SUWANEE TALK!: March 2009

Some good news to report on a national level:

USA Today reported a rise in home sales for February. And, according to an article by Walter Molony for Realtor.org, existing home sales rose 5.1 percent nationally (Existing Home Sales Rise in February; March 23, 2009). While Lawrence Yun, NAR chief economist reports  first time home buyers account for HALF of all home sales in February. And, much of that has to do with the current First Time Home Buyer $8K Tax Credit passed by Congress recently. 

In the same article by Walter Molony: "In the South, existing-home sales rose 6.1 percent to an annual pace of 1.74 million in February but are 11.2 percent below February 2008. The median price in the South was $146,700, down 10.0 percent from a year ago."

With banks lending again, Steve Palm with Smart Numbers is predicting an uptick of home sales in our Atlanta market. Additionally, Dan Forsman, CEO of Prudential Georgia Realty is looking to the second half of 2009 (State of the Market Video) for home sales to see improvement in Atlanta. Put this all together and this will present an opportunity of a lifetime for buyers due to unbelievably low interest rates and great home prices. Current interest rates: FHA @ 5% and Conventional @ 4.5%...and, these rates will not last forever! As the market improves, rates will go up.

Let's take a look at Atlanta for February, 2009:

Information is gathered from the First Multiple Listing Service. Data is believed accurate, but not guaranteed.

For more information on the the real estate market consider the following:

State of the Market Video

Existing Home Sales Rise in February

Economic and Housing Indicators

                                                                
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Now is a great time to buy....if you are an informed buyer! I know there is a lot of apprehension in the real estate market nationwide. And, for the Atlanta market attitudes are no different. But the savy buyer will recognize this limited window of opportunity and literally....make their move!  Particularly if you are a first time home buyer.....what a fabulous chance to become a homeowner AND put $8K in your pocket.

Everyone is talking about the First Time Home Buyer Tax Credit. If you purchase a home during 2009 and you have never owned a home; OR, if you have not owned a home in the past three years, this IS your chance to seize the moment and receive a tidy sum of $8K from the Federal Government. Additionally, for Georgians, the House recently passed a $3600 tax credit for ALL home purchasers. However, the way the bill currently reads, the home owner would have to apply for the tax credit within six months of the governor signing the bill. This measure now goes to the Senate.

If being a home owner has been a dream you thought you could never obtain, take the time to view this video and then.....GET MOVING!!!!!! The Atlanta market has much to offer!!!

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I've written on this topic before and it bears repeating....particularly in today's market. If you are planning to put your home on the market this spring and you currently have an older home, it behooves you to take the time to prepare your house for a successful sale. Keep in mind, I am not saying you will see a huge return on your investment, but it will definitely give you better odds of getting to the closing table. Depending on your market, updates may not be critical. However, in Suwanee, there have been many homes built in the past 10 years or less which you will compete against. So if you are like my husband and I having moved into Suwanee before any one even knew Suwanee existed your home, like ours, has probably hit the 20 years or older mark.  Recently we have given serious consideration to selling our home. Our kids are older.....And, so are we....We would prefer a master on the main. And although we have been diligent about keeping our home updated over the years, there is always more to do. It is important to know what buyers are seeing in homes - at your price point - for your particular market.  Typically, there are two rooms which will make the biggest impression on any potential buyer: The kitchen and the bath rooms. They are also the most expensive rooms to update if done correctly.  

 KITCHEN:   I remember when I entered the real estate market over 14 years ago in Gwinnett County, formica counter tops were standard in a kitchen.  Gradually Corian® became the "must have" for kitchen counter tops. The Corian® counter tops were typically found in what was considered (at the time) the "upper end" price point of homes. In today's market,  you will find granite counter tops in the kitchens of almost every price point of home with an under mount sink. So if your kitchen is currently sporting the infamous formica counter tops, it will be worth exploring to replace your old counter tops with granite. If you do install granite counter tops be sure to seal them prior to using them. A good sealer can be found at any home improvement store.  Additionally, appliances play a huge part on how your kitchen is perceived by a potential buyer.  If your appliances are dated, you may need to replace them prior to marketing your home. The appliances do not have to be high end appliances, but you do want to install appliances in a color that is current for the market. Most homes today in our local market tend to lean towards the stainless steel appliances; black is another good choice. Bright lighting in the kitchen is essential as well.  Many new homes make use of canned lighting in the kitchen.  However, if you update your lighting in the kitchen with flourescent lighting be sure to choose something that provides exceptional lighting and compliments today's color schemes. And, don't forget the light above your kitchen table. This tends to be a focal point so be selective and tasteful  choosing something that will appeal to a variety of buyer tastes. And if your cabinets are showing their age, it doesn't mean you have to endure the cost of a major renovation. There are several options with kitchen cabinets:  

1. Remove the old cabinets and install new cabinets (the most expensive)
2. Reface the old cabinets
3. Refinish or paint  the current cabinets   (least cost investment, but can provide excellent results)

Flooring in a kitchen is also essential. Laminate is definitely OUT!!!! Take the time to invest in either hard wood floors or tile.  And, finally, a fresh coat of paint goes a long way. When it comes time to sell your home, personal taste no longer prevails. You want to remain neutral with your color choices so it will appeal to an array of color schemes.

FIVE kitchen retrofits buyers love in  a kitchen:

1. Tile back splash
2. Under counter lighting 
3. Doors with glass panels to some cabinets
4. New hardware

BATH ROOMS: These rooms can be scaled to involve minimal cost to high end. 

1. Remove the old vanity and install a new vanity top in granite or solid surface (not marble)
2. Reface the old cabinet and install a new vanity top in granite or solid surface (not marble)
3. Refinish the current cabinet, add new hard ware and install a new vanity top in granite or solid surface (not marble)
4. Replace laminate flooring with tile flooring
5. If your old tile floor looks good but the grout is in bad shape there are companies who can clean the grout and reseal
6. Add updated faucets and shower fixtures
7. Replace the toilet
8. Remove wall paper and paint in a neutral (warm) paint color
9. Add new light fixtures

FIVE kitchen and bath features buyers want most:

1. 36% prefer a separate shower enclosure in the master bath room
2. 31% prefer an eat-in kitchen
3. 24% high end appliances
4. 23% granite counter tops
5. 21% kitchen island

(Source: NAR 2007 Profile of Buyers Home Feature Preferences)

Keep in mind this is a nation-wide survey.  Trends will  change depending on market.  A professional real estate agent  who specializes in your specific market will certainly be able to help you decide which changes are best for your home. He or she will be able to help you prioritize based on your budget capabilities. But doing your due diligence before the sign goes in the yard should reap you great rewards!

Come to my house:
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The numbers for January 2009 sure didn't reflect that the Atlanta market is starting out on the right foot. The month of January didn't end much better than the way it ended in 2008.  According to Steve Palm/Smart numbers, many areas had average closing prices relative to levels in the 1990's.

And trying to jump-start the struggling real estate market, Congress did pass the $8000 First Time Home Buyer's Tax Credit. This, of course, has excited a lot of realtors and buyers! However, in my opinion, as nice as this tax credit is, I am not sure it will provide the results everyone is hoping for. Most first time home buyers don't have the 3.5% (FHA) or the 5% (Conventional) down payment now required.

Although the zero down payment assistance programs did help get us into this mess I submit, "IF" these programs had also required respectable credit scores from buyers (as lenders do now) may be we would not be where we are today. I have many buyers who bought with zero down and are still very much in their homes making their monthly mortgage payments like the rest of us. This being said, I think the $8000 First Time Home Buyer Tax Credit may be more beneficial if it was designed to provide down payment assistance in conjunction with healthy credit score requirements.

Still despite it all, predictions anticipate Atlanta will begin to see improvement the third quarter of 2009. In the meantime, homes will still sell and as we begin to prepare for what is typically considered our "selling season", the rules remain:

• Pristine
• Price
• Patience

So...How did we do for January, 2009? Let's take a look:

Additional Reading:

First Time Home Buyer Frequently Asked Questions

First Time Home Buyer 2009 Revised - Outline Format

Come to my house:
My Suwanee Home.com