While conventional 30-year mortgage rates in Atlanta average 5.4%, people looking to buy or refinance a more expensive home may be out of luck. That's because jumbo loans, or those loan amounts exceeding $417,000, continue to feel the impact of the credit crisis. Currently, average rates for a jumbo loan in Atlanta are a full point higher than conforming loans.
According to Bob Walters, chief economist for QuickenLoans, "I don't see the situation improving for jumbo rates for more than a year or two. What you need is for the housing market to stabilize. Until that happens, jumbo rates will be high." Recent government efforts aimed at freeing up the mortgage market are aimed mostly at conventional, not jumbo, loans. And while conventional mortgages can still be packaged into mortgage-backed securities and sold, there is no such market for jumbo loans which is keeping rates higher. The lack of a secondary market for these loans means lenders are forced to carry these loans on their books, something many lenders are not willing to do.
Getting a jumbo loan has become much harder. In the Atlanta luxury real estate market, including high-end neighborhoods like Buckhead, Brookhaven, Sandy Springs and Vinings, home prices can easily exceed $1 million, making jumbo mortgages commonplace. As a result, we are seeing luxury homes in Atlanta take longer to sell and price cuts are being used aggressively to entice the limited number of high-end buyers. David G. Kittle, the current chairman of the Mortgage Bankers Association, states "Jumbo loan borrowers still have not re-entered the market."
Greg Lyles President & Broker Conrad Lyles Realtors (404) 841-9634 http://www.conradlyles.com
Conrad Lyles Realtors, a residential real estate brokerage firm serving the Atlanta real estate market, announces the sale of 3065 Woodrow Way in Broohaven. After being listed by a larger company for over two years, Greg Lyles, the company's founder and broker, sold the new home within a few months of taking the listing. Greg states, "The home was built by HASK Construction, a builder I've worked with for years. It was very well built and offered an exceptional value for the Brookhaven market."
Greg's real estate credentials include;
To discuss the sale of your home, or to obtain a list of exceptional values in Atlanta real estate, please contact Greg Lyles at (404) 841-9634.
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Conrad Lyles Realtors closed out 2008 by setting the highest average sales price of $2,173,697, topping all residential brokerage firms in Atlanta and exceeding firms such as Beacham & Company by more than $1 million and Atlanta Fine Homes/Sotheby's by more than $1.3 million.
Greg Lyles, the company's broker, states, "As a small, service-oriented firm, we don't take the volume of listings that other firms take - my goal is closing a higher percentage of the listings we do take." The results show that Conrad Lyles Realtors more than exceeded that goal. In 2008, Lyles closed 80% of the listings he signed compared to a 39% average for the Buckhead/Sandy Springs market.
Additionally, in a market where substantial price reductions have become the norm, Conrad Lyles Realtors also tops the competition. The average price reduction of the firm's last 25 sales was less than one-half of a percentage point from the original list price.
To contact Greg Lyles, please call (404) 841-9634. For more information, please visit http://www.conradlyles.com
As a service to our clients, Conrad Lyles Realtors follows single-family home activity in the following elementary school districts;
In February 2009, we saw a 7.2% net increase in the number of single-family homes listed for sale from January. As of the end of February there were 1336 homes for sale in the above-referenced school districts. During the month of February 17 homes went under contract. No school district had more than 3 homes under contract and Heards Ferry lagged the group with no homes being placed under contract.
There were 27 homes that converted from a contingent to pending status, meaning all due diligence requirements had been fulfilled and the sale was scheduled to close. The volume of pending sales represented a 27% reduction from the number of pending sales in January 2009.
In the month of February there were 23 homes closed, one less than January, but more importantly this represents a 62% reduction in closings from February 2008. The average sales price was $532,250, down from an average of $901,200 the previous year. The average Days on Market continues to increase, from 206 in January to 210 in February. The average reduction from the original list price to the final sales price was 15%, although in some areas sales occurred at 20% to 30% price reductions.
In the final analysis, we are seeing more activity in the under $700,000 price range across the various school districts. There is an increasing inventory of homes for potential buyers to select from and it is taking longer for homes to sell. Additionally, an increase in the number of distressed properties is applying added downward pressure on pricing. Buyers seem especially interested in distressed properties versus those where the seller is current in their mortgage. I do not see this phenomena changing soon. The Mortgage Bankers Association and Credit Suisse reveal that there are approximately 1.8 million homes where foreclosure has been initiated. That number is expected to double in the next year - and then double again by 2013.
As we continue to navigate a challenging market, it is vitally important to work with a broker with an established track record of success in any market. For more information, please contact Greg Lyles at Conrad Lyles Realtors. He can be reached at (404) 841-9634 or at glyles@conradlyles.com
Conrad Lyles Realtors is offering a list of the "best buys" in the Atlanta luxury real estate market. Contact Greg Lyles at (404) 841-9634
Representing Buyers and Sellers of Atlanta Luxury Real Estate & Sporting Properties
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