Market
Low Interest Rates = Great time to Buy
May 5, 2009 by Leigh Hays · Leave a Comment
Interest rates remain low! As of today - conforming loans (under $417k) remain at 4.375%. FHA rates remain at 4.5%. And jumbo rates for qualified buyers remain as low as 5.5% with equity and excellent credit.
I ran some numbers to see what kind of savings you would have with these low rates. WOW – over the life of the loan you can save tens of thousands of dollars. On a loan amount of $200,000 - the monthly mortgage payments on a 30 year fixed (does not include taxes, insurance) are:
| Interest Rate | Monthly Payment | Monthly Savings compared to $998.57 | ||
| 4.375% | $998.57 | not applicable | ||
| 5.375% | $1,119.84 | $121.27 | ||
| 6.375% | $1,247.75 | $249.18 |
Aside from the monthly savings – an interest rate of 4.375% vs. 5.375% could save you $43,693.91 over the life of the loan. And an interest rate of 4.375% vs. 6.375% could save you $89,700.94. WOW.
Pending Home Sales Index – March 2009
May 4, 2009 by Leigh Hays · Leave a Comment
According to the latest report by National Association of Realtors®, pending homes sales rose based on contracts signed in March 2009. NAR’s Pending Home Sales Index showed March 2009 contracts rose 3.2% from February’s level of 82. This index is a forward-looking index based on contracts signed not closed sales and is based on the national market. Additionally March 2009′s 84.6% was 1% increased from a year ago’s March 2008 index of 83.7%.
Lawrence Yun, NAR’S chief economist, stated “This increase could be the leading edge of first-time buyers responding to very favorable affordability conditions and an $8,000 tax credit, which increases buying power even more in areas where special programs allow buyers to use it as a down payment,” he says. “We need several months of sustained growth to demonstrate a recovery in housing, which is necessary for the overall economy to turn around.”
Here is a breakdown of pending home sales by region:
- South: rose 8.5 percent to 93.2 in March and is 7.7 percent above a year ago.
- West: increased 3.9 percent to 93.1 and is 1.7 percent higher than March 2008.
- Northeast: fell 5.7 percent to 59.5 in March and is 24.1 percent below a year ago.
- Midwest: slipped 1 percent to 82.3 but is 8.2 percent higher than March 2008.
March 2009: The Numbers
April 25, 2009 by Leigh Hays · Leave a Comment
FMLS Stats for the Month of March 2009.
Per Steve Palm who provides the Smart Numbers from FMLS, sees a “moderate trend for a number of single family housing statistics that still point to positive results for June or July (2009).” He also states that “while March 2009 numbers were down from the previous year – March 2008, March 2009 is up over February 2009 by the greatest percentage since Feb – March 2006.” It is important to realize this increase is not based on number of units sold but percentages.
This news is great for the single Family market but we will probably wait a bit longer for the good news about the condo market in most markets. However there was an increase in number of units sold – 64 in Feb 2009 and 99 in March 2009. We also see an increase in the number of units sold in single family houses in areas 21,23 & 24 – 65 sold in Feb 2009 and 88 sold in March 2009. Key to FMLS areas is here. February 2009 numbers are here.
Condos/Townhomes
| Area | # of Sales | Total Sales Volume | Avg Sale Price | Average Original List Price | Sales Price to Final List Price | Average Total Days on the Market |
| 21 | 30 | $24,370,360 | $ 816,345 | $ 923,287 | 91.1% | 97.4 |
| 23 | 27 | $10,545,500 | $ 390,574 | $ 410,309 | 95.5% | 66.2 |
| 24 | 31 | $5,805,575 | $ 187,277 | $ 196,164 | 95.5% | 51.3 |
| 31 | 142 | $6,767,951 | $ 47,662 | $ 67,282 | 90.7% | 105.5 |
| 32 | 77 | $8,255,772 | $ 107,218 | $ 128,196 | 92.1% | 87.7 |
| 52 | 106 | $24,418,719 | $ 230,365 | $ 544,356 | 92.6% | 97 |
| TOTALS | 413 | $80,163,877 |
Note – in Area 52 – the average original list price of $544,356 looks like a typo to me or an error in the list price when the property was first listed.
Areas 31 & 32 are areas with high numbers of foreclosures rates – particular area 31. It is great to see the foreclosures being absorbed.
| Area | # of Sales | Total Sales Volume | Avg Sale Price | Average Original List Price | Sales Price to Final List Price | Average Total Days on the Market |
| 21 | 56 | $ 14,010,638 | $ 250,190 | $ 286,601 | 91.7% | 122.2 |
| 23 | 40 | $ 7,601,054 | $ 190,026 | $ 225,689 | 88.2% | 113.8 |
| 24 | 3 | $ 714,900 | $ 238,300 | $ 259,900 | 97.3% | 109.7 |
| TOTALS | 99 | $ 22,326,592 |
Single Family Homes
February 2009: The Numbers
April 20, 2009 by Leigh Hays · Leave a Comment
FMLS stats for the month of February 2009
Condos/Townhomes:
| Area | # of Sales | Total Sales Volume | Avg Sale Price | Average Original List Price | Sales Price to Final List Price | Average Total Days on the Market* |
| 21 | 33 | $ 7,968,790 | $ 241,477 | $ 292,145 | 91.90% | 148.5 |
| 23 | 26 | $ 5,381,980 | $ 206,996 | $ 232,762 | 93.70% | 144.5 |
| 24 | 5 | $ 1,270,000 | $ 254,000 | $ 297,634 | 96.80% | 111.6 |
| TOTALS | 64 | $ 14,620,770 |
Single Family Homes
| Area | # of Sales | Total Sales Volume | Avg Sale Price | Average Original List Price | Sales Price to Final List Price | Average Total Days on the Market* |
| 21 | 20 | $11,614,500 | $ 580,725 | $ 659,175 | 93.3% | 151.7 |
| 23 | 18 | $9,411,900 | $ 522,883 | $ 570,477 | 94.7% | 131 |
| 24 | 27 | $5,068,041 | $ 187,705 | $ 211,952 | 94.0% | 110.5 |
| TOTALS | 65 | $26,094,441 |
Click here for FMLS Area descriptions
In both the condo/townhome & home markets – there is still a large difference in the average original list price for the area and the average sale price. Listings continue to be priced higher than the market. Requiring sellers to reduce their list price during the course of marketing and then still negotiating on price to sell.
FMLS Intown Areas
April 20, 2009 by Leigh Hays · Leave a Comment
FMLS Area Codes for Intown
| FMLS Area | Neighborhoods |
| 21 | Buckhead neighborhoods including Chastain Park |
| 23 | Midtown, Morningside, Virginia Highland, Inman Park, Piedmont Heights |
| 24 | Druid Hills, Candler Park, Lake Claire, Kirkwood, Edgewood, East Atlanta, East Lake, Oakhurst |
| 31 | Capitol View Manor, Sylvan Hills, College Park, Adair Park, West End, Jefferson Park |
| 32 | Grant Park, Ormewood Park, Glenwood Park |
| 52 | Decatur, Clairemont, Toco Hills, Oakhurst, East Lake, Kirkwood |
If you don’t see your neighborhood ~ let me know. Some neighborhoods may appear in 2 different areas.
Interest Rates – 4.17.09
April 17, 2009 by Leigh Hays · Leave a Comment
Interest rates today:
4.5% for an FHA Loan (up to $346,250 loan amounts in Georgia)
4.375% for a 30 year fixed – conforming loan (loan is less than $417k)
5.5% for Jumbo loans (more than $417k) – excellent credit scores & buyer adding equity into the deal
These rates are according to Suntrust Mortgage and are good for aquisition loans as well as refinancing and as always there will be underwriting conditions that will need to be met – such as credit scores, income & debt amounts. It is a great time to buy with these amazing rates and a great supply of inventory on the market.
If you are interested in more information and details – contact me.
