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.