SUWANEE TALK!: March 2010

The sun shined down on the metro Atlanta real estate market for February, 2010 with a positive year-to-year increase according to Steve Palm of Smart Numbers. Although the increase was slight, 1.6% ....the news is still promising.

Additionally, according to the Case Shiller Index, our metro Atlanta market hit "bottom" in March 2009. And since that time, Case Shiller is reporting metro atlanta home values have risen 5.8%.  As for our new home inventory, it is at an all time low. And, although we are beginning to see a few (a very few) builders begin developing new subdivisions (at least in the gwinnett County/suwanee area) new construction inventory is not expected to return anytime soon; and as a result, this is helping to absorb our foreclosure, short sale and resale inventory.

What the future holds for metro Atlanta's real estate market is yet to be seen. Although in a recent blog post I wrote,  I spoke to the predictions from the Census Bureau saying Atlanta will lead the nation in job growth and Fortune Magazine points to a substantial growth in our population. These are all good indicators for a strong housing market. However on the flipside as a result of excessive federal government spending and our high national debt we may be poised for potential inflation which in turn will result in higher interest rates.. And higher interest rates could potentially put the breaks on any housing recovery. 

Here is what we do know:  The First Time Homebuyer tax Credit and the Seller Tax Credit ends April 30, 2010. These will not be repeated and will not be extended. So the overall concensus for metro Atlanta's real estate market in March and April is that we will see an increase in demand and overall sales.

And, as you see February, 2010 ended up looking pretty good.  

Come to my house:
MySuwaneeHome.com

It's 2010 and Atlanta is still considered a declining 
market. As a result, many potential home buyers have sat on the side
lines concerned with what their property investment will be worth over
time should they go ahead and take the plunge and buy now.

• According to the Census Bureau, Atlanta will lead the
  nation in producing 1.7 million jobs by 2025. The
  engine behind this will be Fortune 500 companies.
  
  
  1. The Delta/Northwest merger along with NCR mov-
     ing their headquarters to metro Atlanta are prime
     examples. 
     
     
• Fortune Magazine is predicting over 2 million more res-
  idents for the Atlanta area by 2020.
  
  
• An average of 100,00 new residents with an average of
  60,00 jobs per year has been released in a  report by
  the Atlanta Regional Commission.
  

Although there is some variance in the numbers, there is still
no doubt that the concensus is that metro Atlanta will be a leader in new residents
and in job growth.  This translates to good news for the future of our real estate market.


With prices low, inventory high, buyer tax credits in place
until April 30,  2010 and the projected forecast for Atlanta, NOW is the 
time to buy.





Source:  Future Home Value Trends for Metro Atlanta (Prudential Georgia Realty)


                                                            
                                                           Come to my house:
                                                          MySuwaneeHome.com

 We are off and running. January, 2010 is now just a distant memory. And, for the Atlanta real estate market, January, 2010 left behind the lowest number of closings in a month during the past nine (9) years (Steve Palm/Smart Numbers, Marietta GA January 2010 Agent Report).

And, the foreclosure market in Atlanta seems to be taking a break. We saw just over 8100 foreclosure filings for the month of January. Seems hard to imagine that we see that figure as good news. Gwinnett County came in second with 1,196 foreclosure fiillngs according to Realty Trac.  And, according to Steve Palm with Smart Numbers we will see l00's of new construction foreclosed condos hitting the Atlanta market during 2010. Despite this news, the predictions are we are likely to see foreclosures take a back seat to short sales. It is a tedious and time consuming process when you make the choice to place an offer on a short sale property; however, we will see changes during the second quarter this year on how short sales are handled so with any luck the change will bring about a more expedient and stream lined process....we can only hope.

Here is a look at January, 2010

Come to my house:
MySuwaneeHome.com

Smart Remodeling Investments still pay. I was on the phone with a customer of mine yesterday who purchased a home last year. It had an unfinished lower level and needed some TLC. He had an expanding family and needed to maximize living space. He finished the lower level, invested in a new HVAC system for the lower level, and modestly updated a kitchen and bathroom. According to a recent market analysis, he appears to have increased the value of his home close to the dollars he spent on improvements.

Investors know that remodeling pays but you have to be smart about where you spend your dollars. According to this year’s Cost vs Value Report by Remodeling magazine, the best return on your investment often comes from  the most logical and utilitarian choices. Adding more livable space, inside or out, appears to add the most bang for your buck. Putting on a deck, finishing an attic space into a bedroom, finishing a basement, a md range kitchen remodel, residing and putting in new windows as well as something as simple as putting in a new front door, topped the list for return on investment. Every Realtor will tell you that next to location, curb appeal and home condition are the most critical factors in getting the most for your house when the time comes to sell. 

You can find the report at:

Remodeling: Cost vs. Value

Thank you to Ron Draluck/Certified Mortgage Planner - Fidelity Mortgage for allowing me to reprint his article on my blog.