Ga. States Rajeev Dhawan provided a forecast that in 2009 the Atlanta area is predicted to create 4,000 new jobs and then add 44,000 new jobs in 2010. He also notes a couple of items: 1. oil needs to come down in price and 2. the housing market needs to improve. (From the Forsyth County Herald, 9/10/08 edition)
As long as the Atlanta area produces jobs, I do think the real estate market will improve - as long as interest rates remain relativly tame. It certainly looks like oil is coming down, it appears China's damand for oil has decrased after the Olympics.
I think when gas is close to $4.00 per gallon and the stock market is down, unemployement is up and interest rates were going that it is no wonder consumer confidence is down - people feel like they do not have as much money. Now it looks like interest rates have droped in the last two days, gas seems to be coming down and hopefully the stock market is coming back - hopefully all of this leads to a better housing market.
So far in 2008 housing starts in the Atlanta area are down over 50%, which follows a 35% decrease the year before. I think once buyers starting buying homes at a stronger pace I think it will take a while for the builders to start building and it could work out well for sellers.
Early yesterday I received an email from a lender saying rates dropped to 6%, which I thought was good news, by the end of the day the 30 year fixed rate had dropped to 5.5% - this is very good news. Rates are one of the most important factors in determining the affordability of a home - a 1/2 point drop can equate to a over a $100 per month drop in a house payment - that is big.
So why the did the rates drop? It is because the FED took over Fannie Mae and Freddy Mac. The FEDS said one of their reasons for taking this action (when they announced the takeover of management of FNMA and FHMLC) was that while the Feds have lowered short term rates and these entities have not passed on savings to consumers. That makes me think the Feds felt rates should be lower on 30 year fixed loans, and they feel the mortgage giants were trying to pocket the difference to try to make increase their profitability. Certainly if that is true it was hurting the real estate market - and getting the real estate market going again I think will be a key to getting the economy back on track.
This is only a first step in bringing back the real estate market - but I am glad to see it take place. Kramer on TV called this a couple of weeks ago.
Let me know if you need a good mortgage company - I have three I recommend .
If you want more information on selling your home visit www.FosterHomeInfo.com
Some good news on the real estate front is that consumers seem to be feeling better about the economy, which will definitely help the real estate markets throughout the country. Looks like gas prices falling have a large part to do this consumer sentiment.
The Conference Board, which is a private research group, reported Tuesday that its consumer confidence index rose to 56.9, an increase from 51.9 in July (revised) - which is the largest gain since August 2006, and is ahead of the 53 expected by the economists surveyed by Thomson/IFR. This is also the second month in a row this index has increased, after a six month slide that started in January. Consumer sentiment is a leading indicator of the economy.
The index is still well below where it is was a year ago, but I am happy to see it moving in the right direction as far as I am concerned.
I was with some first time homebuyers this past weekend and there are some fantastic deals available right now. Homes that are the same floor plan, in the same subdivision, built by the same builder within a year of each other, one is priced at $194K and two others priced in the $170s. Since they were in similar condition my buyer looked at me and asked why the difference in price? My reply was simple, the ones priced in the $170s are sellers that have to sell and their homes have been listed for over 4 months, the ones in the $190s were just listed and the sellers are not as motivated right now. It will be interesting to see if these deals are still here in 6 months.
I am holding an open house this Sunday from 2:00 - 5:00 at 1530 Overland Crossing in Alpharetta - stop by if you can. This is a 4 bedroom 2.5 bath home with a gourmet kitchen, with granite counter tops and new flooring, new carpet with an outstanding backyard. Check out the virtual tour at www.FosterHomeInfo.com or call me at 770 722-7010 for directions
This is a good sign - in our market it seemed like during October there were very few buyers out looking. Then is seemed like the number of showings improved in December and then again in January. Now that the latest NAHB/Wells Fargo Housing Market Index (HMI) has been released it reveals what I thought, that January was better than December. The index is just coming off its all time low but at least moving up is good. Basically, the builders are reporting seeing more people looking at their homes - sales will follow activity. Sandy Dunn, the 2008 president of the National Association of Home Builders (NAHB) said builders remain cautious about the outlook for new-home sales market with today's economic environment, the fact that more consumers are checking out their options is a good sign.
I think buyers are sitting on the sidelines waiting to see if the pricing improves any - once the builders firm up their pricing, which they will once their inventory levels come down, then the resale market will still have to absorb the foreclosure wave, but I definitely see firmer resales in the future.
I would love to know if other agents saw the same activity as I saw in Ga.
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John Foster with Remax Greater Atlanta discusses the trends for Alpharetta Ga Real Estate & Cumming Ga Real Estate. John is an Accredited Buyers Representative & a member of the Re/Max Hall of Fame.
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