Recently you have not been able to turn on a news program without hearing that according to the National Association of REALTORS, the real estate market is down 28%. Taking this into account I thought it would be a good idea to take a look at exactly what has happened month over month in the Northeast Atlanta Real Estate Market.

First let’s look at the sales totals for June and July of 2010:

As you can plainly see, closed sales in these areas are down. However it is not by that 28% that the news media is referring to but 24.83%.

Next I decided to look at some fairly broad price parameters to see if there was a particular price point where the downturn was coming from:

What these statistics show is that there was a slowdown of 23.15% in the under $200,000 price point homes, a slowdown of 27.66% on the $200,000 to $400,000 and the least percentage slowdown of 21.99% was in the over $400,000 price point.

How would you interpret these statistics? Is there a lesson hidden here? Let’s look at some facts. The Tax Credit expired in April. At that point buyers had to be under contract by April 30, 2010 and close on the property by June 30, 2010. The closing date has been extended until September 30, 2010, but it only makes sense that there was a big push to get properties closed before the end of June so that First Time Buyers and Move-Up Buyers could take advantage of the Tax Credits available to them. Wouldn’t his push artificially inflate June data while leaving July data suffering by comparison? I think that may well be the case. If we do a comparison of adding June and July 2010 sold numbers together and then comparing those numbers to the same time period from 2009 then we find that there is only an 11.35% decline in sold properties in the Northeast Atlanta Real Estate Market. While this may not be the best news in the world it sure beats the 28% downturn being reported.

What all of this means is that Real Estate is very local. In order to have the most up-to-date information about your specific area requires a REALTOR dedicated to doing the research and staying on top of the market.

Would you like to know the specifics regarding what is happening in your Northeast Atlanta community? Just let me know and I’ll formulate an overview for you.

So you are thinking about buying your first home. Congratulations, No more paying someone else’s mortgage. Other than finding your first dream home, your primary goal should be making certain that all your questions are answered and that you are protected by proper representation throughout the process.

The Atlanta Real Estate market is in a constant state of change. The Georgia Association of REALTORS purchase and sale agreement (the contract) has again undergone major revisions, making it even more important for home buyers to obtain the most updated information available prior to entering into an agreement.  After all, Knowledge Is Power.

Some topics that we will cover in the webinar are:

•    Preapproval vs. Prequalification
•    Setting Your Budget
•    Initial Fees and Costs
•    Resources

If your goal is to enter into this process with as much information as possible and having all your questions answered you will want to start your journey with the Atlanta First Time Buyer Webinar. Coupling today’s busy schedules with the flexibility of webinar technology the times for the webinars are totally customizable to fit your time frame. Our goal is to accommodate your schedule. All you need do is send a quick email to atlantabuyersagent@gmail.com and let us know when would be a convenient time for you.

We look forward to hearing from you and assisting you with your first home.

With the expiration of the home buyer tax credit, some are worried that the real estate market will cave in. I don’t think this is the case. My article of April 20, 2010 detailing the First Quarter 2010 Atlanta Real Estate Market shows that compared to the same time period in 2009, the Atlanta Market is improving. As fact would have it new construction is actually rebounding as well.

When 100% financing options went away(except for VA Financing) what happened… the sun still came up the next morning, the market still did business and yes there remained a need for qualified REALTORS to assist buyers and sellers with their real estate needs. Look what happened when the “Cash for Clunkers” program expired…automobile sales took off like a rocket shot and the manufacturers began looking toward profitability.

Let’s Look at the Facts

The First Time Buyer Tax Credit was put into place to help stimulate the national real estate market in 2008. Real estate had just been through one of the most severe downturns in history. The tax credit was continued through 2009 and in November of 2009 an additional category was included that would benefit current homeowners (in certain circumstances) with a tax credit also. When Congress extended the first time buyer tax credit and included the current owner category in November 2009, they made it clear that the program was not going to be extended again. This is not to say that there will never be another program like this, but at midnight on April 30, 2010 this program is gone.

Alternatives

While there are alternatives that are not tax credits, they do assist First Time Buyers with the purchase of a home. There are down payment assistance and grant programs from the various counties as well as the State of Georgia. For information on these programs please get in touch with me and I will assist you.

Amazing Deals Exist

Even though the Atlanta Real Estate Market is recovering, amazing deals still exist. Short Sale opportunities as well as Foreclosure and HUD properties are fairly prevalent in most areas and represent an excellent opportunity for buyers and savvy investors to snatch up a steal of a deal on a home. Do you fit into one of these categories? Just let me know and we can start locating your dream home immediately.

Could the new homes market in Grayson Georgia be taking a new direction? Hargrove Custom Homes has elected to explore the advantages of a massive internet marketing campaign verses the typical agent sitting the subdivision approach with one of their properties, 2635 Chestnut Walk Drive in the Heritage at Grayson subdivision.

Let’s examine the many attributes of this new home in Grayson Georgia. As you drive up to the home the first few things that you notice are that the exterior is four (4) sides’ brick, the front porch is very inviting and the home has a deep three (3) car garage. The entire lawn is professionally landscaped with Bermuda Sod and it has an in ground irrigation system.

Entering the main living level of this Grayson executive home from the garage you will pass by the oversized Laundry Room and the walk in Pantry as you enter the Breakfast Room and the Gourmet Kitchen. Granite counter tops are through out the kitchen including the integrated Breakfast Bar. Currently you can select your appliances which include built-in double ovens, dishwasher and microwave. Because the Kitchen is typically one of the primary gathering places when entertaining, a Keeping Room with a stone fireplace has been included for your convenience. Just a short step or two out from the Keeping Room and Breakfast Room the Screened Porch invites you to enjoy your morning coffee or a late afternoon beverage as you unwind from your day.

Continuing with the features of the main level we now enter the oversized Formal Dining Room and then cross through the foyer into what has to be considered the most versatile room in the home. It could be utilized as a Formal Living Room, a Home Office or and additional Bedroom on the main living level, after all it adjoins a full tiled bathroom. As with the Keeping Room, the Vaulted Den also features a Fireplace with a gas starter.

Last but not least on the main level is the Master Suite. As it has been pointed out in other features of this home the Master Suite is an elegant retreat for the owners. The Master Bath is appointed with Granite counter tops, a Jetted Tub, separate shower and an oversized walk-in closet.

The upstairs living area is ideal for the students in the family. One of the bedrooms has its own private bath while the other two bedrooms share a Jack-N-Jill bath. The Loft area has a built-in desk and study center that is set up for the technology center that all students need.

Should you desire future expansion, this Grayson Home also comes with a full basement that is stubbed for another bath.

Homes in Heritage at Grayson are service by some of Gwinnett Counties top performing schools:

Grayson Elementary School
McConnell Middle School
Grayson High School

For additional information on this home along with all the photos just follow the following link, Grayson New Home. Your can view a Virtual Tour also.

Statistics for single family detached homes in the North Fulton County real estate market for the month of January 2009 are in. North Fulton County is divided into two different areas and we will examine each area and then look at North Fulton County as a whole.

Area 13

Area 13 is the section of the county that is West of Ga. 400 and North of Chattahoochee River to the County lines and includes addresses from Alpharetta and Roswell. In the resale segment of the market there were 47 properties ranging in price from $139,900 to $1,350,000 that went under contract and 11 properties that closed ranging in price from $55,000 to $596,000. In the new construction segment of the market 2 properties went under contract ranging in price from $679,900 to $779,900 and 2 properties that closed ranging in price from $772,500 to $1,350,000.

Area 14

Area 14 is the section of the county that is East of Ga. 400 and North of Chattahoochee River to the County lines and includes addresses from Alpharetta, Duluth, Johns Creek and Roswell. In the resale segment of the market there were 47 properties ranging in price from $128,900 to $775,000 that went under contract and 7 properties that closed ranging in price from $158,900 to $420,000. In the new construction segment of the market 4 properties went under contract ranging in price from $307,172 to $799,900 and 2 properties closed ranging in price from $442,000 to $619,900.

North Fulton County Summary

For the month of January 2009, real estate sales for single family detached homes in North Fulton County looked like this:
•    94 Resale Properties Went Under Contract
•    18 Resale Properties Closed
•     6 New Construction Properties Went Under Contract
•     4  New Construction properties Closed

The resale segment of the North Fulton County Real Estate market is providing the catalyst for the recovery in this area. Compared to December of 2008 resale properties going under contract in North Fulton County increased by 80.76 percent. Hopefully this trend will continue and the entire Greater Atlanta Market will soon flourish and stimulate the economy in our great metropolitan area.

Statistics for single family detached homes in the Forsyth County real estate market for the month of January 2009 are in. Forsyth County is divided into three different areas and we will examine each area and then look at the county as a whole.

Area 221

Area 221 is that section of the county that is East of GA 400 and includes addresses from the cities of Cumming, Suwanee and Alpharetta. In the resale segment of the market there were 38 properties ranging in price from $52,100 to $777,777 that went under contract and 10 properties that closed ranging in price from $122,000 to $425,000. In the new construction segment of the market 17 properties went under contract ranging in price from $249,900 to $649,900 and 5 properties closed ranging in price from $249,900 to $525,000.

Area 222

Area 222 is that section of the county that is West of GA 400, South of Hwy. 20 and includes the city of Cumming and part of Alpharetta. In the resale segment of the market there were 18 properties ranging in price from $108,209 to $599,000 that went under contract and 6 properties that closed ranging in price from $34,000 to $420,000. In the new construction segment of the market 12 properties went under contract ranging in price from $198,535 to $629,900 and 3 properties closed ranging in price from $218,000 to $480,000.

Area 223

Area 223 is that section of the county that is West of Ga. 400, North of Hwy. 20, outside City limits of Cumming. In the resale segment of the market there were 9 properties ranging in price from $104,500 to $750,000 that went under contract and 4 properties that closed ranging in price from $126,000 to $436,100. In the new construction segment of the market 4 properties went under contract ranging in price from $154,995 to $374,900 and 2 properties closed ranging in price from $170,000 to $320,000.

Forsyth County Summary

For the month of January 2009, real estate sales for single family detached homes in Forsyth County looked like this:
•    65 Resale Properties Went Under Contract
•    20 Resale Properties Closed
•    33 New Construction Properties Went Under Contract
•    10 New Construction Properties Closed.

Comparing January of 2009 to December of 2008 we see an increase of 24.05 percent in properties going under contract in Forsyth County. I think it is safe to say that interest rates being at historically low levels has been a contributing factor to this positive movement in the market. It would be nice to see this continue for several months to establish a very positive trend for Forsyth County.
 

Statistics for single family detached homes in the Gwinnett County real estate market for the month of January 2009 are in. Gwinnett County is divided into six different areas and we will examine each area and then look at the county as a whole.

Area 61

Area 61 is that section of the county that is North of I-85 and West of Pleasant Hill Road. Area 61 includes Norcross, Berkeley Lake and part of Duluth. In the resale segment of the market there were 26 properties ranging in price from $59,900 to $524,000 that went under contract and 7 properties that closed ranging in price from $68,000 to $400,000. In the new construction segment of the market 1 home priced at $437,900 went under contract and there were no closings in the new construction category.

Area 62

Area 62 is the section of the county that is North of Pleasant Hill Road and North of I-85. Area 62 includes Buford, Sugar Hill, part of Duluth and part of Suwanee. In the resale segment of the market there were 78 properties ranging in price from $35,900 to $772,900 that went under contract and 8 properties that closed ranging in price from $140,000 to $471,000. In the new construction segment of the market 19 properties went under contract ranging in price from $165,900 to $1,399,900 and 9 properties closed ranging in price from $179,900 to $1,300,000.

Area 63

Area 63 is the section of the county that is South of I-85, Northeast of Hwy. 120 and North of Hwy. 29. Area 63 includes parts of Lawrenceville, Duluth, Suwanee and Dacula. In the resale segment of the market there were 68 properties ranging in price from $58,900 to $383,900 that went under contract and 13 properties that closed ranging in price from $83,000 to $329,000. In the new construction segment of the market 18 properties went under contract ranging in price from $184,300 to $484,900 and 6 properties closed ranging in price from $195,000 to $350,000.

Area 64

Area 64 is the section of the county that is South of I-85, Southwest of Hwy. 120, West of Hwy. 124 and North of Hwy. 78. Area 64 includes Lilburn along with parts of Lawrenceville and Snellville. In the resale segment of the market there were 107 properties ranging in price from $48,900 to $529,000 that went under contract and 15 properties that closed ranging in price from $40,000 to $515,000. In the new construction segment of the market 6 properties went under contract ranging in price from $150,000 to $619,900 and there were no closings.

Area 65

Area 65 is the section of the county that is South and East of Hwy. 78 and Hwy. 124, and South and West of Hwy. 20. Area 65 includes Grayson along with parts of Snellville and Lawrenceville. In the resale segment of the market there were 75 properties ranging in price from $33,900 to $350,000 that went under contract and 11 properties that closed ranging in price from $52,000 to $328,000. In the new construction segment of the market 11 properties went under contract ranging in price from $163,900 to $474,900 and 2 properties closed ranging in price from $176,240 to $195,000.

Area 66

Area 66 is that section of the county that is East of Hwy. 20 and South of Hwy. 29. Area 66 includes parts of Dacula and Lawrenceville. In the resale segment of the market there were 52 properties ranging in price from $65,000 to $449,900 that went under contract and 8 properties that closed ranging in price from $95,000 to $430,000. In the new construction segment of the market 14 properties went under contract ranging in price from $164,510 to $399,824 and 1 properties closed at a price of $360,000.

Gwinnett County Summary

For the month of January 2009, real estate sales for single family detached homes in Gwinnett County looked like this:
•    406 Resale Properties Went Under Contract
•     62 Resale Properties Closed
•     69 New Construction Properties Went Under Contract
•     18 New Construction Properties Closed.

Gwinnett County may well be on it’s way toward recovery in the real estate sector. Recenty several clients have asked when we would hit the bottom in the real estate market in Gwinnett County. My responce was that we probably would not know we have hit bottom until we had 2 to 3 months of positive data to enlighten us. Compared to December of 2008 in January 2009 properties that went under contract in Gwinnett County increased by 41.79 percent. Couple that with December 2008 showing an increase over November 2008 and a very positive trend is imerging. It is difficult to predict whether or not this trend will continue but with interest rates being at historically low levels it would seem to make sense.

The Isakson/Lieberman Amendment

News out of our nation’s capital is providing perspective buyers with reason to celebrate and look ahead in the housing market. We have all heard of the “American Recovery and Reinvestment Act” that President Obama wants enacted immediately. An amendment to benefit buyers of primary residences was introduced by Senator Isakson (R-GA) and Senator Lieberman (ID-CT).

Comments from Senator Lieberman, “The rapid decline in housing prices lies at the heart of the economic crisis.”  “Real economic growth will not resume until housing values stabilize and American families once again have faith and confidence that the most valuable asset they own – their home – is safe and secure. This kind of credit could repay dividends many times over by increasing housing values, creating construction jobs, and generating state and federal tax revenue.”

The amendment was met with bipartisan support and was approved. The important provision in the amendment was the establishment of up to a $15,000 tax credit for buyer’s purchasing their primary residence.

How Does It Work?

The calculation for how to determine how much your tax credit would be is performed in this manner. Your will get a tax credit for 10% of the purchase price of the residence up to a maximum of $15,000. One of the nice provisions of the amendment is that the tax payer may choose to take the credit all in the first year or it can be split between two (2) years. One very positive feature, as opposed to the First Time Buyer Tax Credit of last year, is that this tax credit does not have to be repaid.

What Is The Timeframe?

Upon enactment of the legislation a buyer will have one year in which to complete their purchase. This sounds like a long time but in reality now is the time to start looking. The housing inventory is at a peak and your best selection for that home that meets your exact requirements may be right now.

What Are The Drawbacks?

The only drawback or downside to this amendment is that if the residence is sold or is not utilized as the primary residence in the first two years, the tax credit must be repaid. There are of course circumstances where this repayment would not apply.

Last week, while attending a continuing education class, I along with the other attendees saw on a listing the classification for a HERS Index. One student in the class asked, what is a HERS Index? No one was able to answer the question. As is usually, when a question like this arises there will be research done and a blog post to follow that answers the question. This is no exception.

After doing a Google search, the first site that I visited in my quest for information on a HERS Index/Rating was the Energy Star site. What I found was that a HERS rating is a scoring system that involves an analysis of a homes construction plans along with on site inspections and testing. Upon review of the plans the “Energy Rater” uses an energy efficiency software package to analyze the design of the home. The Rater will then make recommendations to the builder that will identify energy efficiency improvements that will ensure that the home will meet Energy Star performance guidelines.

Onsite inspections are made by the “Energy Rater” along with the input from the original plan review are used to generate the HERS Index. The on site inspections typically include a blower door test that tests for leaks in the house and a duct test that test for leaks in the duct work.

So now we know what HERS stands for: Home Energy Rating System.

But What Do The Numbers Mean?

Based on the 2006 International Energy Conservation Code, a home built to these standards will have a Hers Index of 100. The lower the Hers Index the more energy efficient the home is. A 1 point decrease in the HERS Index equals a 1% saving in energy consumption compared to the standard. A home with a HERS Index of 85 would be 15% more efficient than the standard.

Who Does The Testing?

The second site that I went to while searching for information was the Residential Energy Services Network (RESNET) site. From their site we get the RESNET Mission Statement:
•    The Residential Energy Services Network’s (RESNET®) mission is to ensure the success of the building energy performance certification industry, set the standards of quality, and increase the opportunity for ownership of high performance buildings.

Certified Rater’s must complete training by a RESNET Accredited Training provider and pass a test to be certified. After certification, the Raters then begin their work of examining plans and helping builders construct more energy efficient homes.

Builder Short Sales

A builder doing a short sale on a new construction property is just plain scary. What you as a buyer are being told, in a not so subtle way, is that the builder is probably not going to be able to cover any warranty work that needs to be performed on your new home. Having that builder backed warranty for the first year is a huge financial advantage. Getting a home warranty can rectify some of your exposure however many of the items that need to be corrected in that first year are cosmetic items that a home warranty does not cover. After all, the appliances are covered under the manufacturer’s warranty. I have yet to see a new construction home that does not have settling cracks and nail pops during that builder warranty period. Now, I don’t want you to think that I’m saying not to buy a Builder Short Sale. I’m just saying that you need to buy it at a price that makes it worthwhile to take on the additional financial risk.

Is It A Tough Market?

Sure the market is tough for the new home builders right now. It’s tough for everyone. Everything involved in our economy is tough. These tough times require that you, as an educated buyer, demand certain things from your agent. Possibly the most important thing that an agent can do for a buyer in today’s market is share the knowledge about builders and construction techniques that has been obtained through years of hard work. Not only the sharing of knowledge, but also the ability to obtain current information about the prospective builder’s financial status and prospects for the future. No one wants to be in a situation where they purchase a home today and the builder is gone tomorrow.

Educated Buyers Work With Business People

In the past the thought was that “If you build it they will come”. To some degree that was accurate. In today’s market educated buyers are working with builders and agents that treat their business as a business. The builders and agents that will survive in this market are businesspeople that operate and act like businesspeople.

Don’t Scare Me

The thought of one of my buyers purchasing a home from a builder via a short sale scares the mess out of me. I take pride in protecting my buyer’s best interest. I just don’t think this type transaction is a good fit for buyers who don’t understand the additional financial risks involved.