Market Conditions Category
Blowing Housing Bubbles in Atlanta?
Is there an Atlanta housing bubble developing? Google “housing bubble” and you will see reports both for and against. Here in metro Atlanta, we also have a split decision as several markets are active at levels not seen in years while others remain stagnant. As in the past, those Atlanta real estate markets running hot are those with strong locational appeal and well regarded, high performing schools. There are many factors at play right now that are fueling this market; taken...Read More
Is It Wise to Waive the Appraisal Contingency?
Is it wise to waive the appraisal contingency? Appraisals continues to cause aggita among many in the home buying process, is the answer to eliminate it? Current offers reflect the “now” while appraisals reflect the “then”; an inherent conflict especially in a transitional market. It was easy to see appraisal issues coming - in fact this was noted as a likely problem last fall. Waiving the appraisal contingency is done to present a more streamlined, competitive offer - one that will...Read More
Are Some Home Sellers Overplaying Their Hand?
“I don’t need to sell”…”I’ll just hold it and wait for the market to improve”…”These aren't comparable”. In a very few short months, home sellers have their swagger back. While many are exploiting favorable market conditions, many others are repeating the sins of the past – ignoring the data. Oddly, the really overconfident sellers tend to be those that have had expired listings; never mind that the home failed to sell at $X, with the rebounding market it’ll now sell...Read More
Obama Pushes Banks to Approve Mortgages to Buyers with Weaker Credit
What can possibly be added to this story? The Obama administration is engaged in a broad push to make more home loans available to people with weaker credit, an effort that officials say will help power the economic recovery but that skeptics say could open the door to the risky lending that caused the housing crash in the first place. President Obama’s economic advisers and outside experts say the nation’s much-celebrated housing rebound is leaving too many people behind, including young people...Read More
Corporate Investors Busy at Foreclosure Auctions
Sometimes a video is worth 1000 words - like this WSJ one focused on corporate investors at a recent Gwinnett County foreclosure auction. It's old news by now; Investor Groups Hoarding Homes Under $150K in Atlanta. In some areas, we're seeing investors reaching into the mid to upper 200K range as well. Their impact is directly felt by first time buyers and "mom and pop" traditional investors - those that generally live in the area and personally manage a small...Read More
Atlanta Spring Housing Market Building on ’12 Improvement
The early spring real estate market in Atlanta appears to be building on the stability established in late 2012. Most areas are firmly "seller's markets" right now and most buyers are adjusting to that. Investors continue to have a significant impact on this market and many Atlanta home buyers find themselves competing with them either directly or indirectly. The current market rewards Atlanta home buyers that are well educated in the process, well prepared and have a definition of success. ABC...Read More
FHA Raising Fees, Time to Consider a $65B Hole
FHA is estimated to be 46-65 billion dollars undercapitalized so increases in FHA mortgage insurance premiums and new, tougher underwriting standards will begin April 1st. Beginning then, it will cost new borrowers significantly more than refinancing borrowers who have had an FHA loan four years or longer. Tougher standards now, after digging a 46-65 billion dollar hole? Currently, 40% of FHA loans are considered subprime; is that going to change? Maybe Washington should just mint that trillion dollar coin and make everything...Read More
Atlanta Housing Market – 2012 in Review
The Atlanta real estate market has largely shifted from a buyer’s market to a seller’s market; the advantage maintained for so long by buyers appears to have disappeared. Data is pretty clear that the “bottom” of the Atlanta market occurred around the January 2010 time frame. Recall that the government incentivized home purchases from the later part of ’09 through about mid ’10. The climb out since has been volatile but the data shows that the low points since January...Read More
About Half of Atlanta Homeowners Underwater – Not All Headed to Foreclosure
Half of all Metro Atlanta homeowners were underwater in their mortgages by the end of 2012, according to Zillow’s fourth-quarter negative equity report. This does not mean that every one of of these owners is headed to foreclosure, only that they presently owe more than the value of their home. The report also noted 49,827 metro Atlanta homeowners were freed from negative equity -- owing more on their mortgages than their homes are worth -- in 2012, echoing a national...Read More
Is FNMA Forcing Owners into Foreclosure or Helping Expedite Short Sales?
So is FNMA helping or hurting distressed homeowners? Depends who you ask. "FNMA accused of forcing underwater borrowers into foreclosure" wrote one publication while another wrote "FNMA will directly approve short sales". The angel on one shoulder and the devil on the other. From AGBeat: Over the last few months, there has been quite a bit of Internet squawking about the GSEs approach to short sales and foreclosures, particularly Fannie Mae (who seems to rule the roost). Allegations are being made...Read More
Investor Groups Hoarding Homes Under $150K in Atlanta
As the Atlanta spring real estate market begins to heat up, many buyers of homes under 150K are discovering an alarming trend; a significant lack of inventory. What inventory that is available is presenting additional surprises; very short marketing times, multiple offers and often list or above list price contracts. The culprit is the same as in many other parts of the country hard hit by foreclosures – major investment operations sitting down at the buffet that is the distressed...Read More
Challenge That Poor BPO, Don’t Loose the Short Sale!
There is yet another growing hurdle with short sales in the Atlanta real estate market; valuation problems with BPOs – specifically BPO’s higher than contract price that can sour the deal. The reason for the BPO is clear; banks do not want to leave money on the table. The result is also clear; many short sales are being delayed, renegotiated or cancelled as BPOs come in higher than contract price. Understandable that banks want to check values, but why do it on the cheap...Read More
Atlanta #2 for Household Growth Over Next 5 Years
Atlanta saw tremendous growth from 2000-2010, the growth patterns spread in all directions as there are no natural boundaries here. Coming out of the funk, Atlanta is again poised for a renewed growth spurt according to research completed by Pitney Bowes. Atlanta is right behind Houston for expected household growth between 2012-2017 and builders are taking notice. As reported in the WSJ: Houston and Atlanta lead the list from both 2000 to 2010 and are expected to top it again for 2012...Read More
Unsafe Streets Stifle Housing Rebound in Atlanta
Finally we see an article that accurately portrays what is going on in many Atlanta communities and the impact that abandoned homes and vandalism continues to have. Also explored is the "new" fraud; squatter's rights. Flipping through the use of straw buyers never goes out of style; and like roaches altering their DNA to meet a new environment, scammers and miscreants in Atlanta change as conditions mandate. LaShawn Hoffman’s nonprofit in southwest Atlanta can renovate a vacant home for a new buyer in...Read More
Looking Ahead to the Spring Atlanta Housing Market…and Challenges Expected
Much anticipation surrounds the spring ’13 real estate market; will the “improvements” seen over the last year carry forward? Nationwide data suggests the bottom may have been reached but we think there are seven distinct hurdles to be cleared before saying the housing market has corrected. We expect that in many parts of metro Atlanta, the spring market will be a strong one in terms of buyer activity - how that translates to closings remains to be seen. We anticipate significant challenges; appraisals...Read More
1 in 5 Say It’s a Good Time to Sell, but Most Overestimate Value
1 in 5 homeowners say it's a good time to sell and 77 percent of sellers say their home is worth more than their real estate agents’ recommended selling price. Some home owners are overestimating the value of their home by up to 20 percent. Nearly 40 percent of real estate agents surveyed by HomeGain say that home owners believe their home is 10 to 20 percent higher than it really is, with another 40 percent reporting overestimates of 1 to 9...Read More
Interactive Map Shows the Viral Spread of Foreclosures
Housing is finally showing a blip on the heart monitor after years of devastation, but this map is a harsh reminder that the sector still has a long way to go before a full recovery. As the housing economy continues to struggle, there are small signs of health emerging, which CoreLogic’s Chief Economist, Mark Fleming aptly called housing “finding its footing,” in a report released today indicating that foreclosures have slowed for the fourth consecutive month, yet remain below the...Read More
The Trillion Dollar Housing Roller Coaster
The analogy between real estate and roller coasters is obvious. Everyone knows they both have crazy ups and downs. With the U.S. real estate ride lately, we are all wishing we were riding on the kiddie roller coaster with the small bumps and turns. Unfortunately, it’s more likely we are riding on the Kingda Ka roller coaster with its record-breaking 418-foot drop. The RealEstate.com team brings you breaking real estate news weekly, and we’ve noticed a trend – real estate...Read More
Genuine “Housing Recovery” or Washington Hijinx?
There are many economists and those in the real estate industry that are not convinced of a housing recovery, let alone a broad economic recovery...just before the election things turn? Here in the Atlanta area, it's not uncommon for homebuyers to find themselves in multiple bid situations, paying over list price or simply be unable to find a satisfactory home to buy. The question that begs to be asked (and answered); is the market recovering or is this trend government induced? Questions remain...Read More
What Home Sellers Should Expect in Atlanta – 4th Qtr ’12
Inquiries concerning the future of the Atlanta real estate market continue to pour in. While no one knows what to expect, we have a few measured expectations for the last qtr of ‘12 – note the omission of the word predictions. Several micro markets in Atlanta are finding balance, sellers and potential sellers are beginning to file their claws. There seems to be a marked increase in seller confidence – often unsupported. We’ve talked with many that are trying to push pricing and...Read More
Rent or Buy? Trulia and CNNMoney say in Atlanta, BUY
Trulia and CNNMoney are calling Atlanta a "Buy" before "Rent" market. This is based upon a review of data from their sources as well as Zillow. Trulia and CNNMoney are not the only publications endorsing this, Forbes, the WSJ and USA Today have come to same conclusion about Atlanta. Trulia concluded that owning a home in Atlanta is 57% cheaper than renting: In the other 96 of the 100 largest metros, though, buying is still cheaper than renting. In Atlanta, for instance, where buying...Read More
Investors Pushing Up Home Prices in Atlanta
The "investor" frenzy continues in Atlanta as the number of people looking to "invest" swells; so does their frustration...and the frustration of folks looking for a home to buy and live in. The continued bashing of the Atlanta real estate market and the consistently high level of foreclosures has brought national attention, and professional investors looking to feed. Like sharks on a bloated whale carcass they take big chunks and the rookie investors are left to fight over the scraps. And unlike the...Read More
Foreclosure and Bargain No Longer Synonymous
The glut is over and, so it seems, the foreclosure bargain bonanza. Nationally, foreclosure sales prices rose 6 percent in the second quarter and were up 7 percent year-over-year, RealtyTrac reported this week. This marks the largest annual increase in foreclosure-related sales prices since 2006. During the second quarter, the average foreclosure-related sales price was $170,040. Still, foreclosure and bank-owned homes sold at an average price that was 32 percent lower than the average price of a non-foreclosure home, RealtyTrac...Read More
Marketing Times for Homes in Atlanta – 2nd Qtr ’12
By all accounts it appears that the Atlanta housing market is slowly, at glacial speed in some areas, recovering. Recovering as in a traditional market, not the nonsense noted during the boom. The number of sales have increased overall, substantially in many areas. Sale to list ratios are also up in almost all areas and the days on market are down, 80 days overall and under 70 in many. An important note however is the impact of low priced homes; Atlanta is a...Read More
Impact of Distressed Sales – Atlanta 2nd Qtr ’12
The impact of "distressed" inventory has been felt both nationally and in the Atlanta real estate market for several years. Atlanta has been and continues to be a top national hot spot for foreclosure problems; Atlanta's fraud, foreclosure and distressed real estate situation has been well documented. However, it's also somewhat concentrated. The charts below are courtesy of Chartmasters and they illustrate months of supply, percentage of short sales and percentage of foreclosures (2nd qtr '12 only). Key points: Months of Supply is greatest...Read More
Home Price Changes in Atlanta – 2nd Qtr ’12
Our fingertips are heavily calloused as every time Case-Shiller drops a bomb on Atlanta real estate we rush to remind everyone that the data needs to be kept in context. Atlanta is far too large and far too economically diverse to be considered as "one" market. Several micro markets have been stable for several months, others have found stability over the last few. The impact of REO and distressed homes has impacted the stats; investors and first time buyers have been...Read More
The Debt Dance and Homeownership
As the housing industry continues the slow climb from the abyss, data tends to show that the current rate of homeownership remains low as compared to historical rates. One report has it at the lowest in 50 years and several studies indicate that the homeownership rate among adults younger than 35 fell by 12 percent between ’06 and ’11. The real estate research firm John Burns Real Estate claims the true homeownership rate is 62.1%, with that number including all borrowers...Read More
About 47% of FNMA Inventory Unlisted – The Next Shoe to Drop?
The concept of "shadow inventory" remains mysterious as the definition varies - but in short it reflects homes waiting to be listed for sale. It is also the other shoe waiting to drop. A potentially very large shoe...Shaq sized shoe. Fannie Mae is the largest player in this arena, and it's long been contended that there is a significant back log of homes just sitting. Fannie Mae and Freddie Mac are being accused by some housing analysts as purposely keeping some foreclosures...Read More
Sell Your Home in 21 Days for 98% of List Price
As parts of the Atlanta real estate market find stability, we’re seeing the shift from buyer’s market to neutral or even a slight seller’s market. As the 2nd Qtr stats show, inventory is down, sales are up and in a few areas, and values are starting to move into positive territory. We’re seeing another familiar trend, sellers overpricing their homes as they look to capitalize on the positive news. A recent Inman News article hit familiar themes: in 2nd qtr '12...Read More
Atlanta Real Estate Improves in 2nd Qtr ’12
So we present some rather positive news about the Atlanta real estate market. Just as we do with the negative reports, we warn you to keep this in perspective; one quarter or half does not constitute an end to the real estate tar pit. Like many other areas of the country, Atlanta home prices can stay down only for so long, everything is cyclical so here's hoping that this is a consistent upward swing. As always, Chartmasters has completed an awesome review of the...Read More
Is the Housing Bust Over?
There is no definitive answer to that question, especially in the Atlanta real estate market. Nationally, a new Wall Street Journal survey of forecasters found 44 believe the housing market has reached its bottom; only three don't. Data for Atlanta shows that we appear to have statistically bottomed out in Jan 2010 ; statistically being the operative word. This is in fact a protracted bottom and both Atlanta and the nation have been dragging along it for a while. But...Read More
No Help for Responsible Underwater Owners?
The traction that some parts of the real estate market seem to be gaining is precarious at best. There are many moving parts to any recovery and this one is especially complicated given local, national and global influences. There’s an indisputable requirement for any market; upward mobility. Much of the traction right now is in the first time buyer market; key to releasing the move up buyer. And that’s where a major obstacle is found. As noted in a recent...Read More
Some Atlanta Home Sellers Finding Plenty of Buyers
Are you a reasonable home seller? In some metro Atlanta real estate markets, supply and demand has reached equilibrium and in some cases, a seller’s market. As noted in a previous post, many Atlanta home buyers are finding that the news headlines bear no resemblance to the real world. Many micro markets, mainly north from Atlanta between I-75 and I-85 and up the 400 corridor are bucking the bloody national reputation Atlanta real estate presently carries; homes are selling at or near...Read More
Where Are the Great Home Buying Opportunities in Atlanta?
The buyer's market is over in many desirable metro Atlanta areas Where are the great home buying opportunities in Atlanta? Well, in most cases they’re where few folks want to be. Despite the continued blood bath media reports about the Atlanta housing market, many Atlanta home buyers are having a difficult time hitting the perfect trifecta; a quality home, in a stable area bought at a “value” price. In some areas, home buyers need to adjust expectations to fit current market conditions; the buyer’s...Read More
Case-Shiller Reports Value INCREASE in Atlanta!
A dose of good national news about the Atlanta housing market is always welcome, especially since it comes from arguably the biggest flame thrower in the housing industry, Case-Shiller. They are reporting that Metro Atlanta home prices broke an eight month slide in April, moving up about 1 percent. The last positive move was in July ’11 and while the spring season tends to be the most robust, the last several years have not been kind. This spring the market...Read More
Atlanta #9 Market for 1st Time Buyers
The Atlanta-Sandy Springs-Marietta market was noted by Inman News as the ninth best for first time buyers. This is a bit of welcome national news for the Atlanta market as the area has been pummeled for years now due to the lagging recovery. Like a healthy food chain, everything starts at the beginning and markets don't grow without those critical first time buyers. 1st time buyers are the base of any recovery. The Atlanta metro area's median sales price peaked in third-quarter 2006...Read More
Case-Shiller Misses the Mark On Atlanta Real Estate
Here we go again; Case-Shiller has dropped another double digit value decline bombshell on Atlanta homeowners. By now, we’re either numb to pounding or we’re wiser and understand how the stats are derived and what they don’t mean. They report that values have dropped 17.7 percent from March ’11 to March ’12, 2.5 percent from 1/12 to 3/12 and .09 percent from 2/12 to 3/12. According to Case-Shiller, we are among five major cities to hit new post-recession lows for home...Read More
Underwater Mortgages in Atlanta – Behind the Headline
Another week, another report about problems in the Atlanta real estate market. This one courtesy of Zillow and the “must read” headline is that half of Atlanta mortgages are underwater. As always, it’s a good idea to take a few minutes and get past the headline. While not entirely healthy, things are getting better. From the AJC and Zillow’s chief economist Stan Humphries: More than half of homeowners with a mortgage in metro Atlanta owe more than the house is worth, a...Read More
Atlanta Home Values 1st Qtr 2012
A review of Atlanta housing trends from 1st quarter ’11 to 1st quarter ’12 shows that parts of three counties in the greater Atlanta real estate market saw the largest percentage increase in home sales. Inventory continues to drop all over, however the percentage of distressed sales (short sales and foreclosures) remains over 50% in 12 of the 41 MLS areas and over 40% in another 7 areas considered “metro Atlanta”. In an area of Gwinnett County, distressed inventory is...Read More
The Impact of Distressed Homes on Atlanta Real Estate
With 42.5% of all Atlanta home sales in the 1st qtr of '12 distressed, the impact of distressed homes on the greater Atlanta housing market is a significant one. They are present in force and their impact influences every aspect of the Atlanta real estate market, they are expected to be around for the foreseeable future. The metro Atlanta real estate market appears to have bottomed in Jan '10. The charts below illustrate just how significant an impact distressed homes have on...Read More
Selling a Home in Atlanta – Spring ’12 News
Conventional listings have many advantages over distressed listings however unless accurately priced, buyers are unlikely to pay attention. A review of the 1st qtr ’12 stats shows interesting developments in the Atlanta real estate market that home sellers need to be aware of. A combination of factors seems to be acting in unison, specifically impacting distressed properties. The low rates along with rising rents have brought fence sitters into the market, large and small investors have returned and REO asset managers...Read More
Is it Time to Buy a Home in Atlanta?
I think it’s time to consider buying a home in the Atlanta area. I don’t say that as a shill for any real estate organization; I say that as an appraiser, broker and student of this industry for over twenty years. The data, coupled with rates that have been ridiculously low for so long combined with the prevailing expectation by most economic “experts” that rates will/have to rise after the election make now the time to legitimately consider a home purchase....Read More
Home prices stabilizing. So what’s wrong with Atlanta?
"Some of America's most closely watched housing numbers are starting to suggest that the big decline in housing is coming to an end, at least in some metros. Home prices in Seattle, Minneapolis, and Denver have begun to trend upward in the past few months, according to the S&P/Case-Shiller housing indices. Even hard-hit metro areas such as Tampa, Fla., and Phoenix have seen a modest rebound. But in Atlanta home prices not only continue to fall, the declines are accelerating....Read More
Federal Forclosure Inventory Down – But New Foreclosue Wave Inbound
This is a good news - bad news post. The amount of government foreclosure inventory was cut about in half in 2011 but repossessions are expected to jump up in 2012 to pre-robo signing levels. Georgia remains in the top tier nationally for distressed inventory, driven hard by Atlanta foreclosures and underwater homeowners. The latest round of federal assistance isn't expected to do much to stop the bleeding and the recent foreclosure bank settlement was nothing short of criminal, those lenders were really...Read More
Atlanta Real Estate Data – 4th Qtr ’11 Review
Over the last year, two sub markets in the City of Atlanta saw median home values increase over 10% and NE Cherokee County sales increased by 121.7%. Last quarter, Sandy Springs (inside 285) sat with the highest home inventory at 13.8 months (twice as much as many areas) and saw only 35.5% of listings sell, Eastern Gwinnett County led the region with 63.1% of all sales noted as distressed. Many surprises in the data, some with clear explanations, others result in...Read More
Loans Still Due Despite Foreclosure – Deficiency Judgments
Sweating out a distressed sale or foreclosure may not absolve an owner from the long arm of those due money. Banks can employ what is called a deficiency judgment (the difference between the outstanding mortgage balance and the sale price) to collect the debt, requiring a defaulting borrower to pay the balance of a loan and any fees, minus what the bank recovers when it sells the home. In a worst-case scenario for borrowers, banks could garnishee wages to pay...Read More
Buyers Rapidly Losing Interest in Foreclosures
It took a while but it seems that home buyers are finally beginning to tire of the real estate owned (REO)/foreclosure nonsense. Here in Atlanta, lender or “corporate” owned (the industry desired more appealing term than foreclosure) homes are a major part of the inventory. Statistics on this issue can vary widely but suffice it to say that REO's and short sale properties will continue to impact metro Atlanta for years. Investors and speculators make up the majority of distressed...Read More
Atlanta Tops in National REO Inventory, Georgia #3
On Wednesday, the Federal Housing Finance Agency began taking investor applications to participate in their new bulk REO program. The agency is finally deciding who has the financial wherewithal to manage these properties and rent them out. Well that's been tried in the past and the results? uh...not good. So where exactly are these REO homes? Look around because metro Atlanta has the highest number of any national metro area and Georgia is in the top 3 states. But....as has been...Read More
Atlanta Home Values are…a Mess
Atlanta can finally raise a championship banner, and it's one no one wants. But toss the challenge flag because the devil is in the data reviewed. In November, prices of single-family homes were down close to 12 percent compared with a year earlier, the largest decline among major metropolitan areas, according to data released on Tuesday in the Standard & Poor’s/Case-Shiller Home Price Index. Home prices regionally are now below their levels of 2000, making Atlanta one of only four...Read More
Home Values in High School Districts
Real estate in Atlanta is heavily influenced by schools; in many cases the academic track record of a high school dictates appeal and marketability of an area. Using RealValuator, we can now provide clients the real estate market trends for any metro Atlanta high school district. This snapshot will show the general trends by quarter and can be configured to show different price points. Here's an example of the chart showing home prices in Milton high school. This program can also...Read More
Homeownership Survey – Please Help
Please answer these 6 short questions about homeownership. Your comments are always welcome... Read More
Spilling Tears Over Bad Appraisals – Stop Already
Can the real estate industry please stop spilling tears over bad appraisals - stop already! Katie Cosner of AGBeat posted a well done article about "bad appraisals", hitting the very same things I've been hammering for years. The disconnect between agents and appraisers (and now builders as well) inexplicably remains. To be sure, variables exist with any appraisal and they are subjective to a point - but one thing really is central to every appraisal - COMPARABLE DATA. If agents,...Read More
Atlanta Home Values & Sale to List Ratios – 3rd Qtr 2011
Interesting results when the 3rd quarter 2011 Atlanta homes sales data is reviewed. Chartmasters gives us a look at current Atlanta real estate trends, most noteworthy is that 65% of homes sold in Metro Atlanta (viewed overall) were below $200,000. Keep current by clicking on Atlanta Real Estate Market Conditions and sign up below for free weekly Altos Market Data reports for over 100 Atlanta zip codes. Make certain to review the post Influence of Distressed Sales in Atlanta - 3rd...Read More
Influence of Distressed Sales in Atlanta – 3rd Qtr ’11
Overall, Metro Atlanta home prices continue to slip. There are areas of stability, mainly certain zip codes, micro markets and school districts (parts of Roswell, Alpharetta, East Cobb are stabilizing...) but most metro markets remain in the funk. The influence of distressed sales is clear; short sales and foreclosures combined to account for 39.4% of all 3rd Qtr '11 sales in the greater Atlanta market. Several telling charts are below... Chartmasters completed their 3rd Quarter '11 review based upon FMLS data....Read More
Buyers Over Optimistic on Home Value Appreciation
"More than 42% of prospective homebuyers polled by Zillow believe home values will appreciate by 7% annually in the years ahead." Seriously? Apparently so...this according to the recently conducted poll of 177 people who said they were planning to buy a home within the next three years. "It's troubling that we're still in the midst of one of the worst housing recessions in history, and yet prospective buyers continue to have such high expectations for home value appreciation," said Stan Humphries, chief economist at Zillow....Read More
Obama, the Homeowner’s Helper or Enabler?
At this time, we're in the process of trying to understand the objectives of Washington's latest plan to get the economy cranking again. This one centers on relaxing the refinance requirements for struggling homeowners in an attempt to reduce the number of pending foreclosures. The ultimate goal? Stabilize the real estate market and free up money for consumer spending; apparently the course out of this economic funk is via increased consumer spending. From the NY Times article: Republicans, including the presidential...Read More
A Graphic Look at Mortgage Rates
Sometimes a picture is worth a thousand words...we're all used to hearing about "historically low rates" but what does that mean to a generation of folks that don't really understand where rates were in the past? Even for folks that have been around, have past rates been completely forgotten about? Here are two charts that drive home what "historically low rates" mean - obviously rates fluctuate based upon about a billion influencing factors so get your credit in order and...Read More
Atlanta Home Sales Up, Values Slide
A good news - bad news post. Homes sales in metro Atlanta were up about 25% from the same month last year, that's above the national average of about a 15% increase. Remember though, the government incentives intended to jump start things in '10 were ending about this time last year. Regardless, any positive move is very welcomed! The "but" centers around the median sale price for the Atlanta market - $94,000 which is down from the last year at this...Read More
It’s Time to Buy That House
Those of you that have worked with me or read my posts over the years know I'm not a mouthpiece for the real estate community; I don't march in lockstep with what the various real estate industries put out. I don't think everyone should own a home; I don't (and never did) think a home should be regarded as a significant investment vehicle - a piece rather than the main vehicle; I don't think you should ever be house poor...Read More
How to Stop the Drop in Home Values
The challenges facing this economy are diverse, complicated and enduring. Over the last several years and two administrations, the bleeding has continued unabated. Despite billions of dollars tossed at the problem, schemes to increase employment and opinions from economic experts on how to dig out, the country remains mired in the economic mud. A critical component integral to any recovery: HOUSING. It seems that if the housing dilemma can be solved or at least demonstrated to be under control, then the...Read More
Fewer Atlanta Home Listings, More Frustrated Buyers
Historically low rates, a constant drum beat to buy a home and infomercials 'til the cows come home on why now is the time to buy...so what's missing? Well one of the main ingredients - homes to select from. Right now, I personally have several buyers locked and loaded ready to take advantage of the great rates and opportunities that this market should present, but several have been waiting for months as no "decent" listings are entering the market. They're...Read More
Stability? Increasing Values? A Lucky Few Areas…
As many readers of this or other blogs I write for know, I can spend a bit too much time on the negative aspects of this market. That's probably due to starting my career in the appraisal business - and being consistently at odds with the sales industry and the nonsensical "puffery" that they constantly spew. Agents have a habit of either disregarding or spinning any data that's contrary to the talking points...this agent doesn't. After the blood bath of the...Read More
Decoding the Wide Variations in House Appraisals
Real estate appraisals continue to be a major hurdle in this market. This NY Times article relates a situation that many buyers, sellers and owners have; the wide variation in getting what is considered a "fair or reasonable" appraisal. I recently decided to refinance a condominium my wife and I owned in Florida and quickly got caught up in the frustrating and often baffling world of real estate appraisals. The appraisal for the condo initially came in at exactly the dollar amount...Read More
Her Bank Got Enough Help When It Was in Trouble. She Didn’t.
"Mimi Pierre Johnson and her husband bought their four-bedroom home in Elmont, on Long Island, for $413,000 in 2005. Then the recession blew in. Her husband lost his construction job, her real estate work slowed and their boiler wheezed and died. Their once-reasonable mortgage resembled a forbidding mountain. She dialed her bank, JPMorgan Chase, seeking a lifeline. The bank gave her a temporary modification, but then canceled it. It lost her documents. It did not return her calls. Late fees...Read More
Help the Housing Market – Increase Foreclosures!
It's refreshing to see an article in CNN Money reiterating what many of us in the real estate industry have known for years; that the foreclosure abatement process is simply delaying the inevitable. Many of the homes in the foreclosure process will never be recovered, it's much better to foreclose and get on with the next step which is genuinely trying to sell the inventory, stop the value damage being done to areas by these homes and stabilize the...Read More
Fed Sponsored Refi’s – Spend, Don’t Save the Difference!
As the economy continues to free fall like a stone approaching terminal velocity, the administration continues to try and pop 'chutes to slow the decent. It's no secret that real estate is a vital cog in any recovery, arguably the most vital as it impacts both personal and commercial/industrial wallets. Distressed home inventory remains high and most experts don't see any major improvement until the economy as a whole gains a foot hold. People worried about their jobs don't spend...Read More
Home Sweet 78 Square Foot Home
Here's a look at the polar opposite of the sprawling McMansion fever many areas experienced. This apartment in NYC is smaller than most master closets, much smaller than a one car garage and probably on par with a standard utility room. 32 of these apartments could fit into a 2500 square foot home - this can be an awesome way to raise a few bucks subdividing that empty room.... Read More
Chicago to Charge Banks for Upkeep on Vacant Homes
Chicago passed a city ordinance that will make lenders pay for the upkeep and maintenance of properties they do not own. The City's position is that the lenders have an "interest" in the property and that is enough. This change means that the mortgagees will have to cut the grass, shovel the snow, trim hedges and remove the garbage and the occasional graffiti. They will also be responsible for handling any complaints and disputes from the public. Mayor Emanuel applauded...Read More
New-Home Sales Fall, 2011 Could be Worst Year Yet
No real shocking news here, the AP reports that new homes sales continue to tank... WASHINGTON (AP) — Sales of new homes fell for the third straight month in July, a sign that housing remains a drag on the economy. If the current pace continues, 2011 would be the worst year for new-home sales in nearly half a century. Sales fell nearly 1 percent in July to a seasonally adjusted annual rate of 298,000, the Commerce Department said Tuesday. That's less...Read More
Appraisal Problems? Thank Washington’s Micromanagment
Once again appraisers are in the cross hairs, the incessant screaming is that we're "killing deals" and hampering any real estate recovery chatter is heating up. Low appraisals, incorrect appraisals or appraisers not being familiar with the area in which they work are the topics of conversation around the real estate water coolers. Most of it is total nonsense for several reasons: Appraiser fees have been significantly cut while requirements have increased. Now more than ever to make a living they...Read More
White Picket Fence? Nope. More Calls to End the Mortgage Deduction
Once again, the cries to end the mortgage interest deduction for homeowner's are banging around the halls of the capital. As usual, this latest dust up has more to do with social engineering and class warfare than logic. Is the goal really to have a society where everything is entirely equitable? I've been around a few years now and am quite pleased with how things have worked out. Looking back of course there were things that I could have put...Read More
Uncle Sam the Landlord – Another Stupid Idea
Given the bloody mess that is real estate market, the feds are now considering the idea of renting some of the housing inventory. This is a spectacular idea, for all the wrong reasons. The slide into what has always smelled like a double dip recession was fueled in large part due to over-leveraged homeowners. Many underwater owners have tried to work with lenders, other have strategically defaulted and yet others are attempting short sales. To some extent, owners had some skin...Read More
Stocks Rattle the Housing Market
The stock market free fall obviously rattled many in Atlanta and across the country; it did little to settle the nerves of a chaotic Atlanta real estate market. Along with the down grade of the country's credit rating came the downgrade of Fannie Mae and Freddie Mac; logical since they are intertwined with the Fed's. We also had the Federal Reserve just flat out tell us that they will keep short term rates stable for the next two years, perhaps...Read More
Atlanta Real Estate 2nd Quarter 2011 Area Comparisons
Chartmasters has completed their typical outstanding review of the 2nd Quarter 2011 Atlanta real estate market data. Metro map overlays are posted, there were some interesting results from the data analysis. Highlights from the report include: Compared to this time last year, 1.5% more homes have sold - but this was due to increases in the under 200K market. Most foreclosure activity was in Paulding County, the least in Sandy Springs inside 285 Most short sale activity was in SE Dekalb County, the...Read More
Mortgage Fraud in Atlanta
Mortgage fraud in Atlanta is alive and quite well. Despite all of the meddling from Washington and their involvement in the real estate business, fraud continues. CoreLogic completed an in depth 2010 study that was very interesting and is worth the short read. Although a few months old, it's amazing (in a bad way) to see how these pieces of human debris twist and turn to cheat the system. Unfortunately for us, Atlanta is a major hot spot for mortgage...Read More
Atlanta Distressed Homes Muddy the Data
As has been discussed here and in many other places, the housing statistics that are ubiquitous and continually pounding the life out of everyone must be kept in context. The fact is, unless the data is broken down piece by piece to ensure accuracy and legitimacy, it probably isn’t reliable. Everyone agrees that the real estate market is trashed, but just where things stand is open for debate. While many Atlanta real estate markets remain disasters, some are stabilizing. Variables...Read More
Can You Get a Mortgage? Maybe
Can you get a mortgage today? One of the most common questions we hear is “Can people still get a mortgage in today’s market?” The simple answer is, maybe. Forget the past, the days with no money down, marginal credit, no income checks, no tax returns….the current market actually requires buyers to qualify. Expect: more paperwork that everything will be verified debt to income ratios must be in range down payments must be in line and verified a myriad of unexpected “bumps” as the loan progresses 100% financing...Read More
Double Dip…That’s the “Change”?
I think we can dispense with the notion that any economic recovery is underway, that nonsense pushed on the nation that the recession is over was a total steaming pile of...things are clearly not good. Real estate and manufacturing are typically what lead the recovery, both are DOA in the current environment. Manufacturing isn't my bailiwick, real estate is. Several real estate "truths" that any logical person already knows are being reinforced: Not everyone should own a home. Homeownership isn't a right, it's...Read More
Atlanta Real Estate Market Still Hammered by Foreclosures
The funk remains on the Atlanta real estate market as distressed homes and foreclosures continue to be a drag on the recovery. Of course, let's not forget the continued anemic economy and abhorrent attitude of banks and lenders as they enjoy the handouts that they received. Inman News just published an article specifically about the current state of the Atlanta real estate market, I was fortunate enough to be an integral part of that along with a few other experienced brokers...Read More
You Are Not Smarter Than the Market
There are an infinite number of ways to say “don’t be stupid”. You can tell a kid “that stove is hot” but unfortunately, many times the lesson isn’t learned until that kid gets a third degree burn on his hand. Here’s the real estate equivalent warning – “You are not smarter than the market”. In the last two weeks, two sellers tried to out flank the local Atlanta real estate market; they are now both licking their wounds and realizing that...Read More
Atlanta Real Estate Stumbling into Spring
I’m trying to abide by a self-imposed moratorium on beating the dead horse that is this Atlanta real estate market….but I can’t. Back in later '10, I read my tea leaves and said that I didn't expect '11 to be anything great. At the beginning of the year, the headlines and stats continued and more and more "experts" were weighing in, most dour but a few expecting the Atlanta spring market to jump start things. Well it's spring, and two...Read More
Why HAMP is a Waste of Time and Failure
The beat goes on....all of the "special committees", the federal involvement in FNMA, the "investigations" and "inquiries" into fraud and time bomb loans... and the hundreds of millions of dollars (or billions by now)....and what to show for it? Abysmal performance of Home Affordable Modification Program (HAMP) and a combative stance that essentially mandates struggling owners to destroy their credit before a lender will speak to them. The WSJ reviews the flop that is HAMP and the NYT looks at...Read More
Best & Worst Georgia Areas for Past Due Mortgages
We all love charts and stats and we all love to know what areas are doing better than others. CoreLogic has assembled an exceptionally easy to use chart which shows the percentage of home owners with mortgages 90 or more days behind. This sortable in several ways, we cut out the Georgia section and you can see it here. It's organized from highest percentage to lowest percentage. The complete report is HERE - it takes a while to download. Highlights: Highest percentage of past due...Read More
Atlanta Real Estate as ’11 Unfolds
"Calling Dr. Howard, Dr. Fine, Dr. Howard." Hey, with all of the nonsense and conflicting opinions out there these fine gents could be just as credible as any other group. I saw the first two months of 2011 as more or less a holiday hang over. While buyers are out there, most of them are waiting for not only the “perfect” home but also the “perfect deal”; those two merge infrequently. As always, the number of homes coming on the market in spring...Read More
Flip a Coin, Help Fix the Real Estate Market
Like many others interested in the Atlanta real estate market, I review a regular list of news sources. I am a big fan of NPR and the WSJ, two polar opposites on most topicsbut I like the give and take. I also like the fact that both look outside the box for interesting angles on stories. This NPR article by David Kestenbaum was interesting, and while everyone acknowledges the financial side impact on owners and the market, brings up human...Read More
Interest Rates Rise in Atlanta, Down Payments as Well
Last week, the Obama administration called for gradually raising down payments to a minimum of 10% on conventional loans, (those bought or guaranteed by Fannie Mae and Freddie Mac). Most private lenders are already demanding high down payments, mainly to mitigate their risk as home prices continue to fall. The median down payment in nine major U.S. cities rose to 22% last year on properties purchased through conventional mortgages, with some banks are pushing for as high as 30% down...Read More
Do “The Right Thing” Financially? Why?
This op ed appeared in the NY Times the other day - I thought it was pretty much on target and illustrative of how "doing the right things" financially can often result in you getting a smack in the head. I think the author is spot on with his observation that current lending is nothing about actually paying back debt, it's all about fees, resets and extensions; in short it evolved to answer the single most common question asked by consumers - "what's...Read More
Should You Pay Cash for a Home?
Should you pay cash for a home? Does it matter? According to the WSJ, buyers in markets around the U.S. are snapping up homes in all-cash deals, betting that prices are at or near bottom and breathing life into some of the nation's most battered housing markets. Nationally, 28% of sales were all-cash transactions last year, according to the National Association of Realtors. The rate was 14% in October 2008, when the trade group began tracking the measure. From the article - Some...Read More
Smart Agents Should Drive Average Sale Prices DOWN
This was written by my managing broker Shaun Rawls (it's far too positive to be me!). Shaun sent this to his agents and after reading it, I asked and received his permission to post this. I found it thought provoking...have a look and feel free to offer your comments… ________________________________________________________________ As of late, it seems that I’ve had a rash of conversations with people who, at some point in the conversation or another, become fixated on the reports that the “average home sale...Read More
Atlanta is #3 Nationwide in Foreclosures for 2010
Metro Atlanta is the number 3 major nationwide city for foreclosure activity in 2010, with a 21 percent bump since 2009, according to a report released Thursday. Only the Houston and Seattle areas rank ahead of metro Atlanta in the number of reported foreclosure activity, according to RealtyTrac Inc. The firm tracks notices for defaults, scheduled home auctions and home repossessions — warnings that can lead up to a home eventually being lost to foreclosure. In the metro Atlanta area, 38,535...Read More
So How Low Will Atlanta Home Prices Go?
If you value the Case-Shiller reports, this is not good news for Atlanta real estate. Month-over-month prices fell in all metro areas covered by the index. In six markets — Atlanta, Charlotte, Miami, Portland, Seattle and Tampa — house prices reached their lowest level since the housing bust began in 2006-07. By most indicators, Atlanta home prices are about where they were in 2000. Did anyone need a report to tell us that? You know by now that I think...Read More
How Far Have Home Values Dropped in Atlanta?
You would have to be on a South Pacific island to not be impacted by the global economic crash - and I mean in a hut made of bamboo and palms spear fishing for your chow. Atlanta home owners have seen significant erosion of value, and many expect more to come. The national media refers to the "Atlanta housing market" as a combination of several counties, far too large an area to cast any hard opinions. As illuminating and distressing...Read More
Strategic Default for Dummies
OK, my obsession with the idea of "strategic default" will simply not go away. As I've said to many folks that have bombed me with emails, I can certainly understand how the frustration of dealing with these lenders can push you to toss the keys. I see home owners struggling with this regularly in the Atlanta market, despite their best efforts the end result is often the same. Several publications continue to provide examples and stories about the difficulty of dealing...Read More
When Will the Atlanta Real Estate Market Improve?
It’s been about four years since the house bubble burst, about three years here in the metro Atlanta real estate market, and we’re still awash in excess home inventory. The president of the NY Federal Reserve estimates 3 million excess homes are sitting on the market. “That’s a serious glut that could take years to work through” said William Dudley. “Nationally, housing starts are running at a 600,000 unit-per-year pace, up from 530,000 units in early 2009, Dudley said. “It is...Read More
Foreclosures Cranking Up Again
The foreclosure train appears to be starting to move again, GMAC and BOA are restarting the engines. James Olecki, a spokesperson for GMAC Mortgage’s parent company Ally Financial said his company has found “no evidence of inappropriate foreclosures to date” and plans to move forward with taking possession of properties where borrowers have failed to make payments on the mortgage. BOA says it has found no instances in which a homeowner was wrongly foreclosed upon and has begun the process...Read More
Will GA Foreclosures be Halted?
What direct impact will the mushrooming debacle surrounding the foreclosure process have, will Georgia foreclosures be halted? As has been mentioned here in prior posts, that's not likely. Georgia is a non judicial foreclosure state, the majority of issues surrounding the "robosigning" have occurred in the 23 states requiring court approved foreclosure. As noted in today's AJC, the number of GA foreclosures continue to pile up; GA is ranked 7th in the country for the third quarter of '10. Homes are...Read More
Top of the Lowest Performing Real Estate Markets
Clear Capital has released an overview of national quarter over quarter home price trends. No earth shattering news here; if the sporadic reports that the recession is all but over are to be believed, someone needs to tell the housing industry. Real estate value trends in the Atlanta real estate market made a list no one wants. According to the data, the Atlanta-Sandy Springs-Marietta real estate market is at the top of the lowest performing national major market list. Don’t...Read More
Values Around Atlanta National Golf Club & Surrounding Alpharetta area
The competing area reviewed to develop the analysis is shown in this map: Here's a look at the overall picture: The full break out can be seen for this area and submarket (600K-1.5M) can be seen by opening this chart * Keep in mind this is a desk top review of the area, there's more to this that what is shown. The data pool will be tweaked based upon the characteristics of the individual home and that analysis requires a physical inspection. You can see...Read More
Sandy Springs Challenged on Voting Act
Sandy Springs' successful effort to exempt itself from provisions of the 1965 Voting Rights Act has caught the attention of one of the men who fought for passage of the law. Tuesday, civil rights icon Joseph E. Lowery called for Sandy Springs and the Justice Department to revisit and reverse the recent decision to bypass federal oversight of its elections. “One thing we want Sandy Springs to know is even if they opt out, they can’t opt out of the scrutiny,...Read More
Crabapple Festival in Milton 10/2
It's that time of year again! Time to stroll through beautiful, historic Crabapple on a cool fall day, taking in the wares of more than 100 antique dealers and artists from throughout the southeast. The Crossroads at Crabapple Antiques and Art Festival will envelop downtown Crabapple Oct. 2 with an expected turnout of more than 10,000 people looking for the best deals on antiques and professional art. The one-day, rain-or-shine event will feature food from local restaurants, roaming musicians, trolley rides...Read More
