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Atlanta Case-Shiller Index Reported September 2011

Tuesday, September 27th, 2011

The latest Case-Shiller Index was published on Tuesday, September 27, 2011. As always, the index reports on data 60 days in arrears. Therefore, the index reports Metro Atlanta home values for July 2011. 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 or median homes prices which only reflect what was actually sold in the market. If lower priced homes are selling more, then the average sales price will show a lower value than what market value may be for higher priced properties. According to SmartNumbers, almost 50% of 2011 closed sales are under $100,000 and the normal distribution would be in the 10-15% range. That skews the average sales price and median price lower. The median price is simply the home sales price in the middle of the properties selected. The Case-Shiller Index reports on repeat properties sold and other factors which are generally better indicators of home values. Second, this index reflects the average home values for all of 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. There are some local communities that have held their values reasonably well and others that may continue to decline. Your local Prudential Georgia Realty agent can help you understand the specific metrics in your local market. However, the Case-Shiller Index is a good general indication on what is happening in our market.

Now for the news…. The July index shows a .22% increase in homes values from June 2011 which continues to reflect the normal seasonality of the stronger spring and summer market. The Case-Shiller Index is a “rolling average” which means that trailing results can slightly change the past results. This update shows slight positive gains in January and February, a small decline in March and strong gains in April, May and June. The current index reflects values similar to home values in June of 2000. But we are returning to a more normal seasonal pattern which tends to see home values rise in the spring and summer months with drops in the fall and winter. But remember our values remain significantly down compared to peak levels. We have several more years of foreclosures and short sales to process before we begin to show sustained increases in home values. The July index is 104.55 which is .22% up from last month but still 4.97% down from July of 2010. Click on the link below to open the Excel spreadsheet that shows the details of the latest index.

Case-Shiller-Index-Atlanta-July-2011-Index-Reported-September-2011

The peak of our market was July of 2007 according to the Case-Shiller index. Since July of 2007, our homes values have slipped 23.39%. The December results appear to be our bottom for recent years and showed values down 26.68% from the peak – so we are up 3.29% from those lower levels. If you average the Case Shiller Index for the past 12 months, we are down 24.22% from the peak. We believe it is more effective to use the ”average of the past 12 months” or “trailing 12 months” as an indicator instead of reacting to a specific month. Click to view the graph of the latest Case-Shiller results from 2010 and 2011.

If you look back further at home values, you can see that we had the bubble in homes values but are actually below the normal trend line. Of course, this is caused by an oversupply of short sales and foreclosures. As we work through this inventory and return to a more normal mix of resales and new homes, home values will rise.

The big factors to watch will be the pace of short sales and foreclosures entering the market and mortgage rates. Your local Prudential Georgia Realty agent can show you the specific trends in your local area for foreclosures, short sales and notices of default. Recently, we have seen mortgage rates dip back to historic lows again. The Fed has announced that interest rates will be frozen through the middle of 2013. They have also implemented Operation Twist which is a program intended to keep 30-year rates low. But mortgage rates are impacted by more factors than just interest rates. There are major legislative issues and other economic factors that could cause mortgage rates to rise. For example, the proposed legislation for QRM (Qualified Residential Mortgages) will require mortgage companies to hold back 5% in capital reserves for every loan. That is expected to be funded by higher mortgage rates. Analysts also predict the eventual demise of more exotic loan types like ARMs and interest-only loans. We will more likely see plain vanilla mortgages of 10, 20 and 30 years with a 20% down payment. This is all part of the financial reform legislation. Right now, there is an incredible window of opportunity to buy the home of your dreams and set a future mortgage rate that we will not likely see again in our lifetimes.

Remember, you will not know the bottom of the market until it is already passed. We believe that we are seeing the bottom of the market for Metro Atlanta now. Future demand for our housing is strong. A report from the Atlanta Regional Commission forecasts 3 million new residents in the next 30 years. Our conclusion is that we are seeing the bottom of homes values for Metro Atlanta but do not expect a robust recovery. We expect to see annual home values slowly increase over time with a few bumps along the way. In approximately 2013, we expect to see a seller’s market return with higher than normal appreciation for a few years. Contact us to learn more about future predictions and how that impacts your decisions.

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 1.28%

Homes Bought in 2001 – Loss of 4.09%

Homes Bought in 2002 – Loss of 7.65%

Homes Bought in 2003 – Loss of 10.56%

Homes Bought in 2004 – Loss of 13.60%

Homes Bought in 2005 – Loss of 17.75%

Homes Bought in 2006 – Loss of 21.50%

Homes Bought in 2007 – Loss of 22.01%

Homes Bought in 2008 – Loss of 14.75%

Homes Bought in 2009 – Loss of 3.55%

Homes Bought in 2010 – Loss of 1.15%

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:

Demand From Buyers (We expect demand to slightly improve for 2011 with over 60,000 homes purchased.)

Mortgage Rates/ Credit Availability (Average mortgage rates in the past 50 years were 8%. We expect to see historically low mortgage rates this summer but expect to see rates rising during the later part of 2011 and into 2012. In a few years, we expect to see rates 1-2% higher.)

Supply/ Inventory Levels (We expect inventory to remain at slightly low to normal levels with a heavier mix of short sales and foreclosures for the next two years.)

Competition from Short Sales/ Foreclosures (We expect to see significant numbers of short sales & foreclosures for the next two years. Analysts predict that short sales and foreclosures will be approximately 60% of the transactions in 2011. However, we do not expect a flood of foreclosures that drives the overall inventory too high. Banks are not likely to harm their own values.)

You and your agent should be carefully watching the trends for short sales and foreclosures. Yes, we will continue to see some ups and downs along the way, but home values will rise again. In a few years, short sales and foreclosures will return to normal levels. The new homes inventory will remain low. That means we will see an undersupply of homes for sale and values will begin to 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!

Tags: Atlanta foreclosures, Atlanta homes, Atlanta homes values, Atlanta new homes, Atlanta real estate, atlanta real estate agents, atlanta real estate market report, Case-Shiller Index Atlanta
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Case Shiller Index Reported May 2011

Tuesday, May 31st, 2011

The latest Case-Shiller Index was published on Tuesday, May 31st, 2011. As always, the index reports on data 60 days in arrears. Therefore, the index reports Metro Atlanta home values for March 2011. 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 or median homes prices which only reflect what was actually sold in the market. If lower priced homes are selling more, then the average sales price will show a lower value than what market value may be for higher priced properties. According to SmartNumbers, almost 50% of 2011 closed sales are under $100,000 and the normal distribution would be in the 10-15% range. That skews the average sales price lower. The median price is simply the home sales price in the middle of the properties selected. The Case-Shiller Index reports on repeat properties sold and other factors which are generally better indicators of home values. Second, this index reflects the average home values for all of 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. There are some local communities that have held their values reasonably well and others that may continue to decline. Your local agent expert can help you understand the specific metrics in your local market. However, the Case-Shiller Index is a good general indication on what is happening in our market.

Now for the news…. The March index continues an 8-month streak of falling home values. The current index reflects values similar to home values in October of 1999. But we are returning to a more normal seasonal pattern which tends to see home values rise in the spring and summer months with drops in the fall and winter. The March index is 98.36 which is 1.87% down from last month and 5.18% down from March of last year. The root causes for these results are the aggressive prices of short sales and foreclosures in our market plus overall concerns about the economy. Click on the link below to open the Excel spreadsheet that shows the details of the latest index.

Case Shiller Index Atlanta – March 2011 Index – Reported May 2011

The peak of our market was July of 2007 according to the Case-Shiller index. Since July of 2007, our homes values have slipped 27.93%. If you average the Case Shiller Index for the past 12 months, we are down 23.60% from the peak. We believe it is more effective to use the ”average of the past 12 months” or “trailing 12 months” as an indicator instead of reacting to a specific month.

The big factors to watch will be the pace of short sales and foreclosures entering the market and mortgage rates. Your local Prudential Georgia Realty agent can show you the specific trends in your local area for foreclosures, short sales and notices of default. Recently, we have seen mortgage rates dip back to historic lows again. That will not last long as virtually every analyst predicts rates to go higher in the future. There are major issues at stake including the future of Freddie & Fannie and proposed legislation for QRM (Qualified Residential Mortgages) that will require 20% or higher down payments and increase the costs to provide financing. Analysts also predict the demise of more exotic loan types like ARMs and interest-only loans. We will more likely see plain vanilla mortgages of 10, 20 and 30 years with a 20% down payment. This is all part of the financial reform legislation. Right now, there is an incredible window of opportunity to buy the home of your dreams and set a future mortgage rate that we will not likely see again in our lifetimes.

Remember, you will not know the bottom of the market until it is already passed. We believe that we are seeing the bottom of the market for Metro Atlanta now. Future demand for our housing is strong. The AJC recently published a report from the Economic Forecasting Center at Georgia State University that predicted we would see over 60,000 jobs in 2011 and over 78,000 in 2012. A report from the Atlanta Regional Commission forecasts 3 million new residents in the next 30 years. Our conclusion is that we are seeing the bottom of homes values for Metro Atlanta but do not expect a robust recovery. We expect to see annual home values slowly increase over time with a few bumps along the way. In approximately 2013, we expect to see a seller’s market return with higher than normal appreciation for a few years. Contact us to learn more about future predictions and how that impacts your decisions.

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 – Loss of 4.72%

Homes Bought in 2001 – Loss of 9.77%

Homes Bought in 2002 – Loss of 13.12%

Homes Bought in 2003 – Loss of 15.86%

Homes Bought in 2004 – Loss of 18.72%

Homes Bought in 2005 – Loss of 22.62%

Homes Bought in 2006 – Loss of 26.15%

Homes Bought in 2007 – Loss of 26.63%

Homes Bought in 2008 – Loss of 19.80%

Homes Bought in 2009 - Loss of 9.26%

Demand From Buyers (We expect demand to slightly improve for 2011 with over 60,000 homes purchased.)

Mortgage Rates/ Credit Availability (Average mortgage rates in the past 50 years were 8%. We expect to see historically low mortgage rates this summer but expect to see rates rising during the later part of 2011 and into 2012. In a few years, we expect to see rates 1-2% higher.)

Supply/ Inventory Levels (We expect inventory to remain at slightly low to normal levels with a heavier mix of short sales and foreclosures for the next two years.)

Competition from Short Sales/ Foreclosures (We expect to see significant numbers of short sales & foreclosures for the next two years. Analysts predict that short sales and foreclosures will be approximately 60% of the transactions in 2011. However, we do not expect a flood of foreclosures that drives the overall inventory too high. Banks are not likely to harm their own values.)

Tags: Atlanta homes, Atlanta homes values, atlanta mortgage rates, Atlanta new homes, Atlanta real estate, atlanta real estate agents, atlanta real estate market report, Case-Shiller Index Atlanta, Prudential Georgia Realty
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Race For The Home Event – $15,000 Down Payment Prize

Tuesday, April 26th, 2011

Mobile media, social gaming and real estate converge as Prudential Georgia Realty, HomeFinder.com and SCVNGR invite local Atlanta home buyers to play the HomeFinder.com Race for the Home on Saturday May 14^th.

Prudential Georgia Realty, the leading real estate brokerage in Metro Atlanta and HomeFinder.com announced the 2^nd annual HomeFinder.com Race for the Home event. The event invites Metro Atlanta home buyers to participate in a one day, challenge-filled, location-based game on Saturday, May 14. Prudential Georgia Realty, together with HomeFinder.com and Google-backed mobile gaming company, SCVNGR, are hosting a real estate-inspired version of “The Amazing Race.” The home buyers who score the most points by successfully completing challenges at Prudential Georgia Realty open houses will win the $15,000 grand prize. The HomeFinder.com Race for the Home will also help to raise funds for The Sunshine Kids foundation supporting children with cancer.

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All Atlanta home buyers are welcome to sign up! Any couple or team of two can participate and all ages 18 or over are welcome. Participants can register today at www.RacefortheHome.com and tell their story about why they should be chosen to play for the chance to WIN the $15,000 cash grand prize. The grand prize award is sponsored by Prudential Georgia Realty, SunTrust Mortgage, the law offices of Weissman, Nowack, Curry & Wilco P.C., HSA and Georgia Natural Gas.

Tags: Atlanta foreclosures, Atlanta homes, Atlanta new homes, Atlanta real estate, atlanta real estate agents, Atlanta short sales, Prudential Georgia Realty
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Prudential Georgia Realty Ranked #1 Real Estate Company By Atlanta Business Chronicle

Monday, April 4th, 2011

Prudential Georgia Realty was ranked the #1 real estate company in Metro Atlanta for 2010 by the Atlanta Business Chronicle. The report is published annually and ranks local real estate companies by sales units and sales volume. Notably, the company moved up from the 4^th position in 2009 to the #1 position in 2010.

Click Here To View The Ranking Report

This ranking is no surprise to insiders who track the real estate market. Trendgraphix reports that Prudential Georgia Realty has consistently gained more market share than any large brokerage. The company is #1 for transactions, #1 for buyers and #1 for listing inventory for 2010 in all FMLS counties.

“The real estate market has changed dramatically and the old methods simply no longer work. In the last three years, our company has made significant investments to build an advanced infrastructure of marketing, technology, information resources, training, coaching and support services. While others have cut costs to survive the real estate downturn, we invested in our future,” said Prudential Georgia Realty President and CEO Dan Forsman. “These investments are paying off in better results for our clients and are attracting the best agents to our firm.”

So why is Prudential Georgia Realty gaining market share? Some examples of the advantages that are paying off for Prudential Georgia Realty clients and agents include the following:

The PGR Advanced Property Marketing System is the most effective property marketing approach available and has been instrumental in driving the company’s leadership in listing inventory and listing sales. The APMS is continuously updated and the company provides extensive training to ensure their agents have the systems, knowledge and skills to execute this more advanced methodology.

PGR has exceptional capabilities and expertise in online marketing. As part of the Online Marketing Advantage program, the company developed the industry’s most extensive and automated listing distribution. Listings are syndicated to thousands of real estate websites with higher priority, distinction on the page and beautiful rich media to “bring the story of that property to life” online. Realtor.com recognized the company as the first large brokerage to receive the prestigious Online Marketing Award of Excellence. PGR has also invested in a comprehensive Search Engine Optimization program and is the #1 organic result on Google for Atlanta real estate searches. PGR has extensive SEO programs for listings including YouTube videos for every listing, single property websites for every listing and mobile websites for every listing. In addition, the company offers an SEO program for agents who want to target their website for local searches in their market.

PGR has the most comprehensive set of information resources available for their agents to be the local market expert. Today, the information available to consumers can be very confusing and often inaccurate. PGR offers insight from a variety of sources including Trendgraphix, RealValuator, SmartNumbers, ViaSearch, RealtyTrac, RealList, Case-Shiller, Redlink, GSCCCA and a variety of automated valuation models, mls services and other sources. PGR is a charter member of RREIN (the RIS Media Real Estate Information Network) which is the largest real estate content provider in the world. RREIN gives our agents and clients access to voluminous real estate articles, videos and trends from experts around the country. To assist agents in assimilating this vast array of information, the company offers extensive training and a regular dose of webinars from company and industry experts on the latest trends. The net result is that PGR agents are more informed and can offer better local guidance to their clients for making the best real estate decisions.

Mobile technology is quickly changing the way that real estate is found and information is shared. PGR Mobile Solutions is the most comprehensive suite of mobile solutions available. PGR Mobile Solutions includes a 24/7 text marketing service that allow consumers to text a custom code and get back property information immediately. The agent is notified and can follow up to qualify the prospect. Each property also has a QR code available to scan and get property information. Each agent has their own mobile property search that is optimized to be used for any mobile device. PGR agents have a full mobile website that can be launched from any mobile browser, a custom text code or a QR code. The company also provides a series of mobile marketing campaigns with the website content designed specifically for mobile devices. And finally, the company hosts a series of Race for the Home events – powered by SCVNGR. These events are exclusive to Prudential Georgia Realty. Participants play a mobile scavenger hunt through PGR open houses and the winner gets a $15,000 down payment towards the home of their dreams.

Social Media and evolving demographic trends are rapidly changing the way that consumers collaborate. PGR Social Media solutions is a comprehensive approach to helping agents build professional social media sites and sharing rich content that helps support their real estate business – without overstepping the implied social boundaries of those mediums. A part of this approach is the ability of seller clients to share information about their listings with their own contacts. PGR has implemented a solution called “AnnounceMyListing” that fully automates this process.

PGR offers the most comprehensive suite of real estate services. The company is the leader in Corporate Relocation for Metro Atlanta. Since 1945, we have worked with many 3^rd party relocation providers to help thousands of corporate employees relocate to our market. We are also members of leading real estate referral networks including Prudential Fine Homes International (leading luxury network), the Luxury Real Estate Network (largest luxury network in the world), the Realty Alliance (top 60 independent real estate companies in America) and the RREIN network. This is one of the reasons our company is #1 for buyers. We also have divisions that help our agents offer property management services, commercial real estate services, REO services and new homes marketing & sales services. Our affiliated partners help our teams offer mortgage services, title services, home warranties, closing services, insurance services, job loss protection, short sale services and discounts on a variety of home products & services such as appliances, utilities and more. Our goal is to make your move simpler and less expensive.

Prudential Georgia Realty recognizes that the market has changed dramatically for both consumers and agents. Our strategy is to help agents build a successful business based upon delivering exceptional value to their clients. That is why we developed the Advanced Agent Business System, PGR Coaching, PGR University, PGR Labs and PGR Agent Marketing Services. The AABS helps agents plan a more effective strategy including building their skills and implementing the right systems & resources that allow them to stay focused on delivering value for their clients. PGR Coaching helps agents stay motivated and be accountable to their goals. PGR University offers a wide variety of customized training programs – online and in the local branch. These sessions provide extensive training on our websites, lead generation systems, collaboration technology, marketing solutions and ongoing skills development. PGR Labs stays on top of the latest innovations – so our agents can stay focused on their clients. And finally, PGR Agent Marketing Services provides expert resources to help supplement the virtual team needs of our agents. These include graphic designers, website developers, marketing specialists, content writers, audio & video experts, database experts, admin resources and more. All these systems and services are backed by our local branch network of the best brokers in the business and their talented local support staff.

It is no surprise that Prudential Georgia realty is gaining market share. We are delivering the future of real estate… Now!

Tags: Atlanta foreclosures, Atlanta homes, Atlanta new homes, Atlanta real estate, atlanta real estate agents, atlanta real estate market report, Prudential Georgia Realty
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Americans Confident In Recovery Of Real Estate Market

Tuesday, March 29th, 2011

New national survey echoes Metro Atlanta consumers’ belief in real estate as a good investment.

The majority of America’s potential homebuyers and sellers — 68 percent — believe that the real estate market and property values will recover in the next year or two, according to a new survey by Prudential Real Estate and Relocation Services, a Prudential Financial, Inc. [NYSE:PRU] company. This exceeds the 47 percent of Americans who expected house prices would rise in a similar survey conducted in April 2010, underscoring a more bullish outlook for the real estate market today. In addition, 86 percent of Americans believe real estate is a good investment despite the market volatility of the past few years. The Prudential Real Estate Outlook Survey of 1,253 Americans between the ages of 25-64 in the market for buying a home was conducted Jan. 20-27, 2011.

The national survey reveals that six in 10 respondents are more interested in buying real estate (58%) and are optimistic about buying given the momentum of the economic recovery (59%). It also shows that although the price of many Americans’ homes declined during the recession, 89 percent recognize they can also buy a new house at a lower price.

“This survey clearly demonstrates that Americans nationally and locally continue to be optimistic about the real estate market and believe that home prices will rise,” said Dan Forsman, President & CEO of Prudential Georgia Realty. “A key take away from the survey is although consumers recognize that it is a good time to buy, they are concerned about their ability to sell their homes. This is one of the reasons for a slowdown in Metro Atlanta’s recovery.”

For those on the fence about buying, uncertainty about selling an existing home (77 percent), concern about getting a fair price for the home (67 percent) and emotions (58 percent) are holding them back. For those who have sold homes in the past year, despite the down market 78 percent report that they were satisfied with the sale. Of these, 32 percent were very satisfied with the final price of their home and 46 percent were grateful they were able to sell given market conditions. A relatively small number, 22 percent, indicated that they were disappointed or resentful about the price they received for their home.

The survey highlighted Americans’ interest in trading up their homes. Of the 45 percent looking to trade up, 64 percent wanted more space or property, 49 percent a nicer house and 41 percent a better neighborhood. Only 21 percent surveyed said they were looking to scale down, and 34 percent said that they wanted a similar home.

The survey highlighted the importance of getting the right price in today’s market —74 percent of buyers believe that many homes could meet their needs and that price is a significant differentiator, while 26 percent stated that they were willing to pay top of market for a home that specifically suits their needs. In setting the right price, however, sellers were split—with 53 percent wanting to price right at or slightly below market to attract more bids and 47 percent wanting to price slightly higher than market and hoping to find a buyer willing to pay more.

The majority of respondents highlighted the importance of real estate agents in the process of buying or selling their home. Seventy-five percent of those surveyed said that an agent is very important or essential to this process, with only 24 percent saying agents are helpful but not imperative.

“Americans continue to see real estate agents as having a very important role in helping them price, buy and sell their homes; which is reflective of our market as well,” added [name]. “Although the data underscores the value real estate agents provide, it also shows that the industry needs to continue to work hard to meet clients’ unique needs.”

The Prudential Real Estate Outlook Survey was conducted online. The margin of error is +/- 3 percent.

Tags: Atlanta homes, Atlanta homes values, Atlanta new homes, Atlanta real estate, atlanta real estate agents, atlanta real estate market report
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Case Shiller Index Reported January 2011

Tuesday, January 25th, 2011

The latest Case-Shiller Index was published on Tuesday, January 25, 2011. As always, the index reports on data 60 days in arrears. Therefore, the index reports Metro Atlanta home values for November 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 only reflect what was actually sold in the market. If lower priced homes are selling more, then the average sales price will show a lower value than what market value may be for higher priced properties. This index also reflects “the averages” for all of 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 November index set a new 10 year low. The March 2010 index was the previous low before these past few months in Metro Atlanta. The current index reflects values similar to home values in January 2000. We are returning to a more normal seasonal pattern which tends to see home values rise in the spring and summer months with drops in the fall and winter. The November index is 100.67 which is 2.53% down from last month and 7.89% down from November of last year. The root cause for these results are the aggressive prices of short sales and foreclosures in our market. Click on the link below to open the Excel spreadsheet that shows the details of the latest index.

Case Shiller Index Atlanta – November 2010 Index – Reported January 2011

The peak of our market was July of 2007 according to the Case-Shiller index. Since July of 2007, our homes values have slipped 26.23%. We expect to see lower index numbers through the winter months with increases in the spring and summer. If you average the Case Shiller Index for 2010, we are down 22.13% from the peak. The big factor to watch will be the pace of short sales and foreclosures entering the market.

Remember, you will not know the bottom of the market until it is already passed. We believe that we are seeing the bottom of the market this winter. The AJC recently published a report from the Economic Forecasting Center at Georgia State University that estimated our net job growth in 2010 at only 5000 jobs. However, that same report predicted we would see over 60,000 jobs in 2011 and over 78,000 in 2012. Our conclusion is that we are seeing the bottom of homes values for Metro Atlanta but do not expect a robust recovery. We expect to see annual home values slowly increase over time with a few 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 – Loss of 2.48%

Homes Bought in 2001 – Loss of 7.65%

Homes Bought in 2002 – Loss of 11.08%

Homes Bought in 2003 – Loss of 13.88%

Homes Bought in 2004 – Loss of 16.81%

Homes Bought in 2005 – Loss of 21.80%

Homes Bought in 2006 – Loss of 24.41%

Homes Bought in 2007 – Loss of 24.90%

Homes Bought in 2008 – Loss of 17.92%

Demand From Buyers (We expect demand to improve for 2011.)

Mortgage Rates/ Credit Availability (We expect to see historically low mortgage rates for an extended period with increases coming sometime in the second half of 2011. We also expect to see adjustable rate mortgages and other more exotic loan options disappear in 2011.)

Supply/ Inventory Levels (We expect inventory to remain at normal levels with a heavier mix of short sales and foreclosures for the next two years.)

Competition from Short Sales/ Foreclosures (We expect to see significant numbers of short sales & foreclosures for the next two years. Analysts predict that short sales and foreclosures will be over 60% of the transactions in 2011. However, we do not expect a flood of foreclosures that drives the overall inventory too high. Banks are not going to harm their own values.)

You and your agent should be carefully watching the trends for short sales and foreclosures. Yes, we will continue to see some ups and downs along the way, but home values will rise again. In a few years, short sales and foreclosures will return to normal levels. The new homes inventory will remain low. That means we will see an undersupply of homes for sale and values will begin to 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!

Tags: Atlanta foreclosures, Atlanta new homes, Atlanta real estate, atlanta real estate agents, Atlanta short sales, Case-Shiller Index Atlanta, Prudential Georgia Realty
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Top 10 Home Improvements Under $5000

Tuesday, January 25th, 2011

RISMEDIA — HomeGain.com, a website offering Web-based home values, announced that it has released the results of its nationwide home improvement and home staging Home Sale Maximizer survey.

HomeGain surveyed nearly 600 real estate professionals nationwide and configured a list of the top 10 do-it-yourself home improvements that cost under $5,000 and benefit sellers most when they sell their homes.

According to the HomeGain survey, the top five home improvements that real estate professionals recommend to home sellers based on average cost and return on investment (from highest to lowest ROI) are:

1. Cleaning and de-cluttering – ($290 cost / $1,990 price increase / 586% ROI)
2. Lightening and brightening – ($375 cost / $1,550 price increase / 313% ROI)
3. Home staging – ($550 cost / $2,194 price increase / 299% ROI)
4. Landscaping – ($540 cost / $1,932 price increase / 258% ROI)
5. Repairing electrical or plumbing – ($535 cost / $1,505 price increase / 181% ROI)

Cleaning and de-cluttering continues to rank as the top suggested home improvement (since the survey was originally conducted in 2000), recommended by 99% of real estate professionals, costing less than $300 and returning a value of nearly $2,000 to the home’s sale price, or a 586% return on investment.

“Sellers need to prepare their homes for sale before putting them on the market,” said Louis Cammarosano, General Manager at HomeGain. “Homes that have initial appeal have a better shot at selling faster and closer to the asking price than homes rushed to the market with no improvements.”

Rounding out the top 10 low cost, do-it-yourself home improvements includes: updating electrical systems and/or plumbing, updating the kitchen and bathrooms, replacing or shampooing carpets, painting interior walls, repairing damaged floors, and painting the outside of the home.

The home improvement projects with the highest price increases to a home’s resale value are updating the kitchen ($1,265 cost / $3,435 price increase), followed by painting the outside of the home ($1,467 cost / $2,222 price increase) and home staging ($550 cost / $2,194 price increase).

Tags: Atlanta foreclosures, Atlanta new homes, Atlanta real estate, atlanta real estate agents, Atlanta short sales, Prudential Georgia Realty
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Race for the Home Winners Get $20,000!

Tuesday, September 28th, 2010

The 1st annual HomeFinder.com Race for the Home was held in Atlanta on Saturday, September 25th. Prudential Georgia Realty was the exclusive brokerage sponsor and provided the 56 open houses for the event. PGR, SunTrust Mortgage and Weissman, Nowak, Curry & Wilco co-sponsored the grand prize of $20,000 – to be used as a down payment for the home of the winner’s dreams. The event benefitted the Susan G. Komen foundation.

This innovative event was intended to benefit our agents and clients during the fall and winter market. The result was an amazing success.

Race participants gathered at Piedmont Park to sign in and get some final instructions. Star 94 covered the event and did a great job of firing up the crowd of 208 teams. Dan Forsman, President & CEO of Prudential Georgia Realty welcomed the racers, thanked the sponsors and introduced Michael Hagan from SCVNGR. The game was powered by the innovative mobile gaming platform from SCVNGR which is funded by Google. Michael provided some final instructions and counted down the start to the game. Then it was off to the races!

Participants visited PGR open houses in Midtown, Decatur, Buckhead, Dunwoody and Sandy Springs. At each location, they were given a creative challenge question. These questions were designed to provide something interesting about each property. The participants themselves were real buyers that were playing to win the $20,000 down payment. Each property averaged 70-80 players for the 3 hours of the game. It was wild! The players had a great time. The most common question was – when are you doing this again!

The game ended at 1pm and the players all gathered at Max Lagers for the celebration event. Participants enjoyed food and some “special beverages” from the brewery. Then it was time to announce the winners. CBS Atlanta covered the event for the evening news. Michael Hagan from SCVNGR announced prizes for the top 10 racers. Starting with number 10, Michael called each of them on their cell phones to come up a get their prize.

Now it was time for the grand prize! The room was silent. The phone rang… the happy couple answered as their eyes grew wide and their hands began to shake. They screamed… they jumped for joy… they hugged… they cried! It was an incredible moment. Congratulations to Adam and Erin Jones!

They were married 3 months ago. They had been living with her parents to save money for a down payment of a home. They had been working with Cass Connor – a PGR agent from our Midtown office. They had been using the HomeFinder.com and PGR website extensively for their search. Now they are ready to work with SunTrust on their mortgage and WNCW on their closing! They will soon be happy homeowners. Yes, dreams do come true!

The Happy Couple

We look forward to our next Race for the Home event. We will be announcing details soon.

Tags: Atlanta foreclosures, Atlanta homes, Atlanta new homes, Atlanta real estate, atlanta real estate agents, Race for the Home
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Case-Shiller Index For July 2010

Tuesday, July 27th, 2010

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%

Demand From Buyers (We expect to see continued demand through spring and summer months.)

Mortgage Rates/ Credit Availability (We expect to see incredibly low mortgage rates for an extended period with increases coming in late 2010 and 2011.)

Supply/ Inventory Levels (We expect inventory levels to remain lower than normal.)

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!

Tags: Atlanta foreclosures, Atlanta homes values, Atlanta new homes, atlanta real estate agents, atlanta real estate market report, Atlanta short sales, Case-Shiller Index Atlanta, Prudential Georgia Realty
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Prudential Georgia Hosts Visual Marketing Tour

Sunday, July 25th, 2010

Prudential Georgia Realty is hosting a series of events at our local branches to educate agents on new options for stunning visual marketing. Topics include high-quality photography, narrated videos, digital magazines and the new Prudential Media Center. Prudential Georgia Realty is also introducing a new platform that allows agents to create high-quality narrated videos for their properties and communities. There is no more powerful medium than narrated videos to “bring the unique story of a property to life” online.

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!

Tags: Atlanta foreclosures, Atlanta homes, Atlanta new homes, Atlanta real estate, atlanta real estate agents, Atlanta short sales, Prudential Georgia Realty
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