Real Estate
At the annual Federal Reserve conference in Jackson Hole, Wyoming, Federal Reserve Chairman Ben Bernanke says the U.S. economy is on the verge of a long-awaited recovery after enduring a brutal recession. Bernanke said that economic activity in both the U.S. and around the world appears to be "leveling out," and "the prospects for a return to growth in the near term appear good."
~sourced AJC.com
An article in the AJC today reports that the median sales price of single family homes in metro Atlanta rose in the 2nd Quarter of 2009. The metro Atlanta median sales price was $121,400 in the 2 nd Q of 2009, up 5 percent from $115,600 for the 1stQ of the year. The current median sales price is 23 percent lower than it was this time last year, $158,300, according to figures released Wednesday by the National Association of Realtors. Click
here for the full AJC article.
When comparing the 2nd Quarter 2009 sales (number sold) to 2nd Quarter 2008 sales - there has been an expected decline in the number of sales. 2ndQ 2008 - total of 10,029 sales vs. 2ndQ 2009 - total of 8,520 sales. But when broken out by sales price there is actually an increase in 2ndQ 2009's numbers in the $200k or less sales price. 2ndQ 2008 total of 4,692 sales vs. 2ndQ 2009 of 5,035 sales. Foreclosures and declining prices attribute to this increase in sales.
Foreclosures have had a tremendous impact on the 2009 market. 2Q 2008 - 19.5% of the sales were foreclosures compared to 2Q 2009 where 31.8% of the sales were foreclosures. (Short sales are not included in these statistics at present as there is not a way to accurately track them.) Certainly many buyers have been taking advantage of the falling prices & the $8000 tax credit to purchase homes. As foreclores, short sales & great buys are purchased and the inventories absorbed - we should begin to see pricing stabilizing and eventually price increases.
The Commerce Department reported that new home sales rose 11 percent in June to a seasonally adjusted annual rate of 384,000, from an upwardly revised May rate of 346,000. WOW.
It is the fastest increase in more than eight years for new construction home sales.
Indeed home prices are still falling, but the improvement in new construction sales is another sign the national housing market is starting to bounce back. Earlier this month, the government reported that national home resales rose almost 4 percent in June, the third straight monthly increase.
"The worst of the housing recession ... is now behind us," said David Resler, chief economist at Nomura Securities. "We're turning the corner toward increased activity in housing."
The median national sales price of $206,200 was down 12 percent from $234,300 a year earlier and off nearly 6 percent from $219,000 in May. In addition to lower prices, buyers are rushing to take advantage of a federal tax credit that covers 10 percent of the home price or up to $8,000 for first-time buyers. Home sales need to be completed by the end of November for buyers to take advantage. You must
close by November 30, 2009.
June's results were the strongest sales pace since November 2008 and exceeded the forecasts of economists surveyed by Thomson Reuters, who expected a pace of 360,000 units. The last time sales rose so dramatically was in December 2000.
There were 281,000 new homes for sale at the end of June, down more than 4 % from May. At the current sales pace, that represents 8.8 months of supply which is the lowest level since October 2007. Some analysts say that when the inventory falls down around a 6 month supply, builders will feel more comfortable ramping up construction.
Portions of this article were sourced from a July 2009 article by real estate columnist Alan Zeibel & FMLS
The FMLS has finally published the June 2009 numbers! And there is continued good news in the numbers. Across all of FMLS areas (36 total) average closed prices are continuing to head back up. We are seeing lower inventories and the large number of months supply of houses on the market is starting to moderate as inventories continue to decline. If this trend continues we can expect prices to continue to increase.
Below are the monthly charts for 5 in-town areas of the FMLS - just a portion of the 36 total areas in FMLS.
FOR 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 |
72 |
$ 21,803,417 |
$ 302,825 |
$ 435,664 |
74.1% |
146.2 |
| 23 |
75 |
$ 14,983,000 |
$ 199,773 |
$ 218,380 |
96.0% |
107.6 |
| 24 |
5 |
$ 868,900 |
$ 173,780 |
$ 188,560 |
96.2% |
49.6 |
| 52 |
46 |
$ 7,643,805 |
$ 166,170 |
$ 186,434 |
94.4% |
120.1 |
| TOTALS |
198 |
$ 45,299,122 |
|
|
|
|
HOUSES:
| 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 |
65 |
$61,106,623 |
$ 940,102 |
$ ,138,312 |
87.8% |
115.5 |
| 23 |
40 |
$19,032,273 |
$ 475,807 |
$ 550,100 |
94.7% |
132.5 |
| 24 |
63 |
$14,952,700 |
$ 237,344 |
$ 262,342 |
96.2% |
91.8 |
| 31 |
119 |
$5,230,423 |
$ 43,953 |
$ 57,414 |
92.8% |
79.6 |
| 32 |
73 |
$8,631,929 |
$ 118,246 |
$ 135,225 |
95.6% |
79.8 |
| 52 |
160 |
$35,186,598 |
$ 219,916 |
$ 247,542 |
93.7% |
90.2 |
| TOTALS |
520 |
$144,140,546 |
|
|
|
|
Click
here for FMLS Area - key codes.
In these in-town markets - the total sales volume for Condos/Town homes was $21,804,580 for May compared to June's sales volume of $45,299,122. Sales volume of single family homes in these 5 areas jumped to $144,140,546 in sales volume compared to May's sales volume of $99,337,550. Here are breakdowns of past months:
May 2009,
April 2009 &
March 2009.
It is a great time to buy!
May 2009 Numbers:
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 |
51 |
$ 9,505,160 |
$ 186,370 |
$ 199,370 |
93.5% |
97.1 |
| 23 |
39 |
$ 6,659,470 |
$ 168,488 |
$ 174,322 |
96.6% |
98.9 |
| 24 |
5 |
$ 1,171,500 |
$ 234,300 |
$ 236,380 |
99.1% |
142.2 |
| 52 |
23 |
$ 4,468,450 |
$ 194,280 |
$ 205,466 |
94.6% |
163.6 |
| TOTALS |
118 |
$ 21,804,580 |
|
|
|
|
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 |
41 |
$31,948,960 |
$ 779,243 |
$ 855,875 |
91.0% |
161.3 |
| 23 |
32 |
$16,852,438 |
$ 526,639 |
$ 573,433 |
91.8% |
103.2 |
| 24 |
43 |
$10,013,330 |
$ 232,868 |
$ 245,127 |
95.0% |
92.5 |
| 31 |
148 |
$7,345,715 |
$ 49,633 |
$ 53,536 |
92.7% |
106.6 |
| 32 |
55 |
$5,260,975 |
$ 95,654 |
$ 101,802 |
94.0% |
71 |
| 52 |
135 |
$27,916,132 |
$ 206,786 |
$ 220,757 |
93.7% |
88.7 |
| TOTALS |
454 |
$99,337,550 |
|
|
|
|
The area key is
here.
The NAR - National Association of Realtors - announced the pending home sales show an uptrend for the past four consecutive months. They attribute favorable housing affordability and 1st time buyer tax credits as boosting the latest survey. The June Pending Homes Sales Index increased 0.1% to 90.7%. The last time there were four consecutive monthly gains was in October 2004. Closed existing-home sales are improving but they are coming in lower than expected because of delayed closings or falling through due to financing qualifications or road blocks with the new appraisal rules in place. According to Lawrence Yun, NAR chief economist, "Rises in contract activity show buyers are becoming more active even as they face much more stringent loan underwriting standards. Speedy clarification of the appraisal rules could smooth a housing market recovery and support the overall economy".
Tagged:
There was an increase in the number of sales in the intown markets from March 2009 to April 2009. In single family houses - there were 23 more closings and in increase in sales volume of $16,631,268.
April 2009 Numbers:
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 |
43 |
$ 8,645,504 |
$ 201,058 |
$ 221,666 |
94.7% |
120.8 |
| 23 |
47 |
$ 11,501,906 |
$ 244,721 |
$ 268,637 |
97.0% |
155.4 |
| 24 |
1 |
$ 190,000 |
$ 190,000 |
$ 210,000 |
95.2% |
25 |
| 52 |
23 |
$ 3,867,405 |
$ 168,148 |
$ 182,914 |
95.0% |
120.4 |
| TOTALS |
114 |
$ 24,204,815 |
|
|
|
|
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 |
43 |
$ 8,645,504 |
$ 201,058 |
$ 221,666 |
94.7% |
120.8 |
| 23 |
47 |
$ 11,501,906 |
$ 244,721 |
$ 268,637 |
97.0% |
155.4 |
| 24 |
1 |
$ 190,000 |
$ 190,000 |
$ 210,000 |
95.2% |
25 |
| 52 |
23 |
$ 3,867,405 |
$ 168,148 |
$ 182,914 |
95.0% |
120.4 |
| TOTALS |
114 |
$ 24,204,815 |
|
|
|
|
Key to the Areas is
here. March 2009 numbers are
here and February 2009 numbers are
here.
Here are the national housing indicators for the April:
Existing-Home Sales 4.68 million units*
Existing-Home Median Price $170,200
Housing Starts 458,000*
New Home Sales 352,000 units*
*seasonally adjusted annual rate
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in April 2009, rose 6.7 % to 90.3 from a reading of 84.6 in March 2009, and is 3.2%. when it was 87.5.
Lawrence Yun, NAR chief economist, says buyers are responding to very favorable market conditions. "Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market," he says. "Since first-time buyers must finalize their purchase by November 30 (2009) to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers."
Geographical Breakdown of Pending Home Sales Index
Northeast: The index shot up 32.6 % to 78.9 in April and is 0.8 % above a year ago.
Midwest: The index rose 9.8 % to 90.4 and is 11.1 % above April 2008.
South: The index slipped 0.2% to 93 in April but is 3.5% higher than a year ago.
West: The index rose 1.8 % to 94.8 but is 2.9 % below April 2008.
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 ho
me 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
Gov. Sonny Perdue signed on Monday Bill 261 into law. The law offers a tax credit of 1.2 percent of the purchase price of a single-family home currently on the market. The credit tops out at $1,800 and will be taken over three years. Georgia taxpayers have six months starting now to qualify for up to $1,800 in income tax credits by buying a home.
For first-time home buyers, the state credit would be in addition to a federal credit offered through the federal stimulus act. That credit is worth up to $8,000. The new state credit, however, applies to
any home buyer, not just first-timers. Read more about the $8,000 federal tax
here.
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