The Latest Update from YOUR Atlanta Real Estate Agent
Why NOW is the right time to buy Atlanta Real Estate!
Most informed Atlanta real estate agents would agree that there has probably not been a better time in the past 20 years to buy real estate in this city.
The American Recovery and Reinvestment Act of 2009 is offering up a $8,000 tax credit for first time homebuyers. First time homebuyers are defined as tax payers who have not owned another principle residence at any time during the three years prior to the date of purchase. The home must be purchased between April 8, 2008 and November 30, 2009. The Federal Housing Authority has monetized the tax credit so homebuyers can use the money for closing costs, interest rate buy downs, etc., but they must have the 3.5% down payment.
Here in Georgia, Governor Purdue signed a $1,800 tax credit into law for any homebuyer purchasing a home between June 1, 2009 and November 30, 2009. Only homes on the market before May 11, 2009 and are still for sale or in default on or before March 1, 2009 or already foreclosed and held by a bank or mortgage company are eligible for the tax credit. This credit does not affect the Federal Tax credit.
Just last month, the Atlanta Journal Constitution ran a front-page article covering the slowing decline of home prices in the Atlanta market. The Case-Shiller Index shows Atlanta home prices have dropped 21% since the market peak in 2007. Now for the good news - 3,303 homes sold in April and this is the first time since 2005 that April home sales exceeded March home sales. The average home price was up 4.4% from March to $191,803.
The large number of foreclosures has brought down the value of many neighborhoods and the Georgia Tax Credit is designed to help move these properties out of the inventory as quickly as possible. Eugene James, Division Director for Metro Study in Atlanta, says, “the number of foreclosed listings are 13% of the total, which is lower than this time last year. These are good signs”.
Prices in Atlanta didn’t accelerate like Las Vegas and Southern California, so our prices have only dropped 21%. Now, compare that decline to Los Angeles, which has dropped approximately 40% followed by a 50% price decline in Las Vegas. Although there are some issues with jumbo loans (loan amounts greater than or equal to $417,000), moderately priced homes are selling well in most markets.
Finally, mortgage interest rates have been on the rise and are currently at a 7-month high. Still, at 5.5% for a 30-fixed mortgage, we are at historical lows and that helps with affordability as well.
Owning a home is still the American Dream and a wonderful way to build wealth. Now is the time to buy while there are still great deals in wonderful neighborhoods.
As a native of Atlanta and an experienced agent of many years, I feel that I can help you get the house of your dreams at the best possible price. If you would like to contact me to discuss your options, please call me at 770-826-5907 or email me at tanderson@remax.net.
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