Atlanta Real Estate

Seen the news lately? The metro Atlanta area is experiencing a real estate correction. Otherwise known as a declining market. The decline in the real estate market has affected so many from builders to building supply companies to those that sell the supplies and beyond.

The severity of the decline changes from neighborhood to neighborhood, city to city, and price points. Not only do I track the numbers closely, I have now hired a data specialist to dissect the data from our listing service to bring forth the facts per area and per price point so I can provide the very best representation.

Let’s look at the overall Metro Atlanta area. Sales of single family homes were down 22% in 2008 compared to 2007. With foreclosures and short sales accounting for a large percentage of sales. The median sales price declined 11.7% from 2007 to 2008. When looking at 4th quarter in 2008 compared to 4th quarter in 2007 you will find a decline of 18.1%. We certainly experienced a larger hit in the 4th quarter of 2008. If we remove the intown market from our data the numbers for the suburbs would be less favorable and the intown market is more favorable. Typically, decline starts in the suburbs and works inward while improvement starts inward and works outwards.

This is a market of correction. Unfortunately, we all pay the price for loose lending and a society that has lived in excess. The market will come back around and our property values will increase. Real estate over time brings wealth. We rode some pretty good years where we could own a property for a short time and make a profit but that is not the norm. Real estate has been, is today, and will remain a solid long term investment.

For those who want to buy a home it is important to note that there have been many changes to mortgage qualifications over the past two years. So many changes that most have been impacted. I have always taken great pride in staying well educated to keep ahead of the real estate market and industry including the mortgage industry to ensure that my clients understand the mortgage options presented. I am the first to admit that the changes these past two years have come so often and so fast that my head is spinning. And 2009 continues with even more changes that I would like to share.

First and foremost, interest rates are unbelievable! If you have not looked into refinancing then I would recommend you do so. FHA has made it extremely easy to refinance your FHA loan.

Credit guidelines have changed significantly throughout the past 2 years and have changed once again. As of February 1, 2009 the minimum credit required is now 680, not 620.

Remember 80/ 20 100% loans or 80/ 10/ 10 loans to avoid PMI? Well, second mortgages are now a part of history altogether. That’s right! Everyone will be paying PMI regardless of credit unless you have 20% of appraised value for down payment.

Thought about a second home? That now requires 20% of appraised value also.

I find it important to repeat a guideline change from 2008 because it is a very important change! The guidelines for purchasing a property by renting your currently property have changed significantly and many are finding themselves renting their homes only to have to rent someone else’s home.

The bottom line is that guidelines have changed and I cannot possible cover all the changes. It is very important that you contact a lender with any questions regarding your options for purchasing or refinancing. It is more important than ever to depend on full-time professionals within the real estate and mortgage industry that are with reputable debt-free companies. That is why I am with Keller Williams and why I recommend certain lenders. My clients deserve only the best!