Our President Frank Norton Jr gave us a very informative presentation on the housing market at our monthly sales meeting. Barb and I pride ourselves on the knowledge we gain working for The Norton Agency. This knowledge allows us to better serve our clients.
Here are some of the highlights:
•· From 2000 to 2011 Real Estate outperformed the Dow, Nasdaq, and the S&P
•· Pending home sales declined after April 2010 because of the expiration of the first time homebuyer tax credit. However since October 2010 to the present pending home sales have been rising
•· The Norton Agency has seen an 8% increase in January-February sales over this time last year
•· Home price Expectation Survey shows that prices are anticipated to start upward later this year
•· Mortgage rate projections are predicted to increase this year
•· Consumer confidence has increased
•· Months of supply for housing in the Atlanta area are a direct result of housing prices. From a 7.5 month supply of homes under $120,000 to a 30.8 month supply for homes priced over $750,000
•· Average closing price of homes, including foreclosures were up slightly from 4Q 2009 to 4Q 2010
•· New Home construction continues to decline
•· The Atlanta area has an oversupply of vacant lots with no building planned
•· The Atlanta area is #5 in the country for resale home inventories available. South Florida is #1
•· We are #10 for new housing inventories in the country
•· The Atlanta area is #1 for vacant lots in the country!
What are Barb and I seeing?
We are seeing a lot of activity on the internet. Our listings, according to our weekly reports, receive a lot of interest. The interest is higher on our Cobb County and Atlanta listings compared to our Dawson County listings. That activity is directly related to amount of showings that we have had on all of our listings. Cobb County and Atlanta have had the most showings compared to our Dawson and Hall County properties. That being said a lot of showings have not produced any offers. The buyers appear to be very reluctant to place an offer, any offer, on a home. They still second guess themselves and are looking for the perfect home, at a price, that does not exist. As the home inventory available for sale continues to decrease these buyers need to be a little more realistic. They need to realize that they can buy homes at such a great price that they can see through some of the perceived imperfections that the house might have.
Mortgage rates were at 4.8% last week for a 30 year mortgage. In Dawson County you can get an FHA loan up to $349,000!!!!An FHA loan requires 3.5% down payment only!!! The money is available if you qualify. This will not last forever.
Foreclosures continue to appear and have an effect on our neighborhood Chestatee. We see another 4 or 5 advertised that will eventually appear on the market. Their effect is on the ability to get a fair price for your home listed with us. This effect will be with us at least through the end of 2011. Overall our listings are priced well. The trick is getting the buyers to realize what a great opportunity they have to live in a resort neighborhood at a low price!
If you are considering buying or listing your home let The Wells Team assist you. We are not just real estate agents but real estate counselors. We have dealt with short sales, foreclosures, and auctions. We have access to names of contractors and mortgage specialist. The Norton Agency also has an insurance division that represents over 28 companies. They can provide home, auto, boat, and other insurance for your family.
We also place a home warranty on your home during the listing period!!!
Thank you for your business.
