Berkshire Hathaway HomeServices Georgia Properties Real Estate Advisor For March 2014! We Check The Metro Atlanta Real Estate Market Trends!

Berkshire Hathaway HomeServices
Georgia Properties
Real Estate Advisor - March 2014


We are providing this monthly real estate advisor report to keep you informed about the latest trends and issues in the real estate market. If you know someone else who might be interested in receiving this report or who may benefit from our expertise, please let us know. Better information helps our clients make better real estate decisions!

Click here for a detailed market report for the Greater Metro Atlanta area.
Once again, BHHS Georgia Properties was Number 1 in both homes sold and buyers represented for January 2014. We have been ranked #1 for 5 years in a row.
Closings for Metro Atlanta in January were down 39% compared to last month and down 21% compared to the previous year.
For the Greater Metro Atlanta area, listed inventory was down 1.3% from December 2013 and up 13.8% compared to last year. The limited availability of quality properties has turned some local areas into a seller’s market.
The available “months of supply” rose to 6.6 months versus was 4.6 months in December 2013. The slower pace of sales and slightly higher inventory are creating a more normal market condition.
The pace of short sales and foreclosures coming on the market has slowed considerably. In 2010, over 60% of sales were distressed properties but in January we only saw 164 foreclosures and 269 bank-owned sales. Resales and New Homes are the larger mix of sales.
New Homes are making a slow but sure comeback. There are some wonderful new home communities coming online with the latest innovations in smart building that may be great options for buyers. Click here to view new home communities.
The Case-Shiller Index reports that Metro Atlanta home values have increased 37% from the bottom of March 2012. But values remain down 16.94% from the peak of July 2007. Click here for the latest report.
The trend for mortgage rates is higher. The Mortgage Bankers Association and Freddie Mac predict 30-year mortgage rates to be over 5% in 2014. This could significantly reduce buying power for those that wait.
Baby Boomers are the leading buyer segment followed by First Time Buyers. Move-Up Buyers are showing some signs of improved activity but remain well below historical levels.

This is an unprecedented opportunity to buy the home of your dreams while prices and financing are historically low. But these conditions will not last as the real estate market continues to recover.



THE LUXURY LIVING SHOW!
Sponsored By Berkshire Hathaway HomeServices








Berkshire Hathaway HomeServices Georgia Properties is pleased to invite you to the 5th Annual Luxury Living Show at Phipps Plaza in Buckhead. In partnership with the Atlanta Homes & Lifestyles magazine and Global BMW, we are pleased to bring you the latest ideas in kitchen and bath design. Here is a brief overview of the events:
March 2 - March 31: Visit the full size "Living Kitchen and Bath" on Mall Level One, Court of the South, and experience the newest trends in kitchen and bath design. View the latest luxury automobiles from Global BMW. See the extraordinary luxury homes from the Berkshire Hathaway HomeServices Luxury Collection. Luxury Collection Specialists will be on hand during the month of March to answer your questions and discuss "best practices" for luxury real estate.
Sunday, March 2 (1PM - 5PM): Opening day festivities include fabulous shopping, along with a presentation at 3:30PM by internationally acclaimed Interior Designer, Suzanne Kasler, in the Living Kitchen. A book signing of her new book, Timeless Style, will follow her presentation.
Wednesday, March 5 - Saturday, March 8: Berkshire Hathaway HomeServices Georgia Properties will unveil an innovative Interactive Kiosk design. This is the latest technology for luxury real estate search and provides new options for consumers in a retail environment. Also learn about our new Mobile Real Estate App currently available in the App Store and Google Play Store.
Saturday, March 8 (Noon - 3PM): Top local chefs make magic happen in the Living Kitchen! Come meet them and sample some delightful treats.

Visit our Berkshire Hathaway HomeServices Luxury Collection table to enter the drawing to win a brand new iPad. We look forward to seeing you there!



Spring Forward On March 9th






Yes, it is that time of year again. Daylight Saving Time begins at 2am Sunday morning, March 9th. So remember to move your clock forward one hour before you go to bed Saturday night!

History of Day Saving Time: People often ask - what is Daylight Saving Time and why do we have it? Daylight Saving Time (or summer time as it is called in many countries) is a way of getting more light out of the day by advancing clocks by one hour during the summer. During Daylight Saving Time, the sun appears to rise one hour later in the morning, when people are usually asleep anyway, and sets one hour later in the evening, seeming to stretch the day longer.

The reason many countries implement DST is to make better use of the daylight in the evenings. Some believe that it could be linked to reducing the amount of road accidents and injuries. The extra hour of daylight in the evening is said to give children more social time with friends and family and can even boost the tourism industry because it increases the amount of outdoor activities.

DST is also considered a means to save energy due to less artificial light needed during the evening hours. Clocks are set one hour ahead during the spring, and one hour back to standard time in the autumn. However, many studies disagree about the energy savings of DST - some may show a positive outcome of the energy savings, others do not.

Benjamin Franklin first suggested Daylight Saving Time in 1784, but modern DST was not proposed until 1895 when an entomologist from New Zealand, George Vernon Hudson, presented a proposal for a two-hour daylight saving shift to the Wellington Philosophical Society. The conception of DST was mainly credited to an English builder, William Willett in 1905, when he presented the idea to advance the clock during the summer months. His proposal was published two years later and introduced to the House of Commons in February 1908. The first Daylight Saving Bill was examined by a select committee but was never made into a law. It wasn't until World War I, in 1916, that DST was adopted and implemented by several countries in Europe who initially rejected the idea. The United States, Canada and some other countries extended DST in 2007. The new start date is the second Sunday in March (previously the firstSunday in April) through to the first Sunday in November (previously the last Sunday in October).

If you would like to set your clock to the correct time, please click this link.




Lake Sidney Lanier Homes is the most comprehensive online source for information on Lake Lanier homes for sale and Lake Lanier area real estate. View the latest Lake Lanier home listings, foreclosures, lots, land, sales trends and real estate topics on Lake Lanier. Arthur Prescott is an Accredited Buyer's Representative and Certified Residential Specialist with over a decade of Lake Lanier real estate experience. If you would like to schedule a free buyer or seller consultation, please feel free to contact us directly at 678-513-2014 or email us at Arthur.Prescott@BHHSGeorgia.com.

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Metro Atlanta Case-Shiller Index Reported January 2014! See The Latest Real Estate & Home Sales Trends For Atlanta!

This Metro Atlanta Case-Shiller Index Report For January 2014 is provided to us courtesy of Berkshire Hathaway HomeServices Georgia Properties.

The latest Case-Shiller Index was published on Tuesday, January 28th 2014. As always, the index reports on data 60 days in arrears. Therefore, the index reports Metro Atlanta home values for November 2013. So what does the latest index show and what does that mean for home values in Metro Atlanta? Home values have significantly improved and are now stabilizing. To properly assess the Case-Shiller Index data, two important considerations must be taken into account. First, the Case-Shiller index of home values is very different from average sale prices or median homes prices. The Case-Shiller Index reports on repeat properties sold, which are generally better indicators of home values. Second, this index reflects average home values for all of Metro Atlanta. Remember, real estate is local and every market is different. Your local BHHS Georgia Properties agent can help you understand the specific metrics in your local market.

Now for the news…. Average home prices for the National 20-City Index decreased by .1% compared to last month and increased 13.7% over the past year. The November index for Metro Atlanta shows a .31% (non-seasonally adjusted) decrease in home values from October 2013 and an 18.49 increase over the same month last year. While these numbers remain very positive, we must bear in mind that home prices are still down 16.93% from the peak of July 2007. The October index for Atlanta is 113.37. This is the first time in nine months that the index has reported a decrease. This signals that home values are leveling off for many markets. Las Vegas, San Diego, Los Angeles and San Francisco had the highest year-over-year price increases. These were closely followed by Atlanta and Phoenix. New York, Cleveland and Washington D.C. showed the smallest year-over-year improvements.

The Metro Atlanta real estate market continues to show signs of moving back to a normal market. Listing inventory is up 15% from the bottom of February 2013. This is up 11% from 2012 and down 37% from 2011. That represents around 4.6 months supply of inventory based upon the latest closed sales trend. Six months supply is considered normal. We saw an extended period of low inventory late last year and early in 2013. But the recent trend is rising and we appear headed for a more normal level of inventory for next spring. Buyer activity remains strong led by baby boomers and first-time buyers. At the same time, the pace of pre-foreclosures (notices of default) and foreclosures has slowed dramatically. Resales and new homes are outpacing bank-owned sales. New Homes are making a significant comeback. Right now there is very low new homes inventory due to the high absorption and pre-sales are emerging again. In the next few years, new homes will become a more significant part of the inventory and closed sales. Your local BHHS Georgia Properties agent can show you the specific conditions in your market so you can make the best real estate decisions.

This month is the second negative result in 12 months for Metro Atlanta. Previously, we saw positive results from the Case-Shiller Index for 11 months in a row. What a change from a few years ago! Metro Atlanta Home Values are up 37% from the most recent low point of February 2012 according to the Case-Shiller Index. But remain down 16.93% from the peak of July 2007. View the graph of the monthly Case-Shiller results from 2010, 2011, 2012 and 2013.





If you look back further at home values (see chart below), you can see that we had a bubble in homes values. As with many cyclical markets, we have over-corrected with values that are below the normal trend line. Over time, we expect this pattern to normalize and values will return to this predictable track. That still makes now a great time to buy or invest in real estate for Metro Atlanta – BUT don’t wait too long!





This chart shows the “months supply” based upon price ranges. As you can see, the supply is very low in the lower price ranges. Investors have been very active in the price range but that slowed considerably. As you get to the luxury market, there is more supply available based on the slower rate of closed sales. Contact your local BHHS Georgia Properties agent to see the latest trends in your specific area.



If you look at the average annual Case-Shiller index for each year, here is how homes purchased in recent years would compare to the current index:

Homes Bought in 2000 – Gain 9.82%
Homes Bought in 2001 – Gain of 4.00%
Homes Bought in 2002 – Gain of .14%
Homes Bought in 2003 – Loss of 3.01%
Homes Bought in 2004 – Loss of 6.32%
Homes Bought in 2005 – Loss of 10.81%
Homes Bought in 2006 – Loss of 14.88%
Homes Bought in 2007 – Loss of 15.43%
Homes Bought in 2008 – Loss of 7.56%
Homes Bought in 2009 – Gain of 4.58%
Homes Bought in 2010 – Gain of 7.19%
Homes Bought in 2011 – Gain of 15.26%
Homes Bought in 2012 – Gain of 24.97%

Yes, we are slowly climbing our way out of this unprecedented housing crisis – but we are not quite there yet. So where will home values go from here? The key factors that will impact our home values include the following:

Demand from Buyers: The long-term trend for buyer demand is strong as buyers take advantage while prices remain below replacement costs and mortgage financing is historically low. We continue to see significant pent-up demand for new household formation from first time buyers and a very active baby boomer market. But the large investors have recently slowed their buying patterns for properties under $100,000. The last few months have seen a normal seasonal slowdown in transactions. We will be watching the buyer demand trends closely to determine of we have any changes in the leading indicators.

Mortgage Rates/ Credit Availability: Average mortgage rates in the past 50 years were 8%. Rates remain historically low but the long-term trend is higher. Freddie Mac and the Mortgage Bankers Association predict mortgage rates to rise to over 5% in 2014. In 3-5 years, we expect to see rates in the 6-8% range again.

Supply/ Inventory Levels: The inventory has been rising over the past few months as we move toward a more normal level of supply. New homes will become a more significant part of the overall inventory by the spring. Values have been on the rise but are showing signs of leveling off. We expect more “sideline sellers” get back into the market for the spring. The “for sale” inventory this spring should be historically normal once again.

Competition from Short Sales/ Foreclosures: In 2010, RealValuator reports that short sales and foreclosures were over 60% of the transactions sold but have dropped to under 20% in 2013. Resales and new homes are significantly outpacing short sales and bank-owned properties.

New Homes Make A Comeback: New Home starts are rising and will slowly but surely become a major factor for Metro Atlanta real estate. In 3-5 years, we expect New Homes to return to 40%-45% of the inventory and closed sales. For resale owners, your competition will shift from foreclosures & short sales to new homes.

It is clear that the housing market for the Greater Metro Atlanta area is improving. Right now, we still have low prices and incredible mortgage rates. But the trends for mortgage rates are upward and home prices are increasing. Many buyers and sellers need to act quickly before their buying power in impacted significantly. In 5 or 10 years, many will look back and regret not buying their dream home when they had the chance! The cost of waiting could be quite significant. Check back for our next posts with the latest facts and insight that can make you money!

Prudential Georgia Realty has changed our name to Berkshire Hathaway HomeServices Georgia Properties. Berkshire Hathaway is the 8th largest public company and was ranked the No.1 most respected company in Barron’s ranking of the top 100 companies. Berkshire Hathaway has the resources to bring a new level of quality and innovation to real estate. Look for more exciting announcements coming soon! For more information, visit BHHSGeorgia.com.




Lake Sidney Lanier Homes is the most comprehensive online source for information on Lake Lanier homes for sale and Lake Lanier area real estate. View the latest Lake Lanier home listings, foreclosures, lots, land, sales trends and real estate topics on Lake Lanier. Arthur Prescott is an Accredited Buyer's Representative and Certified Residential Specialist with over a decade of Lake Lanier real estate experience. If you would like to schedule a free buyer or seller consultation, please feel free to contact us directly at 678-513-2014 or email us at Arthur.Prescott@BHHSGeorgia.com.

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• Metro Atlanta Case-Shiller Index For July 2013! See The Latest Real Estate Trends!
• Metro Atlanta Case-Shiller Index Reported March 2013
• Greater Metro Atlanta Real Estate Update Courtesy Of Berkshire Hathaway HomeServices Georgia Properties!

Greater Metro Atlanta Real Estate Update Courtesy Of Berkshire Hathaway HomeServices Georgia Properties!

Greater Metro Atlanta Real Estate Update

We are providing this monthly real estate advisor report to keep you informed about the latest trends and issues in the real estate market. If you know someone else who might be interested in receiving this report or who may benefit from our expertise, please let us know. Better information helps our clients make better real estate decisions!

• Once again, BHHS Georgia Properties was Number 1 in both homes sold and buyers represented for 2013. That makes 5 years in a row.
• For the Greater Metro Atlanta area, listed inventory was up 11% compared to 2012 levels and down 34% from 2011. The limited availability of quality properties has turned some local areas into a seller’s market.
• The available “months of supply” was 4.6 months based upon closed sales (6 months is considered normal). This is down 9% from last month.
• Closings for Metro Atlanta in November were down 2.5% compared to last month and down 6.9% compared to the previous year.
• Closings under $100,000 were down 24.6% from last December. The exit of large investors has allowed the price distribution of properties to return to normal.
• The pace of short sales and foreclosures coming on the market has slowed considerably. In 2010, over 60% of sales were distressed properties but in December we only saw 333 foreclosures and 439 bank-owned sales. Resales and New Homes are the larger mix of sales.
• New Homes are making a slow but sure comeback. There are some wonderful new home communities coming online with the latest innovations in smart building that may be great options for buyers.
  Click here to view new home communities.
• The Case-Shiller Index reports that Metro Atlanta home values have increased 37% from the bottom of March 2012. But values remain down 16.67% from the peak of July 2007. Click here for the latest report.
• The trend for mortgage rates is higher. The Mortgage Bankers Association and Freddie Mac predict 30-year mortgage rates to be over 5% in 2014. This could significantly reduce buying power for those that wait.
• Baby Boomers are the leading buyer segment followed by First Time Buyers. Move-Up Buyers are showing some signs of improved activity but remain well below historical levels.

This is an unprecedented opportunity to buy the home of your dreams while prices and financing are historically low. But these conditions will not last as the real estate market continues to recover.

Lake Sidney Lanier Homes is the most comprehensive online source for information on Lake Lanier homes for sale and Lake Lanier area real estate. View the latest Lake Lanier home listings, foreclosures, lots, land, sales trends and real estate topics on Lake Lanier. Arthur Prescott is an Accredited Buyer's Representative and Certified Residential Specialist with over a decade of Lake Lanier real estate experience. If you would like to schedule a free buyer or seller consultation, please feel free to contact us directly at 678-513-2014 or email us at Arthur.Prescott@BHHSGeorgia.com.

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Berkshire Hathaway HomeServices Georgia Properties Atlanta Metro Area Real Estate News For January 2014!

Real Estate Advisor - January 2014
Introducing Our New Name…
BERKSHIRE HATHAWAY HomeServices

On December 10th, our company adopted the new Berkshire Hathaway HomeServices brand. We are excited to begin this new chapter for our company and this conversion will bring many advantages for our agents and our clients. This year, we also celebrate 50 years of serving the needs of our clients in the Greater Metro Atlanta area. During that time, we have operated as Crest Realty, Merrill Lynch Realty, Prudential Atlanta Realty and Prudential Georgia Realty. Though the name has changed, our commitment to deliver exceptional real estate services has not. In the last five years, our company has been consistently ranked as the #1 real estate company with more homes sold than any other brokerage. Here is some information about Berkshire Hathaway.

• According to the Forbes Global 2000 list, Berkshire Hathaway is the 8th largest public company in the world. The company is led by Chairman and CEO, Warren Buffett who is often referred to as “the Oracle of Omaha” for his keen insight on business matters.
• Berkshire Hathaway owns and operates approximately 55 companies and employs approximately 300,000 people. Company holdings include major brands like GEICO, Fruit of the Loom, Dairy Queen, Benjamin Moore, Helzberg Diamonds, NetJets, Heinz, MidAmerican Energy and Shaw Industries which is located in Dalton, Georgia.
• Berkshire Hathaway has major stock positions in companies like Wells Fargo (8.7%), American Express (13.7%), IBM (6%) and Coca-Cola (8.9%).
• Berkshire Hathaway was named the No. 1 company in Barron’s annual ranking of the world’s 100 most respected companies.

Being part of such a large and successful organization gives us many advantages. Berkshire Hathaway HomeServices has the resources to bring a new level of quality and innovation to real estate. Look for a series of announcements in early 2014!

We look forward to leveraging the Power of Berkshire Hathaway to deliver even more advantages for our clients and customers. Contact us to learn more.

Greater Metro Atlanta Real Estate Update

We are providing this monthly real estate advisor report to keep you informed about the latest trends and issues in the real estate market. If you know someone else who might be interested in receiving this report or who may benefit from our expertise, please let us know. Better information helps our clients make better real estate decisions!

Here are the latest results posted for November 2013:

• Once again, BHHS Georgia Properties was Number 1 in both homes sold and buyers represented. Our company continues to lead the market year-to-date for 2013.
• For the Greater Metro Atlanta area, listed inventory was up 21.4% from the lowest point in February 2013. Inventory was up 7.7% compared to 2012 levels and down 34% from 2011. The limited availability of quality properties with reasonable value has turned some local areas into a seller’s market.
• The available “months of supply” was 5.1 months based upon closed sales (6 months is considered normal). This is up 18% from last month.
• Closings for Metro Atlanta in November were down 18.6% compared to last month and down 14.4% compared to the previous year.
  Compared to November 2012, closings under $100,000 were down 53%. The exit of large investors has allowed the distribution of properties to return to normal.
• The pace of short sales and foreclosures coming on the market has slowed considerably. In 2010, over 60% of sales were distressed properties but in November we only saw 482 foreclosures and 448 bank-owned sales. Resales and New Homes are the larger mix of sales.
• New Homes are making a slow but sure comeback. New home closings are up 55% . There are some wonderful new home communities coming online with the latest innovations in smart building that may be great options for buyers. Click here to view new home communities.
• The Case-Shiller Index reports that Metro Atlanta home values have increased 37% from the bottom of March 2012. But values remain down 16% from the peak of July 2007. Click here for the latest report.
• The trend for mortgage rates is higher. The Mortgage Bankers Association and Freddie Mac predict 30-year mortgage rates to be over 5% in 2014. This could significantly reduce buying power for those that wait.
• First time buyers and baby boomers remain the strongest market segments. Move-up buyers are showing some signs of improved activity but remain well below historical levels.

This is an unprecedented opportunity to buy the home of your dreams while prices and financing are historically low. But these conditions will not last as the real estate market continues to recover.

Happy New Year!

As we all get ready to celebrate the New Year, there are many predictions about what is likely to happen in 2014. Here are our top 10 predictions for the local real estate market:

Number 10: New Homes will continue to grow and become an increasing mix of closed transactions. We estimate that New Homes will be 25% of all sales in 2014.
Number 9: Overall inventory will grow to more historically normal levels by spring.
Number 8: Short sales and foreclosures will slow and return to historically normal levels. 
Number 7: Baby boomers and First Time Buyers will be the largest buying segments for the Greater Metro Atlanta area.
Number 6: Mortgage rates will continue to rise to over 5% - which remains historically low. The average mortgage rate in the last 50 years was 8%.
Number 5: Home values will rise faster in areas with great schools and more desirable lifestyles.
Number 4: Apartment buildings will be a bubble with over-building leading to drop in rental rates. Single family rentals in desirable areas will remain strong.
Number 3: Most large investors will exit the Metro Atlanta market.
Number 2: Pent-up demand and fear of rising mortgage rates will bring more buyers into the market. Overall transactions will be 10-15 higher than 2013.
Number 1: Berkshire Hathaway HomeServices clients achieve the best results!

Happy New Year! If You Know Someone Who Can Benefit From This Information Or Our Real Estate Expertise, We Would Love To Help Them.

Lake Sidney Lanier Homes is the most comprehensive online source for information on Lake Lanier homes for sale and Lake Lanier area real estate. View the latest Lake Lanier home listings, foreclosures, lots, land, sales trends and real estate topics on Lake Lanier. Arthur Prescott is an Accredited Buyer's Representative and Certified Residential Specialist with over a decade of Lake Lanier real estate experience. If you would like to schedule a free buyer or seller consultation, please feel free to contact us directly at 678-513-2014 or email us at APrescott@PrudentialGeorgia.com.

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Prudential Georgia Realty Real Estate Advisor October 2013! Get The Latest Real Estate News & More!

Prudential Georgia Realty Real Estate Advisor October 2013

We are providing this monthly real estate advisor report to keep you informed about the latest trends and issues in the real estate market. If you know someone else who might be interested in receiving this report or who may benefit from our expertise, please let us know. Better information helps our clients make better real estate decisions!

Greater Metro Atlanta Real Estate Update

For the Greater Metro Atlanta area, listed inventory is up 23% from the lowest point in February 2013. But inventory remains down 6.3% compared to 2012 levels and down 41% from 2011. The limited availability of quality properties with reasonable value has turned many local areas into a seller’s market.
The available “months of supply” is 4 months based upon closed sales (6 months is considered normal).
Closings in August were down 17% from July reflecting the seasonal “back to school” slowdown. All price points showed a drop with the $1 mil - $2 mil price range showing the greatest drop at 30.4%.
Year-to-date closings are also down 1.8% compared to the same period from 2012.
Closings under $100,000 are now 18% of all closings. Two years ago, over 50% of properties sold were in the price range. The exit of large investors has allowed the distribution of properties to return to normal.
The pace of short sales and foreclosures coming on the market has slowed considerably. In 2010, over 60% of sales were distressed properties but that is now down to 37%. Resales are the larger mix of sales.
New homes are making a slow but sure comeback. New home closings are up 55% from last quarter. There are some wonderful new home communities coming online with the latest innovations in smart building that may be great options for buyers.

Click here to view new home communities.

The Case-Shiller Index reports that Metro Atlanta home values have increased 35% from the bottom of March 2012. But values remain down 18.27% from the peak of July 2007.

 

Click here for the latest report.

Appraisals can be a problem. In areas where prices are rising, the appraiser may not be considering the latest comps or may not be able to use some comps that were done as private transactions. We can help provide information to the appraiser in the right formats that give you the best chance to get the highest value.
Click Here for a detailed set of slides that show the National Market, the Metro Atlanta Market, The New Homes Market, and how our company is performing. There is a reason we are ranked #1 in Metro Atlanta.

This is an unprecedented opportunity to buy the home of your dreams while prices and financing are historically low. But these conditions will not last as the real estate market continues to recover.
BERKSHIRE HATHAWAY HomeServices



On December 10th, our company will be adopting the new Berkshire Hathaway HomeServices brand. We are excited to begin this new chapter for our company and this conversion will bring many advantages for our agents and their clients. This year, we also celebrate 50 years of serving the needs of our clients in the Greater Metro Atlanta area. During that time, we have operated as Crest Realty, Merrill Lynch Realty, Prudential Atlanta Realty and Prudential Georgia Realty. Though the name has changed, our commitment to deliver exceptional real estate services has not. In the last five years, our company has been consistently ranked as the #1 real estate company in metro Atlanta with more homes sold than any other brokerage.

Now that our company is part of the Berkshire Hathaway family of companies, we thought it might be helpful to get to know more about our new organization:

According to the Forbes Global 2000 list, Berkshire Hathaway is the 8th largest public company in the world. The company is led by Chairman and CEO Warren Buffett who is often referred to as “the Oracle of Omaha” for his keen insight on business matters.

The Berkshire Hathaway approach is to acquire companies with great brands, great products, and strong leadership, then grow and build value over long periods of time.

Berkshire Hathaway owns and operates approximately 100 companies and employs approximately 300,000 people. Company holdings include major brands like GEICO, Fruit of the Loom, Dairy Queen, Benjamin Moore, Helzberg Diamonds, NetJets, Heinz, MidAmerican Energy, and Shaw Industries, which is located in Dalton, Georgia.

Berkshire Hathaway has major stock positions in companies like Wells Fargo (8.7%), American Express (13.7%), IBM (6%) and Coca-Cola (8.9%).

Berkshire Hathaway was named the No. 1 company in Barron’s annual ranking of the world’s 100 most respected companies.

Being part of such a large and successful organization gives us many advantages. For example, our listing clients will benefit from an unprecedented level of exposure. Look for more details and exciting news as we move closer to our big announcement on December 10th.

We look forward to leveraging the Power of Berkshire Hathaway to deliver even more advantages for our clients and customers. Contact us to learn more.

Welcome To Fall 2013!



Fall officially started at 4:44pm on Sunday, September 22nd. The Braves have clinched the National League East for the first time since 2005. College football is in full swing and the Atlanta Falcons are beginning their season with hopes of playing in the Super Bowl. We are blessed with a long fall season with pleasant weather and beautiful colors.

So what are the prospects for the colors of fall this year? “The main thing that makes for good fall color are sunny days beginning in mid- to late-August and continuing into September, coupled with cool nights,” says Howard Neufeld, an Appalachian State University professor whose weekly leaf-watching reports have earned him the title of “Fall Color Guy.” The early summer was unusually wet this year. The average rainfall for Metro Atlanta is 49.71 inches per year. In the first 8 months, we have already had 51.04 inches. But the late summer starting in August turned drier. The Atlanta-based Weather Channel predicts autumn will be more dry and cooler than average in the Southeast. That would point to a colorful tree canopy and a likelihood that many of us won’t depend too much on air-conditioning or heat going into December.

Click here to view the locations for the South’s Best Fall Colors according to Southern Living magazine. So get out there and enjoy our beautiful fall season!

If You Know Someone Who Can Benefit From This Information Or Our Real Estate Expertise, We Would Love To Help Them.




Lake Sidney Lanier Homes is the most comprehensive online source for information on Lake Lanier homes for sale and Lake Lanier area real estate. View the latest Lake Lanier home listings, foreclosures, lots, land, sales trends and real estate topics on Lake Lanier. Arthur Prescott is an Accredited Buyer's Representative and Certified Residential Specialist with over a decade of Lake Lanier real estate experience. If you would like to schedule a free buyer or seller consultation, please feel free to contact us directly at 678-513-2014 or email us at APrescott@PrudentialGeorgia.com.

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Prudential Georgia Realty Real Estate Advisor August 2013! See The Latest Trends In This Metro Atlanta Real Estate Update!

Prudential Georgia Realty Real Estate Advisor August 2013

We are providing this monthly real estate advisor report to keep you informed about the latest trends and issues in the real estate market. If you know someone else who might be interested in receiving this report or who may benefit from our expertise, please let us know. Better information helps our clients make better real estate decisions!
Greater Metro Atlanta Real Estate Update

For the Greater Metro Atlanta area, listed inventory is up 18% from the lowest point in February 2013. But inventory remains down 19% compared to 2012 levels and down 48% from 2011. The limited availability of quality properties with reasonable value has turned many local areas into a seller’s market.
The available “months of supply” is 3.8 months based upon closed sales (6 months is considered normal).
There is a feeding frenzy for desirable properties where multiple offers are becoming the norm. Buyer demand is very strong and pendings are running ahead of last year. But actual closed transactions have been down every month this year when compared to 2012. That means the fallout rates are higher than normal.
The pace of short sales and foreclosures coming on the market has slowed considerably. In 2010, over 60% of sales were distressed properties but that is now down to 37%. Resales are the larger mix of sales.
New Homes are making a slow but sure comeback. New home closings are up 55% from last quarter. There are some wonderful new home communities coming online with the latest innovations in smart building that may be great options for buyers. Click here to view new home communities.
The Case-Shiller Index reports that Metro Atlanta home values have increased 21% in the last 12 months. But values remain down 25% from the peak of July 2007. Click here for the latest Case-Shiller report.
Home values will continue to rise in 2013 – especially in the lower price points driven by the very low levels of inventory and strong buyer demand.
Appraisals can be a problem. In areas where prices are rising, the appraiser may not be considering the latest comps or may not be able to use some comps that were done as private transactions. We can help provide information to the appraiser in the right formats that give you the best chance to get the highest value.
Click Here for a detailed set of slides that show the National Market, the Metro Atlanta Market, The New Homes Market and how our company is performing. There is a reason we are ranked #1 in Metro Atlanta.

This is an unprecedented opportunity to buy the home of your dreams while prices and financing are historically low. But these conditions will not last as the real estate market continues to recover.
Mortgage Rates Rising
Time To Make Your Move!



Mortgage rates are on the rise, but fell back slightly in recent weeks. Many buyers are realizing that the long-term trend is upward and home values are also rising. Now may be the time to make your move!

On July 23rd, Freddie Mac released the results of its Primary Mortgage Market Survey(R) (PMMS®), showing average fixed mortgage rates easing along with market concerns over the Federal Reserve's bond purchase program.

The 30-year fixed-rate mortgage (FRM) averaged 4.37 percent, down from the prior week when it averaged 4.51 percent. Last year at this time, the 30-year FRM averaged 3.53 percent.
15-year FRM averaged 3.41 percent, down from last week when it averaged 3.53 percent. A year ago at this time, the 15-year FRM averaged 2.83 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.17 percent, down from last week when it averaged 3.26 percent. A year ago, the 5-year ARM averaged 2.69 percent.
1-year Treasury-indexed ARM averaged 2.66 percent this week, unchanged from last week. At this time last year, the 1-year ARM averaged 2.69 percent.
Fixed mortgage rates fell as Federal Reserve (Fed) Chairman Bernanke helped ease market concerns about the Fed reducing its bond purchases. During a question and answer session following a speech on July 10th, Chairman Bernanke indicated that a highly accommodative monetary policy is what's needed in the U.S. Economy.

Recent indications of a slowing economic recovery placed downward pressure on mortgage rates. Consumer sentiment fell to a three month low in July while retail sales in June grew by only 0.4 percent, which was half of the market consensus forecast. In addition, housing starts fell in June to the slowest pace since August 2012. These more pessimistic economic factors help keep rates lower for now. But the long-term trend for mortgage rates is higher. Freddie Mac and the Mortgage Bankers Association both predict mortgage rates to be almost 5% by 2014.

If someone you know is interested in buying, we can help them act quickly before rising mortgage rates and increasing home values price their dream home out of reach!
It Is “Back To School” Time!

The Greater Metro Atlanta area is home to thousands of elementary, middle and high schools. Most of these will open for the 2013 -2014 school year during the first two weeks of August. The summer break is almost over, and with it the days of cruising down many streets unimpeded by school buses during the daily commute will be gone as well. Add at least a 20 minute buffer to your 7 – 9 am commute to arrive on time and keep yourself and others safe. Safe Kids USA offers the followingTop Back to School Safety Tips:

Reminders for Drivers:
Slow down and be especially alert in residential neighborhoods and school zones
Take extra time to look for kids at intersections, on medians and or curbs
Enter and exit driveways and alleys slowly and carefully
Watch for children on and near the road in the morning and after school hours
Reduce any distractions inside your car so you can concentrate on the road and your surroundings. Put down your phone and don’t talk or text while driving

Reminders for Kids:
Kids should cross the street with an adult until they are at least 10 years old
Cross the street at corners, using traffic signals and crosswalks
Never run out into the streets or cross in between parked cars
Make sure kids always walk in front of the bus where the driver can see them

Fall Is Just Around The Corner But Real Estate Is Still HOT! If You Know Someone Who Can Benefit From Our Real Estate Expertise, We Would Love To Help. Better Information Leads To Better Decisions!




Lake Sidney Lanier Homes is the most comprehensive online source for information on Lake Lanier homes for sale and Lake Lanier area real estate. View the latest Lake Lanier home listings, foreclosures, lots, land, sales trends and real estate topics on Lake Lanier. Arthur Prescott is an Accredited Buyer's Representative and Certified Residential Specialist with over a decade of Lake Lanier real estate experience. If you would like to schedule a free buyer or seller consultation, please feel free to contact us directly at 678-513-2014 or email us at APrescott@PrudentialGeorgia.com.

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• Mortgage Rates Are Cooling Down (fool.com)

Prudential Georgia Realty Real Estate Advisor For July 2013! Take A Look At The Strengthening Trends!

Prudential Georgia Realty
Real Estate Advisor - July 2013


We are providing this monthly real estate advisor report to keep you informed about the latest trends and issues in the real estate market. If you know someone else who might be interested in receiving this report or who may benefit from our expertise, please let us know. Better information helps our clients make better real estate decisions!

Greater Metro Atlanta Real Estate Update

For the Greater Metro Atlanta area, the "for sale" inventory is down to levels not seen since the early 1990s. The availability of quality properties with reasonable value has turned many local areas into a seller’s market.
The available “months of supply” is 3.3 months based upon closed sales (6 months is considered normal).
There is a feeding frenzy for desirable properties where multiple offers are becoming the norm. Though buyer demand is very strong, buyers are struggling to get an accepted offer on their prospective properties. As a result, closed units are down for the past four months compared to the same month last year.
The pace of short sales and foreclosures coming on the market has slowed considerably. In 2010, over 60% of sales were distressed properties but that is now down to 37%. Resales are the larger mix of sales.
New Homes are making a slow but sure comeback. New home closings are up 55% from last quarter. There are some wonderful new home communities coming online with the latest innovations in smart building that may be great options for buyers. Click here to view new home communities.

The Case-Shiller Index reports that Metro Atlanta home values have increased 20% in the last 12 months. But values remain down 25% from the peak of July 2007. Click here for the latest Case-Shiller report.
Home values will continue to rise in 2013 – especially in the lower price points driven by the very low levels of inventory and strong buyer demand.

Appraisals can be a problem. In areas, where prices are rising the appraiser may not be considering the latest comps or may not be able to use some comps that were done as private transactions. We can help provide information to the appraiser in the formats they require. This gives us the best chance to get the highest appraised value for loan approvals.

Click Here for a detailed set of slides that show the National Market, the Metro Atlanta Market, The New Homes Market and how our company is performing. There is a reason we are ranked #1 in Metro Atlanta.

This is an unprecedented opportunity to buy the home of your dreams while prices and financing are historically low. But these conditions will not last as the real estate market continues to recover.


Get To Know HomeServices of America, Inc. TM



Now that our company is part of the Berkshire Hathaway family of companies, we thought it might be helpful to get to know more about our new organization. Click here for more info.
HomeServices of America, A Berkshire Hathaway Affiliate is our parent company.
HomeServices of America is ranked the nation’s second-largest, full-service residential real estate brokerage firm and one of the largest providers of integrated real estate services, with more than 17,000 agents in 21 states. In 2012, HomeServices brokered over $42 billion in home sales and closed nearly $4 billion in home mortgages.

HomeServices of America is led by Ron Peltier, chairman and CEO and Bob Moline, president & COO. Both are real estate veterans and have a deep understanding of our industry.
In October 2012, HomeServices also became the majority owner in HSF Affiliates LLC, which operates the Prudential Real Estate franchise network with over 1700 locations and 44,000 real estate agents.
HSF Affiliates will also be introducing the new BERKSHIRE HATHAWAY HomeServices real estate brand.

This fall our company will be launching the new BERKSHIRE HATHAWAY HomeServices real estate brand right here in Metro Atlanta!

BBDO has been engaged as the advertising agency to help us make a big splash with the new brand. BBDO is the most awarded advertising firm in the world.
The introduction of this exciting new brand will give our company and our clients an unprecedented opportunity for exposure.

Being part of such a large and successful organization gives us many advantages. We are able to leverage our resources to innovate faster and offer services that will not be feasible for smaller organizations.

If you or someone you know is interested in selling their property, please contact us to learn how we can provide the best exposure for their property.


Happy July 4th - Independence Day!



Independence Day, commonly known as the Fourth of July, is a federal holiday in the United States commemorating the adoption of the Declaration of Independence on July 4, 1776. During the American Revolution, the legal separation of the Thirteen Colonies from Great Britain occurred on July 2, 1776, when the Second Continental Congress voted to approve a resolution of independence declaring the United States independent from Great Britain. After voting for independence, Congress turned its attention to the Declaration of Independence, a statement explaining this decision, which had been prepared by a Committee of Five, with Thomas Jefferson as its principal author. Congress debated and revised the wording of the Declaration, finally approving it on July 4. From the outset, Americans celebrated independence on July 4, the date shown on the much-publicized Declaration of Independence, rather than onJuly 2, the date the resolution of independence was approved in a closed session of Congress.

Historians have long disputed whether Congress actually signed the Declaration of Independence on July 4, even though Thomas Jefferson, John Adams, and Benjamin Franklin all later wrote that they had signed it on that day. Most historians have concluded that the Declaration was signed nearly a month after its adoption, on August 2, 1776, and not on July 4 as is commonly believed.

In a remarkable coincidence, both John Adams and Thomas Jefferson, the only signers of the Declaration of Independence later to serve as Presidents of the United States, died on the same day: July 4, 1826, which was the 50th anniversary of the Declaration. Although not a signer of the Declaration of Independence, but another Founding Father who became a President, James Monroe, died on July 4, 1831, thus becoming the third President in a row who died on this memorable day. Calvin Coolidge, the 30th President, was born on July 4, 1872, and, so far, is the only President to have been born on Independence Day. We wish you and your loved ones a safe and Happy Independence Day!



The Summer Market Is Here And Real Estate Is HOT! If You Know Someone Who Can Benefit From Our Real Estate Expertise,
We Would Love To Help. Better Information Leads To Better Decisions!




Lake Sidney Lanier Homes is the most comprehensive online source for information on Lake Lanier homes for sale and Lake Lanier area real estate. View the latest Lake Lanier home listings, foreclosures, lots, land, sales trends and real estate topics on Lake Lanier. Arthur Prescott is an Accredited Buyer's Representative and Certified Residential Specialist with over a decade of Lake Lanier real estate experience. If you would like to schedule a free buyer or seller consultation, please feel free to contact us directly at 678-513-2014 or email us at APrescott@PrudentialGeorgia.com.

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Prudential Georgia Realty Real Estate Advisor June 2013! Get The Latest Scoop On Metro Atlanta Real Estate!

Prudential Georgia Realty Real Estate Advisor
June 2013


We are providing this monthly real estate advisor report to keep you informed about the latest trends and issues in the real estate market. If you know someone else who might be interested in receiving this report or who may benefit from our expertise, please let us know. Better information helps our clients make better real estate decisions!

Greater Metro Atlanta Real Estate Update

For the Greater Metro Atlanta area, the “for sale” inventory is down to levels not seen since the early 1990s. The availability of quality properties with reasonable value has turned many local areas into a seller’s market.
The available “months of supply” is 3.6 months based upon closed sales and 2.8 months based on pending sales. Six months of supply is considered a normal market.
The fallout rates of pendings versus closings are higher than normal. Closed units are down for the past four months compared to the same month last year.
The pace of short sales and foreclosures coming on the market has slowed considerably. In 2010, over 60% of sales were distressed properties but that is now down to 37%. Resales are the larger mix of sales.
New Homes are making a slow but sure comeback. New home closings are up 55% from last quarter. There are some wonderful new home communities coming online with the latest innovations in smart building that may be great options for buyers. Click here to view new home communities.
The Case-Shiller Index reports that Metro Atlanta home values have increased 19% in the last 12 months. But values remain down 28% from the peak of July 2007. Click here for the latest Case-Shiller report.
Home values will continue to rise in 2013 – especially in the lower price points driven by the very low levels of inventory and strong buyer demand.
Appraisals can be a problem. In areas, where prices are rising the appraiser may not be considering the latest comps or may not be able to use some comps that were done as private transactions. We can help provide information to the appraiser in the formats they require. This gives us the best chance to get the highest appraised value for loan approvals.
Click Here for a detailed set of slides that show the National Market, the Metro Atlanta Market, The New Homes Market and how our company is performing. There is a reason we are ranked #1 in Metro Atlanta.


This is an unprecedented opportunity to buy the home of your dreams while prices and financing are historically low. But these conditions will not last as the real estate market continues to recover.

New Homes Are Back!

Metro Atlanta was a national leader for New Homes prior to the real estate bust. At the peak in 2006, we had over 60,000 new home starts. That dropped to 3,000 by 2008.
New Home closings are up 55% since last quarter and builders are making a slow but sure comeback. The question is – how fast can this go? Here are some of the factors we are watching.
Financing: Very few builders could not get financing in recent years. Some were successful in getting non-traditional lenders. But now the banks are beginning to make loans again.
Permits and Approvals: It is more difficult and more costly to get the permits and approvals to get started. Cutbacks in local governing organizations have slowed the process.
Labor Availability: Many of the skilled laborers left the business. Builders are slowly building back the skilled labor resources to create more inventory.
Material Costs: The cost of concrete, lumber and other materials is rising. Those suppliers cut back their inventories and supply chains. It will take a while to build back up the system.
Weather: The recent heavy rains have slowed development and construction. If we get a prolonged period of good weather this spring and summer, their building speed will improve.
Demand: The buyer demand for new homes is very strong. The current inventory is flying off the shelves in desirable areas.
The simple fact is that New Homes cannot grow fast enough to balance our low inventory in the short-term. BUT that will change in the next three to five years. We expect to see New Homes sales to return to almost half the market sales in that timeframe.
There are some wonderful new home communities coming online with the latest innovations in smart building that may be great options for buyers. Click here to view new home communities.
For resale sellers, that means your future competition may be a bright shiny new home. The good news is that home values are rising. The bad news is that your new home competition may be offering some compelling attributes that buyers prefer. New Homes are typically more energy efficient and include the latest features and amenities. Many resale properties will need repairs and may have aging windows and doors, HVAC systems or roofs. For many potential sellers, the window of opportunity to sell is now!
Another factor to consider is mortgage rates. The current mortgage rates are the lowest in our lifetimes. But these conditions are artificial and will not last. If you wait too long, the next home may cost you thousands of dollars in higher mortgage payments. Click here for charts on future mortgage rates and the impact on home affordability.



Please contact us to learn more about New Home Communities In Your Area.
Get To Know BERKSHIRE HATHAWAY



Now that our company is part of the Berkshire Hathaway family of companies, we thought it might be helpful to get to know more about our new organization. Click here for more info.
According to the Forbes Global 2000 list, Berkshire Hathaway is the 8th largest public company in the world. The company is led by Chairman and CEO, Warren Buffett who is often referred to as “the Oracle of Omaha” for his keen insight on business matters.
The Berkshire Hathaway approach is to acquire companies with great brands, great products and strong leadership, then grow and build value over long periods of time.
Berkshire Hathaway owns and operates approximately 100 companies and employs approximately 300,000 people. Company holdings include major brands like GEICO, Fruit of the Loom, Dairy Queen, Benjamin Moore, Helzberg Diamonds, NetJets, Heinz, MidAmerican Energy and Shaw Industries which is located in Dalton, Georgia.
Berkshire Hathaway has major stock positions in companies like Wells Fargo (8.7%), American Express (13.7%) and IBM (6%). Berkshire Hathaway is the largest single stockholder of Coca-Cola with holdings estimated at 8.9%.
Barron’s Magazine and Fortune Magazine have ranked Berkshire Hathaway as one of the most respected companies in the world. A Harris Interactive poll cited Berkshire Hathaway as the “most admired” company in the world.
Berkshire Hathaway was recently ranked #4 in market capitalization for U.S. companies with $251 billion in market value by the Online Investor.
In the last 48 years, Berkshire Hathaway has returned an average annual growth in book value of 19.7% to investors versus 9.4% for the S&P 500 (including dividends) for the same period. From 2000 to 2010, Berkshire Hathaway stock produced a total return of 76% versus a negative 11.3% for the S&P 500.

Being part of such a large and successful organization gives us many advantages. We are able to purchase solutions in larger scale that gives us a cost advantage. The ability to share “best practices” and resources across the enterprise will allow us to innovate at a faster pace.

We look forward to leveraging the Power of Berkshire Hathaway to deliver even more advantages for our clients and customers. Contact us to learn more.

Events Happening in June 2013



The month of June is packed with important events. Here are some of the noteworthy days coming up in May:
May 27 – Memorial Day. Even though Memorial Day is past, we honor those who fought and died for our country. We remember that freedom is not free!
June 9 – Super Sunday Open House. Prudential Georgia Realty will be hosting a SuperSunday Open House event. There will be some of the finest real estate in our area on display. Just visit PrudentialGA.com to see all the properties available.
June 14 – Flag Day. In the United States, Flag Day is celebrated on June 14 to commemorate the adoption of the flag of the United States, which happened that day by resolution of the Second Continental Congress in 1777. Fly those flags high and proud!
June 16 – Father’s Day. Father's Day was inaugurated in the United States in the early 20th century to complement Mother's Day. Before they ask, Children’s Day appears to be the other 363 days of the year!
June 21 – First Day Of Summer. The summer solstice where the sun reaches its highest point happens on June 21st. This is considered the beginning of summer.



Spring Is In Full Bloom And Summer Is Just Around The Corner.
If You Know Someone Who Can Benefit From Our Real Estate Expertise, We Would Love To Help.
Better Information Leads To Better Decisions!




Lake Sidney Lanier Homes is the most comprehensive online source for information on Lake Lanier homes for sale and Lake Lanier area real estate. View the latest Lake Lanier home listings, foreclosures, lots, land, sales trends and real estate topics on Lake Lanier. Arthur Prescott is an Accredited Buyer's Representative and Certified Residential Specialist with over a decade of Lake Lanier real estate experience. If you would like to schedule a free buyer or seller consultation, please feel free to contact us directly at 678-513-2014 or email us at APrescott@PrudentialGeorgia.com.

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Metro Atlanta Case-Shiller Index Reported April 2013! See The Latest Housing Trends, Sales, And Market Data For Atlanta!

Today, we are posting the lastest real estate news for the Metro Atlanta Market, which allows us to get a bigger picture view of how the housing market is performing in the metro area, and in areas where many Lake Lanier home owners have their primary residences.  This posting is provided to us courtesy of Prudential Georgia Realty and their atlrealestatescoop blog!

The latest Case-Shiller Index was published on Tuesday, April 30th 2013. As always, the index reports on data 60 days in arrears. Therefore, the index reports Metro Atlanta home values for February 2013. So what does the latest index show and what does that mean for home values in Metro Atlanta? Things are improving in our market however two important considerations must be taken into account. First, the Case-Shiller index of home values is very different from average sale prices or median homes prices. The Case-Shiller Index reports on repeat properties sold, which are generally better indicators of home values. Second, this index reflects average home values for all of Metro Atlanta. Remember, real estate is local and every market is different. Your local Prudential Georgia Realty agent can help you understand the specific metrics in your local market.

Now for the news…. Average home prices for the 20-City Index increased by .3% compared to last month and increased 9.3% over the past year. The January index for Atlanta shows a .03% (non-seasonally adjusted) increase in home values from January 2013 and a 16.5% increase over the last year. While these numbers are positive, we must bear in mind that home prices are still down 28.91% from the peak of July 2007. The current Case-Shiller index reflects values similar to home values in the summer of 1999. The January index for Atlanta is 97.01. Phoenix, San Francisco, Las Vegas and Atlanta were the four cities with the highest year-over-year price increases. New York, Boston and Chicago showed the smallest year-over-year improvements.

The Metro Atlanta real estate market continues to show signs of improvement for sellers. Listing inventory is down 36.4% from 2012 and down 56.4% from 2011. That represents around 3.7 months supply of inventory based upon the latest closed sales trend. Six months supply is considered normal. We have seen an extended period of low inventory since last year. Buyer activity remains strong led by baby boomers, first time buyers and investors. At the same time, the pace of pre-foreclosures (notices of default) and foreclosures has slowed. RealValuator reports that short sales and foreclosures were over 60% of the transactions sold in 2010 but are now down to 37% in 2013. Market sales (resales, new homes) are outpacing bank-owned sales. Your local PGR agent can show you the specific conditions in your market so you can make the best real estate decisions.

We have now seen a series of positive results from the Case-Shiller Index but the last few months show the trend slowing or leveling off. Over the next few months, we expect to see more positive results as we get into the height of the spring market. We are moving back to a more normal seasonal pattern where the spring and summer months are the heaviest selling months. View the graph of the monthly Case-Shiller results from 2010, 2011, 2012 and 2013:



If you look back further at home values (see chart below), you can see that we had a bubble in homes values. As with many cyclical markets, we have over-corrected with values that are below the normal trend line. Over time, we expect this pattern to normalize and values will return to this predictable track. That makes now a great time to buy or invest in real estate for Metro Atlanta – BUT don’t wait too long!





This chart shows the “months supply” based upon price ranges. As you can see, the supply is very low in the lower price ranges. Some of this is due to heavy investor activity under $200,000. As you get to the luxury market, there is more supply available based on the rate of closed sales. Contact your local PGR agent to see the latest trends in your specific area.





If you look at the average annual Case-Shiller index for each year, here is how homes purchased in recent years would compare to the current index:

Homes Bought in 2000 – Loss of 6.03%
Homes Bought in 2001 – Loss of 11.01%
Homes Bought in 2002 – Loss of 14.31%
Homes Bought in 2003 – Loss of 17.01%
Homes Bought in 2004 – Loss of 19.84%
Homes Bought in 2005 – Loss of 23.68%
Homes Bought in 2006 – Loss of 27.16%
Homes Bought in 2007 – Loss of 27.63%
Homes Bought in 2008 – Loss of 20.90%
Homes Bought in 2009 – Loss of 10.51%
Homes Bought in 2010 – Loss of 8.28%
Homes Bought in 2011 – Loss of 1.37%
Homes Bought in 2012 – Gain of 6.92%

Yes, we are slowly climbing our way out of this unprecedented housing crisis – but we are not quite there yet. So where will home values go from here? The key factors that will impact our home values include the following:

Demand from Buyers: Demand continues to be strong as buyers take advantage while prices remain below replacement costs and mortgage financing is historically low. We expect to see an 8-10% increase in units for 2013. Large investors are creating strong demand for rentable single family homes under $200,000. We will be watching that for a potential bubble. But we also see significant pent-up demand from normal household formation and a very active baby boomer market driving general demand. We expect to see the return to a more normal market of 80,000 to 85,000 homes sold per year.

Mortgage Rates/ Credit Availability: Average mortgage rates in the past 50 years were 8%. We expect to see historically low mortgage rates continue while the Fed is still purchasing $85 billion of bonds and mortgage-backed securities each month. But this stimulus to keep rates artificially low will not last forever as the Fed is already signaling they may start to slow down this program. Freddie Mac and the Mortgage Bankers Association predict mortgage rates to rise to over 4% in 2013. In 3-5 years, we expect to see rates in the 6-8% range again.

Supply/ Inventory Levels: Most of our markets are showing inventory levels down well over 30% from the prior year levels. New homes will continue to grow but not fast enough to have a significant impact on inventory levels. As values begin to rise, we expect “sideline sellers” to get back into the market. Overall, the “for sale” inventory will remain low compared to normal levels.

Competition from Short Sales/ Foreclosures: In 2010, RealValuator reports that short sales and foreclosures were over 60% of the transactions sold but have dropped to 37% in 2013. We are now seeing resales and new homes outpace the sales of bank-owned properties.

It is clear that the housing market for the Greater Metro Atlanta area is improving. Right now, we still have low prices and incredible mortgage rates. You and your agent should be carefully watching the leading indicators. There are some great opportunities to buy or invest. But the low inventory may cause prices to start rising at an abnormally high rate. In 5 or 10 years, many will look back and regret not buying their dream home when they had the chance! Check back for our next posts with the latest facts and insight that can make you money!



Lake Sidney Lanier Homes is the most comprehensive online source for information on Lake Lanier homes for sale and Lake Lanier area real estate. View the latest Lake Lanier home listings, foreclosures, lots, land, sales trends and real estate topics on Lake Lanier. Arthur Prescott is an Accredited Buyer's Representative and Certified Residential Specialist with over a decade of Lake Lanier real estate experience. If you would like to schedule a free buyer or seller consultation, please feel free to contact us directly at 678-513-2014 or email us at APrescott@PrudentialGeorgia.com.

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• Metro Atlanta Case-Shiller Index Reported For February 2013 (lakesidneylanierhomes.blogspot.com)
• The Latest Case-Shiller Index Report For Metro Atlanta Homes! (lakesidneylanierhomes.blogspot.com)