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Archive for the ‘Local Real Estate’ Category
I am frequently asked, “When is our Alpharetta and Johns Creek real estate market going to get better?” There is no concrete answer, but one trend we need to see is an increase in home prices so that the number of underwater mortgages is reduced. Why is this so critical? Many current homeowners would love to take advantage of the great home values available today and move up to a more expensive home while interest rates are still low. But, with the value of their own home down, they can’t make that move. The current high level of underwater mortgages is a key factor that keeps the Atlanta real estate market mired in sluggishness. (An “underwater mortgage” means that the amount of the outstanding loan is greater than the value of the home.) A recent article from CNBC states that the number of underwater mortgages increased from 23% to 27% between the third and fourth quarters of 2010. Georgia has 3 out of the top 30 counties in the United States with the highest rate of underwater mortgages (see chart)… and they are all in the Atlanta Metro area. Paulding County comes in at number 25 with 47.5% underwater, Henry County is number 20 with 48.8%, and Clayton County made it all the way to number 7 with 56.1% of all mortgages underwater. Clark County in Nevada is number 1 with 71.1% of its mortgages currently “upside down” — to give you a little perspective outside of our state. for some perspective. So what factors will help home prices increase? Supply and demand laws will lead us. (They always do.) We need a lower supply of foreclosure and short sale homes on the market and a greater number of qualified buyers looking for homes. What is the single biggest factor that will dramatically help achieve these goals? JOB CREATION! If unemployment rates fall, fewer homes will end up in foreclosure and better employment numbers mean more people will qualify for a new mortgage. Current market conditions do indicate a slow improvement in the job outlook as our economy recovers. Unfortunately, slowly improving employment numbers means a slowly improving real estate market. Bottom line – don’t expect our market to improve rapidly but always keep in mind that great opportunities exist in any market. All the best, Jeff
The Cougars rolled to another impressive victory by beating Star’s Mill 24-0 in the state final. This has been an amazing season with Chattahoochee finishing a perfect 15-0 season. I will post photos of the games soon on this site. Can’t wait until next year!
That is not a slow market, that is a non-existent market. At that pace it would take over 30 years to sell all of these homes. For comparisons sake, at this point in 2006 there had been 21 sales for homes listed above $800,000, 18 sales in 2007 and 14 last year as of this date in February. So what is going on here? Read the rest of this entry »
Will this have any effect on the housing market? I would imagine that it will help some first time buyers get off the fence and make a commitment to purchase. Is this going to magically return health to the real estate market? No. Consumer confidence about the economy as a whole is critical to the real estate market. People shy away from making large purchases when their confidence about the economy is low and they fear potential job loss. The economic environment will improve over time as it always does (please no more “help” from the government) and as it does the real estate market will improve. Expect the real estate market to remain challenging for the next few years but there are always good opportunities to be found in any market. Remember, even if you sell and get less than you want for your home, you can make it up and then some if you are purchasing another home. Keep your spirits up. All the best, Jeff It seems that the housing stimulus proposal that Johnny Isakson’s was able to get added in the Senate stimulus bill was scaled back significantly in the conference committee. The latest information indicates that a home purchased as a primary residence before the end of August 2009 will qualify the buyer for a $8000 tax credit. I will be sure to stay on top of this story and let you know if it actually gets signed into law. All the best, Jeff |
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So you think you have it tough? There are currently 192 homes listed for sale in North Fulton County that are east of GA 400. Only one of them has gone under contract since December 16, 2008 according to the first Multiple Listing Service.
The so called “American Recovery and Reinvestment Act” (don’t you just love the names they come up with for legislation?) also known as the Economic Stimulus Bill passed both the House and Senate yesterday and now awaits Presidents Obama’s signature. He undoubtedly will sign it next week. The housing stimulus proposal that Georgia Senator Johnny Isakson put forth was included in the final bill but altered substantially from his vision and recommendations. According to this 
