Atlanta Real Estate | Atlanta Housing News for Real Estate

April Consumer Confidence Falls is todays's headlines.   Are you surprised?  I'm not!  The price of a gallon of gas is about $2 a gallon more than I would like to pay for it.   Every time I go to a restaurant I cannot help but notice that the prices have gone up.  The result, I eat out less!  In the supermarket I can spend $65 and ask myself "Did I buy caviar?" My next trip to the store, I will stick to my list, and forgo some comfort foods.   If home prices are declining, and airfares are going up why would I not notice it?  Will I probably take less trips this year?  I think that is a more likely scenario.  The same is true of housing and real estate.  If sales are declining, prices are dropping, and foreclosures are rising, whould I rush into buy?  Why would my confidence in the economy and future not decline? Common sense is tellling me to proceed with caution.   This applies to gas prices, inflation, home prices, jobs, unemployment, oil prices, the devalued dollar, out sourcing.

Personally, my confidence has declined, but not in the way you think.  My confidence has declined in leadership in the United States.  It is being run by losers and opportunists, that do not care what is happening to the American people.  It really doesn't matter what political party our leaders belong to, you are not invited to share the wealth and power they are taking form us!  They do not care that jobs are going overseas, or that manufacturing in USA is no longer a way to make a living.  Both political parties signed off on NAFTA.  American leadership should have term limits, we should outlaw lobbying, and we should be energy independent.  Any nation that can put a man on the moon, has or had the ability to develop a new fuel source to lead the US through this new millennium without being dependent on foreign nations.  America is having a confidence crisis on the lack of leadership.

Real Estate News Stories.  Every day real estate news stories on the evening news, Internet, newspapers.... bombard us with headlines such as..."Vacant Homes Increase" "Foreclosures Rise" "Home Sales Slump...etc."  The headlines that hit the wires are the stories that real estate agents have known for months!  9 out of 10 homes we show are vacant in some price ranges.  So no DUH!"  Too bad the media does not report that many homes are over priced by inexperienced agents and greedy sellers.  Many homes are just way overpriced and will never sell.  In fact they do not even belong on the market.  Other stories that the media should report about is that some folks just over paid without ever qualifying what they were buying.  They made fatal mistakes of not having an experienced buyer agent advise them.  They purchased a home directly from a builder, and in spite of what they think, they did not get a deal!  Who's problem is that?

The truth is... some folks without money should never have purchased a home.  They would be much better off renting.  They were irresponsible with financing prior to the purchase, had no vision of what home ownership entailed, and are living in pain as a direct result of their own actions.  When will the media report what has really happened?

Real Estate Designations. What real estate designations do you need to be successful?  Over the years there are many new real estate designations that have been introduced, and I personally think a lot of them were overkill.  Some aren't.  For one thing if you are licensed to sell real estate by the state there are no higher levels of recognition under state law than being actively licensed.  I do make exceptions for several NAR designations such as the Certified Residential Specialist CRS, because performance is built into the designation.  I really prefer to give out referrals only to agents that have a CRS designation.  I also feel that an Accredited Buyers Representative ABR is most helpful in that it focuses on performance and responsibilities in working and representing our buyer clients.  E-Pros raised the level of expected technological proficiency of agents in best representing their clients in a growing technology laden age.  It does help us do our jobs better.  So what about the newer designations?  Are they necessary, or just a ploy to create other streams of income?  Do I really need a designation to work with seniors?  Do I have to be a specialist to work with a senior?  What about resort properties, and second homes?  Do you really need a designation to be considered capable and proficient?  If so where will it end?  Will we need designations for staging, minorities, listing properties, doing CMA's, and selling or listing luxury homes?  Will other areas at sometime require you have to have a designation to offer your services?  Would it suffice that past experiences on closed homes and sales works, or is it a must that you possess a certificate that gives you that ability based upon a certificate?  I am a big believer in doers!  Those that can, do!  What are your thoughts?  What REALTOR designations do you possess?

Real Estate Gadgets.  At most of the real estate conventions the hype always to goes to the latest gadgets.  There are hand scanners, Blackberries, tablet notebooks, laptops, talking sings, tool free numbers with call capture, contact managers, software, GPS, cell phones, web-based contact managers, websites that send text messages, pod casting, Video posts, digital cameras and too many more to name!  So how are they working for you?  Have they developed more closed business recently?  have they developed deals that are going to close in the next month?  What technology has worked for you?  For me it has been the Internet!  Lots of photos, a virtual tour,and real estate blogging as a constant promotion has worked very well for us!

Most agents that I meet at conventions and seminars purchase software and technologies that they will never really get the full or even a partial return on their investment.  Most real estate software remains quirky at best!  More time is spent on tech support than in closed production!  The most common reality?  Software packagas for the most part remains unopened, while the PC Tablets are great to show off at the office.  Most of the items would be great if we were back in grammer school doing "show and tell!"

Atlanta MLS Listings reached 88103 today.  I predicted earlier this year that Atlanta MLS Listings will climb to all time highs this year.   Atlanta MLS Listings may reach as high as 100,000 active listings in our FMLS before the end of they year due to declining sales, increased foreclosures, and a cumulative effect of unsold homes that need to sell and they are just sitting on the market.  The Spring Atlanta real estate market has not benefited from the seasonal bounce in Atlanta home sales.  Atlanta home sales in the month of March are showing a decline of 35.9% over March 2007 and Atlanta condo sales are off 40.3% from the same period last year.  Atlanta Active listings includes single family homes for sale in our Atlanta First Multiple Listing Service FMLS, Atlanta condos and town homes, land/farm, residential lots, multi dwelling units, rentals and Atlanta commercial real estate.  March foreclosure filings also rose to all time highs of 11070 new foreclosure filings.  The Atlanta real estate market will remain a buyer's market for some time to come, and will only normalize when the excess volumes of home inventories disappear!  Even though Atlanta never had the run up in prices that most other areas of the country had, we did have a disproportionate share of sub-prime borrowers.  It is those adjusting sub-prime mortgages that are going into foreclosures, short sales, and Atlanta bank owned properties and placing a drag on our Atlanta real estate market.  For Atlanta home sellers it will be a difficult time to sell a home unless you are dealing with a full time experienced agent guiding you through he process and advising you.  The average price for an Atlanta single family detached home was $246,901 in March or a decline of 7.4%  The average price for Atlanta condos and town homes in March 2008 was $180,556 - a decline of 6.8% from March 2007.

Atlanta Real Estate March 2008 Home Sales Report. Atlanta home sales and condos continue their decline.  In Atlanta we closed single family detached 3,599 Atlanta Homes in March 2008 a decline of 35.9% YTD over March 2007. Atlanta condos and town homes closed down  to 648 units in March - a decline of 40.3% YTD from same timeframe last year.  Reduced sales, higher inventory of homes for sale and a big increase in Atlanta foreclosures has also lead to a major price decline for the once price stable Atlanta real estate market.  The average price for single family detached Atlanta home was $246,901 in March 2008 or a decline of 7.4% from the same period last year.  The average price for Atlanta condos and town homes in March 2008 has also declined. The sales price for Atlanta condos was $180,556 or a decline of 6.8% from March 2007.

Atlanta had 6,172 expired listings for all single family homes in March 2008. Our first quarter in Atlanta saw 19,667 expired listings for all single family units- matching the entire year 2000. We also had 2,967 withdrawn listings in March 2008 for all single family or an increase of 524 over March 2007 nearly double March 2006.  Expired listings and withdrawn listings in Atlanta FMLS are now exceeding sales 3 - to - 1.

Atalnta Real Estate Snapshot:

• Active - 87519 Properties Found
• Active - 57522 Single Family Homes Detached
• Active - 11589 Condo / Town Home Properties Found

First of all gasoline has now hit a pain threshold.  I'm yelling uncle at over $3.50 a gallon of regular gas in Atlanta.  Atlanta first of all is a driving town.  We have mass transit, but it really is a novelty as opposed to a full functioning system.  It is very limited, and does not have a great bus system to pull up the slack.  It is a painful event added to a town that already has one of the worse commutes in the nation.  For real estate agents, this could be a "Good News / Bad News" Blog about rapidly rising gas prices.  The good news is that we aren't wasting gas running buyers all over the place in a slow market.  The bad news is that the rising gas prices are quickly depleting our cash reserves.  Since transportation is part of all of our budget both in our business and personal lives how are you compensating for the exponential increases in gasoline and the inflationary effect it is having on out economy.  You can include changes in your diet due to the Ethanol factor (turning foodstuffs into fuels.  It is almost a Biblical event. "a bushel of wheat  for a barrel of oil."  The reasons for rising fuel prices and food prices are many, the falling dollar, supply / demand, and a commodity bubble built on speculation.  Since we all have fixed dollars to play the game of life...what are you doing to conserve money and curb other expenses?  Here are a few ideas to start you off.

• Change your routines and consumer spending patterns
• Drive slower, change driving patterns
• Trade gas guzzler auto for hybrid auto
• Review real estate and personal budget for expense patterns
• Review marketing effectiveness of recurring charges - Pay Per Click, lead generation, ads etc...
• Cancel Cable TV or HBO
• Cut back on cell phone use
• Cancel hard phone lines and go to cable package or cell phone only
• Cancel Fax lines
• Cancel ineffective marketing
• Stop going to Starbucks daily
• Cancel gym membership / personal body trainer
• Drive a more economic fuel efficient vehicles
• Drive a diesel with bio fuels
• Spend more time at home
• Work from home - go out of office
• Less impulse shopping
• Postpone major purchases
• Cut back on marketing budgets
• Eating home more often - less dining out
• Combine trips - Carpooling
• Mass transit: Train, bus
• Eat fast foods instead of fine dining
• Give up smoking

Buying a home in Atlanta?  We occasionally get calls from our Atlanta real estate website for folks that just want more information, but do not want to work with an Atlanta real estateagent.  They want to go directly to the seller and negotiate a deal with the listing agent.  There is a problem with that.  The listing agent is under contract with the seller only to represent the sellers best interests!  When you try to explain buyers agency to them, the buyers will ask "Why Would I need a Buyers Agent?"  There is an old phrase that serves this best!  "Caveat Emptor" or Buyer Beware!  Your interests do not come first in the deal!  What does that mean?  It means you should never buy a home in Atlanta without an Experienced Atlanta Buyers agent representing you!   ( Someone that has sold personally over 50 homes! )

1. You may pay more than market value - overpay.
2. Can you negotiate the best possible terms?
3. Lead based Paint?  Polybute pipes? EIFS? LP,GP Masonite siding?  Aluminum wiring?
4. Are you purchasing a stigmatized property?
5. You may have not asked for and received a full disclosure of future and proposed zoning
6. Are their predators in the neighborhood?
7. Are neighborhood sales prices declining? Most recent comps!
8. Are there proposed but not yet ratified future HOA assessments?
9. School rezonings?
10. You may not have exercised all your rights or best options?
11. Did the seller pay your closing costs?  If so can you deduct them?
12. Is the owner an licensed agent?  Did they disclose it in writing in the contract?
13. Best rates and terms in your mortgage?  Do you understand what you are signing?
14. Do you have a good attorney to explain the contract to you?

"When the going gets tough... the tough get going!"  I was at a company mixer the other evening in Atlanta, and was talking to some very successful agents that were in the Atlanta real estate market much longer than I have been!  It was interesting to talk with locals that have seen good and bad times and reflect on the industry and the changes we all saw!  It was more than reminisicng, we were taking stock of the current market and where it was going!  Recently we had a whole bunch of real estate offices close!  In the past it was entire companies that dissapeared! Nothing stays the same forever.  Companies like Merrill Lynch, Buckhead Brokers, Northside Realty to name just a few were a major part of the Atlanta real estate landscape and have disappeared into obscurity!  So too have many of the really big real estate agents, and their teams!  These were real estate names that were almost household words!  Through billboards, mailings, newspapers, and cold calling and classifieds everyone knew their names!  You know the ones that dominated everything!  At awards ceremonies they picked up every possible award, and left no trophy left to claim for the "Johnny come lately!"  The question is now, where are they and what happened to them?  Where are those superstars now?

High overhead, and top heavy marketing has claimed a lot of unsuspecting victims with big egos that did not see this downturn coming.  They kept spending like a sailor on a spree at shoreleave!  Some of the big names no one knows what happened to them, a few are no longer living, a few... have died of suicide!  The scary thing is that some of these were indeed very successful looking at least on the outside!   Now I think differently about them!  Oh and the one that everyone forgot about was the one big agent we all competed with - who is in jail for 10 years for fraud!  It is interesting to sometimes sit back and reflect and see that sometimes success is elusive, while for others that have a small operation, and watch their expenses are still doing OK.  They are making good money, and paying the bills.  The difference is that they left their egos at the door!  Longevity, and success are planned destinations in the life of a successful real estate agent!