It's Not a House, it's a Home

Homeownship is reach for more buyers then ever before.

Families earning the national $64,200 median income could afford 72.6% of all homes sold in the second quarter of 2011, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI). Nationwide housing affordability hovered for the 10th consecutive quarter near its highest level in more than 20 years.

Homeownership is within reach of more households than it has been for more than two decades and interest rates remain at historically low levels. While the economy and tight credit conditions remain significant obstacles, many housing markets across the country have stabilized and are beginning to show signs of recovery.

Clearly we are still bouncing along the bottom..not to late to find a great buy.

Thanks to NAHB for the heads up.

Atlanta Housing Sales for 2010 and Other Musings

Steve Palm from Smart Numbers brings us the numbers….a breakdown of the home sales in Metro Atlanta including Marietta, Alpharetta Roswell etc.....

 ...There were 49,118 closings for all single family in 2010. This was 7.5% below 2009 and the last time we had fewer annual closings was 2000. …

But real good news..

The average price for all single family in 2010 was $191,398. This was up 0.4% over 2009, but still 25% below the 2007 all time annual high of $254,157. The average sale price for single family detached was $200,252 in 2010. This was an increase of 1.4% over 2009 and the first year-to-year annual increase in average sale price since 2006-2007.

 Lower inventories have produced fewer expired and withdrawn listings. There were 53,751 expired listings for all single family in 2010. This was 8,600 fewer than 2009 and 32,000 fewer than the 2008 all time record. There were 19,612 withdrawn listings for all single family in 2010. This was 3,000 fewer than 2009 and 14,000 fewer than the 2007 all time record. Hopefully, a large percentage of the homes going under contract at the end of 2010 will close and we can start realizing year-to-year monthly gains for closings in 2011.

 …..There is still large number of foreclosures occurring in our housing market. This is keeping home prices low, but combined with very low interest rates this could be a great spring buying season for your clients. However, if our economy starts improving and there is more demand for housing I expect interest rates to go up and quickly. Taking this into account, this may be a good time to take advantage of a good spring buying season…

Right now the inventory is  lower than what I have been used to. Not sure if the the banks are getting better about holding back inventory to stabilize the market, or the whole foreclosure thing is beginning to ebb.....Steve and I may be getting optimistic about the spring.

Don't look for interest rates to be at the 4% mark, but nothing wrong 4.8% when you can still get a great deal on a home.

As I stare into my crystal ball I see.....

Stuff, less of it, and smaller homes.

One trend I'm sure of is, younger home buyers are backing away from saddling themselves with a large mortgage payment. My guess is that many have seen their friends and family crash and burn, or maybe just even limp along with a huge home on the outskirts of town.

Overall my clients want less stuff.

George Carlin sums it up.... NOT SAFE FOR WORK..remember it's George Carlin...don't blame me if your ears bleed..

 

So what does a small home get you?

Lower mortgage

Lower utilitiles

Less maintaince time

Lower taxes

Less stuff...

I think I need to remind folks why it's STILL a good idea to buy a home.

With help from the WSJ. Brett Arends says....

You can get a good deal. Especially if you play hardball. This is a buyer's market. Most of the other buyers have now vanished, as the tax credits on purchases have just expired. We're four to five years into the biggest housing bust in modern history. And prices have come down a long way– about 30% from their peak, according to Standard & Poor's Case-Shiller Index, which tracks home prices in 20 big cities. Yes, it's mixed. New York is only down 20%. Arizona has halved. Will prices fall further? Sure, they could. You'll never catch the bottom. It doesn't really matter so much in the long haul.

Where is fair value? Fund manager Jeremy Grantham at GMO, who predicted the bust with

Low Interest Rates, But $ 60 Bucks a Month More for Mortgage Insurance

If you are thinking of buying a home, and will be looking to use an FHA loan, your payment will be going up.  And not because of interest rates.

The House of Representatives today passed House Resolution (HR) 5074, the FHA Reform Act, which establishes a handful of new Federal Housing Administration (FHA) regulations and authorities.

The new law gives FHA the authority to raise the ceiling on the annual premiums it charges borrowers for its guarantee, raises the limits on multi-family housing in certain high cost communities and in elevator buildings, and authorizes some previously announced provisions to increase enforcement of FHA lenders.

Currently monthly mortgage insurance premiums are calculated by using 0.55% of the unpaid loan balance, divided by 12.  The recently approved H.R. 5072 bill provides for an increase in monthly premium of up to 1.50 percent. Despite the ability to charge 1.50 percent, FHA officials say an increase to 0.90 percent would be sufficient to self-insure its loans.

So what's it going to cost you?

If You Missed the 8K Tax Rebate...Don't Despair Brock is Here...

I have always wanted to sell a Brock Built Home but have never had the chance. Most of my clients are OTP and Brock Built specializes in developing ITP properties. I have checked out their developments and have always come away impressed with the quality of the build and the value for the money..really honest, I have. This is a local family  builder who is still actively building in Atlanta. That is a huge accomplishment in this market. These are quality Earthcraft certified properties that look and feel like custom built homes. 

At their Commons at Historic Westside near the Georgia Dome they are offering an 8k Buyers Bonus! Why not couple that with the Zip Realty rebate of about $ 1,200 and get yourself a 3/3.5 Townhome convenient to everything in-town for only 199-215k.. What a deal, as they say.

If you want to take a look shoot me an email, and lets go for a ride.

Investor Blues...(you can't find a buyers agent to help you write an offer and why I won't most times)

This discussion is continued from another blog.

We looked at 145 RANDOMLY selected SFR, REO properties listed for 50k or less and closed in March through May. All properties are in either Cobb or Fulton County Georgia. How these stats hold up in other metros is speculation.  Average DOM for Atlanta is around 90 -100 days.

What we found:

Mortgage Rates Near Lowest Level in 50 Years.. Yes 50 years

Today mortgage interest rates are near the lowest level in 50 years .At the same time, existing home sales today showed a big jump in sales. Think Tax Rebate.

So is it time to buy a house?

Of course it is!

What did you think I would say, I'm a Realtor...But..

As it turns out, the financial trouble in Europe the past few weeks, caused by worries about the ability of certain countries to pay off their debts, is pushing investors to put their money into comparatively safe U.S. Treasury Bonds. 

Basically, investors think America is better positioned to pay back its debts over time than European countries.

Who or What Brought a Home in Georgia and 1 Unanswered Question

The National Association of REALTORS® just completed its 2008 Profile of Home Buyers and Sellers, and took a specific up-close look at the activity in Georgia.

Here is what they found:

First time home buyer was 31, median age 39.

Median household income of home buyer in Georgia was $ 73,600.

Married couples made up 56% of home buyers, 27% single females and 10% males. You can sure tell who wants to make a nest.

Puddles on the floor

Connie and I are working with a great couple who are making an offer on a Fannie Mae foreclosure. The home has been re-haped by Fannie, new carpet and new paint etc.

All looks good except for a small puddle of unexplained water on the kitchen floor. From the refrigerator? From under the sink? Not from above or below.

We are in need of Atlanta CSI.. or just good home inspector. I love a mystery... only when solved.