SUWANEE TALK!: December 2008

Baby it's cold outside! And, many would say the same for the 2008 Atlanta real estate market.  The 2008 real estate market will have its own place in history....and, our memories.  But now it is time to put 2008 up on a shelf and look forward, with optimism, to 2009. 

If you are buyer or a seller and you are trying to read the crystal ball to determine when is the best time to buy or sell, here are some predictions from the CEO of Prudential GA Realty (this was also shared in my earlier post Atlanta Market, October, 2008 Recap).

Dan Forsman, CEO/Prudential Georgia Realty looking forward predicts:

1. New home builder starts will remain very low the remainder of 2008 into 2009
2. As a result of low new homes starts, the inventory of re-sale and bank owned properties will begin to be absorbed
3. Foreclosures that become bank-owned properties will continue to impact our market the remainder of 2008 and 2009
4. Excess single home inventory will be absorbed and levels back to normal by 2010
5. New home starts will increase but at a slower pace in 2010 through 2012
6. Home values will remain flat through the remainder of 2008 and through most of 2009
7. Home values should start increasing in 2010 and 2011 as inventories decline and population grows
8. A Sellers market to return in the spring, 2011

Rates as of December 18:
                   FNMA 30 year fixed (720+ credit)  4.750% 
                   FHA 30 year fixed  5.00%

So what can one take from all this? 

If you are a buyer, these rates are so phenomenal you can be assured as the economy and housing market improves (and they will!) you will never see these rates again. For that matter, these rates will probably be short-lived; and, you will see the return of a seller's market. Current inventory levels make home buying a "smorgasbord of choice"! And, sellers are negotiating on price like never before to get their homes sold!  So from my perspective...."What are you waiting for?" 

So after just saying this you may be asking: What if I'm a seller? I might not be too impressed with the forecast predictions noted above." However, keep in mind, doesn't it stand to reason, what you loose on the sale side you should make up for on the buy side? And in addition, you too, will benefit from these great mortgage rates and enjoy selecting from the "smorgasbord of choice"!  

Either way, if waiting is your current strategy until you see "improvement" in the market, you should be prepared to pay more and experience higher interest rates. Even in these apparent difficult economic times, you can find a silver lining: Interest rates, inventory selection and price!  So if you have been sitting on the fence not sure when to make the "move"....in my opinon...."What are you waiting for?"

Some statistics to share with you:
•·         43,442 homes sold in Atlanta market since the first of the year
•·         Average days on market:  94

Homes are selling...and, you can look for my recap of 2008 for Atlanta and Suwanee early next year.

Additional Information:

Atlanta Real Estate 2008

                                                                    Come to my house:

                                                                My Suwanee Home.com

    
Chuck Warbington
Chuck Warbington,PE
Executive Director

The Gwinnett Village CID in Norcross, Georgia recently submitted visionary plans to Gwinnett County in order to create incentives for redevelopment in the Norcross area through a Tax Allocation District called Gwinnett Village Gateway TAD.  This is the culmination of a years worth of planning, visioning, and public involvement that provides a blueprint for catalyst redevelopment projects while providing a new funding source for redevelopment and public improvement projects in the area.  Tax Allocation Districts leverage public funds to maximize private investment for redevelopment and have been successfully implemented in 47 states across the US.  The most well know TAD in Georgia was the successful redevelopment of the Atlantic Station project in downtown Atlanta. 

The Gwinnett Village Gateway TAD is currently awaiting approval by the Board of Commissioners in late 2008 or early 2009.  The TAD was envisioned for the area to improve, strengthen, and stabilize the economic base of the area while upgrading the aging commercial, industrial, and office districts in the CID.  The TAD includes 850 parcels and over 3100 acres.  The boundaries of the TAD include the "inner core" of the CID in Norcross centered along the I-85 corridor with catalyst focus areas at the I-85  interchange nodes at Jimmy Carter Boulevard, Indian Trail Road, and Beaver Ruin Road.  

The total private development investment over a 25 year period is anticipated to be over $3.3 billion dollars with a creation of over 15,000 permanent jobs.  This is all set in motion with just under $800 million dollars of public funds that will be spent in the area over the same 25 year period.  The exciting part of this incentive is that within the next 8 years, the public investment projection is approximately $500 million dollars to be spent on redevelopment and public improvement projects in the area.  Potential public improvement projects include:

•·         Road capacity expansions
•·         Bridge replacements
•·         Water/sewer enhancements
•·         Intersection improvements
•·         Recreation facilities
•·         Pedestrian safety improvements

The Board of Directors of the CID are excited about the prospects of the new year and look forward to having these incentives in place to spur positive economic change to the area. 

This article is being posted to Suwanee Talk with the express consent of the author.

                                                             Come to my house:
                                                          
                                                            MySuwaneeHome.com

There was some glimmer of hope in September, 2008; but, what a difference a month makes. October number results are more gloomy than anticipated.

OVERALL ATLANTA  MARKET RECAP

• A decline of nearly 29% in closings for ALL residential properties was noted this month compared to a year ago.
• Ranks as the 23rd year-to-year percentage decline.
• According to RealtyTrac, Georgia's foreclosure inventory is declining; but, the state still ranks as one of the country's highest  in foreclosure inventory
• Home prices were down approximately 9% from a year ago
• 9,900 foreclosure filings in October
• Predications loom a 4.5% interest rate on NEW mortgage loans will be approved to help stimulate the housing market

A LOOK BACK OVER OCTOBER, 2008

Dan Forsman, CEO/Prudential Georgia Realty looking forward predicts:

1. New home builder starts will remain very low the remainder of 2008 into 2009
2. As a result of low new homes starts, this should help absorb the inventory of resales and bank owned properties
3. Foreclosures that become bank-owned properties will continue to impact our market the remainder of 2008 and 2009
4. Excess single home inventory will be absorbed and levels back to normal by 2010
5. New home starts will increase but at a slower pace in 2010 through 2012
6. Home values will remain flat through the remainder of 2008 and through most of 2009
7. Home values should start increasing in 2010 and 2011 as inventories decline and population grows
8. A Sellers market to return in the spring, 2011

Further Articles of Interest:
Atlanta Business Chronicle: Georgia Sixth-Highest in October Foreclosures
Realtor.org: Could Lower Rates Hurt Home Sales