Great new information on No Tax Credit, No Problem, with current interest rates at all time lows, this far out weighs the benefits of the tax credit. The home buyer is the clear winner in this market with getting rock bottom prices, and rates as low as 3.5% int.
Call today to get your spot of real estate, and make it a win, win.
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| This Month in Real Estate August 2010 …………………………………………………………………………………………………………………………….. Market Update
Consumers are saving more and being picky about how they spend their money. While a higher savings rate means less spending in the near term, this is a positive sign that households are taking control of their finances to build some cushion that can be used to pay down debt and/or support future spending. Existing home sales marked the twelfth consecutive month of year-over-year increase in June. On a monthly basis, sales activity eased 5.1% from May. The moderation in home sales reflects “understandable swings as buyers responded to the tax credits,” according to Lawrence Yun, NAR chief economist. He anticipates such impact to show up in the next two months.
June’s median home price increased for the fourth consecutive month. Distressed homes, accounting for 32% of sales last month, continued holding home prices at highly affordable levels for the time being. While distressed sales hovered around the same level as a year ago, the gain in home prices is pointing to a sustained stability in the making. Interest Rates Mortgage rates set a new record low in July as consumer confidence softened and unemployment remained elevated. This presents a great opportunity for buyers and investors. Coupled with lowered home prices and a robust rental market, investors are finding their way to cash-flow opportunities. As recovery gains deeper roots, rates will need to rise to keep inflation in check.
Rates as of August 6.This Month’s Video
Topics For Home Owners, Buyers & Sellers
Consumers Beware: New Credit Card Tricks
On May 22, 2009, President Obama signed into law the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009, marking a turning point for American consumers and ending the days of unfair rate hikes and hidden fees. While the new law offers significant safeguards, consumers still need to be vigilant against new practices designed to outflank the new rules. Stay as informed as possible, read your statement , report any irregularities immediately, and watch for these tricks.
Source: The Wall Street Journal |
Contact me, your local real estate expert, for information about what’s going on in our area. Scott Dilbeck 404-861-6623 Newsletter Contents 1. Market Update 2. Interest Rates 2. Video 3. Topics for Owners, Buyers & Sellers |
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Brought to you by KW Research. For additional graphs and details, please see the This Month in Real Estate PowerPoint Report.The opinions expressed in This Month in Real Estate are intended to supplement opinions on real estate expressed by local and national media, local real estate agents and other expert sources. You should not treat any opinion expressed on This Month in Real Estate as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of opinion. Keller Williams Realty, Inc., does not guarantee and is not responsible for the accuracy or completeness of information, and provides said information without warranties of any kind. All information presented herein is intended and should be used for educational purposes only. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. All investments involve some degree of risk. Keller Williams Realty, Inc., will not be liable for any loss or damage caused by your reliance on information contained in This Month in Real Estate. |
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There are many factors that go into arriving at the best decision for whether or not this is the best time for you to sell. Depending on whether you can move up into a larger home now and get it at a real deal, and how much you owe on your home versus how much you can sell it for. The homes in the northern metro counties of the Atlanta, GA market seemed to have stabalized on price decrease, and they are many unbelievable deals on new homes, townhomes, condos, and re-sale homes. You must also factor in the condition of the home and whether or not it has been updated, since buyers want the home to be in great shape, but a rock bottom prices. Please call me anytime for a FREE evaluation of your home value, and help you make the decision of whether to sell, short sale, or wait on the market to return.
Changes Announced on January 20
MI premium rates:
Will increase the upfront rate from 1.75% to 2.25% — effective April 5, 2010
Will reduce maximum seller concessions from 6% to 3% — effective in early summer 2010
***Please notice that the seller contributions have not changed as of now. You can still ask for up to 6% in seller contributions. It states that this will change in the early summer of 2010.***
Please call or email me with any questions regarding the upcoming changes, and the urgency to buy your home now.
If I wait for that $400,000 house to come down to $350,000, could I be risking higher payments? Why yes, you could…..and why?
- $400,000 mortgage @ 4.5% = $2026.24
- $350,000 mortgage @ 6.0% = $2098.43
Does this ever happen? It’s what we are watching buyers do right now!!
See the attached Spreadsheet and tell us your thoughts.
| Should we wait for prices to go down or rates to go up??? | ||||||
| Loan Amount | 4.50% | 5.00% | 5.50% | 6.00% | 6.50% | 7.00% |
| 100,000 | $506.69 | $536.82 | $567.79 | $599.55 | $632.07 | $665.30 |
| 150,000 | $760.03 | $805.23 | $851.68 | $899.33 | $948.10 | $997.95 |
| 200,000 | $1,013.37 | $1,073.64 | $1,135.58 | $1,199.10 | $1,264.14 | $1,330.60 |
| 250,000 | $1,266.71 | $1,342.05 | $1,419.47 | $1,498.88 | $1,580.17 | $1,663.26 |
| 300,000 | $1,520.06 | $1,610.46 | $1,703.37 | $1,798.65 | $1,896.20 | $1,995.91 |
| 350,000 | $1,773.40 | $1,878.88 | $1,987.26 | $2,098.43 | $2,212.24 | $2,328.56 |
| 400,000 | $2,026.74 | $2,147.29 | $2,271.16 | $2,398.20 | $2,528.27 | $2,661.21 |
| * Payments are all calculated on a 30 year fixed fully amortizing loan. | ||||||
Scott Dilbeck
Keller Williams Realty
First Atlanta
Direct: 404-861-6623
Fax: 770-783-2059
website: www.scottsrealty.com
Like New, Craftsman Style home in Woodstock, GA. with spacious open floor plan, granite kitchen counters, with island and pantry. Open family room with fireplace, private fenced backyard, in great location in Woodstock, GA.
http://www.realtor.com/realestateandhomes-detail/205-Ascott-Ln_Woodstock_GA_30189_1114575680
Here is an update on the First Time Homebuyer Tax Credit Extension.
Congress is working on a plan to extend tax credit support to homebuyers. The new language in the Senate would allow homeowners who have lived in their home for five of the past eight years and who earn $125,000 or less for individuals or $225,000 for couples to receive a $6,500 tax credit. First-time homebuyers would still be eligible for an $8,000 tax-credit. The tax credit would apply for homes under contract by the end of April, although buyers would have until the end of June to close on the purchase.
The Senate is expected to vote on this measure by the end of the week. The House, which would have to approve the measure before sending it to President Obama for his signature, is expected to take up the measure next week.
1. Your photos are unimpressive.The vast majority of home buyers start their search for a home on the Internet, your house had better look great in print. Not just nice… downright fabulous. Today we are considering internet views as a ‘virtual showing’… if your house gets past that, then they might (just might) make an appointment to see it in person… We consider that your SECOND showing. Today’s buyers are expecting good quality photos (and lots of them… just 1 shot from the street won’t cut it!), a virtual tour, maybe even a floor plan, if applicable.
2. It’s overpriced. You’ve got to view your own property as objectively as possible. Look at the home like a “buyer”… if necessary, go out with your Realtor and view other homes that are priced comparably to yours. Be objective. Given the other options on the market (and yes, you DO have to include short sales and foreclosures on your list… your potential buyers are!), would YOU buy your home, over the others on the market?
If no, then you either have to “update” your home to meet or beat the competition… or lower your price to adjust for it. if you can’t afford to sell for the price, that you KNOW it sell for, you may want to consider just removing it from the market.
3. It shows poorly.This could mean almost anything… from the barky, barky dog, to the smell of the diaper pail. Maybe the carpeting is a bit worn, or the woodwork shows a lot of wear. All things that don’t show up on the internet, but whoa…. once you get inside the house… they show up, like a cat-urine-smell on a 95 degree day in New Orleans!
4. You’re invisible.Today’s buyer comes from the internet, almost exclusively. Have you (or your agent) simply plopped the property on the MLS, and started praying? Are you on all the websites…(Trulia, Zillow, Craig’s List, Google Base, etc…) all the places that buyers are searching? If not, you want to be.
5. Your listing is tired and stale on the market. Okay… yes, you overpriced your home initially when you first came on the market 2 years ago. But since then you have reduced your price almost monthly… constantly chasing the market down…. Now, finally you’re truly priced where you should be… but your listing is tired and stale. Everyone looking for your type of property (ie: 3br/1.1 bath) in your area has already seen it, sometimes twice… and they remember that there was “something” about it that they didn’t like… but what they don’t remember is… what they didn’t like…. was the price. Time to take the listing off market. Let it cool off (3-6 months), and bring it back on fresh in the Spring. Yeah, you’ll have 6 mos. worth of holding-costs… but you’ll more than make up for it in your purchase price.
btw… Avoid the temptation to bring the house back on at a higher price, than when you left the market. Just “don’t do it”!
6. Your house won’t appraise.The house looks great… you’ve finally gotten someone to bring you a bid on your slightly over-priced, but beautiful pied-a-terre. But the bank appraiser says it’s worth $20,000 less than what they’ve agreed to pay. Heavy sigh… bite the bullet…. negotiate with them. If you have to drop the price $20,000 to make it work…. “make it work”… chances are, anybody else trying to buy your house will run into the same problem.
ALAN MAY, Realtor®
Specializing in Evanston Real Estate and North Shore Real Estate
Evanston, IL
There is great news coming out of the Georgia Department of Economic Development and the Metro Atlanta Chamber of Commerce. During the week of July 22, the Department of Economic Development hosted a press conference where they revealed that 43 companies have decided to either move their operations to the Atlanta area or expand, which will result in an anticipated 6,857 new jobs. With the Georgia unemployment rate reaching record highs, this could very well be the best news we have seen all year.
Of course, this is fantastic news for metro Atlanta residents in more ways than one. First off, and the most obvious, the influx of available jobs will drastically help our local economy. More residents will be able to find employment and receive a steady income, which means the foreclosure rate should start to decrease. On another level, it means that we will also see more people relocating to Atlanta, which means more homebuyers. With more buyers in the market, the number of standing inventory homes should be absorbed and our real estate industry will stabilize.
As you can see, the influx of jobs is such a significant factor that it will positively affect every aspect of the local economy. Check out the list of Metro Atlanta Major New Location & Expansion Announcements for the list of companies and the projected number of jobs each will produce.
Source: atlantarealestateforum.com
Time is quickly running out to get the $8000 tax credit for the purchase of your first home, or if you have not owned a home in the past three years. The deadline to close on the purchase of your home must be on or before October 31st, 2009. I will be happy to assist anyone that is interested in taking advantage of this tax credit, so please contact me as soon as possible.
Housing activity continues to remain above year-ago levels despite some setbacks resulting from the now-expired tax credit. Improved stability in home prices with similar levels of distressed properties seen last year offers a hopeful sign the market is holding its ground. However, the economy still has a considerable way to go to achieve its full recovery. 
