Alpharetta and Johns Creek Real Estate

One of my pet peeves is the way the mass media throws out headlines without giving readers a way to evaluate the information.

For instance… I read the headline in an Associated Press story released today, which stated “Home Sales Rise Unexpectedly in February, As Prices Keep Tumbling.”

This story was based on a National Association of Realtors’ report on February home sales figures.

The average reader will assume that February was exceptionally strong. But the thing that the casual reader may not realize is that it’s a lagging indicator. This information is actually based on how many sales closed in February. These statistics relay information from 30-60 days prior (the average time it takes a house to move from contract to close in this area).

If you look at NEW home sales, you will have a better indicator because new home sales data is reported by how many homes went under contract, not how many close. That shows a more accurate picture of the recent status for the reported dates.

Personally, I always report my statistics based on the number of homes that go under contract rather than the closing dates, since the closing dates may fluctuate dramatically and it may take some extra time after that to compile the data for the report.

You can see my regularly updated home sales statistics and Alpharetta/Johns Creek information online.

More buyers are actively searching for homes lately. During the past four weeks, there has been an increase in home showings in and around Alpharetta and Johns Creek. It has become active enough to identify as an actual trend, locally, but it’s impossible to know how long this will last.

Although the activity has increased, it hasn’t yet translated into sales. Interest rates dropped under 6% for 30-year fixed mortgage loans which will encourage renewed activity. Spring is in the air and those individuals searching for a home are becoming more interested in seeing properties. I would not be surprised to see sales pick up as we go into the strongest season for home sales.

Download the Jan-Feb 2008 Newsletter (in PDF)

Gather tips for preparing your home for sale, stage your home from the outside in and get resources for kitchen revamps in this bi-monthly issue.

You may have heard that the FHA has recently increased loan limits. Want to know what that means for you? How about this:

Sub-prime lending is (in most cases) no longer an option for homebuyers in today’s market. Fortunately, the FHA has stepped in to fill some of the void for those who are good risks, buying reasonably priced homes. An approved FHA buyer can now borrow as much $346,250.00 to purchase a home.

Down payment requirements are currently 3% and you can qualify for an FHA loan even if you have less than ideal credit. Scores down in the 580 range may still be approved for home ownership with FHA.

In the larger picture, the old FHA loan limits reduced the options of the homes that could be purchased in the Alpharetta and Johns Creek areas. This higher loan limit will allow additional neighborhoods to qualify and will improve options for local FHA buyers.

I have just finished compiling the sales data for October and the picture is not any prettier than it has been. A quick look reveals that the lower the sales price the faster the market is moving. The market is substantially slow when the sales price goes above $450,000.

There is a 5 month supply of homes priced under $200,000 while the supply balloons to over three years for homes priced over $800,000.

I will be digging deeper into the numbers in the month ahead. Check back here soon to get a more complete picture of what the market is telling us. All the best, Jeff