Home Prices Move Up Slightly in August, BUt Atlanta Prices Still Dropping

Home prices continued a fifth straight month of price gains in August, but still remain lower than a year ago.

The S&P/Case Shiller index, a gauge of home prices covering 20 major cities, recently reported that home prices rose 0.2% in August but were still down 3.8% from the 2010 level. Overall, the report shows that the housing market is "treading water." There doesn't seem to be any reason to think that's going to change any time soon.

Among individual metro areas, the Atlanta Georgia metro area recorded the steepest decline, down 2.4% for the month. Prices were off 6.3% from their 2010 level. Minneapolis home prices recorded the worst 12-month drop of 8.5%. Washington D.C. saw the biggest gain; 1.6% in August and 0.3% in the past 12 months. Detroit and Chicago were close behind at 1.4%. In the past 12 months, Detroit prices were up 2.4%over the past 12 months, more than any other area.

The S&P/Case Shiller home price report comes on the heels of changes in the Home Affordable Refinance Program (HARP) announced this week by the Obama administration. Those changes will enable many homeowners to refinance high-interest mortgages more easily, making their monthly payments more affordable, hopefully avoiding some defualts.

Andree Huffine, a Sarasota Luxury Homes Realtor doubts that the new HARP changes will have much impact on luxury home prices or sales. She syas, "Sarasota home prices are about where they were last year or have inched up only slightly."
Likewise, David Blitzer, a spokesman for S&P, said "Even though the year-over-year rates are improving, national home prices are still below where they were a year ago."

Fiserv, which provides real estate financial analytics to the industry, is projecting further home price declines of 3.6% through June, 2012. If their forecast proves to be accurate, it would mean home prices will bottom out over the next nine months, down a whopping 34% from the mid-2006 peak.

Atlanta Downtown Condo Sales Up Slightly Despite Overall Home Price Slips

Atlanta condo sales improved during the 1st half of 2011 according to the The haddow Report, an Atlanta-based real estate consulting firm. A total of 482 units were closed on or pending as of June 30th. By comparison, 463 units were sold in the 1st half of 2010, and 368 units were sold during the 2nd half, 2010.

The Haddow Report covered 93 active condo projects containing a total of 6,817 units in downtown Atlanta, out to Buckhead and then east to Decatur. In their sample, there were 2,369 units reported as unsold inventory.

Over all, home prices in the metropolitan Atlanta market continue to be depressed at this point even though, traditionally, this is one of the better times to sell a home oe condo in this mnarket. Atlanta home prices fell 6.8% from June, 2010 through June, 2011 according to CoreLogic. State wide, Georgia home prices also were down 6.8% in the period. Mark Fleming, chief economist for CoreLogic, says, "While there is a consistent and sustained seasonal improvement in prices over the last 3 months, prices are still lower than a year ago due to the decline in prices after the expiration of the 2010 tax credit program.

It is hoped that we see a continuation of the slight increase in condo sales volumes in the 1st half continuing for the rest of 2011. That would be a positive sign for the greater Atlanta Georgia real estate market and will help reduce the on-hand inventory so home prices can begin to recover.

Selling A Home in the "Off-Season"

Not everyone who relocates to the Atlanta, Georgia area decides to buy a home while they are here as “snowbirds” in the months of December through April the appeal of our "Southern Lifestyle" is so obvious or when the kids are out of school and they have the time to be choosey because they’ve got three months before the kids need to be back in school. If you need to sell a home or condominium during the “off-season,” you may need to put a little more effort and creativity into the task of selling your home

Everyone who has ever sold a home has heard the usual advice: Find a good agent, be aware of local home values, remove personal items and de-clutter the home. Touch up the paint, remove old wallpaper and keep the dog out of the way. That is all good advice, but it’s not always enough,” says Bert Stanley, the author of the Florida real estate website. You may need to go a few “extra miles” to achieve success, however if you’re selling a home in the “off-season.”

Keep these five suggestions in mind from the moment you start planning your next move:
1. Get more specific about your home’s value. You probably already know enough to use neighboring home values as comparisons in setting your asking price.. But now, some additional homework can pay off. If you need to sell quickly, stay ahead of the market by pricing yours a bit lower. In the wake of the bursting real estate bubble, it’s also important to have a heightened awareness of foreclosures in your immediate area. Any foreclosures in your immediate neighborhood wil put a dent in your home’s market value.
2. Get Involved: Just because you’re working with a Realtor® doesn’t mean you can’t do some of your own legwork. The first 10 days on the market are the most critical to selling a home because new listings get the most attention from buyers. Internet-based social media sites have opened limitless new strategies to sell your home. Also consider using sites like Craigslist, Facebook, Flickr, Zillow and YouTube. Make sure you’ve agreed with your Realtor to pay his or her commission (or some other mutually agreed-upon amount) if you sell it yourself using one of these venues. Post pictures on these sites that show your home at its best. You can even upload a narrated video tour – because that’s what you’d want to see as a buyer. At some real estate agencies, a video tour is becoming the new requirement for sellers.
3. Accept a helping hand: Take advantage of a wide range of services, beyond your local Realtor’s, that could help you streamline the buying and selling process. Some cost money, such as a home “staging” service that can help you show your home at its best If you are employed or in the military, you may find that your employer or the the military offer services you can use either for free or at discounted rates.
4. Get Creative With Your Terms: Sometimes it takes out-of-the-box ideas to seal a deal You might sweeten the pot by offering to pay some or all of a buyer’s closing costs, for example. In some communities, you may also be able to offer to pay the new owner’s membership initiation fee for the local golf, yacht or athletic club.
5. Remain flexible: According to the experts, buyers and sellers should keep their pride in check and be willing to make concessions, especially in the off season. That means not haggling over minor repairs or refusing to leave behind the chandelier your potential buyer loves. Factor in your thinking the cost of keeping up your home for several more months versus just accepting a lower selling price or letting something go with the home and having the sale done right now.
Even in the most sluggish real estate market, getting ahead of the curve can be the key to a quick sale even in a sluggish or off-season market.

Support this Teenager On a Mission - Saving the Planet

It's not much of a secret that our planet is messed up. We're facing a long list of problems, and most of them are caused by by one simple thing: the burning of fossil fuels.

The most urgent problem is climate change, caused by our out of control addiction to fossil fuels. When we burn fossil fuels like oil, coal and gas, we emit all this extra carbon dioxide, CO2, into the atmosphere, which messes up the balance of the atmosphere.

We just heard about this Salt Lake City, Utah teenager who is single-handedly trying to do something about this problem. We invite you to visit his website at IMatterMarch.org.

Alec Loorz, the initiator of this site says, "The iMatter March began on May 7. And the movement has only just begun. The generation most affected by climate change is standing up to let the world know that our future matters more than profits and conveniences. Over 150 marches to compel our leaders to LEAD AS IF OUR FUTURE MATTERS are registered on the map in over 35 countries, and the photos and videos streaming in are awesome."

"iMatter is not an Event. This is a movement," Alec says.

By visiting Alec's website, you will learn a lot about the problem and perhaps even be moved to contribute to his cause either by leading or participating in a march or at least sending a few dollars to support his efforts.

Fixed Mortgage Rates Fall. Good News for Builders and Buyers Alike

Fixed rate mortgage interest rates fell this week to the lowest level this year. The average 30-year rate dropped to 4.71% while the 15-year rate fell to 3.89% according to Freddie Mac

This was the third week in a row of falling mortgage interest rates and it comes right at the beginning of the Spring home buying season.

Atlanta area home builders are hopeful that these lower rates will increase interest in buying a new home her in the troubled Georgia real estate market.

While home prices have fallen and a bulk of builders' inventory of spec homes are still available, there is some good news for Georgia home builders according to AtlantaRealEstateForum.com which reported that "inventories of finished vacant homes fell 36% in Atlanta last year, more than any other region studied. And, from July 2007 to July 2010, Georgia’s population grew 20%, twice as much as any other state. Meanwhile only 8.6% of Georgia’s subprime mortgages are in foreclosure, far below the national average of 13.2%."

AtlantaRealEstateForum.com suggests that these statistics point to a potentially bright future for Atlanta area home builders. With mortgage interest rates down and existing inventories housuing inventories being depleted, if credit can become not quite as tight, Georgia home builders see the potential for a comeback to normalcy.

In addition to the improved outlook for builders, lower 15 and 30-year rates will also help make buying a first home more affordable for young families.

Overall as the weather warms, one ccn see hopeful signs that the Atlanta area housing market mat at long last begin returning to normal

Questions to Ask Your Listing Agent Realtor

As You prepare to sell your home and are deciding which Listing Agent Realtor to employ, here are several questions you should ask of each such Realtor you speak with before making your choice.

• How many years have you been in the business?


• What professional designations have you earned?


• Do you have any references I can check with before signing up?


• How many homes have you sold in this immediate neighborhood?


• What is the minimum length of your listing agreement?


• What, if anything will you charge me if I decide to drop you during the listing agreement period?


• What is your commission rate?


• What if I sell the home myself while you have the listing?


• What is your ratio of sales price to listed price?


• What is the average number of days your listings are on the market before they are sold?


• Would you please show me a written copy of your marketing plan?


• May I have a copy of your standard listing agreement and what values you fill in at the blanks?


• May I have a copy of your standard purchase agreement you use?


• At what price would you list my home?


• How did you arrive at that sales price?


• Does my home need any repairs or changes to make it more attractive to buyers?


• What effect, if any, would those changes make in the listing price you'd suggest?

"If your prospective Realtor is a true professional, he or she should have no problem responding to each of these questions in an open and honest way," says
Bob Henley, a noted Sarasota real estate professional with many years of experience as a Listing Agent Realtor.

2011 Real Estate Outlook

The following 2011 outlook for the real estate industry includes a lot of information we found in an article by Lisa Udy, an Ogden Utah real estate professional providing services for both home buyers and sellers of Ogden Utah homes. We have added our own thoughts to her article and hope you find it interesting reading and informative.

While many real estate experts seem to be hopeful, the outlook for real estate in 2011 is not all that favorable in most real estate markets across the United States.

Sales of new homes in February plunged to their slowest pace on record according to the Commerce Department. Sales of existing single-family homes were equally dismal in February with volume down 3% from February of 2010. according to the National Association of Realtors.

Jobs are the key to a housing market recovery. Without a lot more job creation, homeowners will continue to face foreclosures and/or won't qualify to buy a new or existing home. With existing home inventories still high, housing in 2011 will not recover unless consumers have not only jobs, but also the confidence to buy up that excess inventory of homes already on the market.

Here are some observations on the real estate outlook for 2011 and beyond

Interest Rates Will Remain Low: With a fragile economy, the Fed is expected to keep interest rates low for at least the rest of 2011. Low interest rates make homes more affordable and that, in itself, will be a source of some pent-up demand. If, however, rates are driven up by inflation or as a result of the Fed pumping so much money into the system, the nacent housing recovery we are just beginning to see a glimmer of in some markets will come to a halt.


But, There Will Still Be Fewer Buyers: There are too many people without jobs. Worse, lending standards are much more stringent. The pool of potential home buyers is dramatically smaller than just a few years ago and until that changes, a housing recovery cannot and will not happen. The job outlook is a bit more positive for 2011 than it was in 2010, but we still have a ways to go.

Atlanta area Realtors don't expect any genuine stability in their housing market until the economic situation settles down. "Folks worried about their jobs don't buy homes" says Hank Miller an Atlanta area Broker and Appraiser. "The issue of distressed homeowners also needs to be resolved; the banks have little desire to do much but foreclose," he adds.

Congress Is Doing Nothing to Help: It would certainly help if Congress would stop the in-fighting and point-scoring and address the critical need to create jobs. Both parties ran on platforms claiming that their primary objective would be job creation. You'd never know that based upon the actions they've taken (or not taken) so far.

McMansions Are Out: With the exception of the most affluent areas, this has been a clear trend for the past couple of years and it will continue. Home buyers are no longer interested in huge homes. Everyone seems to be downsizing the size of their home to save money on maintenace, utilities and property taxes.

Senior buyers are looking for smaller, more open floorplans and leaning toward homeowner association communities where much of the exterior maintenance is done by the association. Young, frst time buyers, those few who can qualify for a mortgage at this point, are looking for smaller homes in walkable, affordable neighborhoods with outstanding schools.

Bob Henley, a prominent Southwestern Sarasota Florida real estate expert says, "if you are currently trying to sell your much larger than average home, you are facing a real estate market that is not favorable to you. A profitable sale or even a break-even sale in the near future is unlikely due to this downsizing trend.

"Flipping" Homes is also Out The speculators have been driven out of the housing market. There are no longer opportunities to buy a home and then resell it within a year or two and capture a nice profit. Those days are gone -- "good riddance," say the authors of the Real Estate of Florida website and blog.

Today's home buyers are thinking more long-term with their home purchases and this trend will continue. Home buyers today realize that that tactic is just not viable anymore. Home buyers will be more cautious and look into longer term home ownership. They will be buying a home to live in for 10 years or more, not a buy it, upgrade it, and sell it within a year or two. This trend will cause buyers to be more thoughtful about the homes they purchase thinking how this home will fit into their needs and plans over the next 10 or 20 years or more.

Prices In Many Areas Will Continue Falling:The bottom of the real estate market in many areas is still yet to come although the Atlanta - Marietta area may be showing a few signs of life and stability compared to some other hard-hit areas.

There Are Still Lots of Foreclosure Properties: Many banks have stopped the practice of processing foreclosures with incomplete paper trails so there are homes still waiting to be foreclosed upon so banks can move them off the books. Once the paperwork process is fixed, banks will start foreclosing again, although at a slower pace to make sure they're doing it correctly. The Federal Reserve estimates that there are 2.5 million homes expected to foreclose in 2011, about the same as in 2010, with another 2.0 million in 2012. As long as banks foreclose gradually, home prices in 2011 should continue stabilizing but ever so slowly.

New Home Construction Will Struggle: With few jobs and low consumer confidence, the home building industry will continue to struggle in 2011. With the increasing cost of the materials used to build a home and buyers just not confident that they'll even have a job by the time a home could be built, the home building industry will stay as depressed.

Opportunities Are Out There For Cash Buyers: As in 2010, cash buyers and investors will continue to have the upper hand over buyers making offers with financing contingencies. A smart private seller, and certainly the banks selling foreclosed properties, will accept a lower price if the contract has no financing contingency and even a lower price if there is no inspection contingency. Banks are looking for quick sales to cash buyers who can close quickly. If you're a home buyer competing against cash buyers in 2011, be sure to make your offer as attractive as possible.

If you need a home in Georgia now because you have relocated, there are certainly bargains available, but understand that while short-sales and foreclosures seem attractive, you are bidding against cash buyers and investors so your offer will have to be strong. You also need to know that closing on a short sale can take months, not weeks. If you are a first-time buyer, you need to be cautious because prices could easily fall a bit further before they start going up again.

According to Brian Ward, a well-known Sarasota Florida real estate professional, if you are trying to sell a home right now, you need to listen carefully to what your Realtor says about the price of comparable houses today. It doesn't matter that someone down the street sold an equivalent home for $50,000 more than the Realtor says you can get now. You, unfortunately are selling today, not 12 months ago. if you can't take the price drop, hang on to the home for a couple years. Things will definitely get better but to us, it doesn't look like that is going to happen any time soon.