Atlanta Real Estate Conditions
February 27, 2008 | Leave a Comment
The Atlanta Real Estate Market has escaped from many of the problems that have affected other major markets. It has been pointed out that the resiliency of the Atlanta market is due to our sector being fueled by jobs and relocation rather than speculative buying as has happened in some of the condominium resort areas. Just how lucky are we? Below you can see one of the policies lenders have adopted that affect buyers in other areas of the county.
In certain areas of the country lenders have implemented what is called a “Declining Markets Policy”. In essence what this policy calls for is for buyers, purchasing property in what the lender has identified as a declining market, to increase their stake in the property. Most lenders are requiring the loan-to-value (LTV) ratio if one loan is being utilized or the combined-loan-to value (CLTV) ratio if multiple loans are being utilized to be reduced by five (5) percent. An example would be rather than being able to obtain 100% financing in a declining market, a buyer could only obtain 95% financing. The exception to this policy would apply for FHA and VA loans. For these government backed loans a second level underwriter review is called for, thus making qualifying more difficult.
Lenders are identifying the declining markets by both city and county in the various effected states. Several sources are being used to determine which areas are included. Standard and Poors Case-Schiller Home Price Indices, The Federal National Mortgage Association, The Federal Home Loan Mortgage Corporation, The Office of Federal Housing Enterprise Oversight Index along with statistics from The National Association of REALTORS are the most common sources used in identifying these areas.
Not only are there declining markets, but several of the lenders are also looking more closely at what have been identified as “Soft Markets”. While these areas are not as drastically affected, the lenders are requiring a second level underwriting review for soft market identified locations.
In the latest report I have been able to obtain, the Atlanta Market has not been identified as either a declining or soft market as defined by these lender guidelines. This doesn’t mean that the buyers market is gone. It just suggests that the Atlanta Market has not been as decimated as some of the other major metropolitan markets. Conditions remain favorable toward buyers with sellers making considerable concessions and interest rates remaining low. To find more information about Homes for Sale, just let me know what your requirements are. I am here to help.
Atlanta Real Estate Market Update
February 24, 2008 | 2 Comments
It’s A Buyers Market
If you didn’t know it before, you certainly will know it now by way of the most current stats for real estate in the Atlanta Market. Unfortunately for sellers 2008 has started much in the same fashion that 2007 ended, with a market that continues to decline. Inventory continues to increase and the average days on the market for single family homes is at it’s highest level in 10 years at over 101 days on the market.
Available Inventory Increasing
Here are some of the facts comparing months supply of available homes 1-2006 vs 1-2008:
New Single Family Homes up over 81%
Resale Single Family Homes up over 91%
New Condos and Townhomes up over 125%
Resale Condos and Townhomes up over 26%
Additional Good News for Buyers
The other factor that generally goes hand in hand with increasing days on the market and additional inventory is an overall average price decline of sold properties. The situation at this time confirms this factor. The average sale price for both single family residences and condo/townhomes declined in January.
Even More Good News
If you take the abundance of inventory to choose from and the lower average prices then add to it the notoriously low interest rates, you now have all the components of a full fledged buyers market in Atlanta. Sellers are saying bring all offers. Why don’t we get together and help them sell their home at a deep discount?
Avoid Foreclosure-Temporary Loan Relief Alternatives
February 20, 2008 | 2 Comments
One of the most important duties that I have is educating my clients and future clients about various aspects of the real estate market in Atlanta. With the current economic climate and foreclosure being discussed on virtually every news broadcast, it is important for consumers that are experiencing financial difficulty to know what their options are. In the recent post about How To Avoid Foreclosure I mentioned that there are some temporary alternatives that do not result in the loss of your home. Let’s take a closer look at what they are.
Forbearance
Forbearance is an agreement between you and your mortgage company that temporarily allows you to pay less that the full amount of your monthly payment or nothing at all during the forbearance period. Generally the mortgage company will consider forbearance when you can show that funds from a bonus, tax refund or other source will allow you to bring the mortgage current at a specific time in the future.
Loan Modification
A loan modification is a written agreement between you and your mortgage company that permanently changes one or more of the original terms of your loan in order to make the payments more affordable. Common loan modifications would include adding missed payments to the existing loan balance, changing an adjustable-rate-mortgage into a fixed-rate mortgage or extending the number of years for you to repay the loan.
A Repayment Plan
A repayment plan is an agreement between you and your mortgage company that gives you a fixed amount of time in which to repay the amount that you are behind on your mortgage. In this alternative you actually pay your regular monthly payment and add an additional portion of the past due amount to each installment. At the end of the repayment period you have paid back the amount that was delinquent.
Reinstatement
Reinstatement occurs when you pay your mortgage company the total amount that you are behind on your mortgage in one lump sum. A reinstatement generally occurs in conjunction with forbearance.
Knowing what options are available to you is often times half the battle. In many situations the best and least expensive alternative will be through working with your current lender or servicer of your loan. If your current lender has no desire to assist you, let me know. I can help you find a responsible lender that will help you or show you additional alternatives.
Happy Birthday Lincoln
February 18, 2008 | Leave a Comment
Even though the official day is February 19th, family and friends helped "Linc" celebrate his first birthday in grand style over the weekend. Aunts, uncles, cousins, grandparents and even great grandma helped with the festivities. For anyone who knows Lincoln’s parents, it should come as no surprise that the theme of the party had to do with Georgia Football. The invitation even asked everyone to wear red and black. With so many in the family being Bulldog fans the dress code for the party was easily accomplished.
The highlight of the party was Lincoln feeding himself his first birthday cake. It is safe to say that he wore more than he ate. Congratulations Lincoln, You’re Number One!
Sandy Springs Townhomes and Condos
February 10, 2008 | 1 Comment
Alderwood on Abernathy
Priced from the mid $400’s to the mid $600’s Alderwood on Abernathy is a bargain for a townhome community in the trendy Sandy Springs area of Atlanta. An air of sophisticated spaciousness greets all homeowners and guests as they enter the community. Standard features at Alderwood on Abernathy include site finished hardwood floors, hardwood stairs with iron balusters, upgraded trim packages and gourmet kitchens with granite counter tops and stainless steel Kitchen Aid appliances. The oversized master suites provide the owners with an ideal area to unwind in the jetted garden tub and also include his and her vanities, frameless shower doors and granite counter tops. Some of the properties include an optional elevator.
Even though the grounds are landscaped to the max, homeowners enjoy the lawn and exterior maintenance being included with their monthly association dues. Also included are streetlights and sidewalks. Additionally homeowners will soon be enjoying an outdoor gathering area with a covered fireplace, water feature and seating area.
Great Location
Alderwood on Abernathy is conveniently located on Abernathy Road just off GA 400 and only minutes from award winning shopping, dining, and entertainment. Children in the community will attend Spalding Elementary, Ridgeview Middle and Riverwood High schools.
To see current available homes at Alderwood on Abernathy click here.
February First Time Buyer Seminar
February 9, 2008 | Leave a Comment
It’s official, the next date for the First Time Buyer Seminar has been scheduled for Saturday February 23, 2008 at 10:00AM. The class will be held at RE/MAX Around Atlanta, 2280 Satellite Blvd. in Duluth.
Some of the topics we will be covering include:
* What Are Your Rights As A Home Buyer-Brokerage Relationships
* Mortgage Prequalification-How much home can you afford
* Loan Programs-Which of the various loan programs best suits your needs
* Home Inspections-Why you need to have this done
* Home Warranties-What are they and what do they protect
* Termite Issues-What you need to know about termites in Georgia
* Lead Based Paint Concerns-How does it effect me
* What is Title Insurance and Do I Need It
* What are Closing Costs and Who Pays Them
* What is the Sellers Property Disclosure
* How do schools figure into the equation
* What does a Home Owners Association Do
* Home Buying Tips
* The Contract and Important Timeframes
Please confirm how many people will be attending with you so that I can make certain that there are ample class materials available. Also please advise if you need directions.
I look forward to seeing you on the 23rd,
How to Avoid Foreclosure
February 6, 2008 | Leave a Comment
During the housing boom homeownership grew at record levels. Mortgage brokers were making loans utilizing all kinds of exotic loan programs. There were interest only adjustable rate loans, option loans were the purchaser would choose from one of 4 different payment options and 100% financing programs just to name a few. As long as home values continued to rise these types of programs may have made some sense. Unfortunately the housing market has gone through a "correction". What this means is that home values in many areas of the country have not continued with the appreciation that had been experienced in recent years. Not only had the values not appreciated but they depreciated by as much as 20% in some areas. From a purely economical perspective, the rate of appreciation could not be sustained.
Your Not Alone if You Are Having Trouble
For homeowners who utilized some of these more exotic loan programs to finance their homes the adjustable rates are increasing and making the mortgage unaffordable. Some homeowners who had less than perfect credit were able to purchase homes using sub-prime loans. Sub-prime loans generally have higher interest rates, costs and may have started with lower initial "teaser rates" which were followed by substantial increases that have now made them unaffordable. The Center for Responsible Lending estimates that there are approximately 2.2 million American households that have or will lose their homes as the monthly payments increase on these adjustable rate mortgages.
What Are The Alternatives
So what alternatives are available to homeowners faced with these escalating monthly mortgage payments. If you had not heard of it before, recently everyone has heard of foreclosure. Foreclosure is the method by which the lender takes back property that is not being paid for as agreed. A foreclosure is one of the permanent alternatives for loan relief. Some other permanent alternatives would be assumption, a short sale (short payoff) or a deed-in-lieu of foreclosure. Understand that these permanent alternatives result in the loss of your home.
There are also temporary alternatives which do not result in the loss of your home. These alternatives would include a forbearance agreement, a reinstatement, a repayment plan or possibly a loan modification.
Get Help From An Expert
Before getting to a situation where the lender has no alternative, do yourself a favor and get with a real estate expert who can help you understand your options. Remember you are not alone, but you have to take action. If you are currently behind on your mortgage or expect a problem with maintaining your mortgage Contact Mack for a free confidential consultation to discuss your exact situation and options. This service is free for any homeowner in the northeast Greater Atlanta area.
The Enclave at Milton Park
February 6, 2008 | Leave a Comment
Convenient Location
Conveniently located just minutes from GA 400 and the North Point shopping area of Alpharetta is the Enclave at Milton Park, a maintenance free luxury townhome community by The Providence Group. Community amenities include a lake, gazebo, sidewalks, streetlights and access to the Alpharetta Big Creek Greenway, which features over six miles of walking and biking trails, for homeowner enjoyment.
Luxury Appointments
Each of these 2 and 3 bedroom townhomes features a detailed trim package, 9-foot ceilings, hardwood flooring, Victorian style windows and marble trim around the fireplace. Entertaining is made easier with gourmet kitchens which are appointed with granite counter tops, stainless steel appliances, and separate gas cook tops. The master retreat of each home features a trey ceiling, his and her vanities, large garden tubs and separate tile surround showers.
They Are Going Fast
In just over one year the Enclave at Milton Park has sold more than 50% of the 74 home sites that will be built in this community. One of the first homeowners, Vickie Scaffe, selected the community for it’s abundance of green space and the convenience of being close to everything. She stated that she can ride her bike to the park, church or even to North Point Mall.
To view available homes at The Enclave at Milton Park just Click Here.
