The “Jewel of the South,” as many have called Atlanta, refuses to be denied.  With an influx in population due to steady job growth, Atlanta earns the #10 spot in a recent Forbes Magazine article. 

This just in case you were about to jump off the cliff after listening to the national real estate update on the news.  You really have to filter the news when anything is reported as a national statistic or trend.  You wouldn’t listen and believe a weatherman if he told you it was going to be sunny over the entire United States tomorrow, would you?  How is that any different from the real estate market?

Certainly be thankful you are in a growing city like Atlanta, where there will always be demand for housing.  What is down, won’t be down long.

In another sign that the government is going to do whatever it takes to get us out of this mess, the Fed rate was cut again last week, which has created another dip in mortgage interest rates.  Despite tighter lending requirements, this market is going to make a lot of smart people a lot of smart money.  Smart money is already starting to move in.  Our phones are buzzing over these historically low rates, depressed home values and inflated inventory levels.  If you have been considering buying a home, now is without a doubt the time to explore it further.  If you have been considering buying a second home, now is the time to explore it further.  If you have been considering selling and moving up, now is the time to explore it further.  If you have been considering refinancing, now is definitely the time to consider it.   We are very skilled at interpreting the market, getting homes sold quickly, and finding amazing opportunities for our clients.  Let us show you how to maximize this market.

Congratulations to Jennifer! Jennifer is a first-time homebuyer that was tired of renting and looking for a good deal. With a vast amount of condo inventory, interest rates to die for, and an EXCELLENT price - Jennifer didn’t just find a deal but a STEAL! She bought a beautiful condo in the heart of Buckhead that is her VERY OWN. If you are looking to take advantage of low interest rates and rock bottom pricing - give us a call today. It’s an excellent market for first-timers. We may not see rates and prices this low again. Join Jennifer in saying “bye-bye” to rent and “hello” to equity!!!

Considering what’s going on in the real estate market, you have a tremendous opportunity.  This opportunity requires you to make a decision though!  You have to decide if you are going to be a pioneer or a settler.  No, you’re not playing a game of Oregon Trail so calm down you children of the 80’s.  So what’s the difference and what are you?

pi⋅o⋅neer   [pahy-uh-neer] - one who is first or among the earliest in any field of inquiry, enterprise, or progress: pioneers in cancer research.

set⋅tler  [set-ler, -l-er] - one who establishes himself in a new region.

A pioneer in this real estate market is quite honestly a smart buyer, keeping in mind that the money to be made in real estate is not in the up time.  It’s all about buying low and selling high in those up times.  If you’re one of the few who is buying a primary residence with no other strings attached (such as, not owning another home somewhere else and/or having the good fortune of selling your previous home), words can’t describe the opportunity before you.  You can be a pioneer by simply buying smart.  Many homebuyers are sitting on the sidelines waiting to see just how low things can go.  I believe at the end of the day those folks will be very sorry considering inventories are high (although falling and showing promise of a turnaround) and rates are in the low 5% range (and sure to rise). 

If you already have a home which you are bound to for various reasons or maybe you have no desire to move, you can be a pioneer too.  Investment property, which I have talked about previously, is a golden opportunity for you to actually experience a return on investment RIGHT NOW.  Have you looked at your 401(k) or securities accounts lately?  Returns?  What’s that?  Learn the value of cash flow, buy an investment property, build equity, and sleep well at night Mr. Pioneer.

The alternative is to be a settler, the person that follows the market and the crowd.  When it’s just about to crest, you are buying and following those clever pioneers.  The bad news is that crest soon turns into a valley, and there goes your profit, your equity, or even worse your property.  Sure, you can make money as a settler, but literally every day you wait costs you money. 

As your real estate consultants, our job is to advise you and keep your home search or home sale “between the ditches,” as my grandfather used to say, teaching me to drive his old truck on dirt roads in south Georgia.  Simply put, we win when you win, and that includes finding values, negotiating values, and facilitating a smooth transaction.  The moral of the story is, as in all of life, you have a decision to make.  If you can afford to do so, be a pioneer.  Your long term wealth will thank you for it later.

As always, we’d love to be your home base for all your pioneering needs.

If you get the Metro Atlanta Real Estate Update from us then you have already received a peek at the falling mortgage rates.  If you are not getting the Metro Atlanta Real Estate Update, first of all WHY?  Second of all, there’s always time to get signed up.  Email me at andy@thepeterscomany.com for the weekly email update on all things relating to our market.

The Fed was looking for a way to expand lending, and the expanded rescue has done just that.  Mortgage rates tumbled as much as a half of a percent on Tuesday and are the lowest they have been all year.  The Peters Company has been calling this for months, and it couldn’t have come at a better time.  People are swarming to refinance as the volatility leaves everyoe worried that this is a small blip and that the rates will surely jump back up.  I wouldn’t play around if you are considering refinancing.  Sure, the rates could go lower, and they probably will slowly.  However, I’m not willing to take the chance given where we are in the low 5% range.

So, what does this opportunity to refinance mean for the economy?  Well, perhaps the best thing is that it potentially frees up more money for consumer spending, which is something very much on the minds of all of us churning towards the holidays.  The auto industry could use a little bit of that money I believe, but perhaps the best thing that could come of this is to fight off continued talk of a recession.  On this eve of Thanksgiving, lets all be thankful that our government is being proactive in its attempts to navigate the financial storm.  As always, we will come out of this stronger, and hopefully wiser.  Hold on to your seat.  Don’t get too high, and don’t get too low.  Keep thinking like a buyer, and Happy Thanksgiving.

For more information on the good news, click here for more from the Wall Street Journal, and go lock some rates if you are floating!

Boy, its easy to get discouraged watching the national news or reading a national paper covering this housing market.  However, we’re still proclaiming the bottom here at least for our home base of metro Atlanta. 

New construction has been hit hard.  Nationally we’ve seen homebuilders dropping like flies with decreased confidence in the market.  Housing starts for new construction single family homes are a good indicator for the housing market, and after reading a recent Atlanta Business Chronicle article, believe it or not I am encouranged.  While the national picture is a little less than desirable with national housing starts slumping again in October to the lowest level since 1959 when the United States Commerce Department started tracking the starts, the silver lining is that October housing construction starts in the South are actually up 1.5% over last month.  Don’t get me wrong, there’s still way too much new construction inventory and lot inventory has crested for quite some time, but it’s saying something that new construction is showing signs of life.  New government programs and falling lending rates will do nothing but help.

While we certainly have vast improvements to make in this market, buying into the national coverage will only frustrate and confuse.  I equate it to a weatherman telling you that it’s going to be sunny over the entire United States tomorrow.  You just can’t paint with a broad brush like that.  Make sure you stay opportunistic, think like a buyer, and stop denying this market as anything short of an unbelievable time to buy your first home, your second home, your first rental property, etc.

Lesley and I both are  proud members of the Atlanta Board of REALTORS®  I had the pleasure of attending a recent Atlanta Board event.  One of the topics was “What is a REALTOR®?”  Before I became a real estate agent, I just assumed that everyone was considered a REALTOR® if they were in the business.  I would also sometimes refer to these people as Real-a-tors.  It wasn’t until I became a REALTOR® that I really realized what this designation means to me and to the people who utilize my services.  I quickly learned that real-tor is the correct pronunciation, that it is spelled in all caps, always had that circled “R” symbol, and that actually being a REALTOR® was different than being just a real estate agent. 

All real estate brokerage houses don’t require the membership of its agents in a Board of REALTORS®.  Our Keller Williams offices require it with no questions asked.  Now, why would they be so insistant on its affiliates joining? 

1 - Code of Ethics - the REALTOR® Code of Ethics is at the forefront of the REALTOR® designation, and it provides an important difference to consumers.  All real estate agents are required to understand and operate under state mandated licensing laws, but only REALTORS® are held to a higher standard.

2 - Accountability - The Atlanta Board of REALTORS® mitigates disagreements and conflict between its members.  A violation of the code of ethics and a member finds themselves facing harsh consequences such as fines, suspension of Board membership, suspension of MLS access, etc.  This sort of accountability amongst the members creates a self policing that makes all of its members better.

3 - Community - the Board has a long-standing history of supporting the local community. In the past several years, the Atlanta Board of REALTORS® has sponsored building several Habitat for Humanity homes through the Atlanta Chapter.

4 - Awareness - membership in the Atlanta Board of REALTORS® places an agent in one of the most powerful and influential grassroots lobbying efforts in the country related to real estate issues affecting the industry.

5 - Networking and Exposure - by being a member, your listings appear on one of the heaviest searched site for homebuyers in the nation, www.realtor.com.  In addition, through various networking and educational opportunities members are able to promote their business and listings to their colleagues in a professional manner.

These are the top 5 benefits of being a REALTOR® as I see it, and why every agent should seek this designation.  It kind of makes you wonder about those who aren’t members, doesn’t it?  The more pressing question is always, “What’s in it for ME?”  I understand that everything I do and say should probably be followed with a “So what?” 

Here’s what’s in it for you and why you should use a REALTOR®:

Educated students of real estate law who understand the law and work to ensure you have the safest transaction possible.

Ethical leaders who understand and are willing to do the right thing even though it may mean more work on their part.

Community minded people who understand that a home is more than a place to live.

Politically active advocates for the real estate industry, helping to protect all of our investments.

Well connected professionals always searching to expose you to more than the average agent.

Lesley and I would love to show you the benefits of having a REALTOR® on your side first hand.  We want to be the difference maker in your real estate transaction.

Keller Williams produces and distributes very useful information.  The video included below is a nice review of the national market for the month of October including statistics and in depth analysis.  I encourage you to take a look if you are interested in the macro view of the real estate market.  Keep in mind that our goal is to ALWAYS keep you up to date with the micro view in the metro Atlanta area.  You will see local statistics scattered between here, our mailings, our email updates, our Facebook update group, and our Active Rain blog.

Perhaps one of the greatest statistics:  If interest rates go up 1% that represents a 10% increase in the purchase price.  Interest rates are incredibly low and fell again last week.  Don’t wait too long to take advantage of this prime opportunity to buy your first home, your first investment property, or move up.

The Peters Company is very fortunate to have outstanding relationships with some of the nation’s most reputable lenders, with no strings attached I might add.  One of the benefits of these type relationships is great updates on the market and relevant consumer information.  I must take this opportunity to say that we, The Peters Company, do not gain financially from recommending anyone from lenders to inspectors, vendors, etc.  We gain only piece of mind when we know that our clients are receiving exceptional service from lenders and vendors we know and trust.

Those of us who have bought a home before know that trying to decide on a mortgage lender can be a stressful process that can leave you wondering whether or not you are getting the best “deal” possible.  I find the need to negotiate everything.  It drives Lesley crazy, but it’s the truth.  I love to negotiate.  I always looked at the selection of my mortgage lender to be an opportunity for me to exercise my negotiation skills.  I love this article by our friends at Countrywide Home Loans because it really helps you understand what you should be looking for and what is just “smoke and mirrors” sales jargon.  Today I feel a little differently about selecting a mortgage lender.  I think first and foremost that it’s important to find a lender that you are comfortable with, someone who you like and trust.  Much like the real estate buying and selling process, the lending process has its fare share of ups and downs.  You want to make sure that the lender you select is there for you and someone that gives you honest, well founded guidance.

From Countrywide Home Loans, courtesy of Scott Meldrum, Robert Gilbreath and Kim Nehiley:

Many, probably most, consumers will talk with more than one mortgage lender when applying for a home loan.  They will want to get the “lowest” rate, or the “best” terms, or something along these lines.  If consumers are going to be shopping an industry that they are not familiar with, I believe it becomes our job to make sure that they are an “informed consumer”.  So let’s look briefly out how to correctly shop for a mortgage.

If It Seems Too Good To Be True, It Probably Is…

Yep, no big surprise there.  Most realtors and lenders have heard a client say, “Well, Mortgage Company X said they can do my loan at a 5% interest rate, no money down, and they’ll pay all my closing costs!”  Here’s the deal, while some mortgage companies may portfolio very specific types of loans for very specific types of borrowers, allowing them to offer better terms or rates, generally speaking, all lenders get their money from the same places.  Thus, all lenders, on most loans, should be closely aligned in terms of interest rate and programs offered.  So, if it seems too good to be true, you’d better start finding out where the hook is.

Make Accurate Comparisons…

Lender fees to Lender fees.  That’s it. Don’t compare one lender’s bottom line to another lender’s bottom line.  Lenders are responsible for quoting estimations on third-party fees, but they DO NOT control them.  And some might under-quote those fees to make their bottom line seem smaller.  Always and only, lender fees to lender fees.   And no matter what a lender says their APR is, get a Good Faith Estimate from them to verify fees.

Rates Change Daily, Sometimes Hourly…

Recognize that mortgages are instruments of investment, like stocks, and therefore change their accompanying interest rate on a daily, sometimes hourly, basis.  It is completely pointless to get a quote from Lender A on Tuesday and then get a quote from Lender B on Friday. This would not be an accurate comparison and you’ll just end up driving yourself crazy trying to figure it out!  If you’re going get quotes, figure out what lenders you want to talk to, sit down on the phone, and call them one after another, receiving not just an interest rate quote, but a full list of the terms that go with it (discount points, prepayment penalties, etc.).  For example, make sure that one comparison isn’t using higher fees to get a lower rate, or conversely, using a higher rate to quote lower fees.

Simple Math:

Amazingly Low Rates + Depressed Home Values + Vast Inventory

= First Time Homebuyer Heaven

If you are a first time homebuyer sitting on the sidelines, your amazing opportunity window may be shortening as the home market is poised to rebound.  For months we have been proclaiming the dubious position that first time homebuyers are finding themselves in.  We have been fortunate to work with more than a handful of first time homebuyers this year, and I’m always blown away at what is out there waiting for them. 

Great Mortgage Interest Rates!  I heard my dad and my father-in-law for the last few years tell me about how high rates were “back in the day” of the 1970’s and 1980’s.  10-12% interest rates were not only common, they were pretty darn good.  We have really been spoiled here recently.  In fact, rates dipped below 6% again this morning, and they appear to be going lower according to our friends at Countrywide Home Loans.  If you are floating in the short term, waiting for interest rates to drop further, I encourage you to lock those rates.  With the volatility we are seeing in all the financial markets, anything could happen.  You may lose a little on your rate by locking, but you could also look like a hero on these sudden spikes we’ve seen in the last couple of weeks.  Adjustable rate mortgages may be tempting, but with rates this low and if you can afford to do so, lock your rate for 30 years and forget about it.  You’ll be glad you did.

Home Values are Down!   The Median YTD September 2008 sales price was down 10.3% versus the same period in 2007.  Foreclosures represented over 23% of the overall sales in the 3rd Quarter.  As mentioned before, you can’t always consider a foreclosure a good “deal”, but you sure have to look at them in this market.  It’s an equity cash grab if you find the right one.  Sellers received 93% of their list price in the 3rd Quarter, which is 3.5% worse than the same time last year.  The sellers are finally starting to accept the market, which is even further good news for the homebuyer. 

Inventory is Still High!  There is a 12.3 month home supply in the market right now, which is 20% higher than the same time last year.  However, it’s important to note that the home supply has dropped each of the last two months as this market attempts to correct itself.  A 6 month supply of homes is a good balanced market to give you a point of reference.

Other great benefits in this market for first time homebuyers include the fact that 75% of all home sales included seller paid closing costs!  FHA loans are available with 3% down, which can be in the form of a gift.  The other good news is that we are entering the winter months when home sales typically slow down, making an offer even more attractive for a seller. 

If you are considering buying a home for the first time or for the fiftieth time, there truly could be no better time than right now.  We have received high praise from our clients for our consultative approach, making the homebuying process a simple and enjoyable experience.   We would love to help you.

All statistics are cited from Chartmaster, 3rd Quarter 2008 Metro Atlanta Profile: Single Family Detached Residences.