We hope that you and your loved ones are having a wonderful beginning to the new year! 2013 will bring some exciting new trends for real estate in the Greater Metro Atlanta area. If you are considering your options or know others who may benefit from this information, please contact us. We would be honored to help.
Real estate is heavily impacted by the laws of supply & demand plus a few other factors like mortgage rates and the economy. The “for sale” inventory across most markets remains very low. Desirable properties priced at market values are selling very quickly – often with multiple offers.
For the Greater Metro Atlanta area, inventory levels are down 40% from 2011 and 57% from 2010.
The available “months of supply” is around 4 months. Six months of supply is considered a normal market.
The pace of short sales and foreclosures coming on the market has slowed considerably. In 2010, over 60% of sales were distressed properties. That is now down to 38% of all sales. We do expect banks to move more aggressively in 2013 but this will not have a significant impact in most local markets.
The available “months of supply” is around 4 months. Six months of supply is considered a normal market.
The pace of short sales and foreclosures coming on the market has slowed considerably. In 2010, over 60% of sales were distressed properties. That is now down to 38% of all sales. We do expect banks to move more aggressively in 2013 but this will not have a significant impact in most local markets.
New Homes are making a slow but sure comeback. In 2013, we expect to see new home starts reach an annualized run-rate of 12,000 – which is more than double the previous year. But new homes cannot grow very fast due to constraints in desirable lots, rising material costs and labor shortages.
Home values are expected to rise slowly in 2013 due to the low inventory and strong buyer demand.
Mortgage rates remain incredibly low – but this will change significantly in a few years.
The most active buyer segments are baby boomers, 1st time home buyers and investors.
There is an early spring market starting to bloom for real estate in the Greater Metro Atlanta area. Demand is very strong and desirable properties with good values are selling quickly – often with multiple offers. Buyers are realizing that the market is recovering and moving to take advantage of the opportunities.
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.
What Is A Short Sale and Is It Right For Me?
A “short sale” may be a solution for homeowners who are struggling to make their payments or significantly upside down on the equity in their home. A short sale is when the loan holder(s) agree to sell the property for less than the outstanding balance of the loan. Short sales have grown in popularity for both consumers and banks or loan holder(s). They are less expensive to process than a foreclosure for the bank and they are usually less harmful to the home owner’s credit. We expect to see more short sales in 2013.
The recent passage of the American Taxpayer Relief Act of 2012 included a provision that is very important for home owners considering a short sale. The COD (cancellation of debt) provision was extended through the end of 2013. When a property is foreclosed or sold as a short sale, the amount of debt that is cancelled is considered income by the IRS. The amount is calculated by the total loan amount minus the net amount the loan holder(s) received from a short sale or bank-owned property sale. This amount of debt that was cancelled was previously considered income and the loan holder would send the home owner a 1099 to report as income. Senator Johnny Isakson led legislation to allow for an exclusion to this COD income so it would not be treated as income. This exclusion was extended for 2013 but is highly unlikely to be extended further. This is one of the reasons we expect to see a flurry of short sales coming in 2013.
Our company has established a solution called SHORT SALE ASAP. We have partnered with Weissman, Nowack, Curry & Wilco – one of the most respected real estate law firms in the nation. They are located here in Metro Atlanta and have set up a team that specializes in streamlined short sales. This is a complex area and the real estate agent is legally prohibited from negotiating directly with the bank on your behalf. That is why we established this partnership to help guide our clients through the process. There is no charge to the home owner for the service since the fee is funded by the loan servicer.
If you or someone you know would like to explore the option of a short sale or strategic default, contact us to learn more about the SHORT SALE ASAP program. Our goal is to efficiently and respectfully help people through this process so they can move on to the next chapter in their life.
Top 3 Mistakes For Potential Sellers!
As real estate markets go through cycles over time, we look back to see the missed opportunities. Of course, hindsight is 20-20 so it is easy to see these when looking in the rear view mirror. Home affordability is a combination of home prices and mortgage rates. If you look historically at most market cycles, we have either seen high prices and low rates or low prices and high rates. The current market conditions are unprecedented. We have not seen the combination of both low prices and low rates since the 1930s. Most of us are unlikely to see this again in our lifetimes. So here are the top mistakes that experts tell us potential sellers are making right now!
Mistake #3 – Waiting For Home Values To Recover And Then Move. Studies show that the fear of loss is 2.5 times more powerful than the opportunity for a gain. Millions of home owners are waiting for values to recover to sell. BUT they are going to find that the next property they want to buy has also gone up in price. More importantly, the mortgage rates are likely to be significantly higher. In 3-5 years, we expect mortgage rates to be in the 6% to 8% range again. If you do the math, waiting can cost hundreds of thousands of dollars!
Mistake #2 – Let’s Float A Really High Price And See What Happens. This is another common mistake that backfires for the seller. Desirable properties with market values are selling rapidly. Buyers and agents can quickly see properties that are priced significantly above the market. Worse yet, the majority of buyers use a mortgage to finance the purchase. If the property does not appraise, the bank will not approve the loan. Many potential transactions end up being negotiated or fall apart based upon the appraisal values. But most properties never even get an offer if they are priced too far out of the market. Those properties will quickly get ignored by agents and buyers.
Mistake #1 – Let’s Put It On The Market But We Are Not Fixing Up Anything. Buyers usually make emotional decisions for homes. Their first impressions are critical in establishing a perception about the property. The condition of most properties can be improved by doing simple things that do not cost very much money or time. Even banks selling foreclosed properties are doing repairs and making properties look more presentable. Properties in poor condition sell for less than properties where small investments were made in condition, updates, staging and incentives. This is one of those times where spending a little money pays off in better returns. Click here for checklist on Preparing Your Property For Sale.
If you or someone you know are considering selling their property, our award-winning Advanced Property Marketing System is the most effective methodology to get the highest market value.
New Car Tax Program For Georgia Starts March 1st
Starting March 1, 2013 all motor vehicles titled in Georgia are subject to a one-time Title Ad Valorem Tax (TAVT) fee. The TAVT replaces the former ad valorem and sales tax. Here are some highlights of the program:
When a vehicle owner applies for title the TAVT is collected based on the fair market value (not purchase price). Any vehicle subject to TAVT is exempt from sales tax. Lease and rental vehicles are exceptions.
Motor vehicles purchased in Georgia between January 1, 2012 and February 28, 2013 may opt in between March 1, 2013 and December 31, 2013. Law defines this time frame and there are no exceptions.
Vehicles already on the annual ad valorem system that are not eligible to opt in remain on the annual ad valorem tax system.
Registration requirements remain the same for all vehicles regardless of whether they are on the TAVT or annual ad valorem tax system.
- Annual decal renewal by your expiration date
- Valid Georgia driver’s license or identification card
- Valid emission certificate
- Mandatory Georgia liability insurance
Click Here For More Information and Frequently Asked Questions
We Wish You And Your Loved Ones A Happy Valentine’s Day!
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.
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.
What Is A Short Sale and Is It Right For Me?
A “short sale” may be a solution for homeowners who are struggling to make their payments or significantly upside down on the equity in their home. A short sale is when the loan holder(s) agree to sell the property for less than the outstanding balance of the loan. Short sales have grown in popularity for both consumers and banks or loan holder(s). They are less expensive to process than a foreclosure for the bank and they are usually less harmful to the home owner’s credit. We expect to see more short sales in 2013.
The recent passage of the American Taxpayer Relief Act of 2012 included a provision that is very important for home owners considering a short sale. The COD (cancellation of debt) provision was extended through the end of 2013. When a property is foreclosed or sold as a short sale, the amount of debt that is cancelled is considered income by the IRS. The amount is calculated by the total loan amount minus the net amount the loan holder(s) received from a short sale or bank-owned property sale. This amount of debt that was cancelled was previously considered income and the loan holder would send the home owner a 1099 to report as income. Senator Johnny Isakson led legislation to allow for an exclusion to this COD income so it would not be treated as income. This exclusion was extended for 2013 but is highly unlikely to be extended further. This is one of the reasons we expect to see a flurry of short sales coming in 2013.
Our company has established a solution called SHORT SALE ASAP. We have partnered with Weissman, Nowack, Curry & Wilco – one of the most respected real estate law firms in the nation. They are located here in Metro Atlanta and have set up a team that specializes in streamlined short sales. This is a complex area and the real estate agent is legally prohibited from negotiating directly with the bank on your behalf. That is why we established this partnership to help guide our clients through the process. There is no charge to the home owner for the service since the fee is funded by the loan servicer.
If you or someone you know would like to explore the option of a short sale or strategic default, contact us to learn more about the SHORT SALE ASAP program. Our goal is to efficiently and respectfully help people through this process so they can move on to the next chapter in their life.
Top 3 Mistakes For Potential Sellers!
As real estate markets go through cycles over time, we look back to see the missed opportunities. Of course, hindsight is 20-20 so it is easy to see these when looking in the rear view mirror. Home affordability is a combination of home prices and mortgage rates. If you look historically at most market cycles, we have either seen high prices and low rates or low prices and high rates. The current market conditions are unprecedented. We have not seen the combination of both low prices and low rates since the 1930s. Most of us are unlikely to see this again in our lifetimes. So here are the top mistakes that experts tell us potential sellers are making right now!
Mistake #3 – Waiting For Home Values To Recover And Then Move. Studies show that the fear of loss is 2.5 times more powerful than the opportunity for a gain. Millions of home owners are waiting for values to recover to sell. BUT they are going to find that the next property they want to buy has also gone up in price. More importantly, the mortgage rates are likely to be significantly higher. In 3-5 years, we expect mortgage rates to be in the 6% to 8% range again. If you do the math, waiting can cost hundreds of thousands of dollars!
Mistake #2 – Let’s Float A Really High Price And See What Happens. This is another common mistake that backfires for the seller. Desirable properties with market values are selling rapidly. Buyers and agents can quickly see properties that are priced significantly above the market. Worse yet, the majority of buyers use a mortgage to finance the purchase. If the property does not appraise, the bank will not approve the loan. Many potential transactions end up being negotiated or fall apart based upon the appraisal values. But most properties never even get an offer if they are priced too far out of the market. Those properties will quickly get ignored by agents and buyers.
Mistake #1 – Let’s Put It On The Market But We Are Not Fixing Up Anything. Buyers usually make emotional decisions for homes. Their first impressions are critical in establishing a perception about the property. The condition of most properties can be improved by doing simple things that do not cost very much money or time. Even banks selling foreclosed properties are doing repairs and making properties look more presentable. Properties in poor condition sell for less than properties where small investments were made in condition, updates, staging and incentives. This is one of those times where spending a little money pays off in better returns. Click here for checklist on Preparing Your Property For Sale.
If you or someone you know are considering selling their property, our award-winning Advanced Property Marketing System is the most effective methodology to get the highest market value.
New Car Tax Program For Georgia Starts March 1st
Starting March 1, 2013 all motor vehicles titled in Georgia are subject to a one-time Title Ad Valorem Tax (TAVT) fee. The TAVT replaces the former ad valorem and sales tax. Here are some highlights of the program:
When a vehicle owner applies for title the TAVT is collected based on the fair market value (not purchase price). Any vehicle subject to TAVT is exempt from sales tax. Lease and rental vehicles are exceptions.
Motor vehicles purchased in Georgia between January 1, 2012 and February 28, 2013 may opt in between March 1, 2013 and December 31, 2013. Law defines this time frame and there are no exceptions.
Vehicles already on the annual ad valorem system that are not eligible to opt in remain on the annual ad valorem tax system.
Registration requirements remain the same for all vehicles regardless of whether they are on the TAVT or annual ad valorem tax system.
- Annual decal renewal by your expiration date
- Valid Georgia driver’s license or identification card
- Valid emission certificate
- Mandatory Georgia liability insurance
Click Here For More Information and Frequently Asked Questions
We Wish You And Your Loved Ones A Happy Valentine’s Day!
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.
