The July Case-Shiller Index was published on Tuesday, July 27th 2010.  As always, the index reports on data 60 days in arrears.  Therefore, the index reports Metro Atlanta home values for May 2010.  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.  This index reflects the averages for metro Atlanta.  Remember, people do not buy houses in America or even in metro Atlanta.  They buy a specific property on a street in a local community.  Real estate is local and every market is different.  Your local agent expert can help you understand the specific metrics in your local market.  However, these metrics are a good general indication on what is happening in our market.   

Now for the news….  The May index shows positive gains for the 2nd month in a row.  This March established a new low for Metro Atlanta and showed the 7th drop in a row after 5 positive months in a row.  The May index is 107.82 which is 2.02% up from last month and 2.62% up from the March low.  Click on the link below to open the Excel spreadsheet that shows the details of the latest index.

Case-Shiller Index For Metro Atlanta – May 2010

The peak of our market was July of 2007 according to the Case-Shiller index.  The bottom was March of 2010.   Since July of 2007, our homes values have slipped 20.98% – which is an improvement from previous lower months.  The spring selling season was very active in March and April  showing year-to-year increases in pendings of 47% and 28% respectively.  Inventory remains down from last year but is increasing from the previous months of March & April.  Remember, Case-Shiller reflects closed sales and not pended sales.  We expect to see the index continue to show slight gains over the summer motnhs and then begin to trail off in the fall and winter months.  We do not expect to test the low point of March 2010.  Remember, you will not know the bottom of the market until it is already passed.  Our conclusion is that we are passed the bottom of homes values for Metro Atlanta but do not expect a robust recovery.  We expect to see home values slowly increase over time with a few seasonal bumps along the way.     

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 4.44%
• Homes Bought in 2001 – Loss of 1.09%
• Homes Bought in 2002 – Loss of 4.76%
• Homes Bought in 2003 – Loss of 7.76%
• Homes Bought in 2004 – Loss of 10.90%
• Homes Bought in 2005 – Loss of 1518%
• Homes Bought in 2006 – Loss of 19.05%
• Homes Bought in 2007 – Loss of 19.57%
• Homes Bought in 2008 – Loss of 12.09%

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 values include the following: 

1. Demand From Buyers (We expect to see continued demand through spring and summer months.)
2. Mortgage Rates/ Credit Availability (We expect to see incredibly low mortgage rates for an extended period with increases coming in late 2010 and 2011.)     
3. Supply/ Inventory Levels (We expect inventory levels to remain lower than normal.)
4. Competition from Short Sales/ Foreclosures (We expect to see significant numbers of short sales & foreclosures for the next two years.  However, we do not expect a flood of foreclosures that drives the overall inventory too high.)  

You and your agent should be carefully watching the trends for short sales and foreclosures.  Right now, home affordability is exceptional.  We still have the combination of low home prices and the lowest mortgage rates in 50 years.  Many wonderful properties are available below their replacement costs.  But this scenario will not last forever.  Rates will go up over time.  Home values will be increasing – slowly but surely.  Yes, we will continue to see some ups and downs along the way, but home values are on the rise.  In 5 or 10 years, many will look back and regret not buying their dream home when they had the chance!     

Check back for our next posts with the latest facts and insight that can make you money!

The photography best practices include the use of more advanced equipment and editing techniques to produce amazing results.  We are essentially taking very high-end photography practices and bringing them to the general real estate market.  The document attached shows some examples of these techniques.

Photography Best Practices

Prudential Georgia Realty is also implementing an extensive media and image management platform that automates the creation, distribution and management of photos, virtual tours, narrated videos and more.  We recognize that you only get one shot to make a great first impression for our seller clients.  The use of rich media solutions is a fundamental part of our award-winning Advanced Property Marketing System.  Since implementing this system, Prudential has quickly become the market leader for listings in Metro Atlanta and North Georgia. 

Contact one of our highly trained agents for more details today! 

So what happened to change these predictions?  The financial crisis in Europe, growing concerns over the global economy and the potential conflict between North and South Korea have created a flight to safety.  Suddenly, there is significant demand for safer U.S. bonds from investors across the world.  The previous worries about the Fed discontinuing their purchases of mortgage-backed securities appear abated – for now.  However, the original long-term prognosis may still be a reality.  These economic cycles and world events tend to be cyclical.  If the perception improves, the market for mortgage securities may slow.  That combined with the looming debt in the United States will push rates higher.  Most analysts still expect to see rates higher in 2011 and 2012.  But in the short-term, it is an incredible time to buy the home of your dreams! 

Your Prudential Georgia Realty agent can tell you the latest market conditions in your local area.   Check back for our new posts with the latest facts and insight that can make you money!

The April Case-Shiller Index was published on Tuesday, April 27th 2010.  As always, the index reports on data 60 days in arrears.  Therefore, the index reports metro Atlanta home values for February 2010.  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.  This index reflects the averages for metro Atlanta.  Remember, people do not buy houses in America or even in metro Atlanta.  They buy a specific property on a street in a local community.  Real estate is local and every market is different.  Your local agent expert can help you understand the specific metrics in your local market.  However, these metrics are a good general indication on what is happening in our market.   

Now for the news….  The February index shows the 6th drop in a row after 5 positive months in a row.  The January index is 105.66 which is 1.29% down from last month.  Click on the link below to open the Excel spreadsheet that shows the details of the latest index.

Case Shiller Index – Atlanta – February 2010 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 then, we have slipped and are now only .56% above the March 2009 bottom and still down 22.58% from the peak of July 2007.  We expected to see a slight drop in the February index and may see an additional drop in March.  The spring selling season is very active in March and April with low inventory and significantly increased demand.  This will reflect in a higher Case-Shiller Index as the increases in pending translate to closings.  Therefore, we predict that metro Atlanta home values will probably see a bottom for 2010 in March.  We expect to see positive gains in the spring and continue with slight gains in the summer.  We may see slight declines later this fall and winter but do not expect to test the low point of March 2010.  We expect a slow but sure increase in values for 2010 and beyond.  Remember, you will not know the bottom of the market until it is passed.  

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 2.35%
• Homes Bought in 2001 – Loss of 3.08
• Homes Bought in 2002 – Loss of 6.67%
• Homes Bought in 2003 – Loss of 9.61%
• Homes Bought in 2004 – Loss of 12.69%
• Homes Bought in 2005 – Loss of 16.88%
• Homes Bought in 2006 – Loss of 20.67%
• Homes Bought in 2007 – Loss of 21.18%
• Homes Bought in 2008 – Loss of 13.85%

Homes values are essentially the same as the spring 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 values include the following: 

1. Demand From Buyers (We expect to see improving demand through spring and summer months.)
2. Mortgage Rates/ Credit Availability (We expect to see low mortgage rates for an extended period with increases coming in late 2010 and 2011.)     
3. Supply/ Inventory Levels (We expect inventory levels to remain lower than normal.)
4. Competition from Short Sales/ Foreclosures (We expect to see significant numbers of short sales & foreclosures for the next two years.  However, we do not expect a flood of foreclosures that drives the overall inventory too high.)  

You and your agent should be carefully watching the trends for short sales and foreclosures.  Right now, home affordability is exceptional.  We still have the combination of low home prices and low mortgage rates.  Many wonderful properties are available below their replacement costs.  This scenario will not last forever.  Rates will go up over time.  Home values will be increasing – slowly but surely.  Yes, we will continue to see some ups and downs along the way, but home values are on the rise.  In 5 or 10 years, many will look back and regret not buying their dream home when they had the chance!     

Check back for our next posts with the latest facts and insight that can make you money!

The new Buckhead office is led by Buckhead native Bill Murray.  Bill was formerly with Harry Norman Realtors and has alreay established a significant team with over 30 exceptional agents.  The office is located at 3221 Peachtree Road and is curently open for business. The grand opening is scheduled for May 20th.  

The Bo Bridgeport Brokers merger adds 30 experienced agents to our Midtown team.  Led by Dale Modica and Anne Miller, the Midtown office is gaining market share fast.  Dale and Anne also joined Prudential from Harry Norman Realtors.  More details on this merger will be forthcoming in a separate press release.

Prudential Georgia Realty is delivering the future of real estate… now in Buckhead.  Contact us for additional details.

The March Case-Shiller Index was published on Tuesday, March 30th 2010.  As always, the index reports on data 60 days in arrears.  Therefore, the index reports metro Atlanta home values for January 2010.  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 January index shows the 5th drop in a row after 5 positive months in a row.  The January index is 107.04  which is 1.45% down from last month.  Click on the link below to open the Excel spreadsheet that shows the details of the latest index.

Case Shiller Index – Atlanta – January 2010 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 then, we have slipped and are now only 1.87% above the March 2009 bottom and still down 21.57% from the peak of July 2007.  We expect to see a slight drop in the February and March indexes.  The spring selling season driven by the expiring tax credits in April plus the lower than normal levels of inventory will start driving home values back up this spring.  Therefore, we predict that metro Atlanta home values will have seen a bottom for 2010 in February or March and we will see slight gains for the spring and summer months.  We may see slight declines later this fall and winter but do not expect to test the lows of March 2009 or February/ March 2010.  We expect a slow but sure increase in values for 2010 and beyond.  Remember, you will not know the bottom of the market until it is passed.  If you are considering buying, do not wait!  

If you look at the average annualCase-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 3.69%
• Homes Bought in 2001 – Loss of 1.81
• Homes Bought in 2002 – Loss of 5.45%
• Homes Bought in 2003 – Loss of 8.43%
• Homes Bought in 2004 – Loss of 11.55%
• Homes Bought in 2005 – Loss of 15.79%
• Homes Bought in 2006 – Loss of 19.61%
• Homes Bought in 2007 – Loss of 20.15%
• Homes Bought in 2008 – Loss of 12.72%

Homes values are essentially the same as the spring 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 (We expect to see low mortgage rates for an extended period.  Although the mortgage fees on FHA and certain other loans will be increasing this summer.)     
3. Competition from Short Sales/ Foreclosures Entering the Market  (We expect to see significant numbers of short sales & foreclosures for the next two years.  That will be the main competition for most properties.  You need to know the details and trends to compete.)  

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.  The expiring tax credits will create a flurry of sales in April.  However, great deals and low mortgage rates will keep demand strong for an extended period.  Check back for our next posts with the latest facts and insight that can make you money!

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!

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!

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!

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.