Real Estate

Hafa: What in the World is Hafa?

Energy Tax Credits

Thinking of a new furnace or air conditioner?  Or maybe you have been in need of a water heater or new windows?  Not only will you benefit from the immediate comfort of installing and upgrading your current systems – you will save money in the long run by using less energy and reducing your electric/gas bills.  AND you may find your improvement qualifies you for a tax credit. 

The Energy Star website  has details on the qualifying improvements and upgrades and explains how the tax works.  Check it out.  You still have 5 months to complete the work.  The deadline is 12.31.2010.

Is a Distressed Property Right for You?

Is a distressed property the right deal for you?

If you’re in the market for a home and are prepared for a unique transaction, a distressed property can be a great option. Here’s why:

Prices are low – Buying a foreclosed property is an excellent way to get a home for less. Research shows you can save 10-40 percent over the price of similar properties in a traditional sale.

Mortgage costs are low – With rates hovering near historic lows, financing costs to are favorable. Keep in mind, rates are always changing. It’s important to begin the pre-approval process so that you know how much you can realistically afford.

As of today June 2, 2010 - 30 year fixed interest rates are 4.625% (conforming loans), 4.5% for FHA and 5.625% for jumbo loans.  Interest Rates are courtesy of SunTrust, Laura Joines.

You have options – The number of homes in some stage of the foreclosure process still remains high. RealtyTrac, a site dedicated to tracking foreclosures across the country, estimates that there are approximately 2.1 million homes in some stage of foreclosure in the United States.

Sellers and lenders are motivated – According to data from RealtyTrac, in April, one in every 387 households in the country has received a foreclosure filing. The bottom line is that many sellers are still feeling the pain of a down economy and are anxious to out get from under a home that is putting stress on their current financial frustrations. While it is still an emotional transaction, these sellers are willing to come down on price or even consider concessions such as helping out on closing costs. Banks holding on to large portfolios of Real Estate Owned (REO) properties want to unload quickly – and price these home to sell.

Your best ally when purchasing a distressed property is an expert. Always have a professional REALTOR® by your side to help you make informative decisions. If you’re interested in learning more about purchasing a distressed property, email me!

Market Update on Economy

Pending home sales for the month of March 2010 increased 5.3% from the previous month to 102.9.  The March 2010 is 21.1% higher than March 2009 which was 85.0.  The data is provided by the National Realtors Association and is for homes under contract – not closed.

Definitely the increase is in part to the end of the buyer tax credit (must be under contract by April 30, 2010 and closed by end of June 2010).   According to Lawrence Yun, the NAR’s chief economist, “Clearly the home buyer tax credit has helped stabilized the market.  In the months immediately following the expiration of the tax credit, we expect measurably lower sales.  Later in the second half of the year and into 2011, home sales will likely become self-sustaining if the economy can add jobs at a respectable pace, and from a return of buyer demand as they see ome values stablizing.”

From my persepective – yes – we will probably see a slow down in under contracts and sales after April 30th but many Atlanta buyers are out there.   They want to buy even if they didn’t get the tax credit.   Home prices seem to be stabilizing in areas (still early but the numbers are showing some improvements), and loans are becoming readily available in the jumbo market (loans over $417,000) as banks’ begin to show healthy balance sheets.  Buyers want great deals and sellers are understanding this and working to price their homes right for the current market.  I am talking to buyers who still want to buy!

In Metro Atlanta – we are starting to see a slight reduction in the unemployment rate which is a lagging indicator of the economy.  The unemployment rate will follow other improvements in the economy – such as the increase in the pending sales numbers.   The good news is that March 2010 the unemployment rate dropped for the Metro Altanta area.

3928 Locklear Way, Atlanta, GA – Open House

Open house today – from 2pm to 4pm.  3928 Locklear Way in the Lockridge Forest subdivision off of Winter’s Chapel.  Great neighborhood with great swim and tennis.   Home has been well maintained and has an amazing sun room and yard.  Virtual Tour for home – 3928 Locklear Way.

Great Homes For Sale – Buckhead & Lockridge Forest

Two great listings – just had price reductions!   Lockridge Forest home is now $239,900!   Peachtree Dunwoody Home in Buckhead is now $485,000!    

There is still time to buy home and take advantage of the tax credits for buyers!  Home Buying  Tax Credits end April 2010.

Pending Home Sales Index Drops in November 2009

The NAR announced on 1.5.2010 that the pending home sales index fell in November 2009 from previous month but remains above last year’s numbers.   In October 2009 the pending sales index (forward looking indicator based on contracts signed for the month) was 114.3%.  November 2009 saw the number falling 16% to 96%.  Nov 2009 – 96% is still higher than Nov 2008’s 83.1%.

The October 2009 surge benefited from the last push for the first time buyer tax credit.  With the extension of the first time buyers tax credit and the addition of the buying tax credit for other qualifying buyers and the low interest rates - we will hopefully see a surge in 2010’s number.

Existing Sales – November 2009

South is definitely seeing some improvement and movement in the market.  While we will have to wait a few more weeks for the December 2009 numbers - what will be more important is the cumulative numbers for the year 2009.The following information is provided by NAR in their November 2009 update.  Data was released at the end of December.   The data is for resales. Regional Sales by Price
Existing Single Family Homes
November 2009
% Change in Sales from 1 Year Ago
Region	$0-100K	$100-250K	$250-500K	$500-750K	$750K-1M	$1M+
Northeast	29.1%	75.3%	50.5%	31.7%	9.4%	30.2%
Midwest	44.0%	70.0%	47.6%	29.9%	10.7%	-13.1%
South	24.5%	53.6%	37.9%	55.2%	60.6%	28.4%
West	28.9%	46.8%	24.3%	35.9%	58.2%	64.2%
U.S.	32.4%	60.0%	38.8%	38.2%	40.7%	39.0%
Sales Distribution
Region	$0-100K	$100-250K	$250-500K	$500-750K	$750-1M	$1M+
U.S.	20.8%	49.8%	22.1%	5.0%	1.2%	1.1%

Cash Buyers Creating Bidding Wars

We saw this quite a bit in 2009 here in Atlanta - foreclosed properties receiving multiple bids.  The winners of the bids are often cash offers from investors leaving would be homeowners scratching their heads wondering how to win the bid.   Here is a great article from the Washington Post about Cash Buyers Triggering Bidding Wars.   

There are some great options for folks looking to buy and live in the home – such as the HUD programs which allow for owner occupied bids over investor bids for the first 2 weeks of property being listed.  The catch on some of these homes is the bidder needs cash to cover any overages and/or closing costs. 

I had a client this past fall who successful outbid the other offers on the table with a financing contingency.  We went over on the asking price but he has moved in and has a great house in a great area.  And though he paid over the asking price, the house was still below what has sold in the area and needed minimal repairs.

Remember the tax buyer credit is still out there!

Georgia Ranked in Top 10 of Best Business States

Forbes rated the top States for Business and Georgia ranked #6.  Despite the economic woes we are feeling – this is great news and will hopefully lead to more businesses finding their way to our state.  And certainly some positive news for Georgia.

Forbes used several different sources and based their rankings on 6 different categories.  The Forbes article is here and has the details on the category rankings and the sources used to gather the information.

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