Fortune Magazine - It's Time to Buy Again

That's right. In a recent article in Fortune Magazine, the author says:

"Forget stocks. Don't bet on gold. After four years of plunging home prices, the most attractive asset class in America is housing."

You can read the article for yourself to decide if you agree with his fundamentals. One thing that I am seeing a lot of in Atlanta is multiple buyers bidding on the same house. In the last three months, I've had 10 situations where my clients have been bidding against other buyers. These situations aren't for $40,000 foreclosures. They have been in all price ranges and in various parts of the city. My main takeaway - there are buyers in the market who are ready to buy when the deal is right.

Read the full article at: http://finance.fortune.cnn.com/2011/03/28/real-estate-its-time-to-buy-again/

Justin Landis
Keller Williams Realty Peachtree Road
404-803-0471
justin.landis@kw.com

Existing-Home Sales Rise Again in January

This is pretty interesting info.

I was surprised that the total number of sales in January 2011 were 5.3% higher than in January 2010. Last year, we were in the midst of the first time home buyer tax credit, which really boosted that segment of the market.

The biggest growth in January 2011 was investor purchases, which rose to 23% of all sales. With housing prices depressed, a lot of buyers are investing in real estate. If you've ever thought about it, give me a call, and I'll send you a copy of Gary Keller's book The Millionaire Real Estate Investor. It does a great job outlining a conservative plan to growing wealth through real estate.

Below is snippet of the article. You can read the entire article about home sales, prices, mortgage rates, etc. at Realtor.org.

"The uptrend in existing-home sales continues, with January sales rising for the third consecutive month with a pace that is now above year-ago levels, according to the National Association of REALTORS®.

Existing-home sales¹, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 2.7 percent to a seasonally adjusted annual rate of 5.36 million in January from a downwardly revised 5.22 million in December, and are 5.3 percent above the 5.09 million level in January 2010. This is the first time in seven months that sales activity was higher than a year earlier.

Lawrence Yun, NAR chief economist, said the improvement is good but could be better. “The uptrend in home sales is consistent with improvements in the economy and jobs, which are helping boost consumer confidence,” Yun said. “The extremely favorable housing affordability conditions are a big factor, but buyers have been constrained by unnecessarily tight credit. As a result, there are abnormally high levels of all-cash purchases, along with rising investor activity.”

A parallel NAR practitioner survey² shows first-time buyers purchased 29 percent of homes in January, down from 33 percent in December and 40 percent in January 2010 when an extended tax credit was in place.

Investors accounted for 23 percent of purchases in January, up from 20 percent in December and 17 percent in January 2010; the balance of sales were to repeat buyers. All-cash sales rose to 32 percent in January from 29 percent in December and 26 percent in January 2010.

“Increases in all-cash transactions, the investor market share and distressed home sales all go hand-in-hand. With tight credit standards, it’s not surprising to see so much activity where cash is king and investors are taking advantage of conditions to purchase undervalued homes,” Yun said.

All-cash purchases are at the highest level since NAR started measuring these purchases monthly in October 2008, when they accounted for 15 percent of the market. The average of all-cash deals was 20 percent in 2009, rising to 28 percent last year.

The national median existing-home price³ for all housing types was $158,800 in January, down 3.7 percent from January 2010. Distressed homes edged up to a 37 percent market share in January from 36 percent in December; it was 38 percent in January 2010."

Advantages to closing before the end of the year

When you are buying a house around the end of the year, it's logical to ask "Are there advantages to closing prior to the end of the year or is it better to wait for the new year?"

Whether or not it is advantageous depends on your situation, but the factors to consider are listed below:

- Homestead Exemption: Local governments give a discount on property taxes for homes that are owner occupied on January 1st. For buyers purchasing a home that is not currently owner occupied, this can be a savings on their property tax bill.

- Prepaid Finance Charges: These charges are a portion of the closing costs associated with buying a home. Some closing costs can be deducted on your income taxes just like mortgage interest. For a breakdown of which costs are deductible, email me or call our closing attorney, Charlie Pollard, with Partnership Title - 404-207-1620. Depending on your tax situation, it may be better to have this write off in one tax year or the other. Ask your accountant!

- New Year's Day Moving Party: You may be able to sucker a few friends into helping you move since they have a day off work! Just don't tell them I suggested it!

It's too late to close on a house in 2010, but keep these items in mind if you are in this situation in the future!

Happy New Year!

Justin Landis
Keller Williams
Justin.Landis@kw.com

Jarrod Thomas is a Certified Distressed Property Expert

Jarrod Thomas is coming up on his 4 year anniversary with Team Rich Richardson. He also just completed rigorous training to become a Certified Distressed Property Expert. Real estate professionals with the Certified Distressed Property Expert (CDPE) Designation have trained extensively to understand the options, solutions, and effective methods for dealing with homeowners facing hardships. You can read more about his training at http://www.cdpe.com/.

Over the years, we have worked with dozens and dozens of home buyers to help them buy bank owned foreclosures. Often, those properties are great values for our clients, and we have in depth experience to guide our clients through the process. As it gets more difficult for many home owners to make their mortgage payments, short sales have become a larger segment of the real estate market. We are now prepared to provide the absolute best service on these complicated transactions.

A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property's loan. It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the borrower. Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrowers.

If you are facing a hardship or having a difficult time making your mortgage payment, give us a call to see if we can help you through this tough time.

End of Tax Credit Not Deterring Homebuyers

While April 30th marks the end of the tax credit for First Time Home Buyers, it does not appear to be slowing down those looking for a home. A recent study indicates growing consumer confidence in the real estate market, low prices, and low interest rates as reasons that 65% of respondents say the end of the tax credit will not slow down their house search. Over the next five years, 79 percent expect prices to increase, and 20 percent expect prices to increase substantially.

This means that people believe housing prices have hit the bottom. This is very positive news for our economy. The article below details the study.

Homebuyers Not Deterred by End of Tax Credit

Bank of America to Reduce Mortgage Balances

Bank of America announced Wednesday that it would introduce a program to help distressed borrowers from losing their home. The program focuses on loan modification for those who have experienced a hardship, yet continue to make payments over a period of time. The article below does a great job of explaining all of the details of the program, and outlines the situation at large.

While not perfect, it's another way lenders are trying to limit the amount of foreclosures. By avoiding foreclosures, banks are taking short losses today in hopes of avoiding devastating losses down the road. Efforts like these are being encouraged by the government and community organizations alike in an effort to stabilize home prices and neighborhoods, protect homeowner's credit, and minimize losses suffered by lenders.

New York Times Article

New Listing in the Heart of Buckhead

This condo is in the Heart of Buckhead - Right on Peachtree Road! It's an easy walk (by easy, I mean 2 blocks) to Phipps Plaza, Lenox Mall, and all of the shopping, dining, and entertainment options that come with them. Not only that, but Publix, Target, Borders bookstore, and more are also within short reach.

This 1 bedroom home has been updated with new floors, walls, and ceilings. It features a large kitchen, great living and dining space, and has many nice touches that make it feel warm and inviting. I could go on, but this video tour will put pictures to my words.

All this for only $100,000!

Grant Park Bungalow Renovation - Week 7

New Roof!



The beautiful blue tarps have been removed, and the house now has a new top. I once purchased a house from a retired Army colonial who loved to tell me that he "just put a new top on her 2 years ago". Ever since then, I've called a new roof a new top!




The old shingles were torn off and thrown away. Be careful if you decide to put new shingles on top of existing shingles. That method is cheaper, but it can shorten the life of your new roof. No corners cut on this one!

2nd Best Office in Metro Atlanta!

Our office just had its annual awards ceremony for all of the business done in 2009. Here are some of the highlights:

- Our office, the Keller Williams Realty Peachtree Road office, had the 2nd highest sales total of any real estate office in the Metro Atlanta area.

- Our team, Team Rich Richardson, finished 3rd in our office in closed sales for the year.

- I finished in the Top 6 in the office for individual agents.

2009 was a great year because I had the opportunity to work with so many fantastic clients, and I hope to make 2010 even better!

FHA Loan Changes

FHA has changed the amount of Up Front Mortgage Insurance. Effective April 5th all new loans will have an Increased Up Front Mortgage Insurance (UFMIP) from 1.75% to 2.25%.

So, for example, on a $200,000 loan that means the extra .5% will add $1,000 to their loan. For a $300,000 loan the increase will add $1,500 to their loan balance.

The fee increase doesn't take place until April 5th, so there is still time to avoid the fee.

Grant Park Bungalow Renovation - Week 6 - Under Contract!

The big news this week is that the home in now under contract! I've been helping a couple look for a house in Grant Park, and they haven't been able to find exactly what they wanted. They saw every home in their price point, but none were the perfect home. Well, they feel like this renovated bungalow will be the one!

It's a unique situation that I've written about before in - Thankful for a Renovated House. At this point, the demo and framing are completed, but the rest of the work is just beginning. The new buyers can't change the floorplan, but they do get to pick 100% of their finishes! They also got a great deal because it is advantagous for the seller to have a buyer as soon as the house is finished. The seller doesn't have to pay to stage the home, market the home, or pay additional carrying costs. This is truly the infamous "win-win" situation.

I know other investors working on houses, so if this situation sounds appealing, give me a call. Maybe you'll find your perfect home - once the renovation is complete!

Justin Landis
Keller Williams Realty Peachtree Road
cell 404.803.0471 fax 404.704.0686
justin.landis@kw.com

www.justinatlantahomes.com
justinatlantahomes.blogspot.com

Newer Construction in East Atlanta

Here is a listing of mine in the East Atlanta neighborhood Boulder Walk. Boulder Walk is a neighorhood of newer construction homes with quiet streets, a great HOA, and is completely built out.

The home has 4 bedrooms and 2.5 baths. It has a lot of the great features of a newer home - bigger rooms, more spacious closets, higher ceilings,etc. -but is still intown and convenient to East Atlanta Village.

Here are a few pics below, but if you want to see all of them check out the virtual tour. Let me know if you have someone in mind that might want to check it out.

FHA Condo Changes

For buyers looking to purchase a condo with an FHA loan, things are about to change. Condo buildings must be approved by FHA in order to use an FHA loan on a condo in that building. In the past, it was possible to get a spot approval on the unit in a pretty timely fashion. That's no longer the case.



Condo projects that are not already FHA approved will need full approval for buyers to use a FHA loan to purchase the unit. The approval process is very lengthy and time consuming. Be prepared!



I have a list of approved projects in Georgia, so feel free to check with me if you are interested in a certain building.

Justin Landis
Keller Williams Peachtree Road
404-803-0471 cell
www.justinatlantahomes.com
justin.landis@kw.com