Posts Tagged ‘Atlanta new homes’

Case-Shiller Index For February 2010

Tuesday, March 2nd, 2010

The February Case-Shiller Index was published on February 28, 2010.  As always, the index reports on data 60 days in arrears.  Therefore, the index reports metro Atlanta home values for December 2009.  So what does the latest index show and what does that mean for home values in metro Atlanta? 

Before we provide the answer, we want to make two caveats.  First, the Case-Shiller index of home values is very different from average sale prices which reflect the average prices of what is being sold in the market.  Right now, the heavy volumes in the market remain on the lower end for 1st time home buyers and short sales/ foreclosures.  The luxury market is slower so that makes the average sales price lower than a normal market.  Second, real estate is local and every market is different.  Your local agent expert can help you understand the specific metrics in your local market. 

Now for the news….  The December index shows the 4th drop in a row after 5 positive months in a row.  The new extended and expanded tax credits were not announced until December.  Therefore, many transactions that would have normally closed in December were closed earlier in November to ensure the buyer received the tax credit.  As a result, we expected a more significant drop in home values coming for December.   Click on the link below to open the Excel spreadsheet that shows the details of the latest index.

Case Shiller Index – Atlanta – December 2009 Index

The peak of our market was July of 2007 according to the Case-Shiller index.  The most recent bottom was March of 2009.  In August of 2009, we had seen 5 months of increasing values and were 5.8% above the bottom of March 2009.  Since the, we have slipped and are now 3.28% above the March bottom and still down 19.18% from the peak of July 2007.  We would expect to see some additional drops in the January and February index but do not expect to drop below the March 2009 levels.  The early spring season driven by the expiring tax credits in April will likely drive home values back up prior to the normal seasonal patterns. 

If you look at the average annual Case-Shiller index for each year, here is how homes purchased in recent years would compare to the current index: 

  • Homes Bought in 2000 – Gain of 4.45%
  • Homes Bought in 2001 – Loss of .92%
  • Homes Bought in 2002 – Loss of 4.53%
  • Homes Bought in 2003 – Loss of 7.50%
  • Homes Bought in 2004 – Loss of 10.75%
  • Homes Bought in 2005 – Loss of 15.10%
  • Homes Bought in 2006 – Loss of 18.62%
  • Homes Bought in 2007 – Loss of 19.14%
  • Homes Bought in 2008 – Loss of 11.62%

Homes values are essentially the same as the summer of 2001 right now.  Yes, we are slowly climbing our way out of this unprecedented housing crisis – but we are not there yet.  So where will home values go from here?  The key factors that will impact our home value include the following: 

  1. Demand From Buyers (We expect to see improving demand through spring driven by the tax credits, great deals and low mortgage rates!)
  2. Mortgage Rates/ Credit Availability     
  3. Competition from Short Sales/ Foreclosures Entering the Market  (See the blog post on short sales & foreclosures – http://atlrealestatescoop.com/changing-trends-foreclosures-short-sales/)

You and your agent should be carefully watching the trends for short sales and foreclosures.  It is clearly a great time to buy and we expect many buyers to take full advantage.  We will continue to keep you informed with the latest facts and insight that can make you money!

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Case-Shiller Index – January 2010

Thursday, January 28th, 2010

The January Case-Shiller Index was just released.   As always, Case-Shiller is published the last Tuesday of the month and reports on data 60 days in arrears.  Therefore, the index reports metro Atlanta home values for November 2009.  So what does the latest index show and what does that mean for home values in metro Atlanta? 

Before we provide the answer, we want to make two caveats.  First, the Case-Shiller index of home values is very different from average sale prices which reflect the average prices of what is being sold in the market.  Right now, the heavy volumes in the market remain on the lower end for 1st time home buyers and short sales/ foreclosures.  The luxury market is slower so that makes the average sales price lower than a normal market.  Second, real estate is local and every market is different.  Your local agent expert can help you understand the specific metrics in your local market. 

Now to the news….  The November index shows the 3rd drop in a row after 5 positive months in a row.  In a more normal market, you would expect such a seasonal drop.  However, the previous $8000 First Time Home Buyer was expiring in November which should have positively impacted these numbers.  The new extended and expanded tax credits were not announced until December.  The market results for December were significantly down versus November.  Therefore, we should expect a more significant drop in home values coming for December.   Click on the link below to open the Excel spreadsheet that shows the details of the latest index.

Case Shiller Index – Atlanta – November 2009 Index

The peak of our market was July of 2007 according to the Case-Shiller index.  The most recent bottom was March of 2009.  In August of 2009, we had seen 5 months of increasing values and were 5.8% above the bottom of March 2009.  Since the, we have slipped and are now 4.02% above the March bottom and still down 18.6% from the peak of July 2007.  We would expect to see some additional drops in the December and January reports but do not expect to drop below the March 2009 levels.  The early spring season driven by the expiring tax credits in April will likely drive home values back up prior to the normal seasonal patterns. 

If you look at the average annual Case-Shiller index for each year, here is how homes purchased in recent years would compare to the current index: 

  • Homes Bought in 2000 – Gain of 4.43%
  • Homes Bought in 2001 – Loss of .93%
  • Homes Bought in 2002 – Loss of 4.54%
  • Homes Bought in 2003 – Loss of 7.51%
  • Homes Bought in 2004 – Loss of 10.76%
  • Homes Bought in 2005 – Loss of 15.11%
  • Homes Bought in 2006 – Loss of 18.62%
  • Homes Bought in 2007 – Loss of 19.15%
  • Homes Bought in 2008 – Loss of 11.63%

Homes values are essentially the same as June of 2001 right now.  Yes, we are slowly climbing our way out of this unprecedented housing crisis – but we are not there yet.  So where will home values go from here?  The key factors that will impact our home value include the following: 

  1. Demand From Buyers (We expect to see improving demand through spring driven by the tax credits, great deals and low mortgage rates!)
  2. Mortgage Rates/ Credit Availability     
  3. Competition from Short Sales/ Foreclosures Entering the Market  (See the blog post on short sales & foreclosures – http://atlrealestatescoop.com/changing-trends-foreclosures-short-sales/)

You and your agent should be carefully watching the trends for short sales and foreclosures.  It is clearly a great time to buy and we expect many buyers to take full advantage.  We will continue to keep you informed with the latest facts and insight that can make you money!

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First-Time Home Buyers Are Buying!

Wednesday, December 23rd, 2009

The facts continue to show that first-time home buyers are getting more active in the national and local real estate market.  The National Association of Realtors reports that 51% of purchases in November were first-time buyers.  Remember, the definition of a first-time home buyer is ”a buyer who has not owned a primary residence in the last three years.” 

Here in metro Atlanta, the story is similar.  SmartNumbers reports that 43% of local buyers in November were first-time buyers.  Their data shows that first-time buyers were 37% of the market prior to 2003.  In 2003, we saw that new home prices began escalating and essentially started pricing these buyers out of the market.  Now that prices have dropped, these buyers are able to afford properties that were previously unrealistic for them.  In the 3rd quarter of 2009, we saw first-time buyers return to historically normal levels.  Of course, the $8,000 Tax Credit and low mortgage rates are also driving this behavior.  In November, we saw the numbers jump to 43% and would expect that momentum to continue to the spring market.


Atlanta 1st Time BUyers Return To Market

Atlanta 1st Time Buyers Return To Market!

One of the biggest obstacles for many first-time home buyers is the fear of losing their job.  They know that there are fabulous properties available, low mortgage rates and tax incentives.  But they are worried about losing their job and then losing their new home.  Prudential Georgia Realty is pleased to offer Job Loss Protection which provides a “nest egg” of $10,800 to cover 6 monthly payments of $1,800 in the event of an involumtary job loss.  Conatct your local Prudential Georgia Realty agent for details – and get started now!  These low rates and exceptional properties will not be there forever.  The clock is ticking on the $8,000 Tax Credit which expires on April 30th 2010.  See our video channel for details of the Job Loss Protection program, Tax Credits plus other local real estate news – at www.AtlantaRealEstateChannel.com.

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Case Shiller Index – October 2009

Tuesday, October 27th, 2009

The latest Case-Shiller Index was published today.   As always, Case-Shiller is published the last Tuesday of the month and reports on data 60 days in arrears.  So what does the latest index show and what does that mean for home values in metro Atlanta? 

Before we provide the answer, we want to make two caveats.  First, the Case-Shiller index of home values is very different from average sale prices which reflect the average prices of what is being sold in the market.  Right now, the heavy volumes in the market are on the lower end for 1st time home buyers and short sales/ foreclosures.  The luxury market is slower so that makes the average sales price lower than a normal market.  Second, real estate is local and every market is different.  Your local agent expert can help you understand the specific metrics in your local market. 

Now to the news….  The July index shows the 5th positive gain in a row for metro Atlanta home values.  If you look at the numbers, you will see the % gains this month are less than the previous few months – signaling a slowing of momentum.  Click on the link below to open the Excel spreadsheet that shows the details of the latest index.

Case Shiller Index – Metro Atlanta – August 2009 Index

This means that home values have actually increased from March 2009 by 5.8%.  That is good news!  The peak of the index was July 2007 and the bottom of the index was March of 2009.   But remember….  home values are still down from their peaks and sellers must be realistic about pricing.  Home values are still down 17.19% from the peak of July 2007.  If you look at the average annual Case-Shiller index for each year, here is how homes purchased in recent years would compare to the current index: 

  • Homes Bought in 2000 – Gain of 3.76%
  • Homes Bought in 2001 – Loss of 1.57%
  • Homes Bought in 2002 – Loss of 5.16%
  • Homes Bought in 2003 – Loss of 8.10%
  • Homes Bought in 2004 – Loss of 11.33%
  • Homes Bought in 2005 – Loss of 15.65%
  • Homes Bought in 2006 – Loss of 19.15%
  • Homes Bought in 2007 – Loss of 19.67%
  • Homes Bought in 2008 – Loss of 12.20%

Homes values are essentially the same as November 2001 right now.  Yes, we are slowly climbing our way out of this unprecedented housing crisis – but we are not there yet.  So where will home values go from here?  The key factors that will impact our home value include the following: 

  1. Demand From Buyers (We need to see ” extension and expansion” of the Housing Tax Credit!)
  2. Mortgage Rates/ Credit Availability     
  3. Pace of Short Sales/ Foreclosures Entering the Market  (See latest blog post on short sales & foreclosures – http://atlrealestatescoop.com/changing-trends-foreclosures-short-sales/)

You and your agent should be carefully watching the trends for short sales and foreclosures.  The status of the federal housing tax credit will also have an impact on demand from buyers.  We will continue to keep you informed with the latest facts and insight that can make you money!  Stay tuned….  

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The Latest Case Shiller Report – What Does It Mean?

Thursday, October 1st, 2009

The latest Case-Shiller Index was published on Tuesday.  As always, Case-Shiller is published the last Tuesday of the month and reports on data 60 days in arrears.  So what does the latest index show and what does that mean for home value in metro Atlanta? 

Before we provide the answer, we want to make two caveats.  First, the Case-Shiller index of home values is very different from average sale prices which reflect the average prices of what is being sold in the market.  Right now, the heavy volumes in the market are on the lower end for 1st time home buyers and short sales/ foreclosures.  The luxury market is slower so that makes the average sales price lower than a normal market.  Second, real estate is local and every market is different.  Your local agent expert can help you understand the specific metrics in your local market. 

Now to the news….  The July index shows the 4th positive gain in a row for metro Atlanta home values.  If you look at the number, you will see the % gains every month are growing.  Click on the link below to see the details on the spreadsheet.

Case Shiller Index – Atlanta – July 2009 Index

 This means that home values have actually increased from March 2009 by 4.7%.  That is good news!  The peak of the index was July 2007 and the bottom of the index was March of 2009.  Since March, Trendgraphix reports pending sales increases for three months in a row with slight dips in July and August.  This is being driven by the expiring tax credits and the great buying opportunities in the market.   But remember….  home values are still down from their peaks and sellers must be realistic about pricing.  Home values are still down 19.35% from the peak of July 2007.  If you look at the average annual Case-Shiller index for each year, here is how homes purchased in recent years would compare to the current index: 

  • Homes Bought in 2000 – Gain of 3.2%
  • Homes Bought in 2001 – Loss of 2.02%
  • Homes Bought in 2002 – Loss of 5.6%
  • Homes Bought in 2003 – Loss of 8.54%
  • Homes Bought in 2004 – Loss of 11.75%
  • Homes Bought in 2005 – Loss of 16.05%
  • Homes Bought in 2006 – Loss of 19.53%
  • Homes Bought in 2007 – Loss of 20.05%
  • Homes Bought in 2008 – Loss of 12.6 %

Homes values are essentially the same as the fall of 2000 right now.  Yes, we are slowly climbing our way out of this unprecedented housing crisis – but we are not there quite yet.  So where will home values go from here?  We believe that the “extended summer selling season” will continue through October Case-Shiller results.  We will start to see home values drop slightly in the late fall and winter months.  We expect next spring and summer to be better than the spring and summer markets of 2009.  If Congress sweetens the pot with a broader tax credit, we will see significantly more positive momentum in the market.  The keys to watch will be the following:

  1. Extension and/or Expanding of Federal Housing Tax Credits
  2. Mortgage Rates/ Credit Availability     
  3. Pace of Short Sales/ Foreclosures Entering the Market

We will be posting a new article in the next few days that will address the growing trend of short sales.  This is going to be one of the significant trends to watch that will impact our home values.  Stay tuned….  

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August 2009 Market Report – Trendgraphix Results

Wednesday, August 12th, 2009

Trendgraphix has posted the latest results through July 2009.  

  • For all FMLS counties, the report shows 4481 pending versus 4853 last month and 4410 in July of 2008.  Therefore, pending sales are up on a year-to-year basis but down from last month. 
  • Closed sales were 3734 versus 4413 last month and 4378 in July of 2008.  Therefore, actual closed sales are down on a year-to-year basis and down from last month.  Closed sales have been running 10-20% less than pending sales in the last 4 months.  This is due to the longer timeframes for closing short sales & foreclosures which represent over 50% of the transactions in the market.  The new Truth in Lending disclosure rules will also have an impact on closing timeframes.  See our post and audio podcast for details.  
  • Inventory for all FMLS counties continues to drop to 42,521 homes for sale.  Inventory is down 3% from last month and down 35% from July of 2008.  We expect to see inventories rise as more short sales and foreclosures come on the market in the next few months.
  • Equity Depot announced 14,000 new “notices of foreclosure” for the September auction.  Last fall, these pre-foreclosure notices were running aroun 7,000-8,000 per month.  In August, there were 12,000 and July 16,000 pre-foreclosure notices.      

Click Here To View The Trendgraphix Market Summary Chart

 If you have additional questions about the local real estate market, please contact your Prudential Georgia Realty agent.  They have access to many market reporting tools plus foreclosure information, short sale information, tax records, liens, mortgage balances and more.  You may also contact us directly by submitting a question below. 

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Significant Changes That May Impact Closing Timeframes

Wednesday, August 5th, 2009

New rules for the Truth in Lending Disclosures associated with all resident real estate mortgages could dramatically impact the timeframes for closings.  These changes are part of the Housing and Economic Recovery Act of 2008 and are effective beginning July 30th, 2009.  Real estate agents must be aware of these changes and properly advise their buyers and sellers.  This is an excellent example of the value that a skilled real estate agent can deliver for their clients.  The consequences of these new rules could cost consumers hundreds or even thousand of dollars.  Prudential Georgia Realty agents have received special training and are well-prepared to advise their clients in negotiating successfully in this new environment.  We have prepared special contract stipulations and provide ongoing updates as additional changes are announced.   

This audio podcast provides a detailed review of the new changes and some of the considerations for buyers and sellers.  

Just Click on the Audio Podcast to hear the Interview with Melissa Hancock from SunTrust Mortgage

We have also attached a flyer that gives a brief summary of the new changes. If you have additional questions, please contact your Prudential Georgia Realty agent or contact us by leaving a reply at the end of this post.  

Click This Link To Download The Informational Flyer

Audio Podcast Available Below

Listen to the podcast from this article  

Download audio file

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Prudential Georgia Realty Introduces Job Loss Protection Program

Thursday, July 30th, 2009

Prudential Georgia Realty has introduced the first Job Loss Protection program for real estate to metro Atlanta home buyers and sellers. The HELP Program (Homeowner Education and Loan Protection) is administered by the Rainy Day Foundation and includes up to 6 monthly payments of $1800 over a 24-month coverage period.  That translates to $10,800 of protection in the event of an involuntary job loss.  This program is only available from certified Prudential Georgia Realty agents.  Please view our video at GetJobLossProtection.com. 

“The unemployment rate in metro Atlanta is 10.7% and expected to remain in double digits for an extended period.   Everyone knows that it is a fabulous time to buy Atlanta real estate right now.  Prices are at or near bottom, mortgage rates are still historically low and the selection of properties is unprecedented.  The $8000 1st Time Home Buyer Tax Credits requires that homes are closed before November 30th and the State of Georgia $3600 Tax Credit requires that homes are closed before December 1st.  However, many potential buyers are still waiting on the sidelines because they are afraid they may lose their job.  The HELP program featuring Job Loss Protection is specifically designed for these buyers.” said Prudential Georgia Realty President and CEO Dan Forsman. “The HELP program really provides two important components.  First, the peace of mind from Job Loss Protection will allow many buyers to realize the American dream of owning a home.  Second, the education and personalized counseling available during the first two years will greatly increase the odds of the buyer staying in their home.  Studies show that most loan defaults occur in the first two years.”

The Homeowner Education and Loan Performance program is administered by the Rainy Day Foundation and marketed by becoming part of the Creative Alliances, LLC group.  The HELP program featuring Job Loss Protection is available immediately through certified Prudential Georgia Realty agents.  Sellers may offer the program for their potential buyers.  Trendgraphix reports that 10% of the current homes on the market are selling each month.  That means 90% are not.  Job Loss Protection can help your homes stand out from the competition and give more buyers the confidence to purchase.  Buyers (represented by a certified Prudential agent), may also ask their sellers to include the program as part of their negotiations.  The HELP program costs $500 and may be funded by the seller at closing.  The program applies to primary residences, second homes and single family investments properties. 

Please see a “HELP certified” Prudential Georgia Realty agent for additional details to get started today!

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Case-Shiller Home Value Index July 2009

Tuesday, July 28th, 2009

The latest Case-Shiller Index was published today and showed the first positive result for national home values in nearly three years.  Case-Shiller is one of the leading sources of home values across the nation.  Robert Shiller, a professor at Columbia University, became famous for predicting both the stock market bubble of the early 2000’s and national real estate crisis we have been experiencing the last few years. 

The Case-Shiller Index reports 60 days in arrears so the current index reflects home value estimates for May 2009.  The latest index for metro Atlanta shows a positive increase of .26% from last month.  This is the second increase in a row for metro Atlanta.  So what does this really mean?   First, this is a broad measure of home values for metro Atlanta.  Every local market is different.  Second, this signals that we are likley to be seeing the bottom of values for our market.  Of course, that could change if short sales and foreclosures flood the market too quickly with additional inventory.  Current home values are back to levels last seen in October of 2000.  Your local Prudential Georgia Realty real estate expert can give you the facts in your market.   The following chart shows the index from January 2006 to July 2009. 

2006 - 2009 Seasonal Trend

2006 - 2009 Seasonal Trend

You can see a pattern of home values increasing over the spring months for the past three years.  This is due to the higher demand for homes in the spring and early summer market.  This year, we expect an “extended summer sales season” due to the expiring federal & state tax credits plus fears of mortgage rate increases over time.  We expect to see positive Case-Shiller Index results for metro Atlanta through the summer months.  In the late fall and winter, we believe the index will start to report negative numbers again.    

The following chart shows the Case-Shiller Index over different periods of time.   The average appreciation historically has been in the 3-5% range.  The chart below shows the impact of the drops in the past few years.   

Metro Atlanta Home Value Summary

The future trends for Atlanta real estate are very positive.  Please view of video report at AtlantaRealEstate2009.com for a detailed report on future value trends for Atlanta real estate.  If you have question, please contact us.  We have many community experts that can help you better understand the current home values and trends in your local market.  There is no doubt that right now is a great time to buy real estate in metro Atlanta!

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Welcome To Our New Blog Site!

Wednesday, June 24th, 2009

Welcome to Prudential Georgia Realty’s new real estate blog site.  Beginning next week, we will begin populating this site with articles, audio and video that provides facts and insight about the metro Atlanta real estate market.  If you want to get the latest information, you came to the right place!  Our content will be designed for consumers, the real estate community and the news media.  Some examples of posts you can expect include:

  • The latest monthly real estate market facts from Trendgraphix (updated the second week of each month).
  • The latest Case-Shiller Index (published the last Tuesday of each month).
  • The latest foreclosure information from Equity Depot (publisher of the Atlanta Foreclosure Report), RealtyTrac (leading national provider of foreclosure data), First American Corelogic, FMLS, Georgia MLS and more…   
  • The national metrics from NAR (National Association of Realtors), NAHB (National Association of Home Builders) or other trade organizations. 
  • Local news and insight from real estate specialists around metro Atlanta.
  • Audio clips and videos from local and national market experts.

You will be able to receive instant updates for new posts by following us on Twitter.  Our audio and video can be downloaded to iTunes so you can listen or view later.  You can also view our Facebook page.  Become a fan today just by clicking the button on right side of the page!

Over time, this site will be populated with a tremendous amount of information for consumers, the real estate community and news organizations.  Please contact us if you have content that you would like to post or would like to see something not yet published on our site.

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