Tal and Jeanette Kramer

Atlanta Communities

"We help families make Smart real estate decisions"

January 2010 Real Estate Report

Happy 2010!!

This Month's Topics:

• Federal Tax Credit Will NOT Be Extended 
• Year End Analysis - How Did We Do in 2009? 
• December 2009 Statistics
• Announcing Property Management Services!
• Current Interest Rates
• Thank You for Your Referrals :-)

Federal Tax Credit Will NOT Be Extended according to Senator Johnny Isakson, the bill's author.  Earlier this week Senator Isakson spoke to the Cobb Association of Realtors and explained why he and other senators will not vote to extend the tax credit when it expires in June.  The two reasons were cost and public reaction.  Isakson said the cost of the current extension was $10.2B and in order to obtain support for the bill, he first had to find $10.2B of cost savings in the Federal Budget to offset the extension costs. 

Isakson, who was a Realtor himself and later President of Northside Realty, said he is concerned about the public 'becoming dependent' on the tax credit as a continuing bailout.  He went on to say; "It loses its effect when people think it will always be there" and we agree!  In a former career, we were around when GMAC introduced low auto financing incentives in the late 1980's.  Here we are over 20-years later and the industry is still advertising / subsidizing interest rates to generate car sales.  Isakson's concerns are valid and continuing the Federal Tax Credit could create a similar dependence in the housing industry.

Remember, while the tax credit ends June 30th, it only applies to homes under contract by April 30!

Year End Analysis.  How did Metro-Atlanta do in 2009?  The answer is 'clear as mud' as all over Atlanta we're experiencing two distinct markets; Distress Sales (Foreclosure, Corporate and Estate sales), and Non-Distress Sales.  The differences are unbelievable with a $141,171 price difference between the average Distress and Non-Distress single family home sale.  Similarly, the difference for Condos/Townhomes is $79,457! 

Keep in mind, these numbers are a high level look at Metro-Atlanta over all and that price differences (Distress vs Non-Distress) may vary greatly based on the percentage of foreclosures in a specific area.  It simply illustrates the impact Distress Sales have on Average sales prices in our market and elsewhere.

Single Family Homes:

• Sold in 2009: 44,622 vs 46,880 in 2008  Down 4.8%!!
• Non-Distress - Sold: 29,963 - 67.1% of sales.
• Avg Sales Price in 2009: $197,704 vs $229,109 in 2008  Down 13.7%!!
• Non-Distress - Avg Sales Price: $280,052 - $141,171 Above Distress Sales!
• Distress - Avg Sales Price: $138,881
• Avg Negotiations from Asking Price in 2009:  94.6% vs 94.6 in 2008
• Avg Days on Market for sales in 2009:  95 vs 94 in 2008
• Note: This reflects the number of days for the last listing that went Under Contract.  Many properties were listed more than once so real Total Days on Market is much longer.

Condos / Townhomes:

December Market Statistics for Metro-Atlanta...

Single Family Homes:

• For Sale as of Jan-17:  34,019
• Under Contract as of Jan-17:  6,136.  Note - Many of these may be Short Sale contracts that will not reach a closing.
• Sold in December:  3,330 vs 3.484 in Dec-2008
• Avg Sales Price for Dec:  $202,451 vs $201,836 in Dec-2008.
• Avg Negotiations from Asking Price for sales in Dec:  93.9%
• Avg Days on Market for sales in Dec:  92 
• Note: This reflects the number of days for the last listing that went Under Contract.  Many properties were listed more than once so real Total Days on Market is much longer.

Condos / Townhomes:

As we keep saying... "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.

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 - Back UNDER 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 two great Lenders to recommend, one is a traditional Mortgage Banker and the other a Mortgage Broker (in the Top 10 in Georgia!).  If you're looking to Refinance or get Pre-Approved, call us and we'll put you in touch with both of 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.

As of January 15, 2010

• 4.875% - Conforming 30 Year Fixed
• 4.250% - Conforming 15 Year Fixed
• 6.100% - Jumbo 30 Year Fixed ('Jumbo' are for loans over $417,000)
• 4.500% - Jumbo 5/1 ARM
• 4.875% - Jumbo 7/1 ARM
• 4.875% - FHA 30 Year Fixed
• 5.250% - Investor 30-Year Fixed w/25% Down. Higher rates available w/20% Down.

All Rates are Quoted at Par (No Discount Points)

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:

Sherri Kramer for referring a relocating buyer

Amy and Walter Kargas for referring their son

Charles and Edith Doyle for referring his co-worker

 

Thank you for your continued support - We truly appreciate it!

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)

Tal and Jeanette Kramer

Atlanta Communities

770-971-0025

678-978-1900 - Tal cell

678-978-1800 - Jeanette cell

Kramer@MyDreamHome.com - Tal

Jeanette@MyDreamHome.com - Jeanette

www.MyDreamHome.com

www.Atlanta-HomeInfo.com