Atlanta Real Estate | Atlanta Housing News for Real Estate

For the last week or so, it has been tough living in Atlanta. Since Hurricane Ike, Atlanta has been running out of gas. Supposedly damage to the refinery and distribution of gasoline has been hard hit on our southern coast.  Refined gas is then delivered to Atlanta and as far away as Virginia via the colonial pipeline.  The refinement of oil to gasoline is impaired and output is probably in the range of only 45 -55% of pre-storm levels.  So we have a shortage.  That is tough when the town you live in runs on gas.  You really need a car.  First of all, Atlanta is a town where you must own a car.  Our mass transit system has a limited reach and getting around town without a car is next to impossible.  Unlike other cities, we have no major bus systems or light rail systems.  There are no major medallion taxi fleets - so without wheels you are stranded. 

Each day if you go out on the road to go to the office more and more gas stations are closed.  Those that are open have lines, some are longer than others.  Tempers are flaring and police are showing up to keep persons from losing their cool and breaking up fights.  That s something I never thought I would see again since the end of the 1970's.   Gasoline in Atlanta and suburbs is still running over $4 a gallon when you can find it.  Many service stations will only have high test gas at over $4.49 a gallon, most stations have none.  There have been reports of price gouging at almost $8 a gallon, and yet there seem no signs of this abating anytime soon.

The government has shown absolutely no leadership in this crisis.  If they did, they would have instituted an ODD / EVEN plan with a 10 Gallon limit.  Such a simple plan that has worked elsewhere in times of crisis should have been in place a few days ago to relieve the stress.

Since Atlanta is a car town, the vehicle is a life line to get to work, pick up kids from school, show homes in real estate, get groceries etc.  Since the government is not involved - it is up to us to act responsible.  We must realize that even supplies in grocery stores may be in short supply if products cannot be delivered to market.  This the real thing.  So lets see how we can affect change until this temporary crisis is over.

Here are Some Suggestions for Gas Crisis:

1. Government needs to get involved - show leadership!
2. Institute a 10 Gallon gasoline limit on odd / even days.  (License ends in odd or even number) Vanity word plates would count as even numbers.
3. Cities and municipalities go to a temporary 4 day - 12 hour a day work week
4. Encourage working from home whenever possible.
5. Put kids on school buses.
6. Eat at home - suspend restaurant runs.
7. Suspend after school activities until crisis is over.  (band, sports etc)
8. Suspend Grass cutting.
9. If you own more than one vehicle - park the boat and use the more economical vehicle when possible.
10. Encourage car pools
11. Consolidate trips and errands - coordinate shopping trips with neighbors.
12. Eliminate non essential trips.
13. Do not use air condition in car.
14. Do not top off gasoline in auto when above ½ a tank. Don't hoard gas!
15. Change driving patterns and habits - Accelerate slowly.
16. Slow down - speeding wastes gas!
17. Do not idle auto - shut off when standing.
18. Do not store gasoline - fire hazard

Has anyone really explained the government bailout to you?  Me neither!  Let me see if I got this right.  I had to put this on paper to see where this is all going.  The 700 Billion dollar bailout needs a more simple description to understand what the politicians do not want you to understand.   Let's just say $700 Billion does not represent homes.  It represents the bad home loans that have been securitized into paper instruments that are supposed to should like a good investment note.  The problem is the cat is now out of the bag, and everyone knows they are not a good investment, in fact they are risk.  That translates into institutions with bad paper that represents bad loans as hopelessly insolvent.  No enters the government comes with a rescue plan.

Here is an overview.  A 100% loan is made on a home that cost 250K.  The home mortgage is sold to a new institution that turns it into a paper instrament.  The note is packaged and sold off to a bank that can't get rid of it.  Why?  6 months before the home was sold at 250K it was selling for 170K.  There was a tremendous run up in appreciation due to the availability of 100% financing. 

The buyer then walked away from the home and stopped making anymore payments because his payments were unaffordable.  Perhaps it was because he did not read any of the documents at closing, and now it is societies problem.  He then mails his keys back to the bank because his neighborhood has now declined in price to 190K...and the clock on the home value is still dropping.   New buyers cannot obtain financing, and they cannot sell their smaller property to buy this one.  Everyone is in hte same boat.  Other neighbors are now in trouble also.  So here is where the government plan kicks in.

The government buys these bad notes off the institutions for lets say 220K, and with the borrowed money  (700 Billion) they exchange the bad debt from the bank to fresh new cash to infuse into the institutions.   Now the government sits on this paper (and the homes that are represented by this bad paper until the market comes back.  Hell starts to freeze over.

Neighborhoods sit with vacant homes for years and are stripped of copper, siding, system mechanics, windows etc.   Now here is the bit thrust of the plan when the markets recover... the government plans to sell back to the banks the same assets sorted or graded to current market. Now the value of the home has dropped to 110K in a blighted, crime ridden neighborhood that no one wants to live in.  The homes are marked to current value and sold for 37K because they have been neglected for 5 years, and the crack parties have taken their toll on the property.

So a profit could be made, but it is very unlikely due to the fact they were on a 100%+ loans, and written on inflated assets, that have not been adjusted for current market value.  Mr Bernake and Mr Paulson recommended the assets not be purchased at a rock bottom fire sale price from the institutions.  What they are recommending is discounted.  I interpret this is the government paying retail for over inflated assets.   Not too smart for a Harvard man, but then again it is taxpayer's money. 

So let's fast forward 5 years later - the assets will have continued a decline in value, and will slide in price precipitously because the properties will be unmaintained.  Meanwhile the home that you are living in is worth 65K.  You paid 265K for it, but since the government is dumping the shells of vacant homes for pennies on the dollar you're screwed.  It took you 2 years to save up your down payment with 20% down.  You made cash improvements in the property, and upgraded it and maintained it.  Your investment is lost.

So for all that think a bailout is a good idea, it all depends if you are buying or selling.

This is a must read! Weiss Research Inc.

This will go down in my personal history books as the year I do not want to repeat.  I get sick of turning on the news, or reading business news on the internet and learning of historic failures of banks, companies and yes bailouts.  What bothers me most is the piece meal bailouts.  This bank is too big to fail so we must buy them out.  My fear?  Cronyism.  Maybe one bank gets bailed out because they play political favors with politicians and another doesn't.  Sort of like Countrywide Mortgage.  No indictments, no investigations.  That bothers me a lot.  Yesterday's big news was about sports figures lying to Congress on steroid abuse.  WTF???  Congress has been lying to the public for years on steroids and no indictments there!  But seriously...why no investigations into all the fraud?  All you do is spend more money on a lot of our taxpayers' money to gain more political favors.  You do noting to bring jobs back, nothing to close our borders.  Our elected representatives want this buried too quickly, and no questions asked.

So here are my ten questions:

1. What is next that you have not told us about and what will that cost?
2. Are you expecting us to go on the hook, and then raise our taxes?
3. Are you going to conduct any investigations into losses and fraud?
4. Will you disclose your personal finances and your families so we can see where the bribe monies go?
5. What is the next failure in line?  What will that cost?
6. Will you agree to line item vetos to cut the fat and do your part?
7. Will you agree to cut current pork projects in your state?
8. Will you agree to real campaign reform- and term limits?
9. Will you stop lying to those that elected you?
10. Will you put America first?

True story folks!  Today as banks fail, and the US Government begs for a 700 Billion dollar for their next junkie money fix...the Democrats proposed another bailout package today for an additional 58 Billion dollar stimulus for the economy.  Have they no shame?  Where do they think the US Taxpayers are getting the money for all their "Bucks for votes projects?"  Some of the items are to increase unemployment benefits, but a provision for 55 million for upgraded radios for the U.S. Capitol Police raises my eyebrows.  Why do they not just cut the pork out and cut out the government waste.  Do you know the Federal government that is one of the largest employers in the US never really has a layoff?  Programs are started with little or no value that get increased funding each year whether or not they are productive?  There are redundancies in Federal agencies that can be totally eliminated, but will not be.  When is Congress going to be accountable for what they have already squandered without coming back and asking for more?  The Democratic caucus tried to straddle the 700 Billion bailout to include sub-prime (known fraud items) into the mix!  It also included 25 Billion for new road projects, and bridge repair.  I hope the roads go somewhere! 

Maybe the economy would start to recover if they stopped playing the fear card!

****BREAKING NEWS!*****

I was just checking the evening's business news on line and I read that Washington Mutual the nations largest savings bank was seized by Federal Regulators this evening.  As I write this Blog the story has just broke in the last 45 minutes. J.P. Morgan Chase has agreed to buy their assets!  It is the biggest bank failure in US History!  The office of Thrift Supervision - OTS announced WAMU was seized because it  had insufficient liquidity and was in an unsound condition.  Washington Mutual was one of the nations largest lenders in Options ARMS!

BREAKING STORIES ON WASHINGTON MUTUAL.

Who will we bail out next month?  Commercial loans, insurance companies, airlines, auto manufacturers, local cities, states, local banks, or pension funds?  The problem with writing a blank check is that in rushing for a fix, there is no guarantee that this is the end of the "Can't fail scenarios." There was a saying years ago that with high interest or rate of return came high risks.  Companies that knowingly took on sub-prime, collateralized mortgage obligations CMO's, and derivatives were driven by raw greed only. Their risk should be their own. This proposed bailout plan only addresses the garbage that no one wants to buy.  That is why those institutions stuck with the bad debt are frozen in place from making new loans.  No one in their right mond wants it!  That iliquidity problem is their problem, and not that of the American taxpayer.

This bailout plan does not address:  Alt-A loans that will be readjusting for the next three years, the late pays in commercial loans that are just starting, this does not assist your local banks, homeowners falling into bankruptcies, auto manufacturers, airline industries and more that will also come knocking on the door of the US government in the coming months.  Who will bail them out?

This is an election year ploy to sweep dead bodies under the carpet until after the elections are over!  "Please do not ask any questions we are told.  You'll only slow up the process!" We must not fall for it, and we must think through the consequences!  The same idiots that allowed us to get to this dire point in the economy are the same ones that are now telling us they have the solution!

Don't kid yourself!  This is a trillion dollar bailout being spoon fed to us one crisis at a time!

Step right up and buy the cure for what ails you!  "We have a very limited supply of this wonder drug that will cure all your ills from cancer, gout, impotence, diabetes and yes it will even cure AIDS!  Do you want to know the cost to you to buy this priceless cure?   Why it is only $700 Billion dollars!    Don't crowd around, don't attract attention... the police are around the corner and would shut me down if they knew I could put the local pharmacist and hospital out of business! Hurry, hurry, hurry!  Time's a wastin!  Step right up and place your money down!"

It is amazing how many persons fall for worthless sales pitches years ago and still do today!  Nowadays we refer to pundits of cure as ‘Con men!'  These modern day snake oil sales men can be politicians, bankers, investment advisors, and even CEO's of major corporations!  There are just a few ingredients needed to make a con work.

The first ingredient needed is fear. Sickness, pain and misery look for immediate relief at any cost.  The next item needed is a gullible crowd that are too afraid to ask questions.  Another item in the mix is a shill planted in the audience to ask leading questions to make it all sound legitmate. Lastly, all you need is a stupid buyer in the audience with cash to make it all work.

So, what is the difference between the snake oil salesmen years ago and today?  Years ago the buyer of the phony tonic - walked away with a fake bottle medicine with a useless money back warranty!  The other item is the price!

Key Ingredients to a Con Artist Sale: Urgency, address need based on fear, an emotional buyer with money to purchase, and a fast talking salesman!

PS Don't read the fine print!

Bailout Lies!  We Cannot Trust What they Say - But Judge them By Their Deeds!

Why isn't anyone going through video transcripts from Greenspan, and Bernake and more recently Paulson that recently under an oath to God and nation before Congress said - no recession, no problems?  Excuse me?  Have you heard the recent testimonies?  These were their words not mine.  Now all of a sudden we are going to surrender our nation that thrived in capitalism to become a socialist state without a shot being fired?  In effect they are saying there is a fire and there is no way out, and sign here and give me all the powers I request.  America as we know it will cease to exist and will then become a police state financially!  Do you realize the powers that the Federal Reserve is requesting? 

There will be no real seperation of powers for government.  Power will be deferred and overseen by bankers that lied to us recently under oath to God and country.   Have we forgotten that Paulson is the former CEO of Goldman Sachs?  His firm churned out loads of sub-prime notes.

So here is a financial coup!  No shots fired, no armies crossing our borders, and yet a total surrender of our cherished way of life.  For the individuals, there will be no juries, no due process just a government panel deciding what is right and wrong in what was once a free capitalist society.  Competitors could be shut down, successful business could be closed under Washington cronyism.  Why is this good for America?  No one are holding these officials to any accountability.  It will directly impact business, taxes, the right to persue your dreams and freedoms as a US citizen to the Treasury Dept and Federal Reserve?  Has this nation gone absolutely mad? 

Are we about to let America Exchange Capitalism for Socialism?  Or is it just too late to call them on their lies?

PS...Greenspan, Bernake, and Paulson recently under oath had told Congress that there was only a chance of recession...So if I said "I am a liar"  could you believe my next statement?

Atlanta Real Estate Market Report - Atlanta Homes Sold - Atlanta Average Price Homes Sold

Atlanta real estate statistics for August 2008 have just been released on September 21, 2008.  Single family detached Atlanta homes sales have dropped to a monthly total of 3,737 which is a year to date drop of 31% and compared to a comparison to August 2006 when we closed 6,184 that is a  38.5% drop in the number of Atlanta homes sold.  Atlanta condos saw 572 units closed in August 2008 versus 1,009 for the same period last August.  Atlanta condos / town homes saw a drop in units sold at a 43.3% drop.  The average sale price for single family detached home was $241,761 for August a decline of 10.8% for the same year ago.  The average sale price for Atlanta condos and town homes in August 2008 was $178,747 or an 8.7% decline from August 2007. 

These numbers do not reflect the reality of this market in the sense sellers are contributing more to home buyers in terms of the seller paying the buyers closing costs.  There were 7,563 expired listings for all single family in August.

America is not a democracy, but a republic.  The people in our country are represented by elected representatives in our nations capitol in Washington DC by congressional representatives and senators.  I personally feel these elected representaives are now totally out of touch with what is going on.  They are voting on issues solely for their own interests, and not the needs of those they are supposed to be representing.  This last week has been the straw the broke the camels back.  They are going to see if they can fix what ails America.  $700 billion dollars is a lot of money to spend on something that is not a sure thing!  That is like replacing the engine of a car that won't start!  Maybe it is just out of gas!  This follows Congress taking on stock brokerages, and Fannie Mae and Freddie Mac, and a tax rebate that was sure to work!  Now they want the taxpayers to bail them out again!  Now the Federal Reserve want to ask Congress for more power!  The guys that started the fire, are asking for some gasoline to put it out!    However, the same urgency of aid does not apply to our citizens.  Our borders are still open some 7 years after September 11.  Illegal drugs still flow freely across them.  No body has been indicted for any wrongdoing other than Martha Stewart in the last few years.  It is hard to indict people when you are getting favored loans and lobbyist monies.

Sorry, will not help the person being foreclosed on.  They will help the banks that gave out bad loans instead.  They cannot stop falling home prices. They cannot stop falling stock prices.  These are the persons that cannot even keep illegal drugs or aliens from crossing the border since we were attacked on September 11, 2001.  Talk is cheap!  Now it is our turn. 

Lets start calling these officials of ours and giving them our 2 cents!

• Why are Fannie Mae and Freddie Mac still allowed to lobby congress?
• What about ethics?
• Term limits?
• Ban on lobbyist bribes!
• Congress Committee members taking favors from those they oversee.  Preferred loans from Countrywide?
• No investigations, no indictments?  No fines?
• Bailing out known fraud at taxpayers expense.

There are many more issues that could be raised, but now it is our turn to raise them.  Have you called your Senators, and congress persons?  Have you written them, emailed them?  Do you even vote in elections?

Contact Your Representatives Now.

http://www.house.gov/

http://www.house.gov/house/MemberWWW.shtml

 http://www.senate.gov

VIEW THIS VIDEO