Joanne Curtin’s Blog

Are you ready for some positive trends? Believe it or not I am about to share a few with you. I know this is a lenghty e-mail, but I encourage you to take the time to read this all the way through.  First, after 18 consecutive monthly year-to-year percentage closing declines for all single family we will have an increase.  September had a 4.1% decline from September 2007, but after lags are reported, we will be positive. There are two fundamental reasons that explain the increase. The first year-to-year significant percentage decline was September 05-06 and the largest year-to-year percentage decline during our downturn was September 06-07. As you can see, we are working against a very weak September 2007 result. Second, the average price for September 2008 for all single family was the lowest since November 2001 and also the greatest percentage year-to-year decline for an average sale price on record, 16.9%. A very clear indication of capitulation, but also a sign that even under very adverse economic conditions, if the price is right buyers will buy. Single family detached closed 3,774 homes in September 2008. This was 2.9% below the same year ago period, but after lags are reported it should be positive. On another positive note, after lags are reported the number of single family detached closed may be close or even exceed August 2008’s 4,180. The changes in closings from August to September have always been a 10-25% decrease. Year-to-date, single family detached is down 23% versus January-September 2007. Condos & townhomes closed 635 units in September. This was 10.7% below September 2007, but will be greater than August 2007 after lags are reported. The average sale price for single family detached was $214,823 in September. This was a decrease of 17.7% from September 2007, the 7th consecutive double digit percentage decline, and the greatest year-to-year percentage decline on record. However, when prices drop rapidly, elasticity of demand increases quickly, i.e. our September increase in closings. The average sale price for condos & townhomes was $172,024 in September. This was a 12.8% decline from September 2007 and the greatest year-to-year percentage change on record. There were 7,822 expired listings for all single family versus 7,847 for September 2007. This is the first time in 33 periods that a year-to-year change in expired listings has had a decline or positive change.

After reviewing all trends, we are indeed at a technical bottom. Also, oil has dropped significantly , the credit markets are improving, and homes are more affordable than they have been in years. I would say without a doubt we would start an upswing in housing.    Bottom line, if you are priced correctly, your home can and will sell. Don’t think homes are affordable?  Check out this deal—we just went under contract on a home for a client in South Atlanta, sold last year at $118,000 and he is under contract $19,000!  Yes, $19,000—that’s no typo! A colleuge of ours in the REO (bank owned) area said as soon as he gets a listing priced right, he immediately gets 3 to 4 offers. Keep in mind what you put down when you bought your home—if you put down $30,000 and you sell and make a profit of $30,000 that’s a 100% return on your money invested (plus if you bought and rented the home you’ve had additional write-offs, depreciation, etc.). Real estate continues to be a great investment.  You can affect the value of your real estate owned by physically making improvements—unlike stocks when all you can do is pray that the value goes up!   If you’d like more information about homes for sale in your area or want to know how you can invest and make money in this market, e-mail me or call me.  Now is the best time to get started.  There will be those who took advantage of this great time to buy and those who wish they did, which one do you want to be in 2 years? J    “Teamwork Makes The Dream Work!” Joanne Data Courtesy of Steve PalmSmart Numbers© 2008 Smart Numbers 

As I’m writing this, I’m trying to thik of the most concise way to explain a complicated economic situation.  There are many factors driving the market right now.  The mortgage credit crunch continues to squeeze more buyers out of the market.  Rates have become credit driven, while in the past there was typically not a difference between a borrow’s rate with a 670 credit score and a 720 credit score, now you may find as much as a 3/4 percent difference.  Affordability is a key issue.  Because prices have increased faster than salaries, coupled with more difficult lending standards, we’ve reached a point where affordability at all levels is an issue.  Prices will need to come down in order for us to see the same volume we have in the past.  But truly what we’re experiencing is a more normal market.  By normal, I mean we don’t have as many speculative purchases going on which is a good thing.  The dollar is weak, and this doesn’t help affordability either. 

With all this being said, the recent good weather has brought about a flurry of real estate activity.  We’ve gotten several offers in the past 10 days.  What I’ve noticed now is a new trend with Buyers.  Typically a buyer makes an offer, seller counters and the back and forth continues until the terms are worked out.  Now, many buyers will move on to the next property if a seller counter offers to their offer.  So a seller has to be be very careful with making a counter proposal to a buyer.  You need to weigh whether you can live with that offer, is your bottom line only a few thousand dollars more?  If so, what will that mean if you’re on the market for another 2 months and have to incur carrying costs?  Right now, receiving an offer is an opportunity to sell, and many sellers would love to have that same opportunity! 

  By now we all know the real estate market is the hot topic with the media.  As a real estate professional, I make it a point not to listen to the negative media as this tends to have a negative impact on my mindset and can have an adverse affect on the clients I’m trying to help.  I suppose that’s a whole different topic, what I want to point out is one glaring mistake I hear over and over and that’s the way the real estate market is generalized to “the market is up, the market is down, etc.  While it’s true you can track home sales nationally, the real estate market is local.  In every market, there are down and up areas.  There are trends, even within the same zip code one area can be more desirable than another and homes sell faster there and for more money.   

Here’s what Gary Keller, co-founder and chairman of Keller Williams Realty has to say about waiting out the current market:

First, residential real estate is not a national market product — it is a local one. To say from a national position that this is either a good time or a bad time to buy real estate is like saying the national forecast for the U.S. today is 92 degrees — it is a useless and irrelevant perspective. What is happening in your local market is all that matters.

Second, trying to predict when it is a good time to buy, or not, means you’re trying to time the market. Staying on the sidelines is the surest way for most people to never time anything correctly.

Last, and maybe most important — there are always two markets in every market. There is the market of properties that are good buys and there is the market of properties that are not a good buys. Interestingly enough, this is true in either buyer or seller markets. To categorically say that this is the time to buy or not is absolutely ignoring the fact that every market really has two markets inside it.

Finding “Deals”

If you’re looking to buy, there are deals to be had.  But that doesn’t mean every homeowner is willing to accept a low offer.  Situations vary.  Homes vary.  The best thing to do when looking for a “deal” is find a property in an area you are familiar with.  Find out as much background on the property and the property owners’ situation.  Motivation is key!  Also your ability to solve the owners problem is key.  The more flexible you can be with your terms (maybe allowing the owner to stay in the property for a couple months after the closing or offering a quick “as-is” closing) the better deal you can get, it’s not always about the price with an owner.

 There are several aspects to consider when it comes to pools and home values.  You may be thinking of adding a pool to your existing home or you may be in the market for a home, and wondering if you should consider purchasing one with a pool.  With either of these scenarios, you’re probably getting a wide range of opinions from your friends, co-workers and maybe even a Realtor.There’s a perpetuating myth in the real estate world that pools do not add value to a home.  Here’s a fact:According to the National Association of Realtors statistics, pools can add 5-11% in value to a home! The variations come regionally (areas that have longer periods where a pool can be used, tend to see a higher return) and by the type of pool you put in (water features, like a water fall, will add more value).  So why do you frequently hear, “don’t buy a home with a pool” or it’s a waste of money to add a pool to your home?”  I believe that it started many years ago when pools required a lot more maintenance than they do today and the construction was such that you had to make frequent and often ex-pensive repairs.  With todays advanced design, pool ownership is much more pleasant, requiring less time and upkeep, and therefore has gained in popularity.We’ve found that there is a larger pool of Buyer looking for a home with a pool in today’s market versus many years ago.  Demand goes up, prices will follow.  While it’s true that having a pool eliminates many Buyers who don’t want a pool, those Buyers who are in the market, have a limited supply and (typically) will be willing to pay more for a home that already has the pool they want.  So we’ve found that we can usually sell a home with a pool faster and recoup some (usually not all) of the owners investment for a well-designed pool.I don’t recommend you add a pool if you’re only considering resale value.  While it’s possible, it’s unlikely that you will gain back more than what you put in.  But think of the enjoyment that you and your family will have and the time you’ll spend gathered around the pool.  We’ve found that especially with teenagers, a pool can be the attraction families are looking for to keep the kids gathered at your home instead of somewhere else where you can’t see what they’re up to.  You’ll likely have more time to provide influence with your children and their friends.  What price is that worth to you? JCall Joanne or Tom if you’d like more information or if you’re thinking of Buying or Selling: 678-287-4848.   

Welcome to Joanne Curtin’s Blog! This blog will provide you with valuable information, tips, and general insight into the real estate market in Roswell.