2008 Profile of Home Buyers and Sellers

Did you know that even though one-third of all home buyers start their search for a home on the internet, approximately eight out of ten buyers eventually buy their home through a real estate agent or broker, and consider them a very important source of information? Nearly five out of ten buyers say the most important service their real estate agent can provide is guiding them to right home to purchase.

Home Sales

Pending Home Sales Down on Tight Credit and Economic Slowdown
Pending home sales fell on the heels of a strong gain a month earlier as credit tightened and economic conditions deteriorated, according to the latest survey. The Pending Home Sales Index declined 4.6 percent to 89.2 from an upwardly revised reading of 93.5 in August, but is 1.6 percent higher than September 2007 when it stood at 87.8. Lawrence Yun, NAR chief economist, said pending sales have been above year-ago levels for two months in a row. “The month-to-month weakening in pending home sales is understandable, but because the index remains above year-ago levels it means we’re still in a broad period of stabilization,” he said. “Conditions remain mixed around the country, but markets that are showing annual sales gains include Long Island, N.Y.; Boston; Minneapolis; Denver and Washington, D.C., in addition to consistent solid gains in California and Florida.”

Christmas in Georgia

The Atlanta area provides us with lots of local talent! Below are a few of the many events in which to participate this Christmas season. Get out and enjoy our great area.

http://www.metropolitanballet.org/performances/nutcracker.htm This local ballet company spends months preparing for their annual Christmas performance of the Nutcracker.

http://stonemountainpark.com/mini-section/default.aspx?id=42 Stone Mountain is magically transformed during the Christmas season. With more than two million lights, live entertainment and the arrival of Santa Claus nightly, your family will, for sure, have a wonderful time.

http://www.callawaygardens.com/callaway/info/accom.pkg.fil.aspx?gclid=CM77s4nhn5cCFQoHswodq22k_Q Enjoy the holiday magic of Callaway Gardens' spectacular outdoor light and sound show. The Gardens shine with more than 8 million lights and over a dozen, larger-than-life, scenes that surround you with festive color and music!


http://www.visitroswellga.com/christmas-in-roswell.html Experience the magic and wonder of the holiday season in Historic Roswell. Bulloch Hall, Barrington Hall and Smith Plantation Home can be seen in all its seasonal splendor and is open for tours.

http://www.centennialpark.com/events/ice.html From November 15th through the 4th of January, 2009, enjoy outdoor ice skating at Centennial Olympic Park.

http://www.choa.org/default.aspx?id=7015 The Children's Healthcare of Atlanta Parade is one of the Southeast's premiere holiday parades!

http://www.lakelanierislands.com/mnol.php Lake Lanier's Magical Night of Lights is known as the world's largest light extravaganza.

4.5% interest Rates?

While the federal government has little control over mortgage rates, a proposal floated yesterday might help. Financial industry lobbyists want the U.S. to buy mortgage-backed securities from Fannie Mae and Freddie Mac, projecting that it could lower the 30-year mortgage rate to at least 4.5 percent and jumpstart home sales.

(Atlanta) Lighting of the Macy's Great Tree

Lighting of the Macy's Great Tree
7-8 p.m., Nov. 27 (Thanksgiving night)Lenox Square MallAtlanta, GA 30326Kick off the holiday season with this ceremonial tree lighting at Lenox Square. Pre-show festivities begin at 6:30 PM. Make a memory that will last forever, and enjoy the spirit of Christmas.

Short Sales

When families lose their homes to foreclosure, communities, the housing market and the economy all suffer. Short sales are one way that some troubled homeowners can avoid foreclosure, a topic discussed by Realtors at the Short Sales Solutions session, part of the National Association of Realtors® (NAR) 2008 Conference & Expo in Orlando.“Homeowners who are struggling to make their mortgage payments must have more options available to them to avoid foreclosure,” said NAR President Richard Gaylord. “Short sales can benefit not only the homeowner in question, but also buyers, lenders and the surrounding community. With their established lender relationships and insights into complicated real estate transactions, Realtors can add real value for both sellers and buyers interested in short sales.”A short sale is a transaction in which the seller’s mortgage lender agrees to accept a payoff of less than the balance due on the loan. The lender often receives a higher amount of the remaining loan balance than it would from the sale of the property after a foreclosure. This helps support home values in the surrounding community. Short sales also help homeowners maintain some level of credit.According to Freddie Mac, 50 percent of homeowners entering the foreclosure process did not have any contact with the lender first. One of the most valuable services Realtors can provide to clients who may be facing a foreclosure is guiding them through the lender’s short sale process and facilitating communication, according to session panelists Michael and Stacey Spikes of America’s Home Rescue.“The process for short selling an FHA loan is different than the process for shorting a Veterans Administration or conventional loan,” said Stacey Spikes. “Knowing the type of loan the seller has, and understanding the proper steps for short selling that loan and the order of those steps, is critical.”Homeowners who are having difficulty making their mortgage payments and who may be considering a short sale must generally meet three qualifying criteria: they must be behind on their payments, be able to prove a legitimate hardship, and have little or no equity in their home.While a typical real estate transaction involves two real estate professionals, a seller, a buyer, and the buyer’s lender, a short sale can include all of these parties in addition to the seller’s loan servicer, housing counselor, junior lien holders, mortgage investors and mortgage insurers. In addition to the number of parties involved, Realtors say that other challenges can make short sales difficult. These include burdensome paperwork, appraisals that do not consider the sellers’ duress or the number of foreclosures in a community, over-burdened loss mitigation departments, and complications created by second mortgages.NAR has created a working group to examine the problems and difficulties surrounding short sales and to educate its members on how to best work with their clients through this process. NAR is also reaching out to its partners in the housing and mortgage industry to encourage adoption of principles and practices to streamline the short sale process.“Short sales give many families in financial difficulties the possibility of salvaging their credit and avoiding the embarrassment of a foreclosure,” said Gaylord. “Realtors across the country stand ready to help.”

Our Market

Free fall describes market behavior last week, as we watched one of the biggest declines in market history take place. By the numbers, for the week ended Friday, October 10, 2008, the Dow Jones Industrial Average closed at 8451, down 1874 points, or 18.2%. The Standard & Poor's 500 closed at 899, down 200 points, or 18.2%, and the NASDAQ Composite closed at 1649, down 298 points, or 15.3%.As we have noted before, a substantial part of the problem in the US is debt. Congress, in its wisdom, provides deductibility of interest paid, and taxes interest earned. Two simple changes, non-deductibility of interest paid, and no taxes on interest, dividends, and cap gains, would make a big difference. The challenge is that would put some control back in the hands of voters, and loosen the bonds that tie the voters to those elected officials and their friends gorging at the government trough.Retailers reported soft sales, and 71% of retailers missed their earnings targets. IBM posted a 20% gain in quarterly earnings, and reaffirmed its earnings forecast. GM is trading at about $4.65. The last time that happened, the average car was $3000, gas was 20 cents a gallon, and your average home cost $16,000.Most of us have been attempting to sort the world out, and figure out what is going on. We have a strange election year, housing and construction is quiet, and banks appear to be out of money.In terms of lack of funds, this in my opinion is simply years of too many households, companies, and governments financing their futures with debt. The government has no place nationalizing financial institutions, yet it appears from the response of most Americans that we prefer security to freedom.On the housing front, real estate is moving through a traditional cycle. The cycle is made more difficult due to the lack of liquidity. This cycle will turn, and the survivors will be stronger for it.

Johns Creek/Alpharetta Roads

October 16, 2008JOHNS CREEK - Several road improvement projects in the city are about to get underway in the next few weeks and at the start of the new year.Intersection improvements will begin soon at Old Alabama and Haynes Bridge roads, according to Ken Hildebrandt, public works director for the city.He also said at the Oct. 6 City Council work session that striping improvements will be made on Abbotts Bridge at Boles Road and Medlock Bridge at Parsons Road.The traffic signal installation on McGinnis Ferry Road at Seven Oaks Parkway will be up and functional in November, he said.Six sidewalk construction projects along Old Alabama Road (three projects total), Taylor Road and Findley Road will save the city $48,000, since the project bids came in under budget.Hildebrandt said the $48,000 will be combined with money that City Council already approved for sidewalk construction projects; the next phase will begin in the spring.Drivers may feel safer knowing guardrails will be repaired in 12 locations around the city. However, the guardrail replacement projects does not include new guardrails, only existing ones around Johns Creek.Hildebrandt said the Buice Road full reformation project will begin soon and construction on the Johns Creek Greenway will begin in the spring.

10 Undeniable Truths about Real Estate

1. People have to have a place to live. -- It's basic but it speaks volumes
about the real estate profession. Today there are 4.78 million people in the
metro Atlanta area; it's predicted there will be over 8 million by 2025.
That's a lot of people coming in who will need a place to live.

2. Well-selected residential real estate will always go up in value. --
According to the most recent report (2nd quarter, 2008) from the Office of
Federal Housing Enterprise Oversight (www.OFHEO.gov
), home prices/values in Georgia continue to rise. There has not been a
12-month period in which home values have declined in Georgia. Click here
for that report.

3. All of us face challenges in our lives at one time or another. -- A
challenging market makes you appreciate the good times. It's as simple as
that.

4. Interest rates go up and interest rates go down, but you can always
refinance when the money is cheap. -- We are in a temporary situation in
which it's hard to find money for non-owner occupied properties and in which
the public's perception is that interest rates are high. But they will still
buy.

5. The greatest expense you will have in your lifetime, without a doubt, is
taxes. -- The level of taxation we experience in this country is remarkable.
Real estate is an investment that allows you to reach financial freedom and
reduce your tax burden.

6. The tax benefits of real estate are, indeed, too good to be true. But
they are true. -- We need to constantly tout to our customers the exclusion
from taxation of gain on a primary residence as the number 1 reason to own a
home.

7. Inflation is our friend. -- Sounds crazy, but controlled inflation can be
helpful in growing our economy.

8. You can retire comfortably on as few as 8 - 10 rental houses. -- Eight to
ten rental properties, paid off, can be a substantial retirement income.

9. Investing in real estate is simple but it's not easy. -- Seek the advice
of those who have 'been there, done that' but don't be afraid to jump right
in.

10. In the words of John McCain [and this is coming from John Adams,
lifelong Democrat!], 'Our economy is fundamentally sound.' -- We are in a
financial crisis, not an ecomonic crisis. Some of the media is comparing our
current ecomony to the Depression; however, the unemployment rate during the
Depression was over 25%, whereas our current national unemployment rate is
around 6%. Also, compare our GDP to that of the Depression and they are
nowhere near the same. We will overcome the current financial crisis and
move on with a healthy economy.

North Georgia Winery's

The North Georgia Mountains are filled with vineyards and quiet bed and breakfast inns .
http://www.persimmoncreekwine.com/ Persimmon Creek Winery is situated on over 100 acres and located near Lake Bruton.
http://www.montaluce.com/ Located minutes from Dahlonega, Montaluce has not yet produced a vintage. However, you will not be disappointed with the wines served and the activities available.
http://www.wolfmountainvineyards.com/index.htm Also located close to Dahlonega, Wolf Mountain Vineyards produces award winning wines.
After your day at the vineyards, relax at one of the following bed and breakfast inns:
http://www.smithhouse.com/
http://www.mountainlaurelcreek.com/
http://www.barninn.com/

Mortgage Lender

Despite what we are hearing on the news, the internet, and in the papers…..
Greater Atlanta Financial Services (owned by Wells Fargo) is still making loans to qualified borrowers!
Credit guidelines have certainly tightened, but not quite to the extent we are hearing. If your client has good credit, at least 3.5% down (which of course can be a family gift on FHA), and is buying within their means, then we can make the loan!!! We may ask for more documentation than in the past, and have an extra level of underwriting to go through, but the loan will close!
So the "credit freeze" is more of a "chill" … let's get the word out!

30 yr fixed, conventional: 5.875%
30 yr fixed, FHA: 6.00%

City of Alpharetta

It has come to our attention that some City of Alpharetta 2008 property tax bills were mailed with an incorrect due date. These bills reflect a due date of September 25, 2008. Please note that the correct due date for your 2008 property tax bill is December 1, 2008. This error occurred at the printer and does not reflect inaccuracies in property tax records. If you received a property tax bill indicating the incorrect payment due date, we do apologize for the confusion and inconvenience that this error may have caused.Please call 678-297-6060 or email us at taxes@alpharetta.ga.us if you have any questions regarding your tax bill.

Forsyth Lacrosse

FORSYTH COUNTY - A few years ago, many in Georgia probably didn't know much about lacrosse.Now, one of the fastest growing sports in America is spreading throughout Forsyth County's youth.One example of the growth has been the rise of the West Forsyth Youth Lacrosse organization, a program started to promote lacrosse in all of Forsyth County and is currently in the midst of its first fall season. The spring lacrosse season runs from January to May.

Road Improvement Updates Alpharetta Georgia

- This intersection has gone through several reconfigurations over the past 10 years. Additional improvements will include resurfacing the intersection, aligning the west bound travel lane, installing the sidewalk from Tuxford to Waters Road and from Waters to the Sae Han church, as well as improved storm water drainage. The left turn stacking lanes will be extended in all directions and the eastbound right turn lane from KBR to Waters will be extended. Right of way discussions have continued to delay this project. Big Creek Bridge - The bridge will be constructed on the south side of the existing bridge. The road will be realigned to the new much higher bridge, and the old bridge will be demolished. The new bridge will have four foot wide bike lanes and six foot wide sidewalks on both sides with access to the Greenway underneath. North Point Pkwy/Kimball Bridge Road - In the March 2007 citizen survey this was identified as the worst intersection in Alpharetta. This project will include extended westbound left turn stacking lanes onto NPP, an extended west bound right turn lane onto NPP, eastbound merge lane on KBR from NPP to the school along with improved storm drainage and sidewalks. This is currently in a conceptual design stage.Sterling Brooke - There will be a new single family residential development (Sterling Brooke) just west of the Sheridan Park neighborhood before you get to Big Creek. This will consist of 42 homes on 14 acres.Schedule - There have been some delays due to right of way acquisition, funding, intergovernmental issues, and other obstacles. The Waters Road and Bridge replacement were scheduled to begin this year. Land clearing for Sterling Brooke should begin this month. The Kimball Bridge Coalition, of which Glen Abbey is a member, has been working diligently with GDOT, Fulton County, and the City of Alpharetta for several years to bring these projects to fruition with the interests of our residents paramount in all discussions.

ALPHARETTA, Georgia - September 25, 2008

Portion Of Westside Parkway Closes To Traffic Today!The portion of Westside Parkway between Sanctuary Parkway and Mansell Road will be closed to all traffic beginning today. A portion of Old Roswell Road will also be affected. The road closure will remain in effect for approximately one year during the construction of a new bridge over Foe Killer Creek and the expansion of the road to four lanes.During the construction period, all traffic will be detoured to Mansell Road, North Point Parkway, Encore Parkway, and other portions of Westside Parkway. A map of the construction zone and related detours is attached and also available at www.alpharetta.ga.us.

Alpharetta High School

It's official! The Fulton County School Board voted on Thursday evening to accept the High School Redistricting Plan, which allows Glen Abbey to remain at Alpharetta High School.

Fannie Mae & Freddie Mac

The government's takeover of Fannie Mae and Freddie Mac this past weekend has caused a nice drop in interest rates! By taking control of the 2 largest holders of mortgage bonds, the government has significantly reduced the credit risk associated with these bonds. Reducing the risk to investors results in a drop in the return on these investments. Rate of return equals the interest rate, thus mortgage rates are dropping. Historically, the spread between the yield, or interest rate, on treasury bonds and mortgage bonds with a 30 year life has been around 1.25% to 1.75%. As a result of the downturn in real estate and the increase in mortgage defaults, this spread had grown to a high of 2.75%! With the government's action, we should see this spread shrink. Just today, mortgage rates have dropped .25% to .375%!

Alpharetta Bank Closes

ALPHARETTA -- Integrity Bank's closure Aug. 29 after failing due to bad construction loans coupled with falling real estate value has not jeopardized depositor's money.Regions Bank bought the more than $900 million in deposits of 23,000 customers of the Alpharetta-based bank, including deposits above the insurance limits set by the Federal Deposit Insurance Corp.Regions reopened Integrity's five bank branches – in Alpharetta, Roswell, Cumming, Duluth and Vinings – Tuesday morning under its own banners.Regions has agreed to pay a total premium of 1.012 percent for the failed bank's deposits. In addition, Regions Bank will purchase approximately $34.4 million of Integrity Bank's assets, consisting of cash and cash equivalents. The FDIC will retain the remaining assets for later disposition.

Glen Abbey Homes

Homes in Glen Abbey subdivision for sale:

http://fmlslistings.marketlinx.com/SearchDetail/Scripts/PrtBuy4/PrtBuy4.asp?emailGUID=a6feb542-e981-406b-a219-b84cd93f9e79&AgentId=MCCORMIB

Alpharetta Real Estate

Need a Buyers Agent?

Buyers feel more comfortable working with an agent they know versus hiring a complete stranger, so wanting to hire a friend is understandable. They feel that a friend or family member will tell them the truth and look out for their best interests, but that type of situation can also create conflicts, in more ways than one.Hiring a Friend or Family Member as a Buyer's AgentThe main problem is an agent who is close to the buyer might decide to save a friendship over delivering hard, cold facts

Team McCormick, Inc. Real Estate

Team McCormick, Inc. Real Estate

Granite Co

Just refinished a new kitchen on a Alpharetta Georgia home. We used this company for the Granite counter tops. Did a great job!

Metro Stone Connection, Inc.
5874 Atlanta Hwy Alpharetta, GA 30004
Phone (678) 366-0996 Fax (770)663-7900
metrostoneconnec@bellsouth.net
ask for Joe

Investors

NEW YORK – Aug. 18, 2008 – A number of hedge funds and private equity funds have begun raising money that they intend to invest in distressed mortgage assets. While there are few direct investment avenues for retail investors, several listed hedge funds, private equity firms, and closed-end distressed asset funds may provide investors with some exposure to these assets in anticipation of a rebound over the medium to long term.Generally, a distressed asset is one that is priced below its intrinsic value. The credit crisis has created a host of assets that may not be distressed for credit reasons, but they are categorized as such because of the type of structure they’re held in, such as a collateralized debt obligation [CDO].In a roundtable discussion in the publication American Securitization, James Callahan, executive director of independent capital markets advisory firm Pentalpha, said, “Some [CDO] assets will be fine on a credit basis, but have been discounted already or may be in the future simply because of the taint of the structure they’re held in. There’s great collateral out there, but it’s languishing in the wrong box.” As the opportunities for leveraged buyouts decline, many private equity funds are looking to distressed asset investing for new opportunities. According to industry tracker Private Equity Intelligence, distressed asset funds raised $28.7 billion in the second quarter of 2008 alone, out of the $161.9 billion raised for private equity funds in general.Blackstone Group (BX), for instance, has raised $2 billion for Bayview Financial, a distressed mortgage servicer and fund manager in which it holds a stake. The money will be put toward buying portfolios of distressed mortgage securities over the course of the next few months. Blackstone started to cover its shorts on subprime in late 2007 and early 2008, and expects the subprime mortgage market to bottom out in the coming months.Other firms have also begun to raise money for distressed investing. Carlyle Group and Private Equity Partners have each raised about $1 billion for debt funds. Private Equity Intelligence reported in April that 33 funds are looking to raise more than $36 billion. While some of this money will be put toward mortgage assets, some will be used to buy leveraged loans that have become cheap.In addition to private equity firms, hedge funds are also looking to make forays into the distressed asset market in the hopes that the subprime mortgage market may finally be close to a bottom. Fortress Investment Group (FIG) established a $2 billion fund at the start of the year to take advantage of opportunities in the distressed asset market, and is reportedly considering raising more money for the fund.Similarly, in June, GLG Partners (GLG), a London-based hedge fund, hired Galia Velimukhametova, a distressed situation expert, to help the firm position itself to take advantage of opportunities as they arise. The hedge fund is looking to deploy capital opportunistically in the distressed asset market over the next 18 months.While alternative asset funds gear up to take advantage of potential opportunities in this market, there are still significant risks of further deterioration that make some alternative asset managers wary of getting into the market just yet. This is particularly true of hedge funds, where investors can take money out on a monthly, quarterly, or annual basis. This may make investors unwilling to accept any significant deterioration in performance resulting from a fund holding distressed assets. Private equity, where investors commit for longer periods of time, is seen as a better model since it remains unclear when the mortgage market will finally begin to turn.Additionally, according to Pentalpha’s Callahan, some funds do not have the expertise and infrastructure in place to invest in many of these distressed securities. He also highlights the difficulty in getting enough information on the underlying mortgages to make sound judgment calls on those securities.While it may be some time before distressed asset investors feel comfortable making bets on mortgage assets, over the longer term the activity is likely to be positive for the overall mortgage market, in our view. In that same roundtable from American Securitization, Ed Gainor, partner at law firm McKee Nelson, remarked, “Hopefully, this type of investing will clear out a lot of these bad assets and contribute to jump-starting the market again and providing funding for people who should have home loans.”In addition to the modest exposure an investor might get to distressed assets through investing in the stock of the various listed alternative asset managers with distressed asset funds, there are some closed-end funds that invest in distressed assets as well. A few such funds are the Highland Credit Strategies Fund (HCF), the Pioneer High Income Trust Fund (PHT), and the First Trust Strategic High Income Fund (FHI). One drawback of investing in closed-end funds that we see is that the share price may trade at either a discount or premium to the value of the underlying assets held within the fund. This is different from an open-end fund, or mutual fund, where daily closing prices reflect the net asset values of the underlying securities held in the fund.

Existing Home Sales Rise in February

WASHINGTON, March 24, 2008 -
Sales of existing homes increased in February and remain within a fairly stable range, according to the National Association of Realtors®.
Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 2.9 percent to a seasonally adjusted annual rate (1) of 5.03 million units in February from a pace of 4.89 million in January, but remain 23.8 percent below the 6.60 million-unit level in February 2007. The sales pace has been in a fairly narrow range since last September.
Lawrence Yun, NAR chief economist, said the gain is encouraging. “We’re not expecting a notable gain in existing-home sales until the second half of this year, but the improvement is another sign that the market is stabilizing,” he said. “Buyers taking advantage of higher loan limits for both FHA and conventional mortgages will unleash some pent-up demand. As inventories are drawn down, prices in many markets should go positive later this year.”

Atlanta Growth

America's Fastest-Growing Large And Small Metros (Forbes)
Atlanta, Ga.Rank: 3
Projected total GMP growth, 2007-2012: 22.81%
The Atlanta metro area is a job magnet that epitomizes the economic boom of the Southeast. Companies with headquarters there include Coca-Cola, CNN and UPS. It's also got the country's busiest airport for passenger traffic. Atlanta's population has doubled in the last 20 years; by 2012, it's expected to grow another 11%. Personal income for Atlanta residents is forecast to grow by 6.3% annually during that time, according to Global Insight.
Source: Atlanta Chamber of Commerce, Moody's Economy.com, Global Insight

Georgia & Florida Mortgage

Did mortgage fraud contribute to the current housing meltdown? One study that looked at 45 subprime mortgage defaults found that two-thirds of them involved owners who lied about their intention to live in the house.Read the full story:http://www.floridarealtors.org/NewsAndEvents/n5-020608.cfm

Hot Trends for 2008

https://www.lowesrealtorbenefits.com/newsletter/pdf/122007.pdf

Atlanta Garden Show

Annual event showcases spectacular gardens, horticultural innovations, renowned speakers, fab shopping & activities galore at the World Congress Center Jan. 30 - Feb. 3, 2008.

Milton Georgia

Milton Issues Temporary Lift of outdoor Burn Ban

The City of Milton has issued a temporary lift of its city-wide outdoor burn ban that went into effect in October 2007. The lift, issued by Milton Fire Marshall Chad McGiboney, is effective immediately, and allows residents to conduct outdoor burning under specific guidelines.

2008!!

Good Stuff to Know
63% of people say they are keeping their resolutions after two months.
67% of people make three or more resolutions.
Top four resolutions:
Increase exercise
Be more conscientious about work or school
Develop better eating habits
Stop smoking, drinking, or using drugs (including caffeine)
People make more resolutions to start a new habit than to break an old one.