The National Association of Realtors (NAR) announced that home purchases increased more than expected in October 2009 to an annual rate of 6.1 million.  In September 2009, the pace was at an annual rate of 5.54 million.  NAR also announced that median sales prices decreased 7.1% from October 2008.

Bloomberg announced that existing home sales increased by about 10% in October 2009, which is the highest level since February 2007. 

Is this the reversal we’ve been waiting for?

Dean Maki, chief US economist at Barclays Capital Inc in New York said, “It’s an impressive increase and shows a lot of pent-up demand for housing.  Buyers have enough confidence to take the plunge.  The housing market recovery will be a durable one.”

The number of foreclosures are also up.  In fact, foreclosure filings surpassed 300,000 for an eighth straight month in October.  Job losses have taken their toll on countless home owners and now banks need to get rid of all the homes as fast as possible, and they are dropping the prices to do it.

With the combination of low prices, interest rates being at their lowest levels in decades, and federal and state incentives of up to $23,800 available to home buyers, the housing market is picking up some steam.

So what does all of this mean?

If the demand for homes continues to increase, we expect prices and interest rates to increase and government incentives to end by early next year (with little to no chance of them being extended again).

Don’t miss this great opportunity to buy your dream home at a ridiculously low price, low interest rate, and with a little…or a lot or help from Uncle Sam.

Click here to receive a free list of foreclosures in the metro Atlanta area or call 678-222-2987 to speak with a friendly and knowledgeable real estate professional.  We would love to hear from you and help you find the perfect home at the lowest price possible!

So what’s happening in the metro Atlanta real estate market?

As you already know, it’s been a tough year.  The overall economy and the large number of foreclosures and other distress sale properties has dramatically impacted the number of homes sold, their average sales prices, and the number of days it takes to sell a home.

Trends

Overall, home sales in 2009 have been following the same trends as in most every other year, but at lower sales prices and sales volumes.  As usualy, sales are lower in the colder months and then increase and peak in the warmer months.  Ok, no surprises there.

Number of Homes Sold

This year, the number of single-family homes sold has been at about the same level as sales in the year 2000…a little less, but very close.  While we’re not at the high levels of June 2005 and 2006 (when 7,000 to 7,500 homes were sold in one month), the great news is that sales in September 2009 were slightly higher than they were in September 2002 (about 3,600 homes sold).

Prices of Sold Homes

During the first quarter of this year, sales prices for single-family homes started off at the lowest levels this decade.  In fact, average sales prices were about $20,000 lower this year than they were in 2000.  For example, the average prices in February 2009 were in the upper $170’s, compared with prices in February 2000 when they were in the mid to upper $190’s.  The great news for home sellers is that home prices dramatically increased from February 2009 to July 2009, increasing about $40,000 in five months, from the upper $170’s to nearly $220,000.  This is quite a bit lower than prices in 2006 and 2007, when the average sales prices were at around $280,000, but, for home sellers, prices are heading in the right direction.  This could also be a warning to home buyers.  Buy now, because prices may be heading back up.

Days on the Market

The number of days it takes to sell a home is at the highest level this decade.  In September 2009, the average days on the market was nearly 100 days.  Compare this with sales in September 2000, when it was only taking a little over 60 days to sell a home.

Inventory

Inventory, or the number of homes on the market, peaked at over 70,000 in the summers of 2007 and 2008.  Since then, inventory has steadily declined, and now there are only about 47,000 homes on the market.  This is the lowest level since 2006.  Could we be heading into a seller’s market?  Time will tell.

So what does all of this really mean?  Has the market reached the bottom and heading back up?

It’s too soon to tell, but some indicators show that the worst may be over and we’re heading for better times.  With the extremely large number of foreclosures and governemnt home buyer incentives totalling up to $23,800, buyers know that this is a once-in-a-lifetime opportunity to get a great deal on a home.

If you’re thinking about selling a home and expecting to get full price, you may need to be a little patient…well, more than a little.  While we are seasoned professionals who use the latest technologies and the most effective marketing strategies to sell a home, the truth is that buyers have too many choices right now and are seldom, if ever, paying full market value for a home.  On the other hand, if you’re highly motivated and very flexible on your price, then this is a great time to put your home on the market.

Bottom Line

While there are many uncertainties in the current real estate market, there is one undisputable fact.  This is the best time to buy a home.  In fact, there has been no better time to buy a home in the past few decades.  If you buy now, you could buy a home at an all-time low price and receive as much as $23,800 from the government to help you buy it.  Whether you agree with the tax credits and other government incentives or not, they are available to home buyers now.   But if you wait, you risk paying a much higher price and losing the opportunity to have the government help you out.

For more information about the real estate market in specific areas, including charts and graphs, click here:

Marietta real estate market trends

Kennesaw real estate market trends

Acworth real estate market trends

To view all homes listed for sale in the Metro Atlanta area, click here:

Atlanta Real Estate

Kennesaw Real Estate

Marietta Real Estate

Acworth Real Estate

All Other Metro Atlanta Real Estate

If you have any questions about the $23,800 home buyer incentives or anything else related to buying or selling a home, please give us a call.  My team and I will answer your questions, consult with you to learn about your wants and needs, and then go to work for you to help you accomplish your real estate goals.  The best thing is that our services are free of charge when you buy a home, and we’ll even buy you a 1-Year home warranty if we can’t get the seller to pay for it, so you’re protected when you move into your dream home.

Ok, that’s all for now.  Thanks for stopping by!

Kim Eisenmann

The Eisenmann Home Selling Team
Solid Source Realty
3745 Cherokee St
Kennesaw, GA 30144

Direct: 678-222-2987
Office: 770-475-1130 ext 4940

1,500 family need your help. The Center for Family Resources (CFR) is asking for your help providing needy families with food and other items they need to enjoy a Thanksgiving meal at home with loved ones. The CFR estimates that they need 65,000 items, such as canned fruit or vegetables, dried or canned potatoes, stuffing mix, non-refrigerated pie crust, roasting pans and canned pie fillings. 

You can help reach the goal by bringing items to the Mansour Center, 995 Roswell St., Marietta on Saturday, Nov. 14th, between 10 a.m. and 2 p.m.

For more informtion, please visit their website at www.TheCFR.org

On Thanksgiving Day, MUST Ministries will hold its 7th Annual Gobble Jog.  Run or walk in the 1K, 5K a 10K race or the Tot Trot (for children 5 and under). The event will be held on Thursday, Nov. 26, at the Historic Marietta Square…rain or shine. The Gobble Jog race is open to everyone…runners, walkers, children and adults. All proceeds benefit MUST Ministries, a faith-based organization that has provided services to people in crisis for the past 38 years. 

After the race, MUST Ministries will serve a Thanksgiving meal for about 2,000 homeless and needy individuals and families.

If you’re a serious runner, the 10K course is certified as a qualifier for seeding in the Peachtree Road Race and the U.S. 10K Classic. To register or for more information, visit www.gobblejog.org.

MUST Ministries is also in need of donated food to help feed local families. The greatest need is jelly, canned meats, tuna and chicken.  Organize a food drive in your neighborhood, church or business community and donate to MUST.  For a suggested list of other food items, visit www.mustministries.org.

Yesterday, President Obama signed the $8,000 first-time home buyer tax credit extension and expansion. 

The National Association of Realtors (NAR) has done a great job summarizing the changes to the $8,000 tax credit in this one-page PDF file.

The IRS has also provided details on their website.

If any of this information creates more questions than answers, feel free to give us a call or shoot us an email.  We’ll do our best to clear things up. 

Of course we need to add some small print here.  Our lawyers insist that we tell you that we are not tax experts, and if you want definitive answers to your tax-related questions it is always best to speak with a tax attorney or accountant.

Contact us today to find out how much of the federal and state tax credits you qualify for.

Kim Eisenmann

The Eisenmann Home Selling Team
678-222-2987

www.FreeAtlantaInfo.com

There has been so much talk lately about whether or not the government would extend the $8,000 home buyer tax credit.  Great news! The wait is over. The extension has been approved in both the senate and the house, and it is now on the President’s desk awaiting his signature.

So how does this affect you?

If you’re a first-time home buyer and have not had an interest in a principal residence for the past 3 years prior to purchase, then you are eligible to apply for up to $8,000 in tax credits.

If you currently own a home, you were not eligible for the first tax credit, but if you have owned a home for five consecutive years of the last eight years, you are now eligible to apply for up to $6,500 in tax credits when you purchase your next home.

To qualify, first-time home buyers and current home owners must sign a purchase agreement by April 30, 2010 and close by June 30, 2010.

The maximum purchase price is now limited to $800,000 and does not include vacation homes.  The maximum income level has been increased to $125,000 for single taxpayers and $225,000 for joint filers.

Don’t forget to attach the home purchase documentation to your tax return and speak with an accountant or tax attorney to determine how this new tax credit may affect your taxes.

Welcome to our new blog.  We will be sharing real estate news and information that we hope will help you save money when you buy a home, increase the value of your current home, enjoy living in the metro Atlanta area, and make as much money as possible when you sell your home.

If you have any comments, suggestions, or information that you would like to share, please let us know.  We would love to hear from you.