So, we’ve all been reading about the changes that have occurred…and continue to occur…in the lending industry as a result of the backlash caused by subprime/no money down loans.

The process of getting a loan has become more and more complex and lenders will tell you that every day brings a new regulation (or two…or three…or more) that puts obstacles in the way of approving loans.

Don’t get me wrong.  I think the industry needed to change…but the pendulum has obviously swung much too far.

This hit home last week when I heard from past clients/friends who were trying to refinance their current loan.

Here’s the story:

This couple (let’s call them The Jones’), with a combined income of over $300,000 a year, impressive credit scores, no ongoing debt except for their current mortgage and current liquid savings of abut $800,000 had applied to refinance their $700,000 mortgage.

The Jones’ filled out all the required paperwork, supplied two years of tax returns and provided a check for the appraisal and application fee.  The lender/investor said that there was only one appraiser who was acceptable to them and, since that appraiser was only available on a date when the homeowners were going to be out of town, the Jones’ made special arrangements for a friend to meet him.

And then they waited….for over three weeks for the appraiser to come up with a value on the property. Continue reading this post

Proverbs 20:14 – “Its no good, its no good!” says the buyer; then off he goes and boasts about his purchase.

The economy has been wreaking havoc on on rental owners as well as home owners. The great unwinding of the debt economy and the collapse of available credit has caused job loss, underemployment and a recession psychology causing consumers to pull back, not being sure if they are next to loss work.  Afraid of catching a falling knife, prospective buyers are waiting on  the sidelines.

The housing industry has been pinging property owners to try and get a sense of the degree of difficulty out there. I wanted to share with you some of what these surveys reveal. Continue reading this post

The real estate market in Atlanta appears to be following the upswing many of have heard about on the news recently and it’s high time we spread the word! For the first time in years, parts of Atlanta have seen price increases and sales volume increases. This is particularly true for resale homes and those homes in the traditionally more popular areas on the north side of the city.

As I write this, home sales in Atlanta under $200,000 for the month of July are 2,547 solds vs. 2,390 sold in July of 2008. This is a significant statistic because, we will have more sales than last year for the second month in a row and this also represents the single largest segment of homes for sale in Atlanta broken down by price point.

In June, which is traditionally the highest monthly sold numbers, 2009 sales at this price point far outpaced what we saw in 2008. This year there were 2,679 sales vs. 2344 in 2008. This is a 14% increase in volume. In the popular northern suburbs, this has turned to a seller’s market with only 3 or 4 months of inventory available to purchase in many cases.

The significance of the year over year sales increase at this price point cannot be overstated. Since this represents 60% of total sales and represents 43% of all homes listed for sale, year over year increases represents more than just a small tick in an otherwise bleak market.

This represents a turning point.

When this is combined with 6 consecutive months where inventory levels have declined and 4 consecutive months where the average home price has increased and we find ourselves wondering whether or not we have actually seen the bottom in the overall real estate market. Continue reading this post

People often ask me the “crystal ball” question, “What do you think the market is going to do?”  I check off the many indicators I watch, including unemployment, demand, and inventory.

I then follow up with one of the most important indicators, “What do you think the market is going to do?”

In 2008, Austin’s real estate market was relatively healthy but flat.  We saw slight appreciation in the median price.  However, when speaking with clients & friends not in the business, it was their impression that the sky had and was falling.

Luckily, in Austin, the sky didn’t fall, but it did drop.  Home prices have depreciated slightly in 2009.  There are many factors that combine to cause this, but the public’s general impression of the market is a big one.

Since all real estate is local, it seems a bit counterproductive to watch national real estate trends closely.  Continue reading this post

The economy’s decline leveled off significantly from April through June, confirming  that the worst is behind us.

GDP declined at an annualized rate of 1 percent in the second quarter, after shrinking an amazing 6.4 percent earlier this year. But consumer spending, 70 percent of economic activity,  continues to fall as Americans continue to save and  reduce debt. Economists express concern that our basic spending habits have been permanently altered by this great recession. This is also having an effect on rentals as renters downsize or insist on rent reductions.

With this as a backdrop we looked at rental rates which a are a prime factor in evaluating a property. We clearly have a long way to go. The Dept of Commerce chart indicates we are at a fragile beginning of a recovery. The key to successful property ownership now will be to keep it occupied and ride this out. Continue reading this post

The market in Columbus Ga MLS is typical of markets all across the country.  Sales are down.  That said, our economy is more stable than most and for this reason we have not seen the dramatic drop in home prices.

Homes priced right and well maintained are still selling quickly.  Homes with any problems or that are overpriced are being overlooked.

Here is a snapshot of 2008 vs. 2009 :

• Home prices are down about 4%
• Total Homes sold are down 21%
• Home sales in the $100K to $200K level are only down 17.5%
• Home sales in the $200K to $300K price level are down 35%
• Home sales in the $300K to $450K price level are down 22%
• Home sales in the $450K and up price level are down 27%

New home sales and foreclosures account for a large portion of the sales in the Columbus GA/Phenix City home market this year.  The normal resale homes are the ones really staying on the market.

So, it is very important for resale clients to price their homes aggressively and to have their homes in pristine condition when they go on the market!

Wayne will be hosting a session titled “Prospecting, Proposals, Pipeline: AgentEvaluator” at HomeGain Live Nation in San Francisco on August 3rd at 2pm. Twitter it #homegainnation.

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