Barry's Real Estate Blog

The most common questions I am asked are: Is the market getting any better and is activity picking up?

The problem in providing an answer is that is really depends on the day you ask.  Over the last 12 months, there really has been any consistent trend in the market.  Some weeks see lots of activity and interest while others have no activity.  It has been this lack of consistency that has made this such a difficult market. However, things are starting to change and trends are developing.

Positive News

Interest rates continue to be low (in the high 4%/low 5% range) and the $8000 federal tax credit for first time buyers and $1800 Georgia state tax credit for all buyers are good until the end of November.  In fact, houses are probably the most affordable they’ve ever been.  And, if you’re a home buyer, it’s still a buyer’s market.

On The Other Hand

National unemployment in about 10% and Georgia’s is slightly over 10%.  Job losses and uncertainty have undermined the confidence of home buyers.  In addition, while money is cheap, it is also still difficult to get a mortgage if your credit is not very good.

Market Analysis

To get a clear picture of the Cherokee market, I have broken down the sales trends for 2006 through 2008.  For 2009, I kept my original analysis period of January thru April  and have added May thru September.  This way you can see how the year is trending. The chart below for Cherokee County includes the cities of Woodstock,  Canton, Ball Ground, Holly Springs and Waleska.

EXPLANATION OF CHART

This chart shows the number of homes sold in 2006, 2007, 2008 and 2009 (thru September).  2007 and 2008 are also broken down into Jan-July an Aug-Dec time frames.  The last column represent the the number of currently active listings and their average asking price.  The actual data for each bar and line is shown at the bottom of the chart.

ANALYSIS

Units Sold – 2006 – 2008

2006 saw 2967 homes sold with that number increasing to 3550 in 2007.  We know that that market slowdown began in summer of 2007.  This is clear by looking at the breakdown of 2007 sales: 2312 units from Jan-July and 1238 units from Aug-Dec.  Total units sold in 2008 declined to 2389 with the second half of the year seeing only 869 homes sold.

Units Sold – 2009

Thru April 30, 2009, 595 homes sold.  If we extrapolate this for the entire year, 2009 will see approximately 1800 homes sold.  From May thru September, 1150 homes sold with an average sales price of $213,000. While this period includes one more month than Jan thru April, the number of homes sold increased by over 93%!

There are currently 2318 homes on the market, down from 2726 at the end of April.  Current inventory now stands at 12 months versus 18.3 at the end of April. Clearly we are seeing a positive trend in sales with some discounting on price sontinuing. However, inventory is still above the 7-9 months which would represent a balanced market.  In addition, the current average list price of $327,000 for active listings is way too high and will need to come down in order to sustain this sales trend.

Average Sales Price

In 2006, the average sold price was $250,000.  This increased slightly to $253,000 in 2007, an increase of just  1.2%.  The average sold price peaked in the first half of 2007 at $256,000. By 2008, the average sold price was down to $232,000.  For the first four months of 2009, the average sold price was $219,000.  From May thru September, the average sales price declined by $6,000 or approximately 2.75%.

Average List Price

The average list price in 2006 was $255,000.  The difference between the average list and average sold in 2006 was 2.0%.  By 2007, the gap between list and sold price increased to 3.2%.  In 2008, the gap had further increased to 5.2%.  For the first four months of 2009, the gap reached 6.8%.  From May thru September, the price gap narrowed to 5.1%.

Average Days on Market

This data is not shown on the chart but in the table below:

2006: 77

Jan – Jul 2007: 83
Aug-Dec 2007: 88
2007: 85

Jan-Jul 2008: 102
Aug-Dec 2008: 92
2008: 98

Jan – April 2009: 94
May – Sept 2009: 95

As we can see, the average days on market has increased from to 77 to a current 95 days which is less than 2008’s average of 98 days.

Please feel free to contact me with questions about your specific market or community.  You can request a FREE home market analysis here.

RELATED POSTS:

Cherokee County, Georgia Housing Market Review

Click here to read original post.

The most common questions I am asked are: Is the market getting any better and is activity picking up?

The problem in providing an answer is that is really depends on the day you ask.  Over the last 12 months, there really hasn’t been any consistent trend in the market.  Some weeks see lots of activity and interest while others have no activity.  It has been this lack of consistency that has made this such a difficult market.  However, things are starting to change and a trend is starting to develop.

Positive News

Interest rates continue to be low (in the high 4%/low 5% range) and the $8000 federal tax credit for first time buyers and $1800 Georgia state tax credit for all buyers are good until the end of November.  In fact, houses are probably the most affordable they’ve ever been.  And, if you’re a home buyer, it’s still a buyer’s market.

On The Other Hand

National unemployment in about 10% and Georgia’s is slightly over 10%.  Job losses and uncertainty have undermined the confidence of home buyers.  In addition, while money is cheap, it is also still difficult to get a mortgage if your credit is not very good.

Market Analysis

To get a clear picture of the Cobb market, I have broken down the sales trends for 2006 through 2008.  For 2009, I kept my original analysis period of January thru April  and have added May thru September.  This way you can see how the year is trending.

The charts below show the data for East and West Cobb separately.  East Cobb consists of mostly unincorporated Marietta and parts of the city of Marietta.  West Cobb consists of the other half of the city of Marietta plus the cities of Kennesaw, Acworth, Powder Springs, Mableton, Austell, Smyrna and Vinings.

EXPLANATION OF CHARTS

This chart shows the number of homes sold in 2006, 2007, 2008 and 2009 (thru September).  2007 and 2008 are also broken down into Jan-July an Aug-Dec time frames.  The last column represent the the number of currently active listings and their average asking price.  The actual data for each bar and line is shown at the bottom of the chart.

ANALYSIS

Units Sold – 2006-2008

2006 saw 2177 homes sold with that number increasing to 2545 in 2007.  We know that that market slowdown began in summer of 2007.  This is clear by looking at the breakdown of 2007 sales: 1703 units from Jan-July and 842 units from Aug-Dec.  Total units sold in 2008 declined to 1807 with the second half of the year seeing only 644 homes sold.

Units Sold – 2009

Thru April 30, 2009, 382 homes sold with an average sales price $303,000.  If we extrapolate this for the entire year, 2009 would see approximately 1200 homes sold.  From May thru September, 855 homes sold with an average sales price of $337,000.  While this period includes one more month than January thru April, the number of homes sold increased by almost 125%. In addition, the average sales price increased by 4.3%.

There are currently 1416 homes on the market with an average list price of $442,000.  Current inventory now stands at 10.3 months versus 17 months in May.  Clearly we are seeing a positive trend in sales and prices.  However, inventory is still above the 7-9 months which would represent a balanced market.  In addition, the current average list price of $442,00 is way too high and still shows that sellers are not dealing with the realities of the market.

Average Sales Price

In 2006, the average sold price was $326,000.  This jumped to $351,000 in 2007, an increase of 7.6%.  The average sold price peaked in the second half of 2007 at $357,000. By 2008, the average sold price was back down to $334,000.  For the first four months of 2009, the average sold price fell to $303,000. From May thru September, the average sales price increased to $318,000 which is still below 2008’s average but a positive trend.

Average List Price

The average list price in 2006 was $334,000.  The difference between the average list and average sold in 2006 was 2.5%.  By 2007, the gap between list and sold price increased to 4.3%.  In 2008, the gap had further increased to 5%.  For the first four months of 2009, the gap reached 6.2%.  From May to September, the gap dropped slightly to just below 6%.

Average Days on Market

This data is not shown on the chart but in the table below:

2006: 57

Jan – Jul 2007: 62
Aug-Dec 2007: 68
2007: 64

Jan-Jul 2008: 77
Aug-Dec 2008: 82
2008: 79

Jan – April 2009: 93
May – Sept 2009: 85

As we can see, the average days on market has dropped from to 93 to 85 but still well above 2008’s 79.

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ANALYSIS

Units Sold – 2006 – 2008

2006 saw 5091 homes sold with that number increasing to 5890 in 2007.  We know that that market slowdown began in summer of 2007.  This is clear by looking at the breakdown of 2007 sales: 3816 units from Jan-July and 2074 units from Aug-Dec.  Total units sold in 2008 declined to 4401 with the second half of the year seeing only 1702 homes sold.

Units Sold – 2009

Thru April 30, 2009, 1092 homes sold with an average sales price of $185,000.  If we extrapolate this for the entire year, 2009 would see approximately 3300 homes sold. From May thru September, 2235 homes sold with an average sales price of $209,000. While this period includes one more month than January thru April, the number of homes sold increased by almost 105%. In addition, the average sales price increased by almost 13%.

There are currently 3525 homes on the market with an average list price of $300,000.  Current inventory now stands at 9.5 months versus 15.3 months in May.  Clearly we are seeing a positive trend in sales and prices.  However, while inventory is approaching the range for a balanced market, the current average sales price is way too high (almost $100,000 more than the average sales price) and still shows that sellers are not dealing with the realities of the market.

Average Sales Price

In 2006, the average sold price was $250,000.  This actually decreased slightly to $249,000 in 2007.  The average sold price stayed at $250,000 thru the first half of 2007.  By 2008, the average sold price was down to $223,000, a drop of almost 11%.  For the first four months of 2009, the average sold price was $185,000 representing a decline of 21% from the same period in 2008 and a 26% drop from the peak price in 2006 and early 2007. From May thru September, the average sales price increased to $209,000, representing a 13% increase but still below 2008’s average of $223,000.

Average List Price

The average list price in 2006 was $255,000.  The difference between the average list and average sold in 2006 was 2%.  By 2007, the gap between list and sold price increased to 2.7%.  In 2008, the gap had further increased to 4.8%.  For the first four months of 2009, the gap reached 6%. From May thru September, the gap was slightly less at 5.5%.

Average Days on Market

This data is not shown on the chart but in the table below:

2006: 73

Jan – Jul 2007: 80
Aug-Dec 2007: 82
2007: 81

Jan-Jul 2008: 89
Aug-Dec 2008: 89
2008: 89

Jan – April 2009: 98
May – Sept 2009: 97

As we can see, the average days on market has only decreased by one day and is still higher than 2008’s average.

Please feel free to contact me with questions about your specific market or community.  You can request a FREE home market analysis here.

RELATED POSTS:

Cobb County, Georgia Housing Market Review

Click here to read original post.

The “Today Show” in New York this morning called Marietta one of the top 4 places in America for house hunting to get the most bang for your buck. They also mentioned the city’s Gone With the Wind Museum and called it the pride of the community.

The top three were: 1) Sarasota, FL; 2) San Francisco, CA; and 3) Lansing, MI.  These rankings were based on where you can get the best “bang for your buck” in home value.

Click here to see the video clip.

Click here to read original post.

The rate of home-price declines improved in July in the top 20 U.S. cities, and Atlanta posted a rise. The average price of a home in Atlanta rose 2.3 percent from June to July, according to the Standard & Poor’s/Case-Shiller Home Price Index. However, the average price of a home in Atlanta was down 11.8 percent year over year in July.

Click here for more information.

Click here to read original post.

I recently attended by first real estate auction with a client.  They were interested in a house in a nice area and were hoping to get it at a good price.  We visited the house the weekend before.  The utilities were off so we couldn’t check any of the systems but we did have a chance to poke and prod.  My client brought a family member who did repair and handy work so they could get an idea of the cost of repairs.

Our plan was to go to the auction and try to get the house at a price so that once the repairs were done, it was still below market value.  The starting bid was $50,000 and I estimated the house to be worth $180,000-$190,000 in good condition after repairs.

When the time came, the bidding went fast and furious.  In matter of 45 seconds the house was at $100,000 and finally sold for $150,000 which was over my client’s price point.  We walked away without the house but more experienced.

Here are some of the things I learned:

1)    BE PREPARED

Make sure you read all of the documentation on the auction website.  For example, my client had to bring a certified check for $2500 plus a personal check to cover the balance due.

Also, some houses were sold with reserves meaning that even if you were the high bidder but did not meet the reserve, the seller had 15 days to decide if they wanted to sell it.  And, they were going to hold your money until the decided.

Always read the documents – twice!

2) BUDGET

Make sure that you have enough cash to handle the earnest money/down payment plus the repairs.  Some homes can be financed and others are “cash only’ meaning the buyer does not have a financing contingency to protect them.  Also, build in a “what if” line to your budget.  Since most homes are sold “as is” and can not be thoroughly inspected before the auction (typically the utilities are off so you can’t check the systems), make sure you have allocated money for the unknown items that may arise.

3) KNOW YOUR LIMIT

Auctions take on a carnival atmosphere.  There’s electricity in the room.  The auction is loud and fast paced.  It’s not hard to get caught up in the frenzy and go past your budgeted figure.  Bring someone with you (an agent is a good place to start) who is not emotionally attached to the outcome.  If the house you want has exceeded your price point, let it go.  Unless you’re an investor or have the finacial resources to absorb losses, once you exceed your number, walk away.

4) GET THERE EARLY

Pick up the brochure for the day and sit in the room for at least 30 minutes before your property comes up.  If your home is one the first ones, try to attend an another auction before that one.

By getting there early, you can get sense of the pace of things and how the auction is going to occur.  You can also see of there are any investors who are bidding up properties or buying in a certain area.  If your house is in one of these areas, be prepared to make go head to head with them.

5)    TYPE OF AUCTION

Know the type of auction you’re attending and what it means.

Absolute: The highest bidder wins the auction, regardless of price. The same as an auction without reserve.

With reserve: An unpublished price the seller has set for the property. It can be different than the minimum bid. The seller can accept or decline a winning bid within a specified amount of time after the auction.

Subject to lender approval: A lender, who either owns a foreclosure or who has financed a developer, must agree to sell the home for the amount of the winning bid.

Click here to read original post.

For more information or to schedule a tour of the home, please contact Barry Wolfert at 770-656-7551 or email me.

1719 Barrington Circle, Marietta, GA 30062

Click for a Virtual Tour.

This home offers a great value at this price.  Built in 1988, this brick home is located in the heart of East Cobb (Marietta) in the John Weiland built Haverford subdivision featuring swim and  tennis amenities.  The home offers 4 bedrooms and 2.5 bathrooms plus a sunroom.

Haverford is located off Sewell Mill Road between Johnson Ferry Road and Old Canton Road. Click here for a map of this home’s location.

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Overview of the Area:

This home is convenient to the major roadways in East Cobb including Roswell Road, Johnson Ferry Road, as well as I-285,  I-75 and GA-400.  It is located just a few miles from the The Avenues of East Cobb with its pedestrian focused, village like setting that includes retail and restaurants.  The schools are East Side Elementary, Dodgen Middle and Walton High School, all part of the Cobb County School District.

Overview of Exterior:

This is a classic three side brick home on a level lot and a fenced backyard.

Overview of Main Floor:

As you enter the home, you’ll notice the beautiful two story entry and hardwood floors. Off the entry is the office on one side and dining room on the other.  Located down the hallway is the warm and inviting family room with judges paneling, built-in bookshelves and gas fireplace.

Beyond the family room is the spacious and bright sunroom which opens to the deck and breakfast area.  The kitchen has granite counters and a large island with breakfast bar.  The laundry room is located off the kitchen and next to the back stair case.

The refrigerator is included with the sale of the home.

There is a deck off the sunroom that overlooks the private, fenced backyard.

Overview of Upper Floor:

After ascending the stairs to the upper level, you will find 4 bedrooms.  The master bedroom has double doors and a trey ceiling.  The master bathroom has a separate jacuzzi tub and shower plus a large double sink vanity.  There are also two walk-in closets.

The other three bedrooms upstairs are good sized as well.

Price:

This home is currently being offer at $335,000.  This price reflects a true buying opportunity.  Other similar homes in the area are priced in the $350,000 – $400,000 range.

Enjoy,

The Voice of North Atlanta Real Estate

Click here to view original post.

New rules aimed at making home appraisals more accurate are raising costs and prompting longer waits to get to the closing table, some in the mortgage industry say.

The new rules — known as the Home Valuation Code of Conduct and in effect less than three months — have driven up the cost of appraisals, says Keith Stewart, a mortgage consultant with NorthPoint Lending Group in Chicago.

An appraisal that once cost $275 to $300 now runs $375 to $500, he says. That’s because under the new rules a third party, often an appraisal-management company, must serve as middleman between a mortgage broker and the appraiser, says Drew Kessler, director of sales for Rand Mortgage in New City, N.Y.
A bill in the U.S. House of Representatives proposes a moratorium on the new rules, as some in the industry are concerned the code will slow recovery in the housing market.

But the Federal Housing Finance Agency says the new code of conduct is necessary to make sure homes are appraised correctly and fairly. The code went into effect in May and applies to conforming mortgages, which are those that are able to be sold to Fannie Mae and Freddie Mac, the troubled government-backed mortgage agencies.

Bubble-Era Abuses

“Unfortunately, during the 2005-to-2007 period, mortgage lending was much too aggressive and placed pressure on the appraisal process,” the FHFA said in a statement last week. “In some cases, that resulted in unrealistically high appraisals, hurting home buyers as well as investors. The [code of conduct] is designed to promote professional appraisals free from inappropriate pressure from lenders, borrowers or brokers."

In short, the rules aim to address a serious problem faced by many appraisers, the pressure to produce a desired value on a property, says Bill Garber, director of government and external relations for the Appraisal Institute, an association of professional real-estate appraisers. In some cases, appraisers were motivated to comply with the request because they didn't want to risk losing business.

"Mortgage-broker pressure on appraisers was real during the past 10 to 20 years," he says. "They are no longer able to order, select or compensate appraisers, and as such, some of that pressure has subsided."

Adds Jim Amorin, president of the Appraisal Institute: "Consumers were maybe paying more for a home than it was really worth because of undue pressure being applied" to the appraiser. The FHFA also says that rising closing costs aren't due to the new code, but instead can be attributed to lenders' tightened underwriting standards and mortgage-security investors' desire to reduce fraud. They're increasingly requiring additional information or second appraisals.

Other Costs

But the new rules cause other indirect costs, too, Mr. Kessler says. Under the new code, the appraisals are not "portable," meaning a consumer's mortgage broker can no longer use the same appraisal to apply for loans at different lenders. An appraisal done for a Bank of America loan, for example, can't be easily used to apply for a Wells Fargo mortgage, he says.

"Previously, the broker owned [the appraisal]. That has changed. Now, it's in the name of the actual lender," Mr. Kessler says. If a borrower decides to pursue a mortgage with another lender -- after an appraisal has already been procured through a different lender -- the borrower may need to pay for a second appraisal. Even though the borrower typically pays for the appraisal, it is held by the person or firm that orders the appraisal, he says.

The FHFA disputes this complaint, too, saying that appraisals are transferable between lenders under the code although -- and this is key -- whether a lender decides to make a transfer or accept another lender's appraisal is up to that lender. Reports of time delays are also common among mortgage brokers, and the FHFA acknowledges that the implementation of the code may have slowed the mortgage process a bit. But the agency also says there are other reasons for delays, including increased demands by lenders.

Effort to Improve Quality

Appraisers see good intentions in the new code, but they, too, have concerns about appraisal quality. Some appraisal-management companies decide which individual appraisers to contract for a job based on who can get the job done at the lowest cost -- and perhaps not enough based on experience, says Mr. Amorin. Plus, he thinks there isn't enough emphasis on making sure the appraiser is familiar with the immediate area.

Yet the FHFA says appraiser professional standards already in place require the appraiser to be competent and knowledgeable about the local area.

Whatever industry participants think about the code and its implementation, it's a start to addressing the practices that led some appraisers to value properties higher than they were worth -- an issue that contributed to overpriced markets, Mr. Amorin says.

"Accurate appraisals, produced in line with industry standards and legal requirements, provide key protections for homeowners, [Freddie Mac and Fannie Mae] and investors," the FHFA says. "The poor practices of the past are being corrected and lessons learned are being addressed."

By Amy Hoak,  Wall Street Journal Online.  Click here for original post.

September 2009

Cobb voters approved the Special Purpose Local Option Sales Tax (SPLOST) in 2005 to fund important transportation and public safety projects. Since then, significant progress has been made in many areas, including the jail expansion, new courthouse project and transportation improvements.

TRANSPORTATION

With the Cobb Department of Transportation SPLOST program ahead of the original schedule and on track for completion within eight years, continuous improvements to Cobb County’s transportation system steadily move along. As of July, 249 of the 260 transportation projects were underway or completed. Of these projects, 174 have started the right-of-way acquisition phase, 128 were completed and 182 have initiated construction – including the following:

• 21 school zone improvement projects valued at $5.4 million
• 34 bridge rehabilitation and replacement projects valued at $18.3 million
• 35 intersection safety and operational improvements valued at $20.3 million
• 27 thoroughfare and roadway safety improvement projects valued at $77.3 million
• 254 miles of road resurfacing valued at $27.9 million

Summer Closures

With a lot of hard work from DOT contractors, all summer road closures that were scheduled to be closed during the summer have re-opened prior to the start of the new school year. These projects included:

• Allgood Road Safety and Operational Improvements – Hillcut
• Cheatham Hill Road over Ward Creek – Bridge replacement
• Hamby Road over Clark Creek – Bridge replacement with a culvert
• Hiram-Lithia Springs Road Bridge – Bridge replacement
• Holly Springs Road over Sewell Creek Tributary – Bridge replacement with a culvert
• Maran Lane – Road realignment
• Midway Road Bridge over Allatoona Creek Tributary – Bridge replacement
• Mt. Calvary Road Bridge over Noses Creek – Bridge replacement
• Post Oak Tritt over Sewell Creek Tributary – Bridge replacement
• Smyrna-Powder Springs Road over Favor Creek – Bridge replacement

A number of projects were scheduled to be open later in the school year due to additional construction time needed. These projects and the current anticipated opening dates are noted below:

• Holland Road Hillcut: Currently closed and scheduled for October 2009 opening
• North Church Lane Bridge Replacement: Currently closed and scheduled for early 2010 opening
• Old Hwy 41 Bridge over CSX Railroad: Will close late summer or early fall with an estimated closure of 6 months
• Perkerson Mill at Flint Hill Road: Currently closed and scheduled for Aug. 31 opening
• Sewell Mill Road Bridge over Sewell Creek: Will close September and scheduled for spring 2010 opening

When the closure is slated to occur, a specific detour map and time period will be made available at the DOT website under Road Reports. If you have any questions or concerns about these closures, please call DOT construction at 770-528-1653.

Hiram Lithia Springs Safety and Operational Improvements

Hiram-Lithia Springs Road is in need of significant safety and operational improvements throughout the length of the corridor (defined as Powder-Springs-Dallas Road to Humphries Hill Road). A number of intersections were selected for improvement as part of the project after careful evaluation of crash data and known deficiencies. Improvements at the following intersections are noted below:

• Sullivan Road – add Northbound left-turn lane off mainline, improvements to the sight distance
• Sweetsprings Drive/Meadows Road – add left-turn lanes and right-turn on mainline, improve turning safety on sidestreets
• Lewis Road – improve sight distance on side street with removal of trees and shrubbery
• Brown Road – intersection improvement through addition of northbound left-turn lane and right-turn lane southbound
• Defoors Farm Drive – extend and widen left-turn lane and improve safety on curved sections of road
• Garrett Springs Drive – improve sight distance on side street with removal of trees and shrubbery

The Hiram Lithia Springs project improvements are expected to begin construction in fall 2009.

Noonday Creek Trail

The Noonday Creek Trail is a culmination of efforts between the Town Center Area Community Improvement District, Cobb County and the National Park Service. This trail will connect to the existing Kennesaw Mountain National Battlefield Park trail system and the proposed West Cobb Trail, planned to be constructed adjacent to Barrett Parkway between Dallas Highway/SR 120 and Cobb Parkway/US 41.

The proposed trail will run from the National Park on Old Highway 41 to Barrett Parkway, will join the West Cobb Trail along Barrett Parkway, run down Cobb Parkway to Vaughan Road and run down portions of Vaughan Road and Cobb Place Boulevard to Barrett Lakes Boulevard. The trail will run down Barrett Lakes Boulevard to Noonday Creek, and then follow Noonday Creek to Bells Ferry Road.

Additional plans are in place to add trailheads and parking throughout the trail corridor. Future phases of the trail will also connect to Noonday Park and points northward toward and into Cherokee county.   One section of the trail is currently under construction north of Barrett Parkway and east of Cobb Parkway. Additional construction projects will be added over the next couple of years.

Smyrna-Powder Springs Road

Smyrna-Powder Springs Road/Benson Poole Road, from Hicks Road to Windy Hill Road, is a project that includes the replacement of two bridges (Favor and Nickajack Creeks), roadway geometric improvements, sidewalk and curb and gutter. Recently, Smyrna-Powder Springs Road was closed due to the construction of the first bridge over Favor Creek. The roadway reopened on Aug. 4, however a second closure is planned on May 22. The roadway should be reopened before the start of the 2010 school year. This closure will include reconstructing the bridge over Nickajack Creek and realigning the intersection of Smyrna-Powder Springs Road and Benson Poole. Construction will continue on this project through August 2010.

Currently Under Construction

DOT currently has approximately 30 major projects in design with more than 50 projects planned to bid during 2009. Three projects under construction are highlighted below:

Allgood Road
This project was designed to add sidewalk, curb and gutter, widening and turn lanes throughout the project limits (Scufflegrit Road to East . Piedmont Road). The roadway was closed for the summer and reopened prior to school starting back. This closure was necessary to construct a large hill cut in the vicinity of Rockcrest Drive. Construction on this project is expected to be completed in May 2010.

Due West Intersection
Due West Family of Intersections: Burnt Hickory / Due West Intersection, Due West Road @ Old Hamilton Road, Kennesaw Due West Road @ Acworth Due West Road and Due West Road Bicycle Improvements – Due to their close proximity, these four projects have been combined into one and will provide significant improvements to this segment of roadway. Burnt Hickory Road will be relocated to lineup with Old Hamilton Road at a new intersection on Due West Road. Due West Road will be widened from Old Hamilton Road to Burnt Hickory Road (west leg). This project will also use a portion of the bicycle improvements money to provide a connection between the east leg of Burnt Hickory Road to the west leg of Burnt Hickory on Due West Road. This project is anticipated to complete construction in the winter.

Planning Updates

Public Meetings Scheduled for the Cobb County Bicycle and Pedestrian Improvement Plan (View Flyer)

DOT is completing a 15-month planning project – the Bicycle and Pedestrian Improvement Plan – that will identify where Cobb County can improve conditions for bicycling and walking and identify a strategy for investing in those improvements over time.

Bicycle and pedestrian facilities include shared use pathways (like the Silver Comet Trail), on-street bike lanes and shoulders, sidewalks, and improvement to make crossing the street safer. Please come to one of three public open houses around the county 4 to 7 p.m. on Sept. 15, 16 and 17.

For more information, please contact Cobb DOT Planning Division at 770-528-1629.

Projects on the Horizon

Mars Hill Road/Lost Mountain Road Intersections
There are eight intersection improvement projects and one school improvement project along Lost Mountain Road/Mars Hill Road either under construction or will be under construction by the end of the year. Corner Road at Lost Mountain Road, Hadaway Road at Mars Hill Road and Mars Hill Church Road at Mars Hill Road were let to construction by the Georgia Department of Transportation on July 17. These projects were paid for with Federal Stimulus funds provided to the County.

The five projects that are funded by Cobb County 2005 SPLOST dollars along Mars Hill Road are Nichols Road, Due West Road, Burnt Hickory Road, County Line Road/Old Stilesboro Road, Frey Elementary/Durham Middle Schools and Giles Road/Hill Road.

Intersection improvements along Lost Mountain Road/Mars Hill Road are as follows:

• Corner Road – add right and left-turns at all legs of the intersection, upgrade signal
• Hadaway Road – add right and left-turns at all legs of the intersection, upgrade signal
• Mars Hill Church Road – add right and left-turns at all legs of the intersection, realignment of sidestreet to a 90 degree intersection
• Nichols Road – add a right turn lane on Nichols Road and a left-turn lane on Mars Hill Road
• Due West Road – add left turn lanes on Due West Road at approaches to Mars Hill Road
• Burnt Hickory Road – hill cut to improve sight distance on sidestreet, right and left turning lanes to be added on all approaches to the intersection
• County Line Road-Old Stilesboro Road/Durham Middle School-Frey Elementary School/Giles Road-Hill Road –right and left-turn lanes added at most approaches to intersections with a center turn lane throughout project limits, new signal at County Line-Old Stilesboro, Old Stilesboro Road hill cut to improve sight distance, sidewalk and handicap accessible ramps added at the school entrance, Mars Hill Road will be lowered several feet at Giles Road/Hill Road to improve sight distance

Big Shanty Projects

Big Shanty Extension Phase I
Final construction plans and property acquisition are scheduled to be completed this month for the Big Shanty Phase I project which will connect George Busbee Parkway at Big Shanty Road with Barrett Lakes Boulevard by taking the roadway under Interstate 75. The new road will be a four-lane divided roadway with a 10-foot-wide multi-use trail. This project is anticipated to let to construction in November with an expected construction duration of 24 months.

Big Shanty Extension Phase II
Final construction plan development and property acquisition are ongoing for Big Shanty Phase II which will connect the western end of Phase I of the extension at Barrett Lakes Boulevard to the intersection of Big Shanty Road and Chastain Road. This will be a four-lane divided roadway. It is anticipated the project will be let to construction in early 2010 after Phase I begins construction with an expected construction duration of 24 months.

Big Shanty Extension Phase III
Bids were received on July 23, 2009 for construction of this project. Construction is anticipated to begin in September with construction being complete in approximately 11 months. The project will consist of a four-lane divided roadway connecting Chastain Meadows Boulevard to the intersection of the eastern end of Phase I and George Busbee Parkway. The project approximately follows the existing alignment of Big Shanty Road with minor relocations to improve horizontal and vertical alignment.

Information relating to SPLOST transportation projects is updated regularly at www.cobbcip.org. If you have questions or comments regarding transportation projects, please contact Cobb DOT at 770-528-1621.

JUDICIAL

Courthouse

Work continues on the new courthouse, which will combine all of the county’s court services on one campus and allow Juvenile Court to move to downtown Marietta. The stormwater drainage creek has been completely piped and is now run underground. Also, all storm sewer and sanitary sewer underground utilities have been installed and tested. The building’s retaining walls have been formed and poured and water, sewer and electric devices have been placed in the basement and first floor. The basement concrete slab has been poured and the first third of the first floor’s concrete has been poured. Turner Construction continues work on the project and the courthouse should be open for business in spring 2011.

PUBLIC SAFETY

Jail

The $110 million expansion of the Cobb County Adult Detention Center continues on time and within budget. Construction of the Visitor and Administrative Buildings has been completed. With the opening of the Visitor Building earlier this year, the video visitation and bonding functions were relocated to the new facility. The construction of the Housing Tower is nearing completion with the interior work expected to be done before the end of the year. Renovation and expansion of the laundry area has been completed and renovation and expansion of the kitchen area is underway. The Housing Tower is expected to be in operation during the first quarter of 2010. When finished, the jail expansion will add more than 320,000 square feet and 1,152 beds to the Detention Complex bringing its capacity to 3,077 inmates.

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The American dream of homeownership is still attainable. Buyers just have to deal with a new set of realities.

A year after the collapse of the housing market triggered the financial meltdown, lenders are demanding more money up front, high credit scores and proof of income. Paperwork must be in perfect order. Patience and persistence are required. And don’t even bother asking about a subprime mortgage.

It’s a vastly different set of rules from earlier this decade, when home prices soared and mortgages were easy to come by.

In some ways, it’s a return to the standards that emerged as the World War II generation bought its first homes in the suburbs: Buy what you can afford. Stick to a 30-year, fixed-rate mortgage. View your home as a place to live, not as a piggy bank.  For people trying to sell their homes, the standards are different, too: Be patient and maybe even lower your asking price, because the balance of power has swung strongly to buyers.

Housing bubbles have happened before and, experts warn, could happen again. Already, home sales and prices are rising slowly, helped by tax breaks for first-time homebuyers. But real estate agents, mortgage brokers, economists and homebuyers across the country say they’ve noticed a shift in attitudes that they expect will last for years.

‘From boom to reality’

Business may be up in South Florida, but the power has shifted to the buyer. And price is the key. “If you’re not getting showings, you’re overpriced,” says Patterson, an agent with Esslinger Wooten Maxwell Realtors Inc. The record number of foreclosed homes on the market gives buyers even more leverage. “They can afford to wait,” says David Baran, a broker with Prudential Preferred Properties in Chicago.

Michael Davies and Nicole Anzia of Washington, D.C., a married couple in Washington, got caught in their first bidding war when they bought their two-bedroom condo in 2003. The seller fielded eight bids within five days of listing. The couple waived an inspection to clinch the deal and paid $372,000.

That was tame compared with what happened when they sold the condo two years later. They listed the property on a Thursday for $479,000 and held two open houses. More than 100 people showed up, and 11 bids were waiting for them by Tuesday. The final price: $605,000. The buyer waived the inspection, too.

When they tried to sell their home this May, things were different. They listed the house at the purchase price and received just one bid. The negotiation process took longer, and they sold at a $21,000 loss. The buyer demanded an inspection.

“We don’t feel like we went from boom to bust,” Davies says. “We felt like we went from boom to reality.”

Lenders ‘want to know everything’

Jim Sahnger, a mortgage broker in Jupiter, Fla., still chuckles over one borrower three years ago who landed a mortgage with no down payment and two foreclosures and a bankruptcy in his past. Now, lenders pore over bank statements, tax returns and job histories. The average mortgage application today starts three times thicker than what it was at the start of the housing boom, and often gets thicker as the process drags on.

Sometimes all the extra documentation still isn’t enough. Sahnger recently had a customer with a good job and a 20 percent down payment who couldn’t get a mortgage because the lender said there were too many delinquent mortgages in the neighborhood.

“Now, they want to know everything about the buyer,” Sahnger says. “It’s a true and full underwriting process on every particular loan.”

It is common to require a down payment of 20 percent — sometimes more. And it is virtually impossible to get subprime mortgages, which were written for people with poor credit and helped cause the meltdown when the interest rates jumped and borrowers defaulted. In 2005, one in every five mortgages was considered subprime. This year, it’s less than 1 percent.

Another category of risky loans, Alt-A mortgages, which required little or no documentation of the borrower’s financial health, have plunged to $3 billion this year from $400 billion in 2005.

‘A nightmare’ to close the deal

Mike Delano thought everything was in order. He was set to buy a $785,000 home in Washington, D.C., until he learned his lender now required a 20 percent down payment instead of 10 percent. Unlike in years past, there was no wiggle room. He had to raise the extra money from his family. “It was a nightmare,” he says.

It’s not uncommon nowadays for closings to take 60 days. One big reason: Appraisers have become more strict — or, some would say, more accurate.

During the boom years, agents and brokers often pressured appraisers to “hit the number” that the buyer and seller had agreed on so the deal would close and everyone could collect fees.  Under new industry rules, mortgage brokers are barred from ordering appraisals themselves. Instead, lenders order appraisals in-house or hire independent firms.

Some real estate agents and homebuilders say the rules are causing delays in closing sales, or undermining sales because appraisals are coming in too low.

‘We’re going to need more housing’

Nearly everyone in the real estate industry agrees on this much: Another dramatic boom-bust cycle isn’t likely soon. Albert Saiz, assistant real estate professor at the University of Pennsylvania’s Wharton School, expects that new regulations and a different consumer mind-set will help real estate return to a more traditional cycle.

There will be some ups and downs, Saiz said, but in the long run, prices should move higher. “In the end, the United States is still growing,” he says. “We’re going to need more housing.” Pava Leyrer, president of Heritage National Mortgage in Michigan, notes that the majority of people are still paying their debts. She’s confident the market will rebound once the unemployment rate begins to fall.

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Cobb County plans to send out 256,872 tax bills, and homeowners will notice a bump in their taxes thanks to a decision by the state to cut the homeowners tax relief grant this year due to falling revenues.  For the owner of a $200,000 house in unincorporated Cobb, with the normal homestead exemption, that means about $228 more in taxes.

Cobb County commissioners held the property tax rate at 28.75 mills this year.
For taxpayers in the county’s unincorporated areas, the rate breaks down to 9.6 mills for county government. That rate has stayed the same since 2006 and is the lowest in metro Atlanta — lower than the city of Atlanta and DeKalb, Fulton and Gwinnett counties, according to the Cobb County finance office’s calculations. The Cobb County Board of Education charges 18.9 mills, and the state gets 0.25 mills for debt payments.

Cobb County will have to collect about $11.5 million more from taxpayers than last year to make up for money it would normally receive from the state through the tax relief grants. Other local governments in Georgia will face a similar situation.

Property tax payments are due Oct. 15.

By Mary Lou Pickel, The Atlanta Journal-Constitution. Click here for original article.

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