2011 Atlanta Real Estate Market Overview

As we are now totally involved with the 2011 Atlanta Real Estate Market, perhaps we should reflect on several aspects of it. Did you know that with current sales prices it is possible for someone purchasing a home to buy for less than the cost of construction? Personally I am starting to see sales prices stabilizing and inch up slowly.

What about the historically low interest rates? With the FED stating that they are going to keep rates low and this being an election year I don’t think interest rates will be changing substantially.

One large concern is the shrinking inventory of homes for sale. With more and more homeowners being in a negative equity situation we have seen residential inventory decrease by approximately 30% over the past 12 months.

So what happened in the Atlanta Real Estate Market in 2011 vs 2010? Here are the numbers…you can be the judge!

Residential Single Family Detached Homes:

•    Closings increased approximately 16% versus 2010
•    Sales Prices decreased approximately 11.5% versus 2010

Residential Attached Homes (Condos and Townhomes):

•    Closings increased approximately 12.5% versus 2010
•    Sales Prices decreased approximately 12.4% versus 2010

What these numbers indicate to me is that there are a lot of buyers taking advantage of the market. Whether it is for that “Move up Buyer” who needs the additional space or the Investor looking for double digit returns on rental properties, current sales prices have created some unbelievable opportunities in the Atlanta Real Estate Market.

Is it your time to take advantage of the market? If so, you need to align yourself with a Full Time REALTOR who understands and knows how to navigate through the current maze of Foreclosures, Short Sales and Distressed Properties to help you obtain your deal of a lifetime. You can utilize my experience to eliminate your fears in the Atlanta Real Estate Market.

While waiting for a client to arrive at the office yesterday another agent asked what I thought about the latest statistics released by the National Association of REALTORS. I asked if he was referring to the across the board 28% downturn in sold properties from June to July that was announced earlier this week? That was exactly what he was talking about. I told him that I had just written an article about how the numbers from NAR were totally skewed as far as the Northeast Atlanta Real Estate market is concerned.

The more I thought about the statistics that were compiled for that last blog article the more I realized that I left out a very important set of statistics…The Year-To-Date sales figures for both years. So here are the numbers:

The Year-Over-Year numbers above represent a 6.12% increase in closed transactions in Northeast Atlanta. WOW…In every area the number of closed properties is up Year-Over-Year for the same time period. OK NAR where were these type numbers reported? How do these numbers tie into the 28% downturn in real estate sales? One again folks…Real Estate is Local! To some areas of the nation that 28% number may very well be good news…Just not in the Northeast Atlanta market.

Now that you have the complete statistics, what do you think?

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.

Many times I am asked when I think we will be coming out of this down real estate market. I think we are there. Will we be showing a rapid recovery? I don’t think so. Will we be making a fairly constant recovery? The Atlanta Real Estate market has a reputation for being slow and steady and that is what is anticipated with this recovery. Let’s take a look at how the Second Quarter of 2010 faired vs the First Quarter.

Forsyth County Summary

The second Quarter of 2010 in Forsyth County shows substantial growth. 990 properties went Under Contract and there were 724 closings. Compared to the First Quarter of 2010 this represents an increase of 299 properties that closed or an increase of 70.3%.

North Fulton County Summary

The second Quarter of 2010 in North Fulton County was active. 1,042 properties went Under Contract and there were 776 Closings. Compared to the First Quarter of 2010 this represents an increase of 301 properties that closed or an increase of 63.3%

Gwinnett County Summary

The Second Quarter of 2010 in Gwinnett County was robust. 3,377 properties went Under Contract and there were 2,252 Closings. Compared to the First Quarter of 2010 this represents an increase of 740 properties that closed or an increase of 48.9%.

Looking Forward

As we are into the Third Quarter, it appears that the Northeast Atlanta Real Estate Market will continue to make progress towards recovery. According to the July Case Schiller Report, which is reporting May 2010 data, home prices increased 2.13% vs the previous month in the Atlanta Market. This is good news for sellers and provides buyers with the warning that it is time to get off the fence.

Looking at the data it is pretty safe to say that we are bouncing off the bottom of this market. If you know someone looking to buy a home please let me know. If you know someone that desires to sell their home, I will be happy to meet with them and go over one of the most aggressive home marketing plans in the Region.

On a closing note, School has started back…Watch Out For The Kids!

I on my own behalf and own behalf of my entire family thank you very much for your assistance and help in finding a home here…..thank you Mack from all of us.

Stop Foreclosure

We hear about mortgage fraud and title fraud but what in the world is Foreclosure Fraud. Foreclosure Fraud is an attempt by unscrupulous individuals or companies to deceive homeowners of distressed properties. Homeowners facing foreclosure are at their most vulnerable state emotionally and financially. These unscrupulous predators know that this is the time to take advantage of the homeowners. They show up as the knight in shining armor with the rescue plan. They use many different methods; however they always have one of two goals in mind…To get the homeowner to part with some money or to get the homeowner to sign over some form of ownership in the property. Rather than calling it Foreclosure Fraud perhaps we should just call it A Foreclosure Scam.

Here are some Red Flags to help homeowners identify potential Foreclosure Scam Companies or Individuals:

•    Request Money Upfront – Reputable organizations that specialize in helping homeowners prevent foreclosure Do Not request money upfront.
•    Transfer Financial Authority – Another ploy these predators use is to have homeowners sign a “Power of Attorney” where the homeowner appoints them to act on the owners behalf. This can have devastating results.
•    Guarantee To Stop Foreclosure – No third party company or individual can make this guarantee. The only company that can guarantee stopping a foreclosure is the actual mortgage company that holds the loan. This also applies to a guarantee of a loan modification.
•    Advise Stop Paying The Mortgage – Some of these predators advise homeowners to stop paying the mortgage because it will strengthen the homeowners position in the lenders eyes. All they want you to do is skip a payment or two and just give them that money to represent you. If this recommendation is made to you, end the conversation and ask them to leave!
•    Assign The Deed – Never transfer ownership in your home to someone who does not have a financial stake in it. If a company wants you to transfer ownership tell them they will be added to the deed when they are approved by your mortgage company to go on the mortgage and complete the required documents at the closing.
•    Official Government Approved Organization – Really… Confirm how legitimate they are with the Better Business Bureau or Governor’s Office of Consumer Affairs. Most government websites list their approved entities and make it very easy for you to verify
•    Supply Information Online – Before releasing any personal information or financial information online or over the phone make sure you know who you are dealing with.

Do you feel that you may now be a little better informed about what to look for from these scammers? I hope so. If you are having difficulty with meeting your monthly mortgage obligation talk to your Mortgage Company. If you feel that your best option will be to sell your home and you may need to utilize a short sale, give me a call and we can discuss your options.

The Georgia Water Stewardship Act

The Georgia Water Stewardship Act signed by Governor Sonny Perdue went into effect in June of 2010. The bill allows daily outdoor watering for purposes of planting, growing, managing, or maintaining ground cover, trees, shrubs, or other plants from 4:00pm – 10:00am.

All other outdoor water usage like washing cars and pressure washing is to follow the watering schedule based on street address shown below:

Monday, Wednesday and Saturday – Even Addresses can Water

Tuesday, Thursday and Sunday – Odd Addresses can Water

Friday – No other Outdoor Watering Is Permitted

Frequently asked questions about outdoor water use:

I heard I can water my yard every day. Is that true?
Yes. Citizens in Georgia can now water any day of the week, regardless of your address, between 4:00pm and 10:00am.

Can I also wash my car or pressure wash my house any day?
No. The new state law only relates to landscape uses. The odd/even schedule remains in place for all other outdoor uses.

Are parks included in the new schedule?
Sports fields and parks are exempt from the hourly restrictions. These areas may be watered any time or day.

If I put in new landscape, do I have to water between 4:00pm and 10:00am?
No. Newly installed landscape is also exempt from the hourly restrictions for the first 30 days following installation.

What about drip irrigation?
Drip irrigation is completely exempt from the outdoor rules. It may be used any time or day.

What exemptions exist to the new hourly restrictions?

•    Commercial Agriculture
•    Alternative sources of water (grey water, rain water, condensate, etc.)
•    Irrigation of food gardens
•    Irrigation of newly installed or reseeded turf for the first 30 days following installation
•    Drip irrigation or soaker hoses
•    Water from a private well
•    Irrigation of plants for sale
•    Irrigation of athletic fields, golf courses, or public recreational turf
•    Installation and maintenance of irrigation systems
•    Hydro seeding

Are professional pressure washers hired to wash my house subject to restrictions based on my address?
No. Commercial businesses are exempt from day of the week restrictions.

Can I have a charity car wash on any day regardless of the address?
No. Unfortunately, charity car washes, like at home car washes, are subject to the odd/even schedule. This is determined by the address of the facility hosting the car wash. Partnering with a professional car wash is exempt from the odd/even schedule due to the company’s professional exemption.

For more information on exemptions and forms to submit violations, visit the Gwinnett County Department of Water Resources’ water conservation webpage through www.gwinnettcounty.com.

More information can be found on the Gwinnett County Department of Water Resources‘ water conservation webpage.

Are you tired of looking at property online only to find out that it is already under contract or it sold and closed several months ago? I know that I dislike giving the bad news almost as much as customers dislike hearing it. What if you didn’t have to rely on outdated information from general internet sources?  What if you could search the MLS in the same manner that an agent can? Are you starting to see an advantage for yourself?

In an effort to keep my clients as informed as possible I have just begun a subscription to what appears to be the most up to date, real time, accurate information for real estate buyers and sellers that the Atlanta Real Estate market has experienced. You will be able to search not only active listings but you can also access sales information. The system updates property information every 30 minutes.

Atlanta Real Estate Information for Buyers

This system allows you, as my preferred clients, to have an account that allows you to search the listing service in the same way that I do. You can easily change your criteria and we can openly communicate, almost as if we were using instant messaging, regarding which properties interest you and which one you don’t want to waste your time on.

One nice thing about the system is that you receive an email every morning; it generally arrives in your inbox shortly after midnight, which gets you current with new listings and price changes for properties that meet your criteria.

Atlanta Real Estate Information for Sellers

Sellers will receive an email every morning also. The email for sellers includes alerts for new properties coming onto the market, price changes for competing properties along with activity for the your listing, including how many potential buyers have your home in their criteria. With this type data we can customize our marketing efforts. We can also generate automated Market Analysis for you.

How to Obtain an Atlanta MLS Account

For my current clients I will be contacting you to get your accounts activated. Don’t feel left out if we are not working together yet. Just contact me via email or phone and I will get you set up so that you can receive the information also.

Buying or selling real estate is a journey. Why not travel with as much information as possible?

Welcome home to 3482 Park Bluff Way, an amazing updated open floor plan home located in the Grove Park subdivision of Duluth, GA. As you enter the home you will immediately notice the attention to detail and the architectural features that give this home its charm.

First you will see the vaulted fireside den that, like most of the main level has hardwood floors. The den opens into the formal dining room via a double arched opening. As you enter the kitchen, the impressive granite counter tops and tile back splash along with the large floor tile catch your attention.

Upstairs has seen the upgrades also. Bamboo flooring has been installed so don’t worry about allergies here. Chair railing has also been installed in selected areas. The large master retreat is relaxing and provides plenty of space. The 3 additional bedrooms are on this level, one of which is currently being used as an office.

The backyard is ideal for young children as it is fenced. Radius Windsor Wall Blocks create picturesque planting areas in each rear corner of the yard along with a grape vine that produces delicious grapes seasonally.

As with any home purchase, schools are important and 3482 Park Bluff Way is service by some of Gwinnett Counties Finest Schools, Chattahoochee Elementary, Duluth Middle and Duluth High.

For additional information or to schedule a private viewing of this home, contact Mack Perry at 770-318-2572. You can also get instant information by sending a text message to 44133 with the message 33183.

No more 100% financing… No more First Time Buyer Tax Credit… No more move up buyer tax credit… What is a buyer in the Atlanta market to do? Currently there are several different programs that offer grant funds that can be used for down payment assistance. The nice thing about these grants is that they do not have to be repaid as long as certain criteria are met.

Why don’t we get together and see if you qualify to take advantage of one of these programs. Either call or email and see how easy it can be to get the ball rolling.