January 2010

January 2010 stared a little slower than the experts anticipated. As fact would have it in January 2010 there were 2604 total closings, a decline of 8.9% in the number of properties sold compared to January 2009. The decrease came from the Single Family Detached properties which were down 11.5% while Single Family Attached properties (Condos and Townhomes) were actually up 9.8%.

Now let’s look at the good news… Single Family Detached properties increased in average sale price by 5.4% compared to January 2009. During the month of January 2010 there were approximately 1,500 more homes under contract at the end of the month verses at the beginning of the month. These two variables represent positive growth for the Atlanta Real Estate market however I think we are still in a position for a slow steady recovery.

February 2010

February 2010 shows that there were 2,763 Single Family Detached properties closed compared to 2,411 in February 2009, an increase of 12.8%. For Single Family Attached properties there were 432 properties closed which represents an increase of 20.7% compared to February 2009. The average sale prices also seem to be increasing for Single Family Detached properties while the Condo/Townhome market is still struggling. The average sale price for detached properties was $184,688 an increase of 5.5% versus February 2009 and attached properties was $145,211 or a decrease of 5% over the same time period.

In Gwinnett County there is currently a short supply of homes in the under $160,000 price point. Looking at the statistics there is approximately a 3.7 months’ supply of homes in this price range which means that this price point is turning back to a seller market. This is not the case with the more expensive homes. With homes priced in the $200,000 to $500,000 range there is 7.24 months supply currently on the market and this remains a buyer’s market.

March 2010

The final statistics for March 2010 show some encouraging news for the Atlanta Real Estate Market. There were 3,793 Single Family Detached closings in March, an increase of 5.2% vs. March of 2009. For Single Family Attached properties there were 711 properties closed which represents an increase of 18.9% vs. March of 2009. Now for some more good news. The average price for Single Family Detached properties rose by 9.4% vs. March 2009 to $197,433. The average price for a Single Family Attached property remained constant at $151,550 vs March 2009 however it was up by $6,339 over February of 2010.

First Quarter 2010 Observations

During the first quarter of 2010 there were 10,303 properties closed in the Atlanta Real Estate Market. With interest rates remaining at historical low levels, there is no reason for this recovery not to continue.

Comparing building permits issued in the first quarter of 2010, new construction is beginning to rebound. While not as robust as in the real estate hay day of 2004, the over 1900 building permits issued during the first quarter of 2010 represent an approximate 50% increase vs. the first quarter of 2009.

As is the case in most real estate markets throughout the United States, there remains a large volume of foreclosure and short sale properties in the Atlanta Market. These properties represent some excellent bargains for investors, first time buyers and conventional purchasers. The economy may not be as strong as we would like to see but it has helped to generate these steals of a deal.

Feel free to let me know what you think!

It’s safe to say that over the last three years the Atlanta Real Estate Market has seen some amazing changes, most of which are not what we would call favorable. From the highs of 2006 it was inevitable that the market would experience some decline we just didn’t know how much of a decline there was going to be.

The chart below show what has happened in the Greater Atlanta Market in the last three years. I think it is interesting to see that in the last half of 2009 the market began marking a bit of a comeback. Prices began inching upward as did the number of closings. They have not reached the values from early 2007 however they are definitely moving in the right direction.

One of the interesting things about the Atlanta Market is that it did not experience drastic jumps downward and probably will not shoot upwards in a drastic fashion either. It has been stated time and time again that we will know when we are coming out of the housing decline about 3 to 6 months after it begins to happen. I think we are starting to come out of the decline and will research the numbers for the first quarter of 2010 and publish them in several weeks.

Let me know what you think…

In an unexpected move, Congress announced that the $8,000 first time buyer tax credit and the $6,500 move up buyer tax credit have extended until the end of 2010. This program has been extremely beneficial in helping to turn the housing market around. As fact would have it, with homes priced under $150,000 there is actually a very short supply in the Gwinnett County, GA area and this price point is turning into a sellers market again.

Recently there has even been evidence that builders were starting construction on new homes again, another sign of the return to better times in the Greater Atlanta Real Estate market.

I want to take this opportunity to wish everyone that reads this article a Happy April Fools Day. The first sentence of the first paragraph is not factual. However everything else in the article is true. To qualify to participate in the home-buyer tax credit program, buyers must be under contract by April 30, 2010 and close on the property by June 30, 2010. If you are considering purchasing real estate don’t get left out of this program…Don’t Be An April Fool!

Congratulations go out to The Providence Group, an Atlanta area builder, who has sold 102 homes in the last 90 days. The Providence Group currently operates in 12 communities and is actively building in Woodbridge Crossing, The Highlands at Centennial and Highlands of Sandy Springs.

The recent success of The Providence Group can be attributed to two main factors, first and foremost they build a quality product. The second factor is the current “Absolute Sale At Bank Prices” promotion. This promotion affords purchasers the opportunity to acquire a Providence Group property with Short Sale Pricing while taking advantage of the Federal First Time Buyer Tax Credit along with the State of Georgia Tax Credit. (Remember to check with your tax advisor regarding your qualification for these programs)

According to Ginny Bryant, Director of Sale and Marketing, now is an exciting time for The Providence Group. They feel as though they have turned the corner on this market and are looking forward to the next few months and next year. Ginny I agree with you. Even though the Atlanta market is not there yet, it looks like we can come out of ICU and proceed towards a healthy recovery. Congratulations again Providence Group, Y’all Done Good!

In a ruling released yesterday from the Federal Trade Commission, the commissioners unanimously voted to require disclosure from bloggers regarding endorsements as well as the disclosure of important connections between advertisers and endorsers. As a REALTOR one of the continuing education classes that I attended was taught by Seth Weissman who is Council to the Georgia Association of REALTORS. In this class Mr. Weissman advised us to, in every instance; err on the side of disclosure.
In keeping with the ruling this seems like a good time to offer my disclosure information. I am currently an agent and independent contractor with RE/MAX Center in Suwanee Georgia. I am the “eTeam” coordinator and assist with the corporate website. I do not sell advertising on this blog and the vendors that are featured have personally done work for me which I have paid for and I have elected to feature them because they did a good job. I feel that they may be of benefit to my clients and anyone reading this blog who is in the metro Atlanta area.

PUBLIC ENCOURAGED TO ATTEND AND BE HEARD AS

GWINNETT CITIZENS FOR RESPONSIBLE GOVERNMENT TO HOST

TOWN HALL MEETING AT GJAC ON 8/27 AT 7 PM

Blue Ribbon Panel to address budget, taxes, trash plan, land use and acquisitions

LAWRENCEVILLE, GA – Gwinnett Citizens for Responsible Government is hosting a Town Hall Meeting sponsored by FreedomWorks at the Gwinnett County Justice and Administration Center on August 27th beginning at 7:00pm in the auditorium.

A citizen’s blue ribbon panel will address topics such as budget cuts, taxes, trash plan, land use and county land acquisitions. The members of the panel confirmed so far include (A Representative of Save Our Dacula Library has been invited):

1.Mary Kay Murphy – Gwinnett County Schools

2. Sabrina Smith – Citizens for responsible Government

3. Demming Bass – VP Communication and Public Policy

Gwinnett Chamber of Commerce

4. B.J. Van Gundy – E2 Assure

5. Butch Poss – United Gwinnett Community HOA Alliance

6. Bob Griggs – Talk Gwinnett

7. Jim Pack -  President (retired) Gwinnett Federal Savings & Loan

8. Jeremy Brand – What a Waste Gwinnett

9. Bruce Levell – Gwinnett Village CID

10. George Thorndyke – Commercial Property Consultants

11. Sgt. R.E. Long of the local Police Union

Elected officials that have confirmed they will attend and participate:

Butch Conway, Gwinnett County Sheriff
Danny Porter, Gwinnett County District Attorney
Jerry Oberholtzer, Mayor City of Snellville
Dallas Stidd, Police Chief of Norcross Police Department
Warren Auld, Snellville City Council
Gary Pirkle, Mayor of Sugar Hill
Diana Preston, Mayor of Lilburn

“The purpose of this event is to gather citizen input and recommendations from business professionals in Gwinnett County.  We formed this organization so that the true feelings of Gwinnett taxpayers could be heard.  For too long our government has been influenced by a small group of people rather than by needs and opinions of the voters.  We plan to change that and strongly encourage Gwinnett citizens to attend this Town Hall,” said Sabrina Smith, one of the event coordinators. She continued, “In recent months we have seen what a difference can be made when citizens become active and stand up and are heard.”

Elected officials will be invited to make statements at the beginning and be available to answer questions that may arise.

There is an asset manager at SunTrust Bank that should be fired immediately. This bank took billions of taxpayer dollars in bailout funds while one of their asset managers is costing them untold amounts of money by practicing some of the most idiotic practices I have ever heard of. Let me explain what brings me to this conclusion…

On June 1, 2009 I assisted a client by preparing an offer on a foreclosed property located at 2002 Alderbrooke Ct. in Lawrenceville. The property was on the market for $184,900.00 and we offered $170,000.00 and asked for seller contributions of $5,100.00 toward closing costs and the buyer was to put 20% down. The counteroffer we received was to raise the purchase price to $184,900.00 (List Price) and removed all of our stipulations for a home warranty, repairing wood rot, repairing an obvious water leak and disallowing a prequalification from a qualified lender (Per the listing agents office, this asset manager requires that for any closing costs to be contributed by the seller the buyer must use SunTrust Bank as their lender for the mortgage). As this saga continues and through further negotiations my client has raised his offer to $180,000.00 with seller contributions to closing costs to be $4080.00 which was countered at $180,000.00 with no closing cost contribution. We countered with $182,000.00 with $4,000.00 in closing costs, splitting the difference so to speak. The reply and subsequent counteroffer from the asset manager blew our mind. The counter offer was at $182,000.00 with no closing cost contributing. At this point my client just threw up his hands in disbelief and fortunately went to Florida to attend to his father who was a bit under the weather.

Let’s jump ahead into July. My client is back from Florida and low and behold the property at 2002 Alderbrooke Court has been through a price reduction and is now listed at $164,900.00. My client has conversation with a loan officer at SunTrust REO Division and is promptly preapproved as before. We make an offer at $164,900.00 with $5,000.00 seller contribution towards closing costs and guess what happens? You guessed it; the offer was accepted as written on July 14, 2009.

Had this asset manager accepted our offer at $182,000.00 with $4,000.00 closing cost contribution the bank would have been $18,100.00 better off and the transaction would have closed a month earlier also saving the bank a month’s expenses of managing the property. I am tickled for my client and feel as though he got a fantastic deal on a foreclosure home, but I have to ask myself do the actions of this asset manager really make sense for the bank? I hate seeing my taxes wasted bailing out a bank that is employing idiots that can’t see the forest for the trees.

Don’t ever let anyone say that RE/MAX Around Atlanta broker Sharon Dover doesn’t care about the agents in her office. She just recently announced a monthly fee decrease which will provide agents with one of the top commission payouts in Atlanta. There are 2 plans available for experienced agents and a separate new agent plan.

As is the case with fee structures, volume determines which plan is best for the agents. Let’s examine the plans in more depth. Each plan has a $226.00 per month charge that covers RE/MAX fees and FMLS fees are charged per transaction as usual. There is also an a la carte menu of additional items that are available as an add on for either plan:

•    Listing Input by Administration      20.00 per listing
•    Personal Website                         25.00 per month
•    Black and White Copies                    .08 each
•    Color Copies                                   .30 each
•    Voice Mail                                   15.00 per month
•    E Fax                                          10.00 per month
•    Desk Fee (In Office)                    250.00 per month
•    Homefeedback.com                       4.95 per month
•    Yard Signs from Sign’s Today        25.00 Each

The difference in the two plans is the per transaction fee and the monthly Administration fee:

•    Plan “A” Has a monthly fee of $50.00 and a per transaction fee of $300.00 per closed transaction except leases or referrals were the transaction fee is $100.00. For agents signing up for this plan prior to 5-1-2009 the annual transaction fee cap is $10,000 and after that the annual cap is $12,000.
•    Plan “B” Has a monthly fee of $350.00 and a per transaction fee of $50.00 per closed transaction except leases or referrals were the transaction fee is $100.00. For agents signing up for this plan prior to 5-1-2009 the annual transaction fee cap is $10,000 and after that the annual cap is $12,000. (This plan is probably best suited for teams with the team leader on this plan and the remaining team agents on Plan A)

To take advantage of either of these plans or to inquire about the new agent plan contact Sharon Dover at 770-495-3450 or by email dover2@aroundatlanta.com.

Last Night I received an email from Bryan Cohen, current President of Touchstone Homes announcing that he was leaving Touchstone to pursue other interests.

After 24 years of affiliation with Touchstone Homes and United General Industries, I have decided to pursue a new, exciting career opportunity.  Effective January 2, 2009, I will become President/CEO of Quantum National Bank in Suwanee, where I have served as a Director for 6 years.  My decision was extremely difficult, for so many personal and professional reasons.  However, this is a unique and compelling career opportunity that I could not pass up; which without my invaluable experience at Touchstone would not have come my way.

I will work with the very talented executive management team of Rick Stein, Jeff Abraham, and Mike Zambri to assure that we have a seamless and effective transition. Touchstone Homes has excellent people, systems and procedures that have helped it earn numerous honors over the years, including: Many Obie Awards by the Atlanta HomeBuilders Association; The 2006 and 2008 Best of Gwinnett Award; most importantly the coveted America’s Best Builder Award for 2007 and the Lee Evans Management Award for 2008.  I have complete confidence that, in spite of the challenging business environment we are all experiencing, Touchstone Homes will continue to flourish.

I would like to thank everyone for their support during my years at Touchstone. I wish for the Touchstone Family all the success in the future and will always relish the experiences we’ve shared together.

Bryan Cohen
President
 
For anyone who has had any association with Bryan during his tenure at Touchstone Homes I know you will want to join with me in wishing him well.

Here is the update on The New Gwinnett Trash Plan

In 2004 Gwinnett County charged Gwinnett Clean and Beautiful, along with it’s Citizens Solid Waste Advisory Board, to develope a solid waste management plan as required by Georgia law. The purpose of the law is to establish a long term plan of action to provide for improved garbage disposal and increased recycling in the state.

Gwinnett County Residential Trash Pick Up Plan Announced

Gwinnett Clean and Beautiful has announced the details regarding the new residential trash pick up plan for Gwinnett County. The county has been divided into six areas with Advanced Disposal Services Atlanta, LLC handling the three northern areas and Waste Pro of Georgia, Inc. handling the three southern areas. This plan goes into effect on January 2, 2009 and encompasses all residents of unincorporated Gwinnett County. Each residence will receive 2 of the 95 gallon wheeled carts, one for trash and the other for recyclables.

How Much Will It Cost

Initially, and through June 30, 2009, the service providers will bill the residents at a rate of $20.45 per month. Then beginning in July residents will stop receiving bills from the providers and a once a year payment, of $214.32 or $17.86 per month, will be paid when the property taxes are paid. This fixed rate will remain in force at least until December 31, 2010. After that time any fee increases must be justified by the provider and brought in front of the Gwinnett Clean and Beautiful Board and would have to receive support from the board. Yard waste pick up is optional and will be billed at a rate of $10.00 per month.

One Benefit

One of the benefits that I forsee from this program is the reduced number of garbage collection trucks and trash out by the curb on various days of the week. Currently in many subdivisions there are multiple providers for trash removal which creates collections on different days along with trash being put out on different days. By going to this plan there will only be one day of the week that trash will be visible at the street.

Gwinnett Clean and Beautiful has set up a web page for Frequently Asked Questions regarding this plan.