Barry's Real Estate Blog

Back in the spring, Congress passed a federal tax credit for first time home buyers (or any one not having owned a home in the past three years) as part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation.

One of the key points of this credit was that the home had to be purchased (i.e. closed on) by November 30, 2009.  We have now hit the 100 day countdown to that date.
If you are someone who is eligible for the tax credit and still considering making a purchase, let’s look at what you need to do to get this credit by working backwards from the expiration date.

The credit expires at the end of Monday, November 30, 2009.  Since this is a Monday and the previous week is Thanksgiving, you effectively need to have all of your paperwork and loan work completed by the previous Monday, November 23.

It typically takes about 30 days to go through the closing process once you are under contract.  However, with the new appraisal guidelines and other factors, 45-60 days is becoming the norm.  We’ll use 30 days for now.  This means that you need to be under contract on your home by October 23, 2009.  During this 30 day period, you will conduct your inspections and perform any due diligence.  Your lender will work with you to complete your application and order an appraisal of the property.  If you have any challenges in your credit or financial background, the lender may need more time.

Assuming you can get everything done in 30 days, you now have 60 days to find your home, place an offer and negotiate to get it under contract.  That may sound like a lot of time but it depends on several factors:

1) How flexible are you with your home requirements?

2) What is the level of inventory available to you in the area you want and in the price range you want??

Assuming everything goes smoothly, now is the time to get serious about buying.  This tax credit is a great opportunity for home buyers and will most likely not be seen again.  When you factor in low prices, historically low interest rates and the credit, anyone who can qualify for this credit should seriously consider making a move now.

Please contact me for more information on the tax credit, current market conditions or to see a home you’re interest in.  And, don’t forget about the GA Tax Credit available to all buyers.

Here is some more information on the tax credit from housingmarketfacts.com

Breaking news: Tax Credit Can Be Used on Closing Costs.

Who Qualifies?

First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009.   To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

Which Properties Are Eligible?

The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Will the Credit Be?

The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors:

• The price of the home—the credit is equal to 10% of the purchase price of the home, up to $8,000.
• The buyer’s income—single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum tax credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $95,000 for singles and over $170,000 for couples are not eligible for the credit.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.

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This home offers a great value at this price.  Built in 1999, this brick front home is located in Brookstone which features swim, tennis, golf course and country club amenities.  The home offers 4 bedrooms and 2.5 bathrooms plus a finished basement.

Brookstone is located in Acworth at the intersections of Stilesboro and Mars Hill Roads.

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Overview of the Area:

This home is convenient to the major roadways including Stilesboro Road, Dallas Highway/Highway 120, Highway 41/Cobb Parkway, and I-75.  The schools are Picketts Mill Elementary, Durham Middle and Allatoona High School, all part of the Cobb County School District.

Town Center Mall, The Avenues of West Cobb, Marietta Square, and Kennesaw Mountain Battlefield National Park are all within 20 minutes.

Click here for a map of this home’s location.

Overview of Exterior:

This is a classic brick front with three sides hardiplank, traditional style home with a large, level 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 two story great room with fireplace.

Next to the great room is the breakfast area and kitchen. The large, open kitchen features granite counters and tile backsplash.  The refrigerator is included with the sale of the home.

There is a deck off the breakfast area that overlooks the large backyard. The laundry room is also located on the main floor.

Overview of Upper Floor:

After ascending the stairs to the upper level, you will see 4 bedrooms.  The master bedroom has a vaulted ceiling and a large area.  The master bathroom has a separate jacuzzi tub and shower plus separate vanities.

The other three bedrooms upstairs are good sized as well.

Overview of Terrace Level:

This home offers a finished daylight basement with rooms that can be used as a playroom (the 52″ projection TV stays!!) as well as a media room or 5th bedroom.

Price:

This home is currently being offer at $255,000.  This price reflects a true buying opportunity.  Other similar homes in the area are priced well into the $300,000 range.

Enjoy,

The Voice of North Atlanta Real Estate

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

5061 Avalon Drive, Alpharetta, GA 30005

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Great location, excellent condition and an affordable price!  This is a fantastic condo with 2 large bedrooms and 2 full bathrooms.  Located in Alpharetta in Fulton County in the Camden Pond complex off Old Milton Parkway.

Overview of the Area:

5061 Avalon Drive is located off Old Milton Parkwway and less than two miles form GA-400.  It is approximately five miles from North Pointe Mall and offers easy access to  Atlanta, Roswell, downtown Alpharetta, Cumming and the Perimeter areas.  This condo is located in the Fulton County school system.  The schools are Creek View Elementary, Webb Bridge Middle and Alpharetta High School.

Click here for a map of this home's location.

Overview:

The first great feature of this condo is that it is located on the ground level and offers a stepless entry.  As you enter the home, you'll notice the open floor plan and large family room featuring a fireplace.  Access the covered patio is also off the family room.

The kitchen is a open and features lots of windows plus a large breakfast area.

This condo offers two large bedrooms which can be used as a master and guest room or as a roommate plan.  The master bathroom has two separate vanities, jacuzzi tub and separate shower.  There is also a walk-in closet in the master.  The second bedroom offers a large bay window and closet.  The second full bathroom is directly outside this bedroom. The laundry room is located off the hallway and the washer and dryer are included in the sale.

This unit also comes with two assigned parking spaces directly in front.  The side entry offers more privacy as well.

Miscellaneous:

The HOA dues are $225 per month and include water, trash, termite coverage and exterior maintenance and swim and tennis privileges.

Price:

This condo is currently being offer at $116,000. 

Enjoy,

The Voice of North Atlanta Real Estate

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3955 Old Atlanta Station Court, Smyrna, GA 30080

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Great location, excellent condition and an affordable price!  This is a fantastic townhome with 3 large bedrooms and 3.5 bathrooms.  Located in the city of  Smyrna in Cobb County in the Old Atlanta Station complex off Atlanta Road.

Overview of the Area:

3955 Old Atlanta Station is located off Atlanta Road just inside the perimeter.  It is less than 1 mile from I-285 and offers easy access to downtown Atlanta, the Galleria area, Buckhead and the airport. The townhome is located in the highly sought after Cobb County school system.  The schools are Nickajack Elementary, Campbell Middle and Campbell High School.

Click here for a map of this home's location.

Overview of Main Floor:

As you enter the home, you'll notice the lovely designer colors and earth tones.  This home has crown moulding and all of the touches you would expect in a luxury townhome.  There are hardwood floors through the main level as well.

The dining room is located off the entry and features large windows with lots of sunlight.  The kitchen is a dream with maple cabinets, granite counter and tile backsplash as well as stainless steel appliances.  The kitchen also has a breakfast bar and opens to the family room with  shared two-sided fireplace.

The family room is large and provides access to the private deck. There is also a half bath on the main floor.

Overview of Upper Floor:

There are two large bedrooms are upstairs.  The master has a try ceiling and large master beathroom.  The master bathroom has a double sink vanity, garden tub and shower as well as a walk-in closet.  The second bedroom offers a large sitting area, walkin closet and private bathroom.  The laundry room is also located upstairs.

Overview of Basement:

The basement level is completely finished and can be used as a media room, playroom or office or third bedroom.  The basement has a full bathroom and closet space.  Also located on this level is the two car garage.

Miscellaneous:

The HOA dues are $195 per month and include water, trash, termite coverage and exterior maintenance.

Price:

This townhome home is currently being offer at $300,000.  ULTIMATE BUYER'S PACKAGE:  $10,000 closing costs + 6 months HOA dues paid by Seller with contract by Nov. 30, 2009.  ACT NOW!

Enjoy,

The Voice of North Atlanta Real Estate

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Fourth of July Celebration

The city of Marietta's Fourth in the Park celebration begins July 4 at 10 a.m. and includes a parade, free live concerts, museum tours, arts and crafts show, food, carnival games and fireworks finale.

The Marietta Freedom Parade includes 110 entries, 2,000 participants and an estimated 30,000 spectators.

The parade begins at 10 a.m. at Roswell St. Baptist Church and travels west on Roswell Street, north on E. Park Square past Glover Park and the Square, down Cherokee Street and ends at North Marietta Parkway.

Entries include marching units from the city of Marietta, Air National Guard Band of the South, civic organizations, beauty queens, scouts and local businesses.

Museums and shopping

The Marietta Welcome Center will be open from 10 a.m.-4 p.m. The Marietta Gone With the Wind Museum and Marietta History Museum will be open for tours. Historic walking tours are also available. Unique shops located around the Square will have special July 4 hours. For details, call the Marietta Welcome Center at 770-429-1115.

Entertainment Schedule

10:00 am - Let Freedom Ring Parade
12:00 pm - Colgate Country Showdown
2:00 pm - National Bell Ringing
2:15 pm - Parade Awards Ceremony
2:30 pm - Cobb Wind Symphony
8:00 pm - Peachtree Station
Dark - Fireworks

Arts and crafts show

With 80 vendors: 10 a.m.-9 p.m.

Food

Concessions for sale: 10 a.m.-9 p.m.

Carnival Games

Tickets for games available at booths located throughout the park: 10 a.m.-5:30 p.m.

Fireworks

The fireworks display is scheduled to begin at 9:30 p.m. and will be shot from the First United Methodist Church parking lot. KICKS 101.5 FM will broadcast patriotic music during the fireworks. Rain date for fireworks is July 6 at 9:30 p.m.

Information Flyer

Participant Information

Map of Parade Route

For more information, call Marietta Parks and Recreation at 770-794-5601.

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According to Cobb County Tax Commissioner Gail Downing, homeowners will face a property tax bill increase during the next two years. The state Homeowner's Tax Relief Grant that previously funded a tax credit on homesteaded property will not be available this year or next.

"Declining state revenues during the current recession left the state without enough money to give the tax relief credits that homeowners have become accustomed to," Downing said.

Most Cobb homeowners will see an increase of about $228 on their 2009 tax bills. Those with a School Tax Exemption will see an increase of about $77. Increases will vary for homeowners living within one of Cobb's six cities.

In 1999, the governor and General Assembly appropriated the grant to counties, cities and schools, giving tax relief to homeowners in the form of a tax bill credit. According to legislation passed this year (House Bill 143), the grant will only be made available in the future if state revenues grow at least 3 percent plus the rate of inflation.

Downing believes giving homeowners advance notice will help them prepare for the increase when tax bills are issued in August. Homeowners can determine the exact amount of the 2009 increase by accessing their 2008 account information at www.cobbtax.org under the "Property Taxes" tab; search by parcel ID or address. The "Homeowners Tax Credit" deducted on the 2008 tax bill is the amount their bill will increase for 2009. Many homeowners with mortgages will need to make sure their tax escrow accounts are properly funded since their property taxes are paid by their mortgage company.

"It's unfortunate in slow economic times to have to deliver this message, but homeowners need this information so they can budget accordingly," Downing said.

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Six schools in Cobb and Fulton counties were among the metro area's top 10 performers on this year's high school graduation tests.

Scoring highest among metro schools with at least 50 test-takers was Cobb's Walton High School, with a 98.4 percent passing rate on the Georgia High School Graduation Tests.

Students in Georgia are required to pass all four tests, in mathematics, science, English language arts and social studies, to graduate.

Other top scorers, behind Walton High, were: two other Cobb County schools, Pope High and Lassiter High; Cherokee County's Etowah High School and Woodstock High; DeKalb School of the Arts; Fulton's Northview High, Chattahoochee High School and Alpharetta High; and Gwinnett County's Brookwood High.

Statewide data, showing improved passing rates on all four tests this year, was released by the Georgia Department of Education last month. School-by-school figures came out Monday.

Students have multiple chances to take the test; if they still fail, they can appeal to the state Board of Education for a waiver.

Find your school: Metro test scores

2009 High School Graduation Test Scores

2009 CRCT Scores

2008 SAT Scores

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Contracts signed show a big jump, especially in the Northeast, another indicator the market may be bottoming

Low interest rates and an $8,000 tax credit for first-time home buyers helped push pending home sales up for the third month in a row, another indication that the decline in the real estate market may be stabilizing, the National Association of Realtors reported on June 2.

 The group's Pending Home Sales Index, a forward-looking indicator based on contracts signed in April, rose 6.7%, to 90.3 from a reading of 84.6 in March, and is 3.2% above April 2008, when it was 87.5, the group said. Economists surveyed by Thomson Reuters (TRI) had expected the index would edge up to 85 from a reading of 84.6 in March. It was the biggest monthly jump since October 2001.

Pending home sales activity was greatest in the Northeast, where the index increased 32.6%, to 78.9, in April, 0.8% above a year ago. The only region that showed a decrease was the South, where the index declined 0.2%, to 93.0, 3.5% higher than a year ago. In the Midwest the index rose 9.8%, to 90.4, and is 11.1% above April 2008. In the West the index rose 1.8%, to 94.8, but is 2.9% below a year ago.

VERY FAVORABLE CONDITIONS
Lawrence Yun, the group's chief economist, said buyers are responding to very favorable market conditions, and while the total number of existing-home sales is expected to improve, there will be sharp local variations. "The market has already bottomed in some areas, but this is an unusual housing cycle with some areas improving rapidly while others languish or decline," Yun said in a news release.

Typically there is a one- to two-month lag between a contract and a done deal, so the index is a barometer for future existing-home sales.

Paul Dales, U.S. economist for Capital Economics in Toronto, said in a report that if the April increase in pending home sales is reflected fully in existing-home sales numbers, it would bring them to an annual rate of 5.1 million, a level last seen before the collapse of Lehman Brothers in September.

"The pending home sales index has now improved for three months in a row, adding to the evidence that housing activity is finding a floor," Dales wrote. Nevertheless, even if existing-home sales were to rise to 5.1 million, they would still be 30% below their peak. Accordingly, even if activity is finding a floor, it is at staggeringly low levels."

Original article by Phil Mintz, Business Week.  Click here to see original article.

 SEE RELATED HOME BUYER ARTICLES

March stats in national Case-Shiller index offer hope, local analysts say.

Metro Atlanta home prices kept falling in March, but the pace of decline slowed a bit, according to a closely watched index.

Local prices slipped 1.5 percent in March from February, following several previous month-to-month declines of more than 2 percent. Still, on a year-to-year basis metro Atlanta home prices were down almost 16 percent from March 2008, dropping to levels not seen since late 2000, according to the Standard & Poor's/Case-Shiller National Home Price Index.

But the long fall is over, argued Steve Palm, president of SmartNumbers, a real estate research firm in Marietta.

"Case-Shiller is a great survey, but you just can't read too much into that," he said. "We have every [home loan] closing tracked, so I know February was the bottom."

Buyers closed on 3,303 homes in April, up more than 20 percent from March although down 21 percent from a year ago, Palm noted.

During April, sale prices averaged $191,803, up 4.4 percent from March although down 18 percent from a year ago.

Residential real estate typically sees sales surge as spring slides into summer.

Whether April's data is more than a whiff of recovery depends on whether the spurt of demand can soak up huge inventories of unsold homes. That challenge is made greater as foreclosures and bank sales continue flowing into the market, dragging down the value of surrounding homes.

Half, if not more, of all recent resales have been bank or foreclosure sales, said Eugene James, division director for MetroStudy in Atlanta.

Inventory has started to drop, "but more importantly, the number of foreclosed listings are 13 percent of the total, which is lower than this time last year," James said. "These are good signs."

Nationally, home prices dropped 19.1 percent in the first quarter from a year earlier, according to the Case-Shiller Index, which is based on a 20-city survey. They are down 32.2 percent since peaking in the second quarter of 2006.

Prices never soared in Atlanta the way they did in Las Vegas or Southern California. Prices here are down about 21 percent since the peak, compared to roughly 40 percent in Los Angeles and nearly 50 percent in Las Vegas.

Markets within each metro area vary widely as well. Some areas of Atlanta have already seen prices rise modestly. It's just that the broader region shares some problems cooked into the housing bubble.

Declining prices are the result of too many homes for sale, combined with financial trouble for many boom-time buyers.

That combination swelled the normal pool of homes for sale -- and that means the market will continue coping with the aftermath of the housing bubble, said Jim Crawford, a Roswell-based Realtor with Re/Max of Greater Atlanta.

"The Atlanta market, due to the no-money-down financing -- has been extremely difficult," he said. "It may remain that way in the near term."

One house's ups, downs

The metro Atlanta housing market has seen remarkable highs and lows. Here is how the sale price on one house in Clayton County, in zip code 30236, has fluctuated in recent years, based on numbers from SmartNumbers.

> The house, located in the Lake Spivey Country Club area, originally sold for $216,000 in 1993 as new construction.

> The first three times the property changed hands, the price went up. It sold in June 2005 for $343,000, a 59 percent jump from the original sale price; in September 2005 for $440,000, a 28 percent increase; and in January 2006 for $480,000, another 9 percent increase.

> In November 2007, with the housing boom over, prices metro-wide dropping and Clayton County's school system woes coming to a boil, the house went on the market for $334,400, a 30 percent decrease from the previous sale price.

> Within the month the asking price was cut 18 percent, to $274,900 . The listing expired on Nov. 30 and the house had not sold.

> In early 2009, the house, then bank-owned, was relisted for $251,900 .

> The house sold in April at auction, in fairly good condition and after 533 days on the market, for $136,500.

Article By Michael E. Kanell, Michelle E. Shaw
The Atlanta Journal-Constitution

See Related Posts:

Home Values Survey Shows Discrepancy Between Sellers', Buyers' and Agents' Perceptions of the Housing Market

Atlanta's Home Prices Drop 11.2% But Still Better Than Most Other Places

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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 6 - 9 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.

On the positive side, we have low interest rates, an $8000 federal tax credit for first time buyers, an $1800 Georgia state tax credit for all buyers and a buyer's market.  On the negative side, high unemployment, low consumer confidence and a credit crunch have kept buyers from jumping back into the market.

To get a clear picture of the overall Atlanta market, I have broken down the sales trends for 2006 through April 2009.  The chart below shows the trends for all of the Atlanta using the FMLS data for single family homes.

EXPLANATION OF CHART

This chart shows the number of homes sold in 2006, 2007, 2008 and 2009 (thru April).  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 saw 46,437  homes sold with that number increasing to 58,115 in 2007.  We know that that market slowdown began in summer of 2007.  This is clear by looking at the breakdown of 2007 sales: 37,497  units from Jan-July and 20,618 units from Aug-Dec.  Total units sold in 2008 declined to 46,677 with the second half of the year seeing only 18,178 homes sold.  Thru April 30, 2009, only 11,631 homes have sold so far.  If we extrapolate this for the entire year, 2009 will see approximately 35,000 homes sold.  This is approximately 25% less homes sold than 2008 and about 40% less than the peak homes sold in 2007.

There are currently 44,351 homes on the market.  Using a total absorption of 35,000 homes for the year translates into the metro-Atlanta area having 15.3 months of inventory.  A balanced market is typically in the 7-9 month range of inventory.

Average Sales Price and Average List Price

In 2006, the average sold price was $264,000.  This increased slightly to $265,000 in 2007.  The average sold price peaked in the first half of 2007 at $269,000. By 2008, the average sold price was down to $229,000.  For the first four months of 2009, the average sold price has fallen to $184,000.

The average list price in 2006 was $271,000.  The difference between the average list and average sold in 2006 was 2.7%.  By 2007, the gap between list and sold price increased to 3.4%.  In 2008, the gap had further increased to 6.1%.  For the first four months of 2009, the gap reached an amazing 20.0%.

The continued growth in the gap between list and sold prices clearly shows that while the number of homes sold has slowed dramatically, the pressure on price has increased.  Even though the average list price is down considerably from the high points in the market, sellers are going to have to price their homes attractively in order to capture the lower number of buyers.

Average Days on Market

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

2006: 76

Jan - Jul 2007: 84
Aug-Dec 2007: 91
2007: 87

Jan-Jul 2008: 95
Aug-Dec 2008: 91
2008: 94

2009: 98

As we can see, the average days on market has increased from to 76 to a current 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.

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