Keller Williams Realty Atlanta – Peachtree Road

Atlanta Homes For Sale – Atlanta Real Estate News - Atlanta Home Buyers

This Month in Real Estate for U.S. Market – January 2012

2012 shows signs of an improving housing market as the U.S. economy continues its forward-moving yet slow road to recovery. Although there are economists projecting housing prices will decline further, aided by distressed property sales that sell at a greater discount, these prices are expected to rebound considerably later in the year and continue into 2013.

Factors that continue to impede a speedier recovery in the housing are consumer confidence, job-growth uncertainty, and tough lending standards that keep many otherwise qualified buyers from financing a home purchase. However, consumer confidence may be showing signs of improvement according to a report released by Fannie Mae on December 7, which revealed that consumer sentiment toward home prices is stabilizing and that, for the first time in six months, more people believe that prices will soon begin to rise. This is an encouraging development, as much of our economic vitality depends upon the overall confidence of the consumer, and could trigger even stronger home sales as more people feel confident that prices will go up.

As the new year begins, many consumers appear to be in a holding pattern, waiting to see how the economy reacts to the different demands both here and abroad. Yet with steadily increasing sales and record-breaking affordability, now is the time to take advantage of these opportunities to buy or sell a home.

Sources: Fiserv, Fannie Mae

Home Sales(in millions):

Sales among existing homes rose in November by a seasonally adjusted 4%, to 4.42 million units up from 4.25 million in October, and are 12.2 percent above last year at this time. Lawrence Yun, chief economist for NAR said, “Sales reached the highest mark in 10 months and are 34 percent above the cyclical low point in mid-2010 – a genuine sustained sales recovery appears to be developing.”

Home Price(in thousands):

While median home prices in November rose to $164,200 from $162,500 in October, they are down 3.5% from a year ago. David Stiff, chief economist at Fiserv, stated, “Housing affordability has improved dramatically because of declines in both prices and mortgage interest rates. The monthly mortgage payment for a median-priced single-family home is now $700, compared to $1,140 in 2006—a decline of nearly 40%.” (Based on 2011 Q2 figures)

Inventory- Month’s Supply(in months):

With increased levels of sales, the inventory of homes on the market continued to decrease, falling by 5.8% in November to 2.58 million homes available for sale, or an equivalent of a seven month supply at the current sales pace. This positive sign of increasing sales and lower inventories are keeping the housing market on track for stabilizing home prices and a stronger housing sector.

Mortgage rates continued to push historic lows in November, dropping another .08 points, to 3.99% for a 30-year fixed mortgage. “Rates on 30-year fixed mortgages have been at or below 4 percent for the last eight weeks and now are almost 0.9 percentage points below where they were at the beginning of the year, which means that today’s homebuyers are paying over $1,200 less per year on a $200,000 loan,” said Frank Nothaft, Vice President of Freddie Mac.

If one of your New Year’s resolutions is to sell your home, here are a few things to keep in mind:

Although the traditional home-buying season starts in the spring, here are some reasons why listing your home now, rather than waiting, could prove to be a smart decision.

• On average, the number of home sales in January drops almost by half from the previous year’s peak. A house that is priced right and staged well will stand out even more with less competition. 
• Lenders, home inspectors, movers, and other vendors also see a seasonal dip in transactions.  This could mean a quicker, easier, and possibly cheaper time to buy, sell, and move.

Even if you’re not ready quite yet, now is a great time to start the conversation with your local real estate agent. He or she can give you pointers on which repairs and preparations to tackle first, and which ones may not be necessary, saving you time and money. Starting now can help you capture the most buyers by busy season.

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Keller Williams Realty Atlanta – Peachtree Road

Atlanta Homes For Sale – Atlanta Real Estate News - Atlanta Home Buyers

Keller Williams Atlanta Mortgage Update

What’s Ahead For Mortgage Rates This Week : January 3, 2012

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Keller Williams Realty Atlanta – Peachtree Road

Atlanta Homes For Sale – Atlanta Real Estate News - Atlanta Home Buyers

Real Estate Legal Tip

Presented By:

What To Bring To A Georgia Real Estate Closing & What To Have When You Leave

Georgia Home Buyers should bring:

Photo ID
Confirmation that down payment wire has been sent
Checkbook for last-minute changes or expenses
All purchasers who signed the contract and/or loan application
Proof of sale if recently sold previous home
Any original documents requested, such as Power of Attorney

Georgia Home Sellers should bring:

Photo ID
Wiring instructions for proceeds
Confirmation that any deficit wire has been sent
Any original documents requested, such as Power of Attorney
All people currently on the title to the property, even if they did not all sign the contract

Georgia Home Buyers should leave with:

Copies of important loan papers (HUD-1 statement, note, security deed, truth in lending, first payment info, amortization schedule)
Copy of Warranty Deed (especially if seller is not at closing)
Contact info for the homeowners association or condo association
Owner’s title policy
Home Warranty and Termite info (if purchased or provided)

Georgia Home Sellers should leave with:

HUD-1 settlement statement
1099 form
Proceeds check (if not being wired)

Presented By:

Leigh Clack, Attorney
Neel & Robinson Attorneys at Law, LLC
Leigh.clack@neelandrobinson.com;
404-705-3690                  Fax   404-459-0704
5555 Glenridge Connector, Suite 400, Atlanta, GA 30342

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Keller Williams Realty Atlanta – Peachtree Road

Atlanta Homes For Sale – Atlanta Real Estate News - Atlanta Home Buyers

This Month in Real Estate Newsletter for December 2011

One of the key drivers of homes sales, the employment rate, is beginning to show promising signs of a turnaround. The four-week average for jobless claims, as of November 19, was 394,250, a drop of 3,250 from the previous four weeks, and at the lowest levels since April. Consumer confidence also rose 15 points in the last month, and is now at its highest point since July of this year. Eric Green, Chief Market Economist at TD Securities Inc. said, “The trend remains very constructive. Jobless claims are back below 400,000, which seems to be the pivot point in terms of a strengthening labor market as opposed to a weakening one.”

In addition to improving employment conditions, home affordability also improved as interest rates fell further, opening the door for more first-time home buyers who accounted for 34% of the sales in October, an increase from 32% last month and last year. The western United States saw the greatest increase in home sales, which were up 4.4% month to month and up over 15% from last year.
A strengthening job market, along with encouraging signs from the housing sector, including a 10% jump in pending sales for October, are strong economic forces. While mortgage lending still remains a challenge, these forces may send a signal to banks to relax lending regulations and allow for a more rapid recovery.

Home Sales(in millions):

Existing homes sales improved 1.4% in October, or to an annual pace of 4.97 million, a 13.5% increase from October of last year. Even more dramatic, was the jump in pending home sales, which surged in October by 10.4% from September, and were up 9.2% from October 2010. This jump in pending sales could lead to a strong fourth quarter as signs continue to point to a pent-up demand brought on by current lending conditions of
mortgage providers.

Home Price(in thousands):

The national median home price in the U.S. saw a small decline in October to $162,500, from $165,800 in September. This number can be affected by the sale of distressed properties, which typically sell at discounted prices. Distressed properties accounted for 28% of homes sales in October. Yet despite a drop in the median price from last September, the Federal Housing Finance Authority reported that seasonally adjusted prices rose 0.2% in the third quarter from the second quarter in 2011, which could be an early sign of appreciating home prices.

Inventory- Month’s Supply(in months):

By the end of October, the total number of homes on the market had fallen 2.2% to 3.33 million homes, which represents 8 months of inventory at the current sales pace. Since a record high of 4.58 million homes in July 2008, the inventory of homes for sale has been steadily declining. When homes sell faster than they come on the market, the market comes from its current favor toward buyers into balance or in favor of sellers. This can trigger an appreciation in home prices and lead the way to a stronger recovery.

Source: National Association of Realtors

Interest Rates:

Mortgage rates continue to push lower, dropping to 3.98% from 4.23% in October of 2010, offering historic affordability to today’s home buyers. While mortgage lending conditions continue to be a challenge, more and more people are seeing the advantage of buying a home sooner rather than later. Lawrence Yun, NAR chief economist, said, “Home sales have been plodding along at a sub-par level while interest rates are hovering at record lows and there is a pent-up demand from buyers who normally would have entered the market in recent years. We hope this indicates more buyers are taking advantage of the excellent affordability conditions.”

Topics For Atlanta Home Owners| Atlanta Home Buyers & Sellers:

When first-time home buyers decide they are ready to buy in Atlanta, it is important for them to begin the process by carefully assessing their values, wants, and needs—both for the short and long term. This is a critical step since consultation sessions normally start with the buyers’ values. Afterward, buyers can explore their wants and needs and, once defined, determine actual criteria.

A recent study shows how important the following home-buying factors were to Atlanta buyers:
◦List Price: 72%
◦Location: 69%
◦Neighborhood: 55%
◦Floor Plan: 37%
◦Square Footage: 28%
◦Schools: 22%

By having the home-buying criteria in mind before walking into a consultation, buyers are off to a better start when meeting with their real estate agent. The consultation allows buyers to fill in any missing gaps within their values, wants, and needs.

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Keller Williams Realty Atlanta – Peachtree Road

Atlanta Homes For Sale – Atlanta Real Estate News - Atlanta Home Buyers

Real Estate Legal Tip

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Legal Tip:  When Should Buyers Get a Survey?

Most lenders do not require their buyers to have a new survey done in preparation for closing.  The lenders have title insurance protection for survey problems.  Keep in mind that lenders also do not require buyers to get owner’s title insurance, but they do require lender’s title insurance to protect the lender!

Most buyers have learned that it is a good idea to get owner’s title insurance, and there are many situations where it is also smart to get a new survey done.

What properties should definitely have a new survey?

1.        New construction  - the builder may have a survey in connection with the construction loan, but make sure that the survey includes driveways, walkways, boundary fences and walls, parking pads, patios, and sundecks.

2.        Properties that have been rebuilt or remodeled – many builders are squeezing large houses onto small lots, and only a survey will show if any building lines and setbacks have been violated.

3.        Older properties with small frontage or narrow width – many of these houses have been enlarged over time, plus there are often encroachments of driveways and fences.

4.        Properties with long legal descriptions (metes and bounds) rather than short legal descriptions (lot number, plat book and page).  It is very helpful if the long legal description refers to the previous survey that was used to write the long legal; in this case a copy of the previous survey may suffice.

5.        Any properties that are made up of more than one “tract” or “parcel”, usually because the parcels were acquired at different times or because neighbors have “swapped” some property to accommodate a driveway encroachment or fence encroachment.

Presented by Leigh Clack, Attorney

Neel & Robinson Attorneys at Law, LLC

Leigh.clack@neelandrobinson.com

404-705-3690           fax  404-459-0704

5555 Glenridge Connector, Suite 400, Atlanta, GA 30342

**SEARCH FOR ATLANTA HOMES NOW**

Keller Williams Realty Atlanta – Peachtree Road

Atlanta Homes For Sale – Atlanta Real Estate News - Atlanta Home Buyers

The Government’s Revamped HARP Program For Underwater Homeowners

October 25, 2011
By Richard Staley
www.jimandrichardblog.com

The Federal Home Finance Agency announced big changes to its Home Affordable Refinance Program Monday. More commonly called HARP, the Home Affordable Refinance Program is meant to give “underwater homeowners” opportunity to refinance.

With average, 30-year fixed rate mortgages still hovering near 4.000 percent, there are more than a million homeowners in Atlanta and nationwide who stand to benefit from the program overhaul.

To qualify for the re-released HARP program, you must meet 4 basic criteria :

Your existing home loan must be guaranteed by Fannie Mae or Freddie Mac
Your home must be a 1- to 4-unit property
You must have a perfect mortgage payment history going back 6 months
You may not have had more than one 30-day late payment on your mortgage going back 12 months
Most notable about the new HARP refinance program, though, is that the government is waiving loan-to-value requirements on a HARP loans. Homeowners’ participation in the program are no longer restricted by their home’s appraised value. In fact, the new HARP doesn’t even require an appraisal, in most instances.

With the new HARP program, underwater mortgages can be refinanced without LTV limit or penalty.

According to the government’s press release, pricing considerations for the new HARP program will be released on or before November 15, 2011; and lenders are expected to be offering the program as of December 1, 2011.

If you think you may be eligible, first confirm that either Fannie Mae or Freddie Mac is backing your loan. Both groups provide a simple, online lookup.

Fannie Mae loan lookup : http://www.fanniemae.com/loanlookup/
Freddie Mac loan lookup : https://ww3.freddiemac.com/corporate/
If your loan cannot be located on either of these two sites, your current mortgage is not backed by Fannie Mae or Freddie Mac, and is not HARP-eligible.

The FHFA’s official press release contains an FAQ section. In it, you’ll find minimum qualification standards, as well as information related to condominiums and to mortgage insurance.

The HARP program is meant to help a wide group of homeowners, but each applicant’s situation is unique. For specific HARP questions, be sure to talk with a loan officer.

Tags: HARP, Home Affordable Refinance Program, Making Home Affordable

OH BY THE WAY, WE ARE NEVER TOO BUSY FOR YOUR REFERRALS..

Richard J. Staley & Jim Lewis
O: 678-495-2801
C: 770-351-7553
E-Fax: 770-406-2716
NMLS #185131
www.richardstaley.com
www.richardstaley.com/blog

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Keller Williams Realty Atlanta – Peachtree Road

Atlanta Homes For Sale – Atlanta Real Estate News - Atlanta Home Buyers

Real Estate Legal Tip

Presented By:

Handling Earnest Money

Agents should know the laws, real estate commission guidelines, and their own office policies about turning in the Earnest Money for deposit when a contract becomes binding.  These deadlines must be met.

The GAR contract form shows the holder of the Earnest Money (usually one of the real estate brokers).

Things to remember about Earnest Money:

1.        If the contract involves an REO (real estate owned) seller such as a bank, HUD, or FNMA, the counteroffer from the seller may require that the EM be held by the listing agent or even the law firm representing the seller.  If this is a change from the original offer, the agents need to get a contract addendum signed to show who is holding the EM.

2.        Many REO contracts require a large EM deposit, sometimes up to 10-15% of the sales price.  In most cases this is more than the eventual commission, so the closing attorney and agents must make arrangements to have the excess EM wired to the closing attorney prior to closing.

3.        If the closing date is very close to the binding date of the contract, the EM should be a cashier’s check rather than a personal check, so that there is no waiting time for a check to clear.  This is especially important if the real estate broker must refund all or part of the EM in preparation for closing.

Presented by Leigh Clack, Attorney

Neel & Robinson Attorneys at Law, LLC

Leigh.clack@neelandrobinson.com

404-705-3690            fax 404-459-0704

5555 Glenridge Connector, Suite 400. Atlanta, GA 30342

**SEARCH FOR ATLANTA HOMES NOW**

October 2011  Market Update

While there are many factors that can be barriers to buying a home, such as the tightening of mortgage lending rules by banks, consumer confidence in the job market is among one of the top obstacles to home ownership. In the 2011 Housing Pulse Survey conducted by the National Association of Realtors, 80% of respondents cited job security as their primary concern when deciding to buy.

For only the fourth time since the beginning of 2010, home sales in August were up both year-over-year and month-over-month, posting an 18.6% gain from last year, with first-time home buyers accounting for nearly a third of all homes purchased.  These indications of strength in the housing market may help to add to consumer confidence, which is an integral part of sustained growth. Even though there is still a long road to recovery ahead of us, there are opportunities to be had for both home buyers and sellers.

Home Sales(in millions):

August home sales were up 18.6% year-to-year, posting a 7.7% increase in sales activity over July despite Hurricane Irene, which struck the Eastern seaboard and New England regions at the end of the month. As a result of the hurricane, the Northeast experienced the smallest increase in sales. At the same time, persisting restrictions among banks affecting home lending are having the greatest constraint on sales levels. NAR Chief Economist Lawrence Yun stated, “The market can easily move into a healthy expansion if mortgage underwriting standards return to normalcy.”

Home Price(in thousands):

Homes prices were down, with a 5.1% drop in August compared to a year ago. The national median price for homes in August was $168,300, with distressed properties, foreclosures, and short sales still accounting for 31% of sales. The buyer’s market for residential property continues, as favorable prices, and record low interest rates offer the most affordable conditions for purchasing a home in the last 40 years.

Inventory- Month’s Supply(in months):

The supply of homes measured in months on the market at their current pace of sales fell 10.5% in the month of August, to an 8.5 month supply of inventory, down from a 9.5-month supply in July. With homes being more affordable than they have been in a generation and the lowest levels of new home construction since World War II, this inventory is projected to continue to fall, which will eventually result in the appreciation of home prices and a move toward a balanced market.

Source: National Association of Realtors

Interest Rates:

Home ownership became even more affordable, with the average rate for 30-year fixed mortgages falling to 4.01% the last week in September. This drop came as a result of the Federal Reserve extending the average maturity of its holdings as a part of the Maturity Extension Program, an effort designed to put downward pressure on interest rates and yields on treasury bonds in order to stimulate the economy. It is hoped that this action will encourage banks to loosen lending conditions, as it becomes more attractive to loan money to home buyers, rather than invest in treasury bonds.

Topics For Atlanta Home Owners, Buyers & Sellers:

Since affordable pricing tops the list of motivation and criteria for buying, it is no surprise that many first-time home buyers purchase distressed properties, which can be up to 30% below market value. Cost-conscious buyers are the most interested in distressed properties, but it is important for them to take into consideration the additional costs and expenses related to damage or neglect that occurred during the foreclosure process. On average, distressed property prices for first-time home buyers are $185,971 with a median of $153,000.

Another consideration for buyers is the transaction time. Short sales and foreclosures typically take considerably longer to close because buyers deal with institutions rather than individual sellers. Yet buyers who are patient can benefit by paying less.

As a seller, it is important to understand the current real estate market, and a real estate agent is there to guide sellers every step of the way. Agents can help sellers understand what the level of distressed sales and competition look like in their area. This way, they will be able to price their home right and will more than likely be able to attract attention from potential home buyers.

Source: KW Market Navigator and KW Research

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Keller Williams Realty Atlanta – Peachtree Road

Atlanta Homes For Sale – Atlanta Real Estate News - Atlanta Home Buyers

This Month in Real Estate For U.S. Market for September 2011

However, most aspiring homeowners are held back by two main factors: funds for a down payment (82%) and confidence in their job security (80%). Federal Reserve Chair Ben Bernanke emphasized the importance of a healthy housing market to a robust recovery. He stressed the adverse effects of tighter credit conditions for borrowers, urging Congress to take tax and policy measures to help stabilize the market. He also noted the significance of addressing long-term fiscal policies including debt levels, upcoming expenses to support an aging population, and taxes.

Buyers continue to benefit from historically favorable buying conditions, and sellers are encouraged by increased market stability. Although the Fed made a commitment to keep its interest rate at the current level until mid-2013, mortgage rates can, and often do, still fluctuate. In the midst of these reports, it is important to keep in mind the path to recovery was always expected to be a long and uneven road. As we progress toward a stronger recovery, economic improvement typically spurs rising interest rates in order to keep inflation in line.

Home Sales(in millions):

Home sales in July were up by 21% from the same month last year  when the expiration of the tax credit resulted in a significant drop in sales. However, they were down 3.5% compared to June. This could be due in part to NAR’s report that 16% of members experienced a contract failure from issues in underwriting and appraisals during July. NAR President Ron Phipps states, “For both mortgage credit and home appraisals, there’s been a parallel pendulum swing from very loose standards, which led to the housing boom, to unnecessarily restrictive practices as an overreaction to the housing correction.”

Home Price(in thousands):

Home prices dipped by less than 1% in July with median home price at $174,000. This is 4.5% below the year-ago level which followed a strong spring season of sales driven by the tax credit. Median home prices remain close to 2002–2003 levels. Distressed sales continue to count for almost 1 in 3 homes sold. The combination of low prices and record-breaking low interest rates means that home affordability is extremely favorable.

Inventory- Month’s Supply(in months):

The supply of homes measured in months on the market at their current pace of sales was up slightly during July compared to June. This is in keeping with historical trends, which show that inventory levels typically rise during the summer months. The month’s supply remained 25% below the peak of 12.5 months in July 2010 and 13% above April of 2010 when the home buyer tax credit was in full swing.

Interest Rates:

Mortgage rates hit a new record low in August of 4.15%, primarily due to uncertainty in the global and domestic economies. While these incredible rates represent a significant savings for home buyers, experts note that for the benefits to be fully realized, lending conditions must loosen to enable more buyers to take advantage of them. As overall economic activity gets back on track, rates will likely rise to keep inflation in check. In other words, the window of opportunity for buyers to lock in these historically low interest rates will not last forever.

Source: Freddie Mac

Topics For Atlanta Home Buyers & Atlanta Home Sellers:

As the weather gets cooler in Atlanta, some Atlanta homeowners could be considering undertaking home renovations or updates before the holiday season. Here are a few findings about updates and home sales:

1. Homeowners typically spend considerably more on updates to their home when planning to live in and enjoy it, with an average of nearly $9,000.
2. In contrast, they only spend an average of $3,400 when making updates in preparation to sell.
3. The most common updates sellers performed before listing were paint, flooring, and light fixtures.
4. Although the majority of buyers were least likely to compromise on the location, 16% were least likely to compromise on updates.
5. 75% of homes sold were either fairly updated or very updated.
6. Sellers began repairing their home 1 to 8 weeks in advance of listing.

Source: KW Market Navigator and KW Research

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Keller Williams Realty Atlanta – Peachtree Road

Atlanta Homes For Sale – Atlanta Real Estate News - Atlanta Home Buyers

Real Estate Legal Tip

Presented By:

Restrictions on Resales contained in Deeds and Short Sale Approval Letters

When FNMA (Federal National Mortgage Association or Fannie Mae) is the seller of a property, there may be a restriction against a quick resale or refinance of the property.  This restriction would be found in the sales contract addendum and in the Limited Warranty Deed and usually prohibits the new owner from selling or refinancing the property for 30-60-90 days (usually 90 – seller fills in) after closing for more than 120-125% of the original purchase price from FNMA.

This restriction must be in the sales contract (pay attention to the Addendum to Contract/Counteroffer) in order to be included in the Limited Warranty Deed, and it is the seller’s/listing agent’s responsibility to add this language if desired. 

Another restriction upon a quick resale (usually 30 days) appears in many short sale approval letters, and the lender may reserve the right to revoke and rescind the short sale approval if the new owner ignores this restriction.  This would create a huge problem and title issue for both the seller and the new owner, and title insurance may not protect the new owner who violates this restriction.

Presented by Leigh Clack, Attorney    leigh.clack@neelandrobinson.com
Neel & Robinson Attorneys at Law, LLC    404-705-3690     fax  404-459-0704
5555 Glenridge Connector, Suite 400, Atlanta, GA 30342

**SEARCH FOR ATLANTA HOMES NOW**