Monday, August 31, 2009

12.5 Months of Inventory for Sale on Athens, GA Housing Market

Well the end of the month of August brings us a new 12-month rolling time period to play with and discuss. Anytime I can 'over' analyze figures with a cup of coffee (or three or four) nearby I am in heaven.

The good is that the average sales price in Athens inched up over the previous period (12-mo's ending Aug 1, 2009) by a few hundred dollars. The average sales price in Athens is at $163,587 as compared to 12-months ending June 2008 at $168,257. This continues to back up the fact that on the average the Athens market has not lost as much ground as the mythic "national real estate market" over the past 18 months. Median sales figures from 12-months ending June 2008 show a median price of $142,400 at that reading of the numbers as compared to $139,900 today. Again, this shows only a slight fall off of home prices. I grant you the fact that at higher price points the fall off in prices can be higher, but if you look at the average to median price range in Athens it has stood up rather well.

What continues to amaze me is that when looking at sales figures of homes sold in Athens this year the average list/sold percentage is about 95 percent. This means that there is very little price roll off of list price. On price points north of $300,000 you might see this number in the 91-93 percent range.

What has continued to surprise me is that the number of sales has continued to fall off unabashed over the past year. The numbers of homes sold is off roughly 28 percent this year and 44 percent from the peak of 1382 homes sold in the 12-months ending June 2008.

All in all however, just looking at single family detached residential housing in Athens on the market for sale, with 774 homes sold in the most recent year through end of August we are looking at 12.5 months of inventory on the market for sale. We need about half that much to be in a balanced market between buyers and sellers. Note recent Online Athens article and the comments toward the end by that well spoken local young real estate broker!

*Note* 'I found the reader's comments to this article on Online Athens interesting. He is obviously either burned by the market or biased in some way. Maybe he is blinded by the national media that tells him things are bad so they must be locally too. I always preach that real estate is 'local' not national.

The numbers are what they are fortunately or not. Overall we have been less affected by foreclosures than the national average and other nearby markets. At higher price ranges the sales are even slower, and the reader to the piece in Online Athens points out all the slow sales and properties that have been on the market for awhile, but this does not mean that one can assume higher foreclosure levels and falling prices than exist in reality.'

How do you compute inventory absorption rates? You can't really. There is no way to know how fast this inventory will be depleted. In the meantime, the best one can do is to be patient if you need to sell your home and it is over $200,000 in price. If you are under $200,000 in price, I have seen this price range of the market as hot as it has been in 3+ years as of late. Almost all my listings between $120,000-$200,000 are either under contract or sold just in the last two months! If you are a buyer, the market is yours!

Wednesday, August 26, 2009

Showings and Contracts; Is one Dependent on the Other?

Getting traffic into your Athens, GA home for sale. That is the end all. At least they tell me it is the end all. Okay, okay, I know I am a Gen X'r and a Contrarian, but while I do agree we need showings, I still hold fast to the concept that the technology we have today does weed out and therefore reduce physical showings. This is okay. I mean, you don't want 47 people to walk through your house creating foot patterns in the carpet and also requiring you to possibly have to clean it each and every time there is a showing lined up when a handful of showings can just as well do the trick thereby creating a sought after Contract.

Examining showings on a few of the home listings that I have had recently go under contract or sell, this is my finding;

Showings

Days on

Location

90 Days

Market

Sunset Drive

18

103

Brookstone Drive

6

137

Sterling Drive

48

269

Averages

24

169

So a few questions arise.

  1. Do the number of physical showings (i.e. walking potential buyers through the front door) cause the house to have a higher probability to be sold as compared to the next home?
  2. Does location weigh into whether or not a particular house is sold more quickly than another?
  3. Does price factor more heavily than other variables in getting a house sold? Does price if it is too high also possibly reduce the number of showings as well as create a prohibitive environment reducing our opportunities for contracts of sale?
The answer to these questions are "no, yes," and "definitely yes."

What is almost humorous to me, forgive me if I make myself chuckle in my analytical geekness, is the fact that I did not include the sales price of any of these homes. What you might find interesting is that the home with the most showings was the least in price of the three sales. It's also quite surprising that it had the longest days on market. Why? It missed on location, the neighborhood had too much competitive inventory on the market for sale, and was vacant which hurt it compared to other homes which were furnished or staged.

The property with the least showings in Brookstone sold for 98 percent of list price, and sold at a relatively low number of days on the market. Why was this the case? It had great location for the buyer. There was also fewer comparable properties on the market for sale in this subdivision. The Sunset Drive property was the most expensive of these listings and sold in the fewest number of days on the market. This was a result of location, location, and location.

In the end, none of these sold as a result of a great number of showings where real estate professionals dragged people through these homes. None of them even had, are you sitting down, a single "Open House." They sold because of hundreds and hundreds of views online, they were priced right, and they had good location.

I know these are only three sales in my example, but I could throw you another that sold in 44 days on the market, was priced at $239,900, and had but 2 showings. Again, it sold due to location and price for the area.

Keep this in mind if you are in the process of selling your home or are thinking about it. Through keeping the "masses" off your carpet, hardwoods, and rugs, you will have less to have professionally cleaned for your buyer when it does go under contract!

Athens GA Home Sales Trends and Market for Aug 2009


Thus far in the month of August we are seeing the following Stats in the Athens, GA housing market;



Statistics
(44 listings)
LowHighAverageMedianTotal
List Price$27,900$670,000$198,602$145,200$8,738,484
Selling Price$23,000$610,000$187,530$141,250$8,251,337
List/Sold(%)78.35%101.05%95.25%96.36%--
Price/SqFt ($)$0.00$158.52$56.21$67.00--
Days on Market1957614996--

Home Inspections in Athens, GA; Now go Infrared!


Recently I had a home inspection needed on a property a Buyer Client of mine was buying in the Greater Athens area. This was a 4300 square foot bank owned property that had been sitting for awhile so the client decided to not only do a home inspection on this "as-is" purchase, but they took my advice to use HomePro Home Inspections and had them do their "Infrared" Home Inspection service. I have blogged about infrared home inspections in the past, but I thought the results of this inspection was substantial enough to do a follow up post.

HomePro, in Watkinsville, is the only area home inspector that is certified to do infrared home inspections.

This particular home has heart pine on the floor, walls, and ceiling of the main living area as you walk in the front door. What was ultimately impressive was that the attached photo shows heat coming in from outside due to missing and loose insulation in multiple locations. The bottom photo is amazing. The caption is "heat bleeding through from attic area due to loose insulation." It really does look like it is "bleeding" too.

What is pretty impressive about the technology is that you can more accurately nail a leak in a roof, condensation in a wall due to duct work that is loose or seeping, and even find those old bottles and nails left inside a wall from when it was constructed!

Is this for everybody? Maybe not this level of service. If I were buying a distressed or foreclosed property in this day and time I would get one of these services done.

HomePro does do the same basic inspections that any home inspector might do in addition to infrared. They have their patented "Blue Book" that goes through a soothing color coded section of warm to hot to help you as a home owner, home buyer, or Realtor see what problem areas exist in a property and which one's are no big deal.

Would use HomePro and Mark Lotane again in a heartbeat to help identify potential issues. Other than Mark, no one in town can "see through walls." He is my resident Superman in terms of getting my clients answers on area homes. Not sure if he can leap tall buildings though...



Foreclosures in the Greater Athens GA area

Foreclosures in the Greater Athens GA area now linked via the Athens MLS and GA MLS to the Blog Roll. Make your foreclosure searches even easier!

Tuesday, August 25, 2009

Neighborhoods and Condominiums Around Athens, GA

Neighborhoods Around Athens:

Condominiums Around Athens:

Remember that "Agency" in Real Estate defines the relationship you have with a REALTOR and who is looking out for your interests (i.e. Listing Agents represent the Seller).

Through my Buyer Rewards Program (full details at www.AthensGaHomesForSale.com) as a benefit to Buyer's working through me I give up to 1% of Seller Paid Commission toward the reduction of the purchase price of a home purchased through me! That is what I call a "Win-win!"

Foreclosure for Sale! Sure they are out there but are people really buying them?

For months now all we hear is how many foreclosures are happening “all around us.” RealtyTrac.com for example has made a huge amount of money focusing on nothing but foreclosures. Six out of their last nine press releases have dealt with foreclosure activity in and around the United States. You hit the “Why Join?” tab and it takes you to a 7-day free trial where it is indicated that you would be provided with unsurpassed foreclosure data including access to make an offer directly to the lender.

foreclosure

My question has been, while foreclosures are prevalent, are we buying them? I mean all the property “virgin” shows on HGTV lately have shown young first-time home buyers offering “full price or better” on foreclosures in order to get a deal on that home being sold “as-is.” We Americans must be buying these homes in mass, right?

According to the NAR’s Profile of Buyers and Sellers for 2008, no we’re not. According to the study it showed that only 6% of homebuyers bought a property in foreclosure in 2008. Of first-time homebuyers it was a tad higher at 7%, but on the whole the study showed that 56% of homebuyers did not even consider a foreclosure in their home buying plans.

foreclosure2Of the 38% that did consider buying a foreclosure, 21% could not find the right home, 12% each found the process too difficult or the home was in poor condition. Poor financing options accounting for another reason that the foreclosure sale did not happen or the home was in an undesirable neighborhood.

What I really find humorous was that 5% of buyers found the “price was too high” on the foreclosed property for resale! You would think that in buying a foreclosure you are getting a “deal,” but not always. I had a situation like this in our area where a buyer client wanted to consider a foreclosure, but there were two offers on the table and the bank was treating it as basically an auction where Realtors were asked to fax offers to a central number where they bank would take the best offer. The price needless to say got bid up so high my client found a beautiful home he ended up buying from a seller who had this home on the market for over a year, was in great shape, and he even got a home warranty out of it.

In the end, you hear conflicting information from the national media. I just don’t think the numbers stack up in their favor. I still find that a buyer would rather deal with a seller who is not a cold, “only care about the numbers,” bank.

If you are looking to purchase a home in the Greater Athens area, please feel free to use this link to Search the Athens MLS! While on the Georgia MLS you can search for homes, create a User account to save favorite property searches, email property searches to friends and family, or request more information!

The link to my Featured Properties can take you to any number of properties that I am Marketing currently for Sale.

Quarterly Housing Market Performance for Athens-Clarke

FHFA (Federal Housing Finance Agency) uses the revised Metropolitan Statistical Areas (MSAs) and Divisions as defined by the Office of Management and Budget (OMB) in 2008. These MSAs and Divisions are based on 2000 Census data. According to OMB, an MSA comprises the central county or counties containing the core, plus adjacent outlying counties having a high degree of social and economic integration with the central county as measured through commuting.

For information about the current MSAs, please visit:
http://www.whitehouse.gov/omb/bulletins/fy2009/09-01.pdf

MSA HPI Comparisons

Four-Quarter Percent Change in FHFA MSA-Level House Price Indexes (All-Transactions Index, 2009Q2)
YearQuarterAthens-Clarke County, GAAtlanta-Sandy Springs-Marietta, GA
20092-1.53-3.49
20091-0.90-1.73
200841.43-2.89
20083-0.40-2.05
200823.81-0.58
200812.941.07
200742.281.42
200734.102.17
200724.503.70
200715.093.49
200645.763.47
200634.762.65

What we see is a relative strength in Athens-Clarke as compared to Atlanta since third quarter of 2003. Not surprising, but Athens has maintained a price level in the past four quarters of about 98.5 percent of where home price values were a year ago this time. In comparison, the Atlanta market is roughly 89.68 percent of where it was at the beginning of Q2 2008.

MSAs are defined by the Office of Management and Budget (OMB). If specified criteria are met and an MSA contains a single core population greater than 2.5 million, the MSA is divided into Metropolitan Divisions. The following MSAs have been divided into Metropolitan Divisions: Boston-Cambridge-Quincy, MA-NH; Chicago-Naperville-Joliet, IL-IN-WI; Dallas-Fort Worth- Arlington, TX; Detroit-Warren-Livonia, MI; Los Angeles-Long Beach-Santa Ana, CA; Miami- Fort Lauderdale-Miami Beach, FL; New York-Northern New Jersey-Long Island, NY-NJ-PA; Philadelphia-Camden-Wilmington, PA-NJ-DE-MD; San Francisco-Oakland-Fremont, CA; Seattle-Tacoma-Bellevue, WA; and Washington-Arlington-Alexandria, DC-VA-MD-WV. For these MSAs, FHFA reports data for each Division, rather than the MSA as a whole. FHFA requires that an MSA (or Metropolitan Division) must have at least 1,000 total transactions before it may be published. Additionally, an MSA or Division must have had at least 10 transactions in any given quarter for that quarterly value to be published. Blanks are displayed where this criterion is not met.


Athens, GA First-Time Home Buyer Tax Credit: A Wealth of Information is Available

By Danielle Hale, Research Economist

This commentary was prompted by a recent conversation I had with a Realtor® who was lamenting the fact that a first-time buyer who had a co-signer did not qualify for the first-time home buyer tax credit. “That’s not true!” I said and pointed her to an IRS website that stated otherwise. Since this is not the first time I have heard incorrect information on the tax credit from a Realtor®, the news media, or other person or entity that should be in the know, I thought it would be a good time to remind everyone of the basics and show you where to go when you have questions.

The Basics

First-time home buyers who purchase a home to be used as a primary residence before December 1, 2009 are eligible for a tax credit equal to 10 percent of the value of their home purchase up to $8,000. To qualify as a “first-time home buyer” the purchaser and his/her spouse (if applicable) may not have owned a residence during the three years prior to the purchase. The credit is subject to income limits. Single buyers with incomes up to $75,000 and married couples with incomes up to $150,000 may receive the maximum tax credit. The credit decreases for single buyers who earn between $75,000 and $95,000 and for married buyers filing jointly who earn between $150,000 and $170,000. Home buyers earning more than the maximum qualifying income—over $95,000 for singles and over $170,000 for couples are not eligible for the credit. Unlike the credit for homes purchased in 2008, the tax credit for purchases in 2009 does not need to be repaid unless it ceases to be the primary residence of the tax credit recipient within three years after the purchase. In that case, the credit recipient will owe the full amount of the credit at that time the income tax return for the year the home ceased to be your principal residence is due. (i.e. You sell your home on January 1, 2010 or December 31, 2010; the full amount of the credit is due when your tax return is due on April 15, 2011.)

Limited, But Still Powerful

City_Hall_Skyline_Night

As of now, the credit is still limited to $8,000, available only to first-time buyers, and can be used on purchases that close before December 1, 2009. Still, we expect the tax credit in its current form to impact the market by bringing in a substantial number of home buyers. Check out this analysis done by Research after the credit passed in February to get the full picture. Currently, the National Association of REALTORS® is advocating for changes that would extend the time period for eligible purchases or expand the credit to all buyers. For more information on the legislative picture, visit the National Association of REALTORS®’s government affairs website.

Available at Closing!

Taylor-Grady_house

While the tax credit itself cannot be claimed until a tax return is filed after a home has been purchased, the FHA recently announced changes to rules that enable FHA lenders to monetize the credit so that a buyer can use it for certain purposes at closing. In order to take advantage of this program, a buyer still must meet FHA’s 3.5 percent minimum down payment requirement. Before FHA’s announcement, certain states had instituted their own monetization programs that enable the monetized credit to be applied to the 3.5 percent minimum down payment. For more information on state level programs, check out this site.

Resources Available from the National Association of REALTORS®

The National Association of REALTORS® has a wealth of information to help everyone make sense of the tax credit. Visit our home buyers and sellers resource page on the tax credit here.

If you’re looking for resources to help you get the message out to potential first-time buyers, be sure to check out the Right Tools Right Now page where you’ll find a special section full of free tools on the tax credit and information about working with first-time buyers.

Athens_Welcome_CenterResources Available from the IRS and FHA

Of course sometimes it’s nice to go straight to the source. The IRS has some helpful web pages on the tax credit, too. Check out the overview page.

Also be sure to visit the “Scenarios” section of the question and answer page for guidance on issues such as splitting a credit between non-married persons, having cosigners, how to handle the credit for married couples. For further clarification, consult with a tax attorney.

The tax credit is a great opportunity for first-time buyers, but it is only available for a limited time. Be sure you are up to speed on the tax credit provisions that are currently in the law so you can help buyers take advantage of this opportunity.

If you are a buyer in our market, these are probably the best buying conditions in 30 years! If you would like to search the Athens MLS with MapTracks please take a look at listings in our “Classic City” today! On this web MLS search solution you can search every listing on the Georgia MLS for the Greater Athens area or in your Georgia town!

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Copyright National Association of REALTORS®, Reprinted with permission. Photos courtesy of Athens Convention and Visitor's Bureau

Taking the Long Out of the Short

For many sellers the “short” sale process is anything but; it can be much more tedious than the phrase implies. Realtors® say the extensive delay in the short sale process has caused many buyers to go elsewhere, forcing many sellers into foreclosure.

Now the U.S. government is stepping in to help homeowners facing foreclosure by streamlining the process for short sales and deeds-in-lieu of foreclosure. The U.S. Treasury recently announced new incentives under the Making Home Affordable Program to encourage the quick private sale or voluntary transfer of property, which will save homeowners money and help many of them protect their financial futures.

Best Laid Plans

From my own experience, and from talking to other Realtors® to get their insights into short sales in today’s real estate market, it seems that we all have the same client experiences. The short sale process and outcomes regarding these transactions, for both buyers and sellers are still as tiresome as ever.

It still takes time, and time is what most buyers don’t feel they have to provide due to the fact that there is still roughly 10 months of inventory for sale. Especially this time of year, buyers are trying to get situated before school starts back. The desire is for a quick purchase and to move to settle in before the fall of the year. Short sales delay this process for weeks whereas a bank owned foreclosure resale can be something negotiated with the bank after the foreclosure and be handled in a relatively short period of time.


Statistics - Foreclosure Resales in Athens; Y-T-D 2009
(66 listings)

Low High Average Median Total
List Price $11,900 $395,000 $120,163 $107,450 $7,930,750
Selling Price $9,200 $330,000 $112,506 $105,501 $7,425,374
List/Sold(%) 74.07% 122.18% 94.82% 95.21% --
Price/SqFt ($) $0.00 $194.15 $46.16 $47.50 --
Days on Market 22 682 152 92.5 --

If you are a buyer in our market, these are probably the best buying conditions in 30 years! If you would like to search the Athens MLS with MapTracks please take a look at listings in our “Classic City” today! On this web MLS search solution you can search every listing on the Georgia MLS for the Greater Athens area or in your Georgia town!

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Monday, August 24, 2009

Athens GA Real Estate Trends and Analysis

If you haven't had your home on the market for the past 12 months you probably don't know what to expect in terms of DOM (days on market). How have properties in Athens, GA performed under pressure?

Time on Market Analysis

For Units Sold

Days

Residential

Other

Total

0 - 3022224
31 - 601017108
61 - 901223125
91- 12094195
121+4465451

Out of 803 residential properties sold in the last 12 months (through 8/24/09), roughly 3 out of 5 was on the market for more than 121 days. The price point with the longest DOM was actually between $250,000-$299,999 where the average home sold in 346 days on market! The price range with the most homes sold was between $100,000-179,999 where more than half of all homes in the Athens area sold.

How about financing? How are people finding money for home purchases and putting deals together in this period of tight credit?

Type of Financing Analysis

For Units Sold

Financing

Residential

Other

Total

Cash1618169
VA707
Owner Financing404
Conventional3879396
FHA2041205
Other22022

A full 1 buyer in 4 was able to obtain FHA backed financing. "Conventional" financing was most dominate with roughly half going that route while a few put together deals with the help of VA and owner financed arrangements. What might surprise you is that almost 1 home in 5 was a cash purchase!

There are still homes being bought and sold and money to be found in the purchase of a home when the "deal" is found or that right "first" or "step-up" home is being sought after. The key is to keep looking! Right now homes are at such a relative bargain.

Housing Affordability Continues To Hover Near Highest Level In 18 Years


"Bolstered by affordable interest rates and low prices, nationwide housing affordability during the second quarter of 2009 continued to hover near its highest level since the series began 18 years ago," according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) released last week.

According to Wells and the NAHB, "the 72.3 percent of all new and existing homes sold in the second quarter of 2009 were affordable to families earning the national median income of $64,000, down only slightly from the record-high 72.5 percent during the previous quarter and up from 55.0 percent during the second quarter of 2008."

“The increase in affordability — along with the $8,000 federal tax credit for home buyers — is stimulating demand, particularly among young, first-time buyers,” said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla. “But to keep the recent upturn in home sales going into next year, Congress will need to extend the tax credit for another year and make it available to all buyers in an effort to encourage activity in the trade-up market.”

Saturday, August 22, 2009

Difficulties in Obtaining Mortgages; Do they still Exist?

mortgageapp2Over the past year we have been inundated by news of hard credit, a lack of credit, and the pains of the mortgage process. What is real and what is perception however might be two different things. In a study of 2008 buyers and sellers done by the National Association of Realtors it apperas that only 7% of all home buyers felt the mortgage process to be more difficult than expected. In fact, 73% found the mortgage process not difficult or no more difficult than expected.

mortgagepps

What about the dreaded thought of being rejected for a mortgage? 93% of buyers were successful in obtaining financing for their home purchase. Only 5% where rejected on their first mortgage application while 3% where rejected by two or more lenders before finally obtaining a loan.

The reality seems to be that the process is not as difficult from the buyer’s standpoint as it may be to the loan officer, appraiser, Realtor, and loan underwriter. Hopefully this means that all of the above shelter properly and do a good job professional job at hiding the innate stresses of our jobs!

If you are looking to purchase a home in the Greater Athens area, please feel free to use this link to Search the Athens MLS! While on the Georgia MLS you can search for homes, create a User account to save favorite property searches, email property searches to friends and family, or request more information!

The link to my Featured Properties can take you to any number of properties that I am Marketing currently for Sale.

http://athens-ga-homes.yourkwagent.com/

Thursday, August 20, 2009

Athens GA Home Sales, week of Aug 17, 2009

During the week of August 17th, we have seen fifteen sales in Athens, GA. Of these roughly 27 percent were listed for more than $300,000. Of these we find the following statistics;

Statistics Sales Above $300k List Price
(4 listings)
LowHighAverageMedianTotal
List Price$315,900$399,900$348,800$339,700$1,395,200
Selling Price$288,600$378,000$318,400$303,500$1,273,600
List/Sold(%)86.79%94.52%91.14%91.63%--
Days on Market9011810096--


Of properties listed for under $300,000 (chart below) we found that Athens, GA home sellers are still getting a high percentage of list price. Higher end homes seemed to sell at more of a discount during the week to get them moved quickly. This is a testament to some of the lowest days on market that we have experienced this year thus far.

Statistics Sales Below $300k List Price
(11 listings)
LowHighAverageMedianTotal
List Price$62,500$279,900$143,591$133,000$1,579,500
Selling Price$60,000$259,000$137,055$132,000$1,507,600
List/Sold(%)88.06%100.00%95.83%96.08%--
Days on Market3728813184--


All in all, the most popular price range in the Athens area is between $120,000-$180,000 as I have noted in other recent posts. If you are in this price range please know that you won't have to budge much when that offers comes!