The tale of two Atlanta Markets

We are two months into 2009 and I think perhaps an “update” is in order. There are two sides to every coin and the same is true for our current market. For this update I will touch on how our current market effects both Buyers and Sellers. Expert advice, insight, and objectivity are what we strive for at Michael Neville & Associates.

Buyers:

1. Lots of options. There are currently 45,648 ACTIVE single-family properties listed in the FMLS for Metro Atlanta. Nearly 30% of these are Short Sales or Bank Owned properties.

2. The FHA limit has recently increased from $271,000 up to $346,250. This allows qualified buyers to come in with only 3.5% down and with the limit being raised, options abound.

3. Banks are committed to getting rid of their inventory. We currently work with Fannie Mae and Countrywide and both have made it clear that they want their inventory in escrow in less than 60 days. This is usually synonymous with aggressive pricing initially and price reductions if offers are not present.

4. March 6^th marks the end of the Moratorium that was put on foreclosures by most major lenders including Fannie Mae and Freddie Mac. With this Moratorium coming to an end, the bank owned inventory should increase throughout the valley. This means more homes that are priced to sell. Many of these homes are in tough condition and thus can only be purchased with cash.

Sellers:

1. The FMLS inventory has dropped to under 50,000 properties for single family homes. This is a step in the right direction, but realistically a healthy inventory for Metro Atlanta including Dekalb, Fulton, and Cobb counties would be closer to 30,000.

2. Homes are still selling. There were 4,161 closings in January & February, which are traditionally the slowest months of the year in the Metro Atlanta real estate market.

3. With the FHA limit increasing to $346,250, the sellers who are priced at $350,000 have a much better chance of getting a buyer. 87% of the closings in January & February were under $350,000.

Summary:

· For the next 2-3 years there will be great deals for qualified buyers who are ready and willing to pull the trigger. We can help you analyze a property and determine if it is a great deal or just an OK purchase.

· If you can wait and do not need to sell your home now, you are better off waiting. In order to sell in our current market you must be willing to compete with Short Sales and Bank Owned properties. Usually this means pricing aggressively and being willing to reduce the price if the traffic is not present.

· If you are selling and buying, there is no such thing as a “bad market”. What you lose on the sale, you will be able to make up on the purchase (especially if you are buying a more expensive property – actually you should come out ahead on the equity position).

· If you determine that selling is a necessity, we can provide maximum exposure for your home and help you negotiate the transaction. With over 40 websites where we advertise your home, video tours, imbedded videos & virtual tours - we help maximize the viewing potential.

If you have additional Real Estate questions, or have interest in a comprehensive list of REO properties for sale, feel free to give us a call.

All The Best,

Michael

Michael Neville & Associates

Keller Williams Realty Atlanta Midtown

www.LiveInAtlantaGA.com

404-310-8364