Baby it's cold outside! And, many would say the same for the 2008 Atlanta real estate market.  The 2008 real estate market will have its own place in history....and, our memories.  But now it is time to put 2008 up on a shelf and look forward, with optimism, to 2009. 

If you are buyer or a seller and you are trying to read the crystal ball to determine when is the best time to buy or sell, here are some predictions from the CEO of Prudential GA Realty (this was also shared in my earlier post Atlanta Market, October, 2008 Recap).

Dan Forsman, CEO/Prudential Georgia Realty looking forward predicts:

1. New home builder starts will remain very low the remainder of 2008 into 2009
2. As a result of low new homes starts, the inventory of re-sale and bank owned properties will begin to be absorbed
3. Foreclosures that become bank-owned properties will continue to impact our market the remainder of 2008 and 2009
4. Excess single home inventory will be absorbed and levels back to normal by 2010
5. New home starts will increase but at a slower pace in 2010 through 2012
6. Home values will remain flat through the remainder of 2008 and through most of 2009
7. Home values should start increasing in 2010 and 2011 as inventories decline and population grows
8. A Sellers market to return in the spring, 2011

Rates as of December 18:
                   FNMA 30 year fixed (720+ credit)  4.750% 
                   FHA 30 year fixed  5.00%

So what can one take from all this? 

If you are a buyer, these rates are so phenomenal you can be assured as the economy and housing market improves (and they will!) you will never see these rates again. For that matter, these rates will probably be short-lived; and, you will see the return of a seller's market. Current inventory levels make home buying a "smorgasbord of choice"! And, sellers are negotiating on price like never before to get their homes sold!  So from my perspective...."What are you waiting for?" 

So after just saying this you may be asking: What if I'm a seller? I might not be too impressed with the forecast predictions noted above." However, keep in mind, doesn't it stand to reason, what you loose on the sale side you should make up for on the buy side? And in addition, you too, will benefit from these great mortgage rates and enjoy selecting from the "smorgasbord of choice"!  

Either way, if waiting is your current strategy until you see "improvement" in the market, you should be prepared to pay more and experience higher interest rates. Even in these apparent difficult economic times, you can find a silver lining: Interest rates, inventory selection and price!  So if you have been sitting on the fence not sure when to make the "move"....in my opinon...."What are you waiting for?"

Some statistics to share with you:
•·         43,442 homes sold in Atlanta market since the first of the year
•·         Average days on market:  94

Homes are selling...and, you can look for my recap of 2008 for Atlanta and Suwanee early next year.

Additional Information:

Atlanta Real Estate 2008

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Decreased demand in housing continues to plague our market; and with the current inventory levels, we are seeing an overall increase in days on market, particularly with town homes/condos, as well as declining home prices.

4,545 single family homes closed in August, 2008. 
(Down approximately 41% from a year ago.)

• 3,938 closings for single family detached homes compared to 5,412 closings in August, 2007:

1)      Average List Price August, 2008: $252,355
2)      Average Sold Price August, 2008:  $238,854
3)      Average DOM '08:  91

• 607 closings for townhomes/condos compared to 1,007 in August, 2007:

1)      Average List Price  August, 2008:  $193,797
2)      Average Sold Price August, 2008:  $183,842
3)      Average DOM '08:  105

Interest rates are still very favorable, but economic instability seems to be keeping some buyers at a distance. All conventional and FHA down payment assistance programs come to an end on September 30 which will push some buyers out of the market entirely. In its place will be the required 3% down....at least until January, 2009.

Despite the tightening of mortgage loans, with our current housing prices and the inflated inventory levels, the current real estate market in Atlanta is definitely tilted in favor of the buyer. However, with current oil prices and financial market instability it may take some encouraging news to get buyers back in the game - particularly if they do not have to buy now.

Although the news each month seems like doom and gloom, homes in the Atlanta market are selling.  It does require more work on the home owner's part compared to years gone by. But, when we look back at the 2008 Atlanta real estate market stats, despite all the bad news, billions in dollars will have sold in our market. To increase your chances of success, preparation is the key: Make sure your home is pristine, be willing to price ahead of the curve and be patient. You can be one of the successes!

*Data believed accurate, but is not guaranteed.

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My Suwanee Home.com

The Atlanta real estate market began to see a downturn beginning in the third quarter of 2006; and, it is apparent our market has yet to see the upswing most had thought would happen by now. 

As we begin the third quarter of 2008, the Atlanta real estate market is still trending downward. Closings on single family homes in July was down over 34% from last year with a drop in average sales price of over 8% for this same time last year. 

With such a significant drop in home pricing, the recent First Time Home Buyer's Tax Credit (Housing and Economic Recovery Act of 2008) approved last month by Congress, low interest rates and high inventory, this is THE time to buy!!!

The chart below depicts the activity in the Atlanta real estate market for the month of July compared to July 2007. And the graphs provide a comparison for the activity in the Atlanta real estate market for first six months of this year.

                                                                           
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Information is believed accurate, but is not guaranteed.

Each month as I recap the previous month, the news seems dismal. However, choosing to see the glass half full instead of half empty, what I try to remember is this market will not last forever and we will see improvement and bluer skies!!!

ATLANTA REAL ESTATE IN REVIEW
May, 2008

• 4,573 closings of ALL single family homes
  
• 3,881 closings for DETACHED single family homes
  
• 692 closings in May for condos and town homes
  
• Average closing price for single family DETACHED in May: $250,547
  
• Average closing price for condos and town homes in May is: $181,518

                                                                  
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ATLANTA REAL ESTATE  IN REVIEW

APRIL  2008

FOOTNOTE:

In a recent interview, Lawrence Yun, NAR Chief Economist shared his belief that we have indicators in place for an improved second half 2008.  He believes  stimulus checks will give  an interim boost in consumer spending, high company profits are creating  good cash flow and a solid and growing export industry all provide a positive outlook for our economy.

                                                                 
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As a resident of Suwanee for....20 years, I have seen a lot of changes. The good news is the city officials have listened to their citizens and have created a very desireable live, work and play environment. With plenty of green space, three city parks (so far), beautiful trails winding along the Suwanee Creek it is no wonder it has been ranked as the #10 best place to live by Money Magazine.

As an avid visitor to the Suwanee Creek Park, I can attest to the fact it is a tranquil get-away where you can enjoy the wonderful sounds of nature, listen to birds sing, the look of a deer as it scrambles for cover back into the woods. You can't help but chuckle as the chipmunks and squirrels scurry for their next meal never pausing as you wander by. It is proof they have become accustomed to our intrusion.  The Suwanee Creek Park is a place where parents bring kids to ride bikes, where pet owners enjoy a stroll with their dogs, where joggers smile as they pass you buy and many who enjoy a good stroll are daily visitors.

And, the children haven't been forgotten. They have their very own park! Playtown Suwanee - where kids can be kids. Totally dedicated to the enjoyment of children. Nestled in the trees, the park provides hours of enjoyment! Jungle gyms, slides, swings etc. You name it, it is there for them to climb on, slide down or scurry through. A pedestrian walk-way will be completed this spring providing a walk-way under the railroad tracks creating a pathway from the park and the historic area of Suwanee to Suwanee Town Center.

DeVry Nature Park is "under construction". But is sure to be just one more great park for the citizens of Suwanee to enjoy. Suwanee Town Center is the hub. Greenspace (the park) is the focal point. The ampitheater, situated on the edge of the park, is the attraction during the summer for all to come out on a warm summer's eve to enjoy FREE concerts. Jazz concerts can be enjoyed once a month on Friday nights. Specialty concerts are held throughout the summer; last year the park hosted a wonderful concert by the Atlanta Symphony Orchestra which drew thousands. A fountain in the middle of the park is the main attraction for kids to cool off during hot summer days. Along the outer perimeter of the park are store fronts and restaurants for your enjoyment.  A throw-back to yester-year, you will find high-end resdential loft condos atop the restaurants and retail shops.  The condo balconies provide great seats when concerts are in full swing. On the outer edge of Suwanee Town Center is a residential development, Shadowbrook, which features craftsman  style homes. Residents are within walking distance of all the activities at Suwanee Town Center, the restaurants andspecialty shops.

Suwanee has grown alot in 20 years. But I take my hat off to the efforts of our city! For me and my family it has been a job well done. Included in this article is a small video I put together to give you just a snapshot of what our small city looks like. Hope you enjoy it.

                                                              Click on image to view video

Want to know more about Suwanee, come to my house: MYSUWANEEHOME.com