EVERY MARKET IS LOCAL!

Everywhere you turn the US real estate market continues to be the showpiece of the current economic downturn. Good news, from any source, is hard to find.

You need to ask yourself this question: Where does my neighborhood, town, county, and state fit into “the big picture”? How do I find the answers?

You find the answers from companies with the local expertise and their ability to compare it to the entire country. The Wells Team, and The Norton Agency, provide you that expertise.

We are the oldest real estate company in North Georgia with over 80 years in the business. WE ARE #1 IN OUR AREA!

Our President Frank Norton Jr. adheres to a philosophy of making all of his agent’s experts in North Georgia. He is our “professor” of demographics, sales statistics, trends, and insight in our local market. As “students” we make it a point to share this information with our clients.

Some statistics from our latest sales meeting:

• New home inventory, in 5 Metro Atlanta counties, continues to decline
• Metro Atlanta home sales from 0-$149,000 are on a pace to be the same as 2007
• The two price parameters that have the biggest changes from 2007 are $300,000-$399,000 and $400,000-$599,999
(Pricing statistics from GAMLS and FMLS)
This represents a small part of the information that we review and discuss to benefit our clients!
If you would like a copy of this report on the North Atlanta area let us know! We will be glad to give you one!


The next time you are thinking about buying or selling, ask yourself the following questions:

• What are the average priced home sales in my area?
• What are the average days on the market in my area?
• What are the average number of expired and withdrawn listings in my area?
• What price range of home is the best seller?
• What are the total number of home sales and what is the future trend?
• Does my community have any projects on the horizon that could affect the sale of my home? (new schools, shopping, highway, etc)
• Do I have a real estate “expert” who can provide all of this information?

.
Remember: ALL MARKETS ARE LOCAL! YOU NEED YOUR LOCAL EXPERT TO GIVE YOU AN ADVANTAGE IN THIS VERY COMPETITIVE MARKET!

The Wells Team has lived in the Atlanta area a combined 28 years! WE ARE YOUR NORTH METRO ATLANTA, NORTH GEORGIA EXPERTS! OUR SUCCESS SPEAKS FOR ITSELF!

Why move to the Chestatee Neighborhood in Dawson County Georgia?

Why would you buy a house in the Chestatee Neighborhood, Dawson County Georgia?

The Wells Team, all Chestatee residents, asked ourselves the same question.
LIFESTYLE!

This neighborhood presents a total change of pace from your typical suburban neighborhood.
18 hole golf course designed by Dennis Griffith
Community Marina on Lake Lanier. Take the boat out to ski or fish!
Large Pavilion with stone fireplace where we have hot dog cookouts
Olympic size Swimming Pool with plenty of room for the neighborhood
Playground for the kids and grandkids
4 lit tennis courts. One resident is a tennis instructor
Nature Trail
Garden club, Southern Living group, Women's Bible Study, and other groups

A quieter slower paced lifestyle for all age groups. We have couples with young kids mixed in with our empty nesters and residents with grandchildren.

How about the location of the Chestatee neighborhood?
Far enough away from the congestion but accesible to Atlanta.

4 vineyards, with wine tasting, just to the north in Dahlonega
20 minutes from Amlicalola Falls and the start of the Appalaichan Trail
5 minutes from The Norton Georgia Premium Outlets
Close to Helen GA, a beautiful German town
10 minutes from the quaint town of Dahlonega
10 minutes from North Georgia State University. Plenty of continuing ed classes!
10 minutes from Rock Creek Park, Dawson County. Great sports programs for the kids.

But I still need my "city fix"

One hour from Braves stadium, the Georgia Aquarium, and The Atlanta Zoo
35 minutes from Verizon Ampitheatre. This new venue has had the Eagles and Boston perform this year.
35 minutes from Northpoint Mall in Alpharetta

After 8 years of "country living" I can honestly say that my family has truly found a home here. Our involvement with the Chamber of Commerce and Rotary Club has helped us give something back to this community. The locals and new residents are friendly and reflect the slower lifestyle.

The Wells Team is proud to be the #1 resale agents of homes in Chestatee. We currently have 10 homes listed for sale. THE OPPORTUNITIES TO OWN IN THIS NEIGHBORHOOD WILL NEVER BE GREATER!

Come up and see us. It would be our pleasure to show you around and introduce you to the lifestyle that you deserve.

See all of our Chestatee listings at www.randywellsteam.com

Has the North Georgia real estate market hit bottom?

I realize that nothing but bad news is being said about the real estate market. The Wells Team supplies its clients statistics on our local market. At the end of the day that is the information that is most important.

We had a very informative monthly meeting at our company The Norton Agency. Here are few facts and opinions that we given at the meeting.

In the last 12 months, Atlanta was number 7 in job growth nationwide.

Nationwide the housing market has been in a down cycle for 2.5 months. Historically down cycles have not lasted longer than 36 months

Home inventory is down 25% from its peak

The top 10 builders are down to a 4 month supply of new homes

5 states make up 57% of all foreclosures nationwide (CA,FL,OH,AR,MI)

The number of foreclosures in Georgia have declined 2.61% 2Q08 vs 1Q08

In July 08 The Norton Agency had a 27% increase in sales over June 08

Dawson County has a 17.6 mo supply of homes

Forsyth County has a 8.9 mo supply of homes

Opinions:

Frank K Norton Jr, the President of The Norton Agency expresses the following in our Mid Year 2008 Market Report and Forecast. "Norton Native Intelligence sees the bottom and in fact believes we've been bouncing up and down on bottom for several months now".

If you would like to read the rest of the summary and the rest of the Mid Year 2008 Market Report, let us know. I will be more than happy to supply you with a copy.

Another opinion was given by a local real estate attorney who spoke. He says the time to buy is now. His concern is the interest rates. In his opinion interest rates will probably go up after the Presidential election. The result? That house payment will be higher every month.

Summary:

Throughout the last six months we have discussed the market with all of our clients. This includes buyers and sellers.

If you are a seller we told you that price, condition, and location matter with an emphasis on price. If the market has hit bottom then you need to ask yourself this question: Should I be aggresive on my pricing, take a slight hit on the sale of my house, and make up for it on the other end? If prices start to go back up or interest rates go up slightly did I do better by getting a little bit more for my house but missing out on a lower price on the other end and a better interest rate?

If you are a buyer ask yourself this: What am I waiting for? Are the prices decreasing further? Are the "bargains" still there? If interest rates go up then all of that waiting for a lower price will be lost with the higher rate.

Recovery will happen not if but when. If you reference the data then this is the time to buy. Do not use the news as your sole source of information on the real estate market. ALL MARKETS ARE LOCAL! We have consistently said this to all of you. That is why The Wells Team and The Norton Agency can help you. We know this area.

Lake Lanier's low water levels affect the lake home market!

Lake Lanier, one of the largest and most visited Army Corp lakes, is seeing lake home sales significantly decrease.

The 4th of July weekend traditionally brings out large numbers of boaters and families taking advantage of all of the recreation that the lake offers. Unfortunately Lake Lanier will have its lowest water level ever for the 4th of July holiday. Most boat ramps are closed and swimming areas resemble a desert. Add gas prices on the lake averaging $5.00 per gallon and you have all of the ingredients for a disappointingly slow weekend.

As the Atlanta metropolitan area continues to grow many people looked to Lake Lanier for second homes as well as primary housing with commutable access to Atlanta. Prices rose much higher than the Atlanta area.

We are now in the second year of this down market. The Atlanta area has felt the effects but not on the level of other parts of the country.

Lake Lanier property has not seen the same pricing declines. However the number of houses sold has seen a dramatic change.

Jan 07-Jun 07 112 homes sold on Lake Lanier. Average price $643219
Jan 08-Jun 08 49 homes sold on Lake Lanier. Average price $642051.
As the level of the lake hit all time lows the real estate market has seen the effects.

Our observations:

Houses are marketed with boat slips. However there are no attached details on the water level under the dock
Sellers are forced to pull out their boat slips in order to find water. They are at their limits.
The second home market has seen a dramatic slowdown. Less buyers means a natural decrease in homes sold.
If your boat slip is not usable you are at a competitive disadvantage.
The lake does not seem poised for a recovery. The Atlanta area is in its second year of a drought. The lake water continues to be claimed by Georgia, Alabama, and Florida. The politics of the lake are not going to be resolved in the near future.
Our opinion:

If you live on the lake and do not need to sell sit tight. If you need to sell you need to be realistic about the external factors that effect your home. Remember the market dictates the price not your personal opinion.

We will see you out on the lake.

Randy and Barb

The Wells Team

The Norton Agency

The Usual "Spring Rush" Has Already Slowed

Traditionally this is our busiest time of year in the North Metro Atlanta/Norton Georgia area! Unfortunately the "rush" has appeared to subside.
The spring has been glorious in the Norton Georgia mountains which usually brings out those lookers/potential homebuyers. Our open houses would historically bring in 10-12 people on any given Sunday. This year we average 2-4!
Why the slow down this spring and the continuing slowdown in the Atlanta area market?

According to the President of the Norton Agency, Frank Norton Jr:

Causes of Pent-Up Demand

• Fear
• Trouble selling existing house
• Trouble obtaining a mortgage
• Affordability

Fear-Our current clients, and potential clients, are concerned about the Presidential election, gas and food prices, additional inflation, and what they see on the news daily. They are truly scared about what they perceive is actually happening.

Trouble selling existing house-According to statistics given to us by The Norton Agency:

• 17 month supply of houses in North Fulton County, 12.2 in Dawson County, and 9.9 in Forsyth County (counties north of downtown Atlanta)
• Closings in the Atlanta area are down 21% from 1Q 2007
• Inventory of housing is up 12.9% from 1Q 2007
• Closings in North Fulton County down 17%, Dawson County down 33%, and Forsyth 17%. This is 1st Q08 vs 1stQ 07

Trouble obtaining mortgage-We have lost buyers in the sub $150000 price range. Why? Because of low credit score! The lenders are also requiring proof of employment and salary. Mortgage rates are still good with the nationwide average 30 year fixed at 5.86%

Affordability

A recent editorial in the Wall Street Journal addressed this point. Written by Mr. Moulle-Berteaux, Managing Partner of Traxis Partners LP, a hedge fund, he simplifies the housing "crisis" to two items. One is supply and demand and the other is affordability. He states that in the 1990's housing consumed 19% of the montly budget. By 2005 that number went to 25%! For first time home buyers that number reached 37%! Put that together with food, gas, and inflation, and people get knocked out of the market!

The Wells Team, of The Norton Agency, has continued to market our properties everywhere possible. Our houses have more exposure this year than last year. Unfortunately there is so much available that it makes it difficult to differentiate our houses from the rest.

We continue to emphasize 3 points to our listing clients: Condition, location, and price. All of our houses are great with the first two items. Price seems to be the only item that you can make a significant difference. Some have responded with drastic price cuts while others are "holding the line".

Conclusion:

• If you do not need to sell your house keep it off of the market
• If you need to sell now you have to price your house aggresively. You can make up for the lower price when you get a good deal on the next house
• If you keep your house price "fairly" then be prepared to sit. Be patient and do not blame your agent for the situation
• Atlanta is #5 in the country for job growth. The area will continue to grow and eventually housing demand will catch up with supply.
• This could be the best market for buyers in the next 5 to 10 years. If you continue to procrastinate then you will miss out. We feel that prices have bottomed out.
  THE MOST HOME YOU CAN BUY IN THE LAST FIVE YEARS AND IN THE NEXT FIVE IS RIGHT NOW! (According to Frank Norton Jr)

If you are looking for a house in the North Atlanta/Lake Lanier, Georgia Mountains area, look us up!

The Wells Team

Randy, Barb, and Sue

www.randywellsteam.com

North Georgia sees the return of the "tire kickers"

The first two months of 2008 have seen a slight increase in real estate traffic. Unfortunately the majority of these buyers are more "tire kickers" than serious buyers. They are discretionary buyers that spend their weekends looking at houses. They continue to procrastinate in search of the perfect house at the perfect price. Advice to this group: THE DEALS WILL NOT BE HERE FOREVER. THE OPPORTUNITIES HAVE NEVER BEEN BETTER!

At the same time the Atlanta area is a unique real estate market:

Prices were up 4% in 2007
Atlanta is #5 in the country for job growth. 60000 jobs were created in 2007
People continue to move here from around the country. As they arrive their parents follow.
New home starts have dropped. This in combination with expired and withdrawn listings could
create a decrease in inventory of houses.

IF YOU WANT TO BUY YOU HAVE THE OPPORTUNITY OF A LIFETIME!

See our listings in the North Atlanta area at our website: http://www.randywellsteam.com/

Remember: Nobody knows your home like a neighbor. We are your neighbors the Wells Team