From The Field

Interest Rates on The Rise

Mortgage interest rates are on the rise.  In the past few weeks, interest rates have ticked upwards.   The raise in the interet rates hurt for sure: it reduces the amount of house many buyers can afford.  My buyers and have sellers have felt the sting.  Reality is that we had historically LOW interest interest rates and they couldn't last forever below 4%. So where are they going?  And how is the real estate market going to be impacted? Lawrence Yun, the chief economist of the National Associaton of Realtors, had the following points:

• Anticipates hitting 5% by mid year 2014 & may climb higher in 2015
• it will push some buyers out of the market (especially as sales prices are increasing)
• improvements in underwriting loans as they return to less restrictive requirements
• Yun estimates that 15-20% MORE households are qualifying for safe, affordable mortgages with conventional financing (Loans up to $417,000) with credit scores of 720 or above.  (In recent years the credit score needed to be 760-770)
• FHA Loans - credit scores of 660 (prevously was 680-700)
• Freddie Mac & Fannie Mae have greatly improved their performance & are starting to turn profits.  Hopefully once they have repaid tax payer funds they will reduce some of these fees

It's important to remember as mortgage interest rates rise, they are still low and it is a great time to buy a home.  

Market Pulse June 2013

The year to date numbers for sales are out for June 2013 from the First Multiple Listing Service (FMLS).  There has been a continued increase in the average sales prices while the active inventory & sales have continued decline.   The average sales price for single family homes has increased 29% comparing YTD June 2013 to YTD June 2012.   For the same time period - attached homes have increased 30%.   Year to date sales for June 2013 vs same time period in 2012 - single family homes have decreased 4% an attached homes have decreased by 1%.   Active inventory has decreased 34% for attached homes and 17% for single family homes. I am not surprised one bit at the increase in average sales prices.  Limited availabilty of homes for sale coupled with a high demand of buyers has brought us multiple offers.   We have been seeing multiple offers since Late 2012 many of them going over the asking price to win the home.   Multiple offers are great for sellers because they can choose their highest and best offer.  Multiple Offers can be frustrating for the buyers because a great bid - even one over asking price doesn't always yield the win and that is always frustrating. One HUGE point needs to be said about the above numbers.   The stats above all include homes listed and sold through the FMLS.   In the past 8 to 9 months - many homes have never made it to the FMLS which would be an argument for higher sales than reported above.   It is common in new construction for homes to not be reported to FMLS.  

2012 Top Intown Atlanta Zip Codes by Average Price

The Atlanta Business Chronical recently published the 2012 top 130 ZIP codes by average sales price.  The data is for single family homes only and generated by RealValuator/Bridge Interactive Group, LLC.   According to ChartMaster Services which pulls data from the First Multiple listing in Metro Atlanta the median sales price for the end of 2012 was $179,900.  

2012 Rank	Zip Code	Median Sales Price	Average Sales Price	Total Sales
1	30327	$750,000	$966,378	296
2	30309	$649,900	$698,476	78
3	30305	$525,000	$666,983	227
4	30342	$513,975	$602,611	241
5	30306	$507,000	$576,250	260
8	30319	$375,000	$436,165	412
9	30324	$368,000	$433,463	144
10	30328	$355,000	$409,046	254
11	30307	$377,400	$400,478	199
22	30308	$295,000	$311,695	37
23	30329	$275,000	$291,326	76
34	30033	$214,000	$234,611	271
52	30312	$173,000	$190,794	184
102	30316	$105,000	$125,348	556

               

Federal Energy Tax Credits

Today's post comes from my friends at Eric & Adam at  KronbergWall .  They are architects and fellow eco enthusiasts.  They can help you with your home designs and renovations.  The recently signed American Recovery and Reinvestment Act of 2009 makes federal energy efficiency tax credits available for your home renovations if you make them in 2009 and 2010. Specific types of high efficiency furnaces, air conditioners, and tankless gas water heaters qualify. Certain energy efficient doors, windows, roofing, and insulation also qualify. You are eligible to receive a credit for these upgrades if they are installed in existing homes that are primary residences. The tax credit has been raised to 30% of cost up to a total credit of $1500. There are even greater tax credit opportunities for solar water heaters, geothermal systems, and photovoltaic systems. You can receive a tax credit of up to 30% of the total cost of these systems, and it is not limited to the $1500 cap. In addition to existing primary residences, the credit is also available for vacation homes, rentals, and new construction. Eric Kronberg, AIA, LEED AP Adam Wall, AIA, LEED AP

Top Economists Say Recovery Has Begun

Top Economists Say Recovery Has Begun Economic recovery is about making people feel more confident, says Mark Zandi, chief economist of Moody's Economy.com. Zandi evidenced increasing home sales and gains in the stock market are some promising signs that the worst is over and people will start spending again. "We're starting to see some pent-up demand for goods," he says. But Zandi warns that the situation is still fragile. "Confidence is a very fickle thing. It can go from abject pessimism that pervades now to a more balanced view of the world rather quickly." Robert Brusca of FAO Economics is predicting strong growth in the last half of the year and a quick recovery for the labor market. "You've lost 5 million jobs. It shouldn't be hard to put 2.5 million jobs back on rather quickly after you hit bottom," he said. Joseph Carson, chief economist at AllianceBernstein, calls improving home sales, a rising stock market, and better-than-expected retail sales in February and March good signs of a turnaround. By the time President Obama's stimulus package takes effect, the economy will be ready, he says. "The stimulus has a much better chance of working if trends are already turning up than if it needs to halt a decline," he said. Source: CNNMoney, Chris Isidore (04/06/2009)