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Tal and Jeanette Kramer Atlanta Communities and Avalon Property Management Services "We help families make Smart real estate decisions"
May 2010 Real Estate Report
This Month's Topics:
April 30th - The Real Tax Day! The real Tax Deadline this year may have been April 30th as untold number of home buyers rushed to meet the Federal Tax Credit Deadline to receive up to $8,000 in tax credits for their home purchases. As of this writing, there are over 12,000 Pending Sales in Metro-Atlanta alone!
Compare this to last month and to one year ago and the differences are clearly evident with April 2010 sales up 65% over the preceding month and up 107% over April 2009. Without a doubt, the Federal Tax Credit program has significantly boosted sales here and across the nation.
Sales Comparison
The good news continues as logic dictates this vast increase in home buyers will add further stimulus to the economy as they invest in renovations and other home improvements related to new home purchases. Time will tell, but we believe market data later this summer will show marked increases in all related housing fields; appliances, furniture, etc. and that should benefit the overall economy.
Will Sales Continue? That's really the next question isn't it? We don't have a crystal ball, but there does appear to be more consumer confidence in the market. Home values are still attractive and interest rates remain low, which bodes well for continued sales activity. Add in the "seasonality" factor and we believe that sales will tapper off a bit, but still remain strong enough for a solid real estate market this summer.
So What About Prices? The answer to the Price question, as always, depends on where you live but Metro-Atlanta 1st Quarter sales show a 6.9% Increase in Sale Prices compared to 1st Quarter of 2009. Higher demand areas are turning around now too. A quick look at the combined data for North Fulton, Sandy Springs, Dunwoody and East Cobb shows a 3.3% price decline when comparing March and April sales of 2009 to the same period in 2010 but... The same areas show a 1.2% increase when comparing January 2010 sales with April 2010 sales. In other words, its turning around!
(You may be wondering why 'higher demand' areas are not showing the same 6.9% price increase that Metro-Atlanta experienced in the 1st Quarter... The answer is due to the fact that these areas have had fewer foreclosures and didn't have the price crash that other areas experienced. These areas remained strong while others were rapidly declining and only later were pulled down due to the overall market malaise but by much smaller percentages so they need smaller increases to recover.)
What Will Sellers Do? Combining the above questions, Will Sales Continue and What About Prices sheds light on What will Sellers Do but it really begins with Seller attitudes. Many home sellers have sat on the sidelines for nearly two years watching declining prices and the lack of market demand. We frequently heard; "I'm waiting till prices are higher", which meant they were waiting till values were back at 2007, 2008 levels. We believe many are starting to realize the growth, whatever it is, will be slow with smaller annual increases, therefore making the prospect of waiting for higher prices a longer, multi-year delay.
Many are tired of waiting and want to get on with their plans. Furthermore, many sellers are finally recognizing that while they will get less than desired for their current home, they will be paying lower prices for whatever they buy so they won't lose out at the end of the day. We think that as more sellers recognize and accept the market realities they will shift away from their previous "emotional" positions and move forward with their life cycle plans (sizing up, sizing down, etc.) where real estate is concerned.
Atlanta Still Growing! As reported recently in the AJC, Atlanta-Sandy Springs-Marietta among the Top 10 cities adding the most new residents from July 2008 to July 2009 based on census data released a few days earlier. During that period we added 89,627 residents placing us 6th among the Top 10 growth areas in the country - Good News!
Mortgage Rates to Rise! The Mortgage Bankers Association recently came out saying they expect interest rates to rise. They stated they expect the 30-year mortgage rate to rise to 5.5% by late summer and as high as 6% by the end of the year.
Latest Market Statistics for Metro-Atlanta...
Single Family Homes:
Condos / Townhomes:
Remember... "Averages" are simply high level overviews blending the best and the worst to obtain a 'snapshot' view of the market. The figures above are for all of Metro-Atlanta and is NOT likely to be reflective of prices and trends where you live. Before making any real estate decisions, its important to obtain data pertinent to the specific area(s) where you are selling and / or buying.
Repeat - Announcing Property Management Services! Over the years we have helped many clients manage their rental properties and due to the increased demand for these services we recently opened 'Avalon Property Management Services, LLC' to better serve this demand. Avalon provides all aspects of Property Management:
Avalon Property Management Services can handle all aspects of managing your rental properties freeing you to focus on other ventures or simply to enjoy that game of golf without worrying about tenant issues. Our fees are competitive and will actually increase your long term profits. We've been managing local properties since 1997, own multiple rental properties personally and we are ready to serve your property management needs. Call Today with any questions :-) Current Atlanta Interest Rates
LOW Interest Rates - Hovering Around 5%! Financing is available at historically low interest rates, but they are sure to escalate when market activity resumes to more 'normal' levels so don't put off your purchase or refinance.
We have great Lenders to recommend for your new purchase or to refinance. Call us and we'll put you in touch with them to see who has the best programs based on your qualifications and requirements.
Note! Interest Rates are now heavily influenced by your Credit Score. The rates published below assume a Credit Score of 720 or higher.
Sam Olens for Attorney General - Earlier this week we were fortunate to hear Sam Olens speak in a smaller gathering at a friend's home. We've heard Sam speak many times before and once again, Sam's remarks that evening illustrated why he'll make a great Attorney General for the State of Georgia. As I stated that night, Sam's strength is his honest, consensus building, solution based approach that focuses on results rather than politics.
The AJC and others have praised Sam's accomplishments in both his roll as Chairman of Cobb County Commission since August 2002 and Chairman of the Atlanta Regional Commission since December 2004. Cobb County has flourished and the Atlanta Regional Commission has had some of its most successful years under Sam's leadership.
We encourage you to lend your support to Sam Olens. He's well known and well endorsed in Metro-Atlanta but less so elsewhere in the State. Sam needs our help so if you're a supporter, please make sure you let your friends, family and co-workers throughout the State know of Sam's track record. One way to do so is to share this link to Sam's website: http://OlensforAG.com
Thank You for Your Referrals! Many thanks to our Customers, Clients, Family and Friends for referring us to the folks you know when they need Professional real estate assistance. This month special thanks go to:
Is This Information Valuable? Please let us know your thoughts. Our goal is to provide up to date information and market advice to help you become as knowledgeable as possible in your real estate decisions. Have a question you need an answer to or a topic you would like us to address... Just let us know :o)
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