ THE REST OF THE STORY

Atlanta’s Home Prices Drop 11.2% But Still Better Than Most Other Places

Nationally, the US experienced an 18.2% price drop, year over year according to Standard & Poor’s Case-Schiller Home Price Index for the 20 largest metropolitan areas. This represents the sharpest fall in prices ever recorded. Many cities that experienced record price growth were hardest hit by the drop in prices.

• #1 Phoenix, AZ – 32% drop
• # 2 Las Vegas, NV – 31.7% drop
• #3 San Francisc0, CA – 30.7% drop
• #11 Atlanta, GA – 11.2% drop

From October to November, Atlanta prices dropped 2.7%  Because Atlanta has been among the top cities in new home construction, Atlanta was still experiencing some price growth when some cities started to feel their bubble burst.  Atlanta’s drop in prices came a but later than that in most cities.  The Case-Schiller index for the largest 20 markets topped out and started to slip in mid-2006 — a full year before prices crested in Atlanta. READ THE REST OF THE STORY

Atlanta Foreclosures Hit All Time High; Cobb County Among The Lowest

According to Equity Depot, an Alpharetta based mortgage loan tracking firm, foreclosures for the 13 county metro-Atlanta area hit record high in January.  8,425 properties were scheduled to be auctioned compared to 6,992 in January 2008.  That represents a 21% increase.

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Georgia Mortgage Rates 2nd Lowest in US – Could Drive Home Sales

(reprinted from Atlanta Business Chronicle)

Georgia had the second-lowest 30-year fixed mortgage rates last week, according to real estate Web site Zillow.com

For the week ended Jan. 4, rates on 30-year fixed mortgages were lowest in Arizona (4.97 percent) and Georgia (4.99 percent), according to the Zillow Mortgage Rate Monitor. READ THE REST OF THE STORY

Going Up? Positive Trend Is Spotted!

According to Smart Numbers, an Atlanta market research company, September 2008 saw the first year over year positive growth in singe family homes sales after 18 consecutive months of decline in monthly year to year closings.

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