Brutal Honesty on the Atlanta Real Estate Market

The following statistical information comes from the data gathered by FMLS.

Mike's Corner - Market Update - The average sale price for single family detached homes in Metro Atlanta was $179,368 in February compared to December '08 $208,965, which is a $29,597 drop in two months! This is the lowest monthly average since February 1998, 11 years ago. The average February closed price was 21.7% lower than February 2008. There are certain counties and neighborhoods that have faired better or worse than others. The worst being Clayton County (school accredidation is a HUGE issue - plus the median income is substantially lower, which means they were more susceptible to the sub-prime market & possibly early rounds of lay-offs.) Dunwoody in Fulton County and Candler Park in Dekalb County were two of the few areas holding strong and showing signs of APPRECIATION!

What does this mean? Honestly, it is clear sign for most that unless you truly need to sell - now is not the time, unless you plan to take advantage of the loss you'll possibly take by buying something with a larger equity position. People who need to sell (expanding family, family change, job transfer, or job loss) need to face the reality of the market. If they feel they "can't sell" because they are "upside down" (the outstanding loan is more than the house will sell for currently) it may be time to evaluate a possible short-sale with the bank forgiving the difference in the loan. No matter what the case, speak with a qualified realtor, look over the facts, be well-informed, and look for an objective opinion.

For Buyers, these numbers would indicate that it is clearly a great time to buy. You will never know when "we hit bottom" happens until we see it in the rearview mirror. There are new programs offering $14,000 for Buyers in down payment or renovation assistance that choose to buy foreclosures. The state of Georgia is about to pass a primary residence homebuyer tax credit of $1,800 that will be good for 6 months from the day it is signed off on. This is on top of the $8,000 Federal Tax Credit which is good for 1^st time homebuyers purchasing before December 1, 2009. That's a potential savings of $23,800 on top of the ridiculously low prices we're seeing for homes - meaning this is an incredible time to buy!

For Investors, this is an unbelievable opportunity to have immediate positive cash flow rental properties and/or land acquisitions with plans of a long-term hold. With tight lending restrictions the rental market is booming.

For some realtors, i've just pulled the pin and left the grenade in the room.......for everyone else - welcome to our reality. Rather than be upset by the information, use it to act prudently and know that the market is what you make it. Good Realtors can be successful in any market & it always pays to be honest b/c what you do in the dark eventually comes to the light.

If you have questions, concerns, comments, or a desire to evaluate your personal real estate options please feel free to call 404-310-8364 or email me at Mike@LiveInAtlantaGA.com - I'm here to help