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 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 Roswell/Alpharetta market, I have broken down the sales trends for 2006 through April 2009.  The chart below shows the trends for Roswell and Alpharetta, Georgia (Fulton County only) combined.

 

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 2475 homes sold with that number increasing to 3028 in 2007.  We know that that market slowdown began in summer of 2007.  This is clear by looking at the breakdown of 2007 sales: 2034 units from Jan-July and 994 units from Aug-Dec.  Total units sold in 2008 declined to 2077 with the second half of the year seeing only 734 homes sold.  Thru April 30, 2009, only 388 homes have sold so far.  If we extrapolate this for the entire year, 2009 will see approximately 1200 homes sold.  This is approximately 43% less homes sold than 2008 and about 60% less than the peak homes sold in 2007.

There are currently 1961 homes on the market.  Using a total absorption of 1200 homes for the year translates into the Roswell/Alpharetta, Georgia area having 20.2 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 $411,000.  This increased to $421,000 in 2007, an increase of  2.5%.  The average sold price peaked in the first half of 2007 at $427,000. By 2008, the average sold price was down to $417,000.  For the first four months of 2009, the average sold price has fallen to $376,000.

The average list price in 2006 was $423,000.  The difference between the average list and average sold in 2006 was 2.9%.  By 2007, the gap between list and sold price increased to 5.1%.  In 2008, the gap had further increased to 5.5%.  For the first four months of 2009, the gap reached 7.5%.

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: 55

Jan - Jul 2007: 66
Aug-Dec 2007: 76
2007: 70

Jan-Jul 2008: 80
Aug-Dec 2008: 88
2008: 83

2009: 94

As we can see, the average days on market has increased from to 55 to a current 94 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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Housing Affordability Surges to Highest Level in 18 Years

RISMEDIA, May 20, 2009-Nationwide housing affordability jumped 10 percentage points during the first quarter of 2009 to its highest level since the series began 18 years ago, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI). The HOI showed that 72.5% of all new and existing homes sold in the first quarter of 2009 were affordable to families earning the national median income of $64,000, up from 62.4% during the previous quarter and up from 53.8% during the first quarter of 2008.

"Underlying the increase in affordability are lower home prices and record low interest rates. Combined with the $8,000 federal tax credit for first-time home buyers, consumers are beginning to return to the marketplace," said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla.

 

Indianapolis was the most affordable major housing market in the country during the first quarter. Almost 95% of all homes sold were affordable to households earning the area's median family income of $68,100. Indianapolis has now topped the affordability list 15 consecutive quarters.

Also near the top of the list of the most affordable major metro housing markets were Youngstown-Warren-Boardman, Ohio-Pa.; Akron, Ohio; Grand Rapids-Wyoming, Mich.; and Syracuse, N.Y.

Several smaller housing markets posted even higher affordability scores than Indianapolis, with Sandusky, Ohio outscoring all others. There, almost 98% of homes sold during the first quarter of 2009 were affordable to median-income earners. Other small housing markets ahead of Indianapolis on the affordability scale included Monroe in Michigan and Mansfield, Springfield and Canton-Massillon in Ohio.

New York-White Plains-Wayne, N.Y.-N.J., where just over 21% of all homes sold during the period were affordable to those earning the median income of $64,800, was once again the nation's least affordable major housing market in the first quarter. Though affordability jumped 7 percentage points for the quarter, this was the New York metro area's fourth consecutive appearance at the bottom of the list. Other major metros near the bottom of the chart included San Francisco; Los Angeles-Long Beach-Glendale, Calif.; Nassau-Suffolk, N.Y.; and Honolulu.

Among smaller metro areas, Ocean City, N.J. was the least affordable market, along with San Luis Obispo-Paso Robles, Calif.; Flagstaff, Ariz.; Hanford-Corcoran, Calif.; and Santa Cruz-Watsonville, Calif., respectively.

Atlanta, Sandy Springs, Marietta was listed was listed as the sixty-fourth most affordable market in the US and ranked as the 15th most affordable in the region.

For more information, visit www.nahb.org.  For the original article, click here.

Click here for related home buyer articles.

SPLOST Update for May 2009

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

With the Cobb Department of Transportation SPLOST program progressing ahead of the original schedule and on track for completion within eight years, Cobb County's transportation system continues to improve. As of April, 246 of the 256 transportation projects were underway or completed. Of these projects, 162 have begun the right-of-way acquisition phase, 111 were completed and 164 have initiated construction - including the following:

 

21 school zone improvement projects valued at $5.4 million
31 bridge rehabilitation and replacement projects valued at $15.2 million
32 intersection safety and operational improvements valued at $19.9 million
22 thoroughfare and roadway safety improvement projects valued at $68.4 million
230 miles of road resurfacing valued at $40 million

Click here to view a Cobb County map detailing current construction locations throughout the county.

PROJECT FOCUS: SUMMER CLOSURES

Road closures are often a necessary part of a successful roadway program. Closures are required to make significant changes to the existing roadway grades, replace bridges or make roadway realignments. Cobb DOT has worked hard throughout the SPLOST program to minimize the impact of road closures by scheduling most closures during the summer school break when traffic is significantly lighter. Other efforts minimize construction time and coordinate roadway closures and detours occurring in the same areas of the county.

Click here to view a list of roadway projects that will require closure during the upcoming 2009 summer school break. As the closure nears, a specific detour map and time period will be made available at the DOT Web site under Road Reports. If you have any questions or concerns about these closures, please call DOT construction at 770-528-1653.

TRANSPORTATION MANAGEMENT CENTER

The design is complete for the Cobb County Transportation Management Center (TMC) in Marietta. The 24,000-square-foot facility will house the operations responsible for managing the county's Advanced Transportation Management System (ATMS).

The TMC features an Operations Room where images from 70 closed-circuit television cameras will be monitored for traffic surveillance on an 8 foot by 16 foot video wall. The functions of more than 500 traffic signals in the county's ATMS will be controlled from the TMC. In addition, four arterial dynamic message signs, displaying important information for motorists, will be controlled from this location as well as other dispatching services for roadway and traffic signal maintenance.

The TMC is designed according to Leadership in Energy and Environmental Design standards with Silver-Certification as a project goal and is funded by a federal grant and SPLOST funds. The project is registered with the United States Green Building Council. Construction is expected to start in May and be completed in spring 2010.

WINDY HILL ROAD/MACLAND ROAD CONNECTOR

The Windy Hill Road/Macland Road Connector is currently under construction and will provide a new four-lane roadway from the intersection of Macland Road and Powder Springs Road to the existing intersection at WindyHill Road and Austell Road. This roadway will significantly reduce travel times as well as congestion on Powder Springs Road and neighboring Callaway Road, Austell Road and Milford Church Road.

Phase I of this project includes the construction of a bridge where the new connector will pass under the existing Callaway Road near Jim Miller Park and construction of a new bridge and future roadway over Olley Creek. To build the Callaway bridge without closing Callaway Road, it was necessary to relocate the existing roadway in front of the park. Phase I construction, impacting the park and Callaway bridge, will be completed near the end of the summer, just before the next North Georgia State Fair. Phase II construction will begin this summer. Although work will continue on the Austell Road end of the project, new work will start between Powder Springs Road and Callaway Road.

CURRENTLY UNDER CONSTRUCTION

DOT has approximately 30 major projects in design and 60 projects planned to bid during 2009. Four projects under construction are highlighted below:

Stilesboro Road

Construction has been completed on Phase I of the project between the bridge over Allatoona Creek and Mars Hill Road/SR 176. This project added a five-lane section (two lanes in each direction with a continuous center turn-lane) to the existing three-lane Stilesboro Road.

Work is continuing on Phase II of the Stilesboro project. This phase is improving four consecutive intersections on Stilesboro Road at Old Stilesboro Road/Edgeboro Drive, Paul Samuel Road, Mack Dobbs Road/Tisbury Drive and Pine Mountain Road. The project will add left and right turn lanes and include the signalization of the Paul Samuel intersection. This should significantly reduce delays in this area during peak travel periods of the day. This segment of Stilesboro Road is anticipated to be completed in June.

Work is continuing on Phase III of the Stilesboro Road project. This phase will improve the existing two-lane Stilesboro Road to a four-lane section with a raised median (two lanes in each direction) from Kennesaw Due West Road to Barrett Parkway. This project is scheduled for completion in November.

Maxham Road

This project consists of widening Maxham Road from Old Alabama Road to Veterans Memorial Highway to include a raised median, widening the existing bridge over Buttermilk Creek and adding sidewalk along the west side of the roadway. This project, scheduled for completion in September, will significantly improve the safety and congestion issues experienced in this stretch of roadway.

Post Oak Tritt Road

This project consists of improvements to the horizontal and vertical alignments between Murdock Road and the Fulton County line. Curb/gutter and sidewalk will be added on the north side and the existing two bridges will be replaced. Last summer, the roadway was closed when the bridge near McPherson Road was replaced with a culvert. This summer, the roadway will be closed at the bridge west of Johnson Ferry Road as the bridge is replaced and the vertical grade is improved. This project is scheduled for completion in October.

Planning Updates

Bike Ped Plan Pushes towards Next Round of Public Meetings
Cobb DOT and its consultants are conducting ongoing data analysis for the Cobb Bicycle and Pedestrian Improvement Plan. Public feedback from the winter workshops and online survey is being developed into a set of preliminary recommendations. The next round of public meetings is scheduled for later this summer.

Austell Road Access Management Study

The Austell Road Access Management Study is underway and is progressing on schedule. Cobb DOT and its consultants are developing preliminary study recommendations based on field observations, data collection and public feedback. Public meetings held on Feb. 17 and April 16 gave area residents and business owners an opportunity to learn about the study and offer feedback.

Access Management methods are designed to improve the operational efficiency of roadways without adding lane capacity. This study distinguish between different levels of access control on the arterial network, while at the same time maintaining the predominant role of Austell Road to move traffic safely and efficiently through the corridor. The study also has potential benefits for pedestrians, bicyclists and transit users. Consideration of alternative travel modes and integration of solutions to address their needs are vital to the success of the Austell Road Access Management Study. The next public meeting will be held on June 30.

> http://dot.cobbcountyga.gov/AustellRoadLCI/index.htm

For more information about these planning studies, call Cobb DOT Planning Division at 770-528-1629 or email at planning@cobbcounty.org.

Projects on the Horizon

Austell Road Sidewalks

The Austell Road sidewalk project will start construction in May. This project will add five foot sidewalks to Austell Road on the east side of the roadway between Seayes Road and Anderson Mill Road. This project will be completed in late 2009 or early 2010. This addition will result in continuous sidewalk on the east side of Austell Road between Veterans Memorial Highway and the East-West Connector.

Hermi's Bridge

Hermi's Bridge is a one-of-a-kind steel truss bridge built in 1903. Due to its age and current condition, the bridge needs a major restoration to prolong its life.

Hermi's bridge was the original bridge on Paces Ferry Road over the Chattahoochee River until the new one was constructed in early 1972. Mrs. Hermione Alexander championed the effort to keep this bridge from being torn down and instead convert to its current use as a pedestrian bridge, parallel to the new bridge. When Alexander was killed by a drunk driver in 1984, the bridge was named for her at her husband Cecil Alexander's request. Today Cecil Alexander is championing the effort to rehabilitate this historic bridge.

This major renovation is being funded by a federal grant and SPLOST funds with assistance from the City of Atlanta and the PATH Foundation. Additional private donations have helped fund this project, including a donation from the Lovett School. Through this partnership, construction will include stripping the bridge of its current lead-based paint and repainting, replacing sections of worn out decking and railings as well as fortification of the existing piers.

Construction on this project is anticipated to begin in late May or early June and last approximately six months.

SR 176 (Lost Mountain Road/Mars Hill Road) Intersection Projects

The SPLOST program has funded a number of intersection improvement projects along SR 176. These projects include additional left and right turn lanes, improvement of sight distance at intersections and addition of center turn lanes where necessary. A portion of these projects include federal funding as well as SPLOST. These projects are anticipated to begin construction in late summer with expected completion within a year and include: SR 176/Lost Mountain Road at Corner Road, SR 176/Mars Hill Road at Hadaway Road and SR 176/Mars Hill Road at Mars Hill Church Road.

Hiram Lithia Springs Safety and Operational Improvements

Hiram-Lithia Springs 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 the crash data found on this segment of roadway. Proposed intersection improvements at Sullivan Road, Garrett Springs Drive, Sweetsprings Drive, Lewis Road and other nearby intersections are anticipated to begin construction this fall with expected completion within a year.

Information relating to SPLOST transportation projects is updated regularly at cobbcip.org. If you have questions or comments regarding transportation projects, please contact Cobb DOT at cobbdot@cobbcounty.org or 770-528-1621. The next SPLOST transportation e-newsletter will be available in August with a look ahead to fall projects.

Cobb County Department of Transportation - Summer 2009 Road Closures

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

Acworth Due West Road at McClure Road (just south of Cobb Parkway)
Constructing a hillcut on Acworth Due West Road will require closure of McClure Road, for approximately two months. This closure will occur during this summer.

Midway Road Bridge over Allatoona Creek (north of Dallas Highway)
While replacing the existing bridge, this roadway will be closed for the entire summer.

Cheatham Hill Road Bridge (between John Ward Road and Powder Springs Road)
The roadway at the bridge will be closed for the entire summer during bridge widening and rehabilitation.

Old 41 Bridge over CSX Railroad (between Stilesboro Road and Greers Chapel Road)
This roadway closure within Kennesaw Mountain Battlefield Park will begin mid-July and continue for approximately four months.

Holland Road (just north of Dallas Highway)
Hill cut will require two to three month closure this summer. This closure will occur just north of the intersection of Old Dallas Road.

North Church Lane over CSX Railroad (just south of Atlanta Road)
Bridge replacement will require closure for approximately five months starting on May 25 through the summer.

Hamby Road Bridge
The existing bridge will be replaced with a culvert and require closure for the entire summer.

Holly Springs Road at Sewell Mill Creek
Closure began in the spring and will extend through the summer. It will be coordinated with the road closure required by replacement of the nearby Sewell Mill Road over Sewell Mill Creek bridge.

Sewell Mill Road at Sewell Mill Creek
Closure of Sewell Mill Road at the bridge is anticipated after school starts back in the fall. Coordination will be required because of the closure of Holly Springs Road at the bridge over Sewell Creek.

Smyrna-Powder Springs Road/Benson Poole Road
Smyrna-Powder Springs Road will be closed during the entire summer while replacing the bridge over Favor Creek. In addition, the intersection re-alignment of Smyrna-Powder Springs Road at Benson Poole Road will require closure for several weeks this summer.

Floyd Rd at Clay Rd Project
Maran Lane closed for realignment at Clay Road this spring and summer (for approximately four months)

Flint Hill Road at Perkerson Mill Road
Project will be closed late spring and early summer to replace a culvert and raise the grade of the existing roadway over the culvert.

Smyrna Powder Springs Road (two closures)
The Favor Creek Bridge will be replaced with a culvert requiring a roadway closure at the bridge throughout the summer. Benson Poole Road will be closed just north of Smyrna Powder Springs Road for realignment with Smyrna Powder Springs Road. This closure will also be in effect for the entire summer.

Allgood Road
Allgood Road will be closed just east of Rockcrest Drive for the entire summer for major roadway improvements.

Post Oak Tritt Road
The Post Oak Tritt Road bridge over Piney Grove Creek (between Hembree Road and Johnson Ferry Road) will be closed for the entire summer to replace the existing bridge.

Jail Expansion

In the summer of 2007, county officials broke ground for the $110 million expansion of the Cobb County Adult Detention Center. The project continues on time and within budget. The new Visitor's Center opened to the public March 16 and has been well received. Work on the Administration Building has been completed and it will be occupied by the end of May. The Housing Tower is scheduled for completion in November. Renovation and expansion of the laundry area has been completed and renovation and expansion of the kitchen is underway. Final renovations are scheduled to be completed by December. When finished, the jail expansion will add more than 320,000 square feet and 1,152 beds to the facility, bringing its capacity to 3,077 prisoners.

New Courthouse

On May 14, Cobb dignitaries gathered to break ground for the new courthouse. SPLOST funds of $63 million will finance the project. In April, the Cobb Board of Commissioners approved adding approximately $8 million to the original $55 million budget to cover costs of an additional floor for future growth. This building will combine all of the county's court services on one campus and allow Juvenile Court to move to downtown Marietta. The new building will also provide state-of-the-art security and a larger jury assembly room. Turner Construction has begun work on the project and the courthouse should be open for business in spring 2011.

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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 Cherokee market, I have broken down the sales trends for 2006 through April 2009.  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 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 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.  Thru April 30, 2009, only 595 homes have sold so far.  If we extrapolate this for the entire year, 2009 will see approximately 1800 homes sold.  This is 25% less homes sold than 2008 and about 50% less than the peak homes sold in 2007.

There are currently 2726 homes on the market.  Using a total absorption of 1800 homes for the year translates into Cherokee County having 18.3 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 $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 has fallen to $219,000.

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%.

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: 77

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

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

2009: 84

As we can see, the average days on market has increased from to 77 to a current 84 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.

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 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 Cobb market, I have broken down the sales trends for 2006 through April 2009.  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 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 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.  Thru April 30, 2009, only 382 homes have sold so far.  If we extrapolate this for the entire year, 2009 will see approximately 1200 homes sold.  This is 33% less homes sold than 2008 and about 50% less that the peak homes sold in 2007.

There are currently 1627 homes on the market.  Using a total absorption of 1200 homes for the year translates into East Cobb having 17 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 $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 has fallen to $303,000.

The average list price n 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%.

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: 57

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

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

2009: 93

As we can see, the average days on market has increased from to 57 to a current 93 days.

ANALYSIS

Units Sold

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.  Thru April 30, 2009, 1092 homes have sold so far.  If we extrapolate this for the entire year, 2009 will see approximately 3300 homes sold.  This is about 20% less homes sold than 2008 and about 43% less that the peak homes sold in 2007.

There are currently 4173 homes on the market.  Using a total absorption of 3300 homes for the year translates into West Cobb 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 $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 has fallen to $185,000 which represents a decline of 21% from the same period in 2008 and a 26% drop from the peak price in 2006 and early 2007.

The average list price n 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%.

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: 73

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

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

2009: 98

As we can see, the average days on market has increased from to 73 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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Marietta is celebrating its 175th birthday all year long, and you're invited to party with a bang at a special birthday tribute concert featuring Beatles cover band The Return May 29 at 8 p.m.  Everyone is invited to help create a birthday party atmosphere in Glover Park by decorate their tables, blankets, and lawn chairs with festive birthday decorations. A contest will pick the winners.

Free birthday cake will be served while it lasts, and there will be face painting and balloon animals for the kids.

The Glover Park Concert Series on the Marietta Square is the place to be in Marietta the last Friday evening of each month April through September. The park is the perfect setting for families and friends to enjoy a picnic and listen to music under the stars.  Concerts are rain or shine. Blankets and lawn chairs may be set up after 4 p.m. No personal tables are permitted in the park.

2009 Concert Schedule

* May 29: The Return (Beatles Tribute Band)
* June 26: Infinity Show Band (Beach/Oldies)
* June 27: Cobb Symphony Orchestra
* July 31: Grapevine (Rock n' Roll/Beach)
* August 28: The Mustangs (Pop/Oldies)
* September 25: Ryan Casper (Country)

The free concerts are presented by the Marietta Parks and Recreation Department and the Downtown Marietta Development Authority. The generous support of our premier sponsors makes this popular event possible.

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

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The National Association of Realtors said Wednesday said its seasonally adjusted index of pending sales for previously occupied homes rose 2.1 percent - in line with expectations - to 82.1 in February from January's record low of 80.4. An index that tracks signed contracts to purchase previously occupied homes rose in February from a record low a month earlier as buyers took advantage of deeply discounted prices and low interest rates.

Typically there is a one- to two-month lag between a contract and a done deal, so the index is a barometer for future home sales. Because of falling home prices and mortgage rates, homeownership is more affordable than it's been since at least 1970, the trade group said. Hopes have been growing that home sales, while still severely depressed, may be finally showing signs of life. Sales of existing home sales rose 5.1 percent in February, the largest increase in nearly six years.

Prices, however, are expected to keep falling for at least another year. Tens of thousands of homes are tied up in the foreclosure process and not yet for sale. Plus, as the recession deepens and job losses mount, many buyers are likely to stay on the sidelines. The Realtors estimate that 45 percent of existing home sales are now foreclosures and other distressed properties. Many in the real estate industry are counting on an $8,000 tax credit for first-time homebuyers as their best hope for boosting flagging sales. That incentive was included in the economic stimulus package signed by President Barack Obama earlier this year.

"We expect home sales to gain momentum in the second half of the year with first-time buyers absorbing a lot of the excess inventory," Lawrence Yun, the trade group's chief economist, said in a statement. "Under these conditions, we should see price stabilization in most markets by the end of the year."

Reprinted from Yahoo news.  Click here to read the original post.

A real estate licensee is prohibited from preparing an "appraisal" unless he or she also holds the appropriate appraisal classification. Appraisers are regulated by the Georgia Real Estate Appraisers Board (GREAB). GREC and GREAB are two separate entities each with its own set of members. However, GREC staff also provides administrative support for the GREAB.

A licensee may provide an "Opinion of Value," so long as it is not conditioned upon some circumstance such as obtaining the listing if the value is determined to be in a certain price range. A licensee may also be paid for developing the opinion of value.  Sometimes the opinion of value is referred to as a BPO or Broker Price Opinion or Broker Property Opinion. No matter what it is called, it is merely an opinion and does not carry the weight or authenticity of an appraisal.

Although a broker or any licensee is trained to research comparable sales and be familiar with the market, a real estate licensee does not receive extensive and specialized training regarding valuing properties. A professional appraiser uses more complex valuation methods and is required to obtain experience in valuing different types of properties. An appraiser may use several approaches to value and apply a weighted average as appropriate: The most common approaches to valuation include:

1. Income Approach
2. Cost Approach
3. Comparable Sales Approach

When a licensee offers, or agrees, to provide a BPO, it is important that the licensee state very clearly that it is only his/her opinion and not an appraisal.  Before offering an opinion of value, the licensee should first determine the purpose of the BPO. The law provides that a real estate licensee, "in the ordinary course of real estate brokerage business," may offer an opinion of value "to a potential seller, purchaser, landlord, tenant, or third party as to the recommended listing, lease, rental, or purchase price of real estate or real property" [O.C.G.A. § 43-39A-24].

Although there are national organizations promoting the charging of fees for BPOs and acting as middle men to schedule BPOs, they are not regulated or monitored by any licensing agency. They are basically marketing organizations and are not familiar with local real estate laws. Each state addresses the right of the licensee to provide opinions of value. Georgia allows the licensee to perform an opinion of value provided it is merely an opinion and is not contingent upon some service. In addition to being in compliance
with license laws, the licensee must also consider the ethical question as to whether he/she is qualified or has the experience to provide such an opinion. It may be best to refer the request to a professional appraiser.

By nature, real estate agents want to be helpful especially if their assistance will insure the specific real estate transaction will close. However, an occasional review of the type of support a licensee can provide has merit. In general terms, if the services are for the client, the licensee can provide many real estate services, but must be careful to be accurate and not go beyond his/her level of expertise, exaggerate or make unfounded promises. If the services are for the customer, the licensee must be very careful to provide only ministerial services. In other words, if the license must use his/her discretion, analysis or judgment, it is not ministerial and therefore cannot be done for the customer without the potential for dual agency. Opinions are often construed as giving advice. The real estate licensee is seen as an expert in the field of real estate and must be careful when offering opinions
especially when it may be a subject beyond their level of expertise.

Reprinted from the GREC RENewsletter, Volume 5, Issue 3, March 2009.

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Two community wide egg hunts planned for Friday and Saturday, April 4 & 5

The Hunt 2009 at Jim Miller Park had to be canceled due to inclement weather, but the Cobb County Parks, Recreation and Cultural Affairs Department is planning two community wide hunts this weekend. Ward Recreation Center, located at 4845 Dallas Highway, Powder Springs, will host an event 5:30-7:30 p.m., Friday, April 3. For more information, call 770-528-8885. Ron Anderson Recreation Center, located in Wild Horse Creek Park at 3820 Macedonia Road, Powder Springs, will host an event 11 a.m.-2 p.m., Saturday, April 4. For more information, call 770-439-3611.

 

Big music stars set to perform at Mable House this summer

Music legend B.B. King is just one of the many entertainers signed up to perform at the Mable House Barnes Amphitheatre this season. Other famous acts scheduled include The B-52s, Kenny G., Montgomery Gentry, Peter Frampton, KC and the Sunshine Band, the musical "Smoke on the Mountain" and the Marshall Tucker Band.

"It's a higher level of artist than we've had before," Cobb County Cultural Affairs Director Elizabeth Weaver said. "I think this is a good representation of our ‘please bring them' list." She explained that each performer was requested in surveys of previous concertgoers.

King, who will perform Wednesday, Sept. 2, has personified blues music for more than half a century with signature hits such as "The Trill is Gone," "Payin' the Cost to Be the Boss" and "How Blue Can You Get." He has released more than 50 albums since he started recording in the 1940s. It will be the first time King has performed at the Mableton venue.

Country duo Montgomery Gentry, consisting of Eddie Montgomery and Troy Gentry, will open the season Friday, May 29. The two have spent a decade on the national stage with more than 20 charted singles and hit the top of the charts three times with "If You Ever Stop Loving Me," "Something To Be Proud Of" and "Lucky Man."

KC and the Sunshine Band, known for the classis dance song "That's the Way (I Like It)," will perform on Saturday, June 13. Smooth jazz saxophonist Kenny G. will take the stage accompanied by the Cobb Symphony Orchestra on Saturday, June 20. The Marshall Tucker Band, which hit the charts with "Heard It in a Love Song," will perform its Southern rock on Friday, June 26. New Wave rock band The B-52s, known for hits such as "Love Shack" and "Rock Lobster" will bring its trademark vocals Friday, Aug. 14. Classic rocker Peter Frampton, whose "Do You Feel Like I Do" became a charted hit in 1976 on one of the best-selling albums in history, will play Wednesday, Aug. 19. "Smoke on the Mountain," a bluegrass gospel musical, will close the season Sept. 18-20.

Season tickets will be available Monday, April 13, and individual tickets go on sale Monday, April 20. Tickets for individual shows range from $15 to $55. Four person tables in front of the stage are available for $350 per show. The Mable House Barnes Amphitheatre is located at 5239 Floyd Road, Mableton. To buy tickets, call the box office at 770-819-7765, visit the Jennie T. Anderson Theatre box office in the Cobb Civic Center or visit mablehouse.org or ticketmaster.com.

A living legend coming to Anderson Theatre

Mickey and Jan Rooney will celebrate their 29 years of marriage and his more than 80 years in show business during their "Let's Put on a Show" performance 8 p.m., Saturday, April 4. Tickets are $30. The show will be at Jennie T. Anderson, located in the Cobb Civic Center, 548 South Marietta Parkway, Marietta. Tickets are on sale now. To purchase, call 770-528-8490 or visit ticketmaster.com. For more information, visit cobbcounty.org/PRCA.

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The Georgia Senate passed a version of H.B. 261 allowing Georgia home buyers to receive a tax credit of up to $3,600 (or 1.2 percent of the purchase price, whichever is less).  The credit would not exceed $1,200 per year and any unused portion can be carried forward for two years.

The purpose of the bill is to create a stimulus for home sales, supporters say.

The bill would cost Georgia about $166.3 million, according to a letter from State Auditor Russell Hinton to the chairman of the state House Ways and Means Committee.

Opponents say the cost of the tax break is too great, and the number of sales it would generate too few, to make it worthwhile.

The House must still agree to the bill, which was amended in the Senate to allow the credit to apply to condos. It was also amended to allow taxpayers the choice of donating to the National Multiple Sclerosis Society, Georgia Chapter on their income tax forms.

If the bill makes it out of the reconciliation committee, it will go to the Governor for signature into law.

Write your representatives and urge them to pass this bill.  You can find your legislator here.

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General Information for Buyers

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