The Warren Report

The Real Estate Bounce Back - Atlanta in top 10 for investment

The housing market may be melting down, but Business 2.0 worked with Moody's Economy.com to indentify 10 cities that have just about hit rock bottom - and offer opportunities for savvy investors to get in while the getting's good.

 

By Paul Kaihla, Business 2.0 Magazine senior writer

 

#4 Atlanta

Projected median sales prices for single-family homes:

Q1 2008: $177,750
Q4 2009: $187,640
Growth: 5.6 percent

 

Half a million dollars probably won't buy you a home in one of Atlanta's Martha Stewart-style neighborhoods. And that's a good thing, argues Dan Forsman, CEO of Prudential Atlanta. Forsman says the smart money here will move upmarket, in exactly the opposite direction of where it will go in New Orleans. A contrarian by nature, he sees the biggest arbitrage in properties priced at $750,000 in high-end communities northeast of the city - suburbs like Druid Hills, Duluth, Johns Creek, and Suwanee. The construction cost of a home in those pockets is $260 a square foot; right now, you can pick one off for $180.

Boding well for the local economy, "Hotlanta" boasts one of the highest rates of job growth in so-called creative-class occupations in the country. Why? It's the top destination in America for young professionals, a transportation hub (Atlanta's airport is the busiest in the world), and a place where most Fortune 500 companies maintain a regional presence. Projections by researchers at the U.S. Census Bureau and Virginia Tech place Atlanta at the center of a "megapolitan" cluster of urban sprawl that will develop over the next quarter-century, encompassing 7 million people.

This points to another niche real estate play: As buildable land around the city disappears, downtown neighborhoods on the brink of transformation are ripe for investment.

Existing-Home Sales Ease Due to Mortgage Restrictions; Some Markets Rising

National Association of Realtors^®

WASHINGTON, May 23, 2008

Existing-home sales slowed in April, partly because restrictive lending practices hampered home buyers. At the same time, a greater number of areas are showing sales gains from a year ago and a recent reversal in mortgage policy means the market is better positioned for a turnaround, according to the National Association of Realtors^®.

Existing-home sales – including single-family, townhomes, condominiums and co-ops – declined 1.0 percent to a seasonally adjusted annual rate ¹ of 4.89 million units in April from an upwardly revised pace of 4.94 million in March, and are 17.5 percent below the 5.93 million-unit level in April 2007.

NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said the good news is that mortgage restrictions have just been eased. “In the past week, Freddie Mac and Fannie Mae announced that they were eliminating their ‘declining market’ policies, effective June 1,” he said. “This means consumers across the country will have access to safe, affordable financing with downpayments of only 5 percent on most mortgages, with 100 percent financing available on some loan products, and we could see an upturn in home sales this summer.”

Lawrence Yun, NAR chief economist, said eliminating restrictive policies should be a big help to home buyers. “I would encourage buyers who were disappointed by poor mortgage options to take another look at the market because the lending changes are significant,” he said. “Also, a recent notable drop in interest rates on conforming jumbo loans will help consumers in high-cost markets like California and New York.”

The unusual mix of market conditions around the country continues, but areas showing healthy price gains include Greenville, S.C., and Springfield, Mo., both with solid local economies. “On the other hand, some markets like San Diego, Calif., and Fort Myers, Fla., are experiencing rising sales after sudden double-digit drops in local home prices, so lower prices and low interest rates are starting to generate results,” Yun said.

The national median existing-home price² for all housing types was $202,300 in April, which is 8.0 percent below a year ago when the median was $219,900. Because the slowdown in sales from a year ago is greatest in high-cost areas, there is a downward distortion to the national median with relatively more sales in low- and moderate-priced markets.

Total housing inventory at the end of April rose 10.5 percent to 4.55 million existing homes available for sale, which represents an 11.2-month supply³ at the current sales pace, up from a 10.0-month supply in March.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage slipped to 5.92 percent in April from 5.97 percent in March; the rate was 6.18 percent in April 2007.

Single-family home sales slipped 0.5 percent to a seasonally adjusted annual rate of 4.34 million in April from 4.36 million in March, and are 16.1 percent below the 5.17 million-unit level recorded one year ago. The median existing single-family home price was $200,700 in April, down 8.5 percent from April 2007.

Existing condominium and co-op sales fell 5.2 percent to a seasonally adjusted annual rate of 550,000 units in April from 580,000 in March, and are 27.9 percent below the 763,000-unit pace in April 2007. The median existing condo price⁴ was $214,900 in April, which is 3.7 percent below a year ago.

Regionally, existing-home sales in the West rose 6.4 percent in April to a level of 1.00 million but are 15.3 percent below a year ago. The median price in the West was $285,700, which is 16.7 percent lower than April 2007.

In the South, existing-home sales were unchanged from March at an annual rate of 1.92 million in April, but are 18.6 percent below April 2007. The median price in the South was $170,800, down 5.1 percent from a year ago.

Existing-home sales in the Northeast fell 4.4 percent to an annual pace of 870,000 in April, and are 14.7 percent below a year ago. The median price in the Northeast was $262,000, which is 7.7 percent below April 2007.

In the Midwest, existing-home sales were at an annual rate of 1.10 million in April, which is 6.0 below March and 19.7 percent lower than April 2007. The median price in the Midwest was $159,100, down 2.9 percent from April 2007.

The National Association of Realtors^® , “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

# # #

¹The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.

Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings. This differs from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which generally account for 85 percent of total home sales, are based on a much larger sample – nearly 40 percent of multiple listing service data each month – and typically are not subject to large prior-month revisions.

²The only valid comparisons for median prices are with the same period a year earlier due to the seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the geographic composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if more data is received than was originally reported.

³Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982. Condos were tracked quarterly prior to 1999 when single-family homes accounted for more than nine out of 10 purchases (e.g., condos were 9.5 percent of transactions in 1998, 8.5 percent in 1990 and only 6.1 percent in 1982).

⁴Because there is a concentration of condos in high-cost metro areas, the national median condo price can be higher than the median single-family price. In a given market area, condos typically cost less than single-family homes. 

Experienced Home Buyers Say 'Smart Time to Buy' Sentiment Prevails

RISMEDIA, Feb. 14, 2008-Despite all of the negative commentary about the housing and credit markets, 64% of Americans believe that for those with good credit and a down payment "this is an ideal time to buy a home," according to a study commissioned by Beazer Homes, one of the country's top-10 homebuilders. Perhaps with an eye toward the future, 24% of survey respondents-from Gen Y to Baby Boomers-say they plan to buy a new home in the next two years either as a primary residence or second/vacation home.

"We know the American consumer believes with great conviction that home ownership is a smart investment over the long term," said Ian McCarthy, president and CEO of Beazer Homes. "Savvy consumers realize that housing is a cyclical industry and some appear to be waking up to the opportunities that do exist in today's marketplace. Whether they act on this conviction remains to be seen, but the underlying sentiment bodes well for the industry."

Indeed, 65% of survey respondents agree that given the current supply of homes for sale and special incentives this is "truly a buyer's market." And, 39% believe that tentative buyers who are waiting for home prices to go lower risk "missing out on one of the greatest home-buying markets in recent history."

As in most areas, experience brings additional confidence. The survey found 70% of experienced home buyers-those who have purchased at least one home-urging renters to purchase a home as soon as he or she is financially able to do so.

The company says that this sentiment seems to resonate with prospective first-time buyers, with 30% citing they are "looking to make an investment" as their primary motivation for purchasing a new home. This is followed by the desire for a better location (22%) and the need for a bigger home (21%). Experienced buyers, on the other hand, ranked a ‘desire for less maintenance and up-keep' (35%), better location (27%) and investment (14%) as the primary motivations for their next home purchase.

Across the board, consumers appear optimistic about the availability of home mortgage options. For experienced buyers, 75% believe there are plenty of mortgage options available for those with good credit compared with 53% of first-time buyers. When it comes to securing a home mortgage, 24% of total respondents report they are currently saving for a down payment.

"While this is clearly a challenging time for the homebuilding industry, for those who are financially grounded, we believe it is an ideal time to buy a home. It's an even better time to buy a brand new home." said McCarthy. "Now more than ever, a newly constructed home is likely to be a much better value for home buyers when compared with the purchase of a re-sale home."

Benefits to purchasing a newly constructed home include more livable floor plans, better warranties, energy-efficient systems and options and, in many instances, the ability to personalize certain features such as flooring, cabinetry and paint colors. Additionally, a new home does not require the costly updates or remodeling that can accompany the purchase of a re-sale home.

Beazer Homes surveyed 548 adults nationwide, Jan. 4-7, 2008, between the ages of 25 to 72 with a minimum annual household income of $40,000.

(Reprinted with permission from RISMedia. For more real estate best practices visit www.rismedia.com)

CNNMoney - The Best Place to Buy a Home

The Best Place to Buy a Home

CNNMoney.com did a study to find the cities where home prices are likely to rise the most - or fall the least - in the next 12 months. The top six cities were:

* Atlanta - Average home price in Alpharetta: $359,950. Frenzied home building here has stalled, which should start to reduce the area's large supply of vacant housing and propel prices upward.

* Boston - Average in Waltham: $406,000. One of the first places to experience the downturn, Beantown also appears to be among the first to rebound. In the last quarter of 2007, prices rose one percent.

* Cincinnati - Average in Mariemont: $354,800. The city's manufacturing-heavy economy should benefit from the falling dollar. Commercial building is up, and high-end developments are moving in.

* Cleveland - Average in Shaker Heights: $146,100. Ground zero for foreclosures seems to be benefiting from all those plans to help troubled borrowers. Prices have stabilized and look ready to rise.

* Detroit - Average in Farmington Hills: $215,000. At an average price-to-rent ratio of 15, a buyer theoretically gets nearly seven percent of his purchase back every year. The average P/R ratio for the 30 biggest markets: 23.

* Houston - Average in Sugarland: $180,600. Skyrocketing oil prices bode well for real estate here. In the fourth quarter of 2007, prices rose 1.4 percent - the fastest of all the metro areas they analyzed.

Regional Report: South

Regional Report: South

It could be good news for housing all across the nation. This comes from the recent National Association of Realtors report that says "the market will come into clearer focus this summer. Existing homes sales could start to show a sustained increase within a few months."

Pending homes sales aren't showing such positive numbers at this time, however, with a 5.5 percent drop in February to 30.3 percent below a year ago.

This could mean Southerners are looking forward to the second half of 2008 -- which is expecting a rebound in existing home sales.

Real Estate expert Guerry Norwood of St. Simons Island, Georgia, is reporting that now -- with historically low interest -- is the time to buy. This area, he says, has strong local banking networks -- meaning plenty of money to lend. And the coastal economy is booming. The average sales price for the entire island is $604,000.

Las Olas, Florida, expert, Karen Dove, is reporting that many homes in this exclusive area and nearby Victoria Park, Rio Vista, and The Isles sell within 45-60 days of being listed if properly priced. This is great news for sellers in this buyers market.

Published: April 16, 2008

Clearer skies on horizon

Housing market: With its robust growth rate, Atlanta is set to bounce back sooner, stronger than many areas.

By Seth Weissman, Dan Forsman
For the Atlanta Journal-Constitution
Published on: 04/14/08 

The reports of the demise of Atlanta's housing market have been greatly exaggerated.

The much publicized housing bubble was never more than a small bump here in Atlanta. In parts of Florida, California and Nevada, housing prices doubled and tripled between 2001 and 2006. During the same period, home prices in Atlanta increased a slightly higher than normal 4 percent to 5 percent per year. Price increases in other parts of the country were unsustainable, and what went up eventually came down. Not surprisingly, where prices went up the most, they also came down the most. For all the bad press about housing, home prices in the Atlanta region fell less than 5 percent over the last year.

While fear and uncertainty have caused the number of overall home sales to fall sharply in Atlanta and around the country, home prices here have not fallen anywhere near as much. This is because while housing is a commodity, it is also a place where people live. The majority of home moves are discretionary. If the market is unfavorable, discretionary buyers and sellers sit on the sidelines. This can cause a decline in the number of homes sold without having much of an effect on prices.

Home prices in the Atlanta region are somewhat immune to a large price drop because we benefit from a wonderful safety net. Our metro region adds about 150,000 people per year. Between 2000 and 2006, our region added 856,266 people, a growth rate that was the highest in the nation. Almost 2 million additional people are expected to move here over the next 12 years. With so many new families moving to Atlanta, the demand for housing will remain strong.

While there are more than 100,000 homes on the market today, it will not take long to absorb them based on our current rate of growth. This is particularly the case since homebuilders started cutting back on new construction three years ago and permits for new homes have now fallen dramatically.

Home buyers are confused about getting a mortgage and the large number of homeowners at risk of being foreclosed. Despite all the hoopla about a credit crunch, it is surprisingly easy to get a mortgage if you have decent credit. While the same cannot be said for buyers with bad credit, this represents less than 10 percent of the market.

The degree to which foreclosures will stress our local market will depend on what actions our federal government takes to solve the problem. However, foreclosures are highly concentrated in certain neighborhoods rather than being evenly distributed throughout the metro region. As a result, housing markets in desirable neighborhoods with low foreclosure rates are already showing signs of strengthening.

Less desirable neighborhoods hard hit by foreclosures may limp along for years in a recurring tale of rich neighborhoods getting richer and poor ones getting poorer.

Smart housing decisions tend to boil down to a focus on location. While there are many factors that make a neighborhood desirable, the more important ones include quality homes, good schools, low tax rates, low crime rates and good access to work centers and shopping. Driven by traffic congestion, an aging population and changes in consumer preferences, what is considered a good location is also changing. There is a reason that all those condominiums and mixed-use developments are being built —- they are filling a demand from aging baby boomers and young professionals. While developers may have gotten a bit ahead of themselves in this area, the smart money is on the demand for this type of housing to grow exponentially over the next decade.

Housing prices in Atlanta, not having fallen much, should not have far to go to predictably rebound. In a few years, due to the health of our local economy, housing prices should be higher than at the peak of the previous cycle.

Sellers whose homes are worth less than they were a year ago and who psychologically feel poor should not have to wait too long to feel better about their circumstances. Of course, rather than waiting to sell until prices recover, savvy sellers have figured out that if they can get an equally good deal in purchasing another home, they are still ahead of the game.

A $200,000 home in Atlanta in 2001 was likely worth $260,000 in 2006. With a 5 percent drop in housing prices, that house today would be worth $247,000. While a $47,000 increase may not seem like much, as a rate of return on the typical buyer's cash investment, it is very healthy. Housing is and will continue to be a tremendous builder of wealth for buyers who can ride out the periodic cycles in the market.

A strong buyer's market and low interest rates are allowing buyers to get great deals on housing. As the spring market gains momentum, the best deals are being snapped up. The advice of "buy low, sell high" has never been more apt. Buyers should act accordingly.

Seth Weissman is senior counsel to the Georgia Association of Realtors.

Dan Forsman is president and CEO of Prudential Georgia Realty.

Investor Report: Fannie Mae and Short Sales

by Kenneth R. Harney

Here's some good news for investors interested in "short sales" -- that's where home owners who can't afford their mortgages sell their houses at substantial discounts, often below what they owe on the loan.

Fannie Mae, the single biggest player in the American mortgage market, plans to crank up the pace of short sales on properties in its bulging portfolio. Fannie intends to "streamline" procedures to enable pre-foreclosure sales to speed through what is currently an extended, and often complicated, process.

Fannie says it plans to "pre-approve" certain short sales--a major change from current practices--and wants to provide higher commission incentives to realty agents who can connect sellers with qualified buyers.

Fannie Mae thus joins its rival, Freddie Mac, who months ago began emphasizing faster, more efficient short sales - to great success.

Freddie Mac's program, which allows some loan servicers to submit short sale packages with minimal documentation, doubled the number of completed short sales for the company in the last quarter, according to a report in the American Banker, a financial trade journal.

Investors like Freddie and Fannie want to speed up the pace of short sales because -- to put it bluntly -- it saves them a ton of money. They avoid the crushing costs of foreclosures. Plus, they generally get a much higher payoff percentage of what they're owed.

Despite complications -- ranging from uncooperative banks holding second liens on properties to title, financing and inspection problems -- short sales are booming. Some industry estimates suggest that so far this year, one of every five home sales in the U.S. has been a pre-foreclosure transaction of one sort or another.

The opportunities for small investors and realty brokers here are huge. But investors need to have patience and the ability to handle what are sometimes contentious negotiations.

For example, Nancy Gusman, a Maryland real estate attorney, told Realty Times that "everybody in these deals is after every last dollar they can negotiate, and sometimes they hold out forever."

The mortgage holder is looking for the highest possible current appraisal to justify the highest possible payoff price; the short-sale buyer is looking for the lowest possible appraisal to justify a bargain-basement price for the house; and of course, listing realty agents want a fair commission for their work in putting the transaction together.

The bottom line here for investors and agents: Fannie Mae's forthcoming policy emphasizes getting short sales DONE -- faster. That, in turn, should mean more opportunities for everybody -- investors, first-time home buyers, and brokers alike.

Published: April 11, 2008

Interest rates down, existing home sales up

By Jim Woodard

Mortgage interest rates are down, while sales of existing homes are up - a welcome development for consumers and real estate professionals. The long awaited increase in sales is a big and important event, carried by all major news media. At this writing, the average rate for a 30-year, fixed-rate mortgage is 5.85 percent, down from 6.13 percent just a week ago. Last year at this time, the average interest rate was 6.16 percent. Borrowers pay an average of 0.4 points (percentage of loan).

"Mortgage rates fell as various actions were taken to improve market liquidity," said Frank Nothaft, chief economist for Freddie Mac, a major government-sponsored buyer of existing mortgages. "Also, the inflation report from the Consumer Price Index reflected weaker price increases than expected. It reported no change in February, including food and energy costs. That's the first time the CPI did not report a monthly increase since November, 2006."

The lowering of rates sparked a sharp increase in the number of mortgage applications for home purchase transactions and refinances, according to a report from the Mortgage Bankers Association. "The Federal Reserve acted to bring stability to the mortgage-backed securities market and we saw an immediate impact with a drop in mortgage rates," said Jay Brinkmann, MBA's VP of research.

Existing home sales, including single-family homes, townhomes and condominiums, rose 2.9 percent to a seasonally adjusted annual rate of 5.03 million units in February. That's up from 4.89 million units in January. "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," said Lawrence Yun, chief economist for the National Association of Realtors. "Buyers are taking advantage of higher loan limits for both FHA and conventional mortgage, thus unleashing some pent-up demand. As inventories are drawn down, prices in many markets should go positive later this year."

About half of the nation's metro areas are now showing home price increases, with healthy gains in some markets, he added. "In some areas, a recent rapid price decline has induced buyers to come into the market, and sales are now rising. The relationship between home prices, interest rates and income has improved to the point where buyers are more serious about making offers." Sales of existing single-family homes increased 2.8 percent in February, while sales of existing condominiums rose by 3.7 percent.

Realty Viewpoint: Rising Housing Sales Should Be No Surprise

by Blanche Evans

For the first time in seven months, existing home sales increased, says the National Association of Realtors. February sales rose nearly three percent over January. That's encouraging says the NAR, but is it enough to spur buyers?

For one thing, the sales pace, even improved, is still nearly 24 percent lower than a year ago, and year-over-year home prices are down over 8 percent.

But that's exactly why home sales are improving. Home sellers have dropped prices enough to be attractive, and coupled with below six percent interest rates, February was a good time for buyers to lock a rate and put a contract on a home.

Consider that home prices in February 2007 were $213,500 and interest rates for the month averaged nearly 6.5 percent. In 2008, prices are $195,000 and interest rates averaged 5.9 percent.

So it shouldn't be surprising that housing inventories have dieted down to a 9.6-month supply from over 10-months on hand in January.

Metropolitan areas are showing the most growth in housing sales with roughly half the major markets showing mild increases. For those communities with the density to support multi-family homes like condominiums and coops (up 3.7 percent), the improvement in sales was even greater than single-family (up 2.8 percent.) by 30 percent. Condos and coops also held their prices a little better than single-family homes at $211,700 or five percent below February 2007. That's despite a 13-month supply on hand.

Market gains were highest in those areas in communities that are helping themselves -- like Oklahoma City -- which has put millions into the revitalization of its downtown and has plans to extend its scenic historic district water feature, the Bricktown Canal, through the warehouse district around the city.

They're also improving in areas that were depressed because of overspeculation such as the Western segment dominated by California, Nevada and Arizona. Existing-home sales in the West are down 13.4 percent from a year ago, and the median price is down the most of any region at 29.2 percent. But the good news is that sales slipped only one percent in February, which suggests that the slide could be coming to an end.

One month doesn't make a spring, things could be improving but only if more homes aren't dumped on the market, interest rates hold in a reasonable range, and the credit crisis improves.

One ways to see if there's a positive trend is to watch for the new home sales report from the Commerce Department, due Wednesday.

Published: March 25, 2008

FHA appraisers are not home inspectors

---

Why home buyers shouldn't rely solely on appraiser's opinion

March 14, 2008 12:51 PM

By Barry Stone

Copyright 2008 Barry Stone

Dear Barry,

In one of your articles, you painted an inaccurate picture of FHA appraisers. I agree that home inspectors are more qualified than appraisers to identify defects in a home, but FHA appraisers also have a role in identifying some of these problems.

According to HUD standards, an FHA appraiser must look in the attic for signs of leakage, poor construction and fire damage; inspect the foundation crawlspace for various defects; operate the heating, electrical and plumbing systems; review the site drainage; and check many other issues. Our inspections are not nearly as thorough as a home inspection, but when we find evidence of a significant problem, we recommend that buyers hire a home inspector. I suggest you review HUD's Valuation Analysis for Single Family One- to Four-Unit Dwellings. --David

Dear David,

My comments about FHA appraisers were not intended to negate the importance or validity of your profession. Many home buyers, however, are unclear about the difference between an appraisal and a home inspection. When they see an appraiser inspect the attic, the furnace, the electrical panels, etc., they sometimes assume that a home inspection would be redundant; that the FHA appraiser has fully evaluated the physical condition of the property. Then they're surprised when problems are discovered after the close of escrow.

When buyers see their appraiser check the furnace, they may assume that the heating system has been evaluated and approved. Later, they're surprised to find safety violations involving fire clearances, gas supply connections, and combustion air requirements.

When buyers see their appraiser check the attic, they may assume that pertinent conditions have been checked and signed off on. Later, they're surprised that the rafters need reinforcement; that the chimney is too close to combustible material; that the attic wiring is improperly spliced; that some of the water lines are substandard; or that the vapor barrier is on the wrong side of the insulation.

When buyers see their appraiser open the breaker panel, they may assume that electrical compliance has been verified. Later, they're surprised to learn that circuits are overfused; that breakers are double-tapped; that ground wires are not bonded; or that some wires have burnt insulation.

When buyers see their appraiser check the fireplace, they may assume that fire safety compliance was confirmed. Later, they're surprised to know that the chimney liner is cracked; that the gas connector is substandard; that there is a gap between the mantle and the firebox lintel; or that the hearth is too close to combustible flooring.

When buyers see their appraiser check bathroom fixtures, they may assume that conditions are acceptable. Later, they're surprised that bathtub windows are not safety glass; that hot and cold connections are reversed at the sink; that the toilet is loose on the floor; or that the shower pan leaks under the house.

And speaking of under the house: Since when do appraisers don a suit of overalls and crawl the length and breadth of a subarea? When buyers see their appraiser peek into the access opening, they may assume that conditions in that area have been evaluated. Later, they're surprised about faulty ground drainage, pipes that are corroded or leaking, piers that are displaced, or air ducts that are disconnected.

HUD should set realistic standards for FHA appraisers. Instead, this federal agency has required FHA appraisers to perform tasks that are beyond the scope of their expertise. This increases professional liability for appraisers, while giving a false sense of security to uninformed home buyers. Bureaucracies should allow appraisers do what they do best: determine the market value of property, not evaluate building systems. Instead of inspecting for defects, FHA appraisers should advise home buyers to hire qualified home inspectors -- not merely when defects are observed, but in every case. This will better serve the interests of the home-buying public, while reducing the liability of FHA appraisers.

To write to Barry Stone, please visit him on the Web at www.housedetective.com.

***

What's your opinion? Send your Letter to the Editor to opinion@inman.com.

Ignore the headlines

Enlarge Photo

By DAN KADLEC

Finance costs will rise as the economy recovers, so trying to time real estate might not pay off.

Famed Money Manager is perhaps best known for his timeless wisdom that you can beat the pros by focusing on stocks of companies where you either work or shop or have some other edge. But a more relevant Lynchism today is this gem: Ignore the headlines.

That's no easy thing. How do you tune out all the chatter and ink on recession, housing, subprime woes, the credit crunch, rogue traders, insolvent bond insurers, $100 oil and nukes in Iran? It's enough to make you sit on your thumbs and wait before making any big moves. But what, exactly, are you waiting for?

There has rarely been a moment in history when you couldn't scare yourself into doing nothing. And yet, as Lynch observed nearly 20 years ago, "in spite of all the great and minor calamities that have occurred ... all the thousands of reasons that the world might be coming to an end--owning stocks has continued to be twice as rewarding as owning bonds."

A top reason to not buy stocks, in Lynch's view, is if you don't already own a home--in which case, that should be your first investment, since an owner-occupied home is nearly always profitable. Through a spokesman, Lynch reaffirmed these views to me--housing debacle and all.

When prices are falling, few people have the discipline to buy stocks, a house, gold, art or any other asset. But those who do pull the trigger excel in the long run. As John D. Rockefeller famously said, "The way to make money is to buy when blood is running in the streets."

And the streets are stained crimson. Start with stocks. They have been pummeled this year. GDP braked sharply last quarter, and there has been plenty of panic about a recession. The Federal Reserve is slashing short-term interest rates at the fastest clip in decades. But if you stick to your steady, diversified plan while everyone else is retreating, you will be happy years from now. For one thing, Fed rate cuts always lift the economy eventually, and the stock market typically starts responding just as headlines get gloomiest. Sure, the market could fall again before recovering. But the recession may be half over already--or we may avoid one altogether. You just never know.

As for housing, certainly some skepticism is in order. Formerly sizzling markets in Florida, Nevada, Arizona and California probably haven't seen the worst headlines just yet, though they may well be close. And "jumbo" mortgages, those more than $417,000, are likely to remain artificially high for a few more months while banks work through their credit issues.

But let's say you are emotionally ready to be a homeowner. You have good credit, plan to stay put for five years and have been waiting for the perfect entry point. It's time to get serious--before an inevitable rise in interest rates wipes out your advantage. "The thing that will make home prices stop falling is the very same thing that will push mortgage rates higher," says Jim Svinth, chief economist at mortgage firm Lending Tree. So anything you gain by a further drop in prices might be offset by rising financing costs.

Consider a typical home that sells for $218,900. You put down 20% and get a 30-year fixed-rate mortgage at today's rate of 5.5%. Monthly principal and interest come to $994.31. Let's say that 12 months from now the same house goes for 10% less, or $197,010. But by then the recession is history and the Fed is jacking up rates to stem inflation. If mortgage costs rise a point, to 6.5%, your monthly payment would be $994.94 and you'd have saved nothing. Meanwhile, home prices might steady and sellers might become less willing to negotiate. And you have spent a year living someplace you'd rather not be.

It's more complicated if you must sell before you can buy. But that logjam won't persist forever--and if it appears you'll be trapped for a few years, try to refinance at today's lower rates. Risks always seem most acute when the headlines give you ulcers. But that's exactly when you should think long term--and get off your thumbs.

New tax credit provision in stimulus pack

A proposed new provision in the planned economic stimulus package would offer a tax credit for home buyers. If enacted, it would help reduce the large amount of new housing inventory currently on the market, according to the National Association of Home Builders.

"It would be particularly helpful to first-time buyers," said Lawrence Yun, chief economist for the National Association of Realtors. "More first-time buyers are creating a chain reaction in the market, allowing more current homeowners to trade up into their next home. A tax credit for first-time buyers could give them a boost in confidence, counteracting their worries of home-price drops to come. "People will realize that the worst in housing is coming to an end if they see bold measures," Yun added.

NAHB pointed out that such a plan worked before. In 1975, when inventories were very high, a $6,000 home-buyer credit brought in a substantial number of buyers - enough for home builders to get back to business. "The biggest bang for the buck most likely would be provided by a temporary home buyer tax credit," said NAHB's David Seiders. "Tax credits for the purchase of a home are a means of eliminating excess inventory, relieving pressure on falling housing prices and ending the wait-on-the-sideline strategy some potential buyers have adopted."

Experienced Home Buyers Say 'Smart Time to Buy' Sentiment Prevails

RISMEDIA, Feb. 14, 2008-Despite all of the negative commentary about the housing and credit markets, 64% of Americans believe that for those with good credit and a down payment "this is an ideal time to buy a home," according to a study commissioned by Beazer Homes, one of the country's top-10 homebuilders. Perhaps with an eye toward the future, 24% of survey respondents-from Gen Y to Baby Boomers-say they plan to buy a new home in the next two years either as a primary residence or second/vacation home.

"We know the American consumer believes with great conviction that home ownership is a smart investment over the long term," said Ian McCarthy, president and CEO of Beazer Homes. "Savvy consumers realize that housing is a cyclical industry and some appear to be waking up to the opportunities that do exist in today's marketplace. Whether they act on this conviction remains to be seen, but the underlying sentiment bodes well for the industry."

Indeed, 65% of survey respondents agree that given the current supply of homes for sale and special incentives this is "truly a buyer's market." And, 39% believe that tentative buyers who are waiting for home prices to go lower risk "missing out on one of the greatest home-buying markets in recent history."

As in most areas, experience brings additional confidence. The survey found 70% of experienced home buyers-those who have purchased at least one home-urging renters to purchase a home as soon as he or she is financially able to do so.

The company says that this sentiment seems to resonate with prospective first-time buyers, with 30% citing they are "looking to make an investment" as their primary motivation for purchasing a new home. This is followed by the desire for a better location (22%) and the need for a bigger home (21%). Experienced buyers, on the other hand, ranked a ‘desire for less maintenance and up-keep' (35%), better location (27%) and investment (14%) as the primary motivations for their next home purchase.

Across the board, consumers appear optimistic about the availability of home mortgage options. For experienced buyers, 75% believe there are plenty of mortgage options available for those with good credit compared with 53% of first-time buyers. When it comes to securing a home mortgage, 24% of total respondents report they are currently saving for a down payment.

"While this is clearly a challenging time for the homebuilding industry, for those who are financially grounded, we believe it is an ideal time to buy a home. It's an even better time to buy a brand new home." said McCarthy. "Now more than ever, a newly constructed home is likely to be a much better value for home buyers when compared with the purchase of a re-sale home."

Benefits to purchasing a newly constructed home include more livable floor plans, better warranties, energy-efficient systems and options and, in many instances, the ability to personalize certain features such as flooring, cabinetry and paint colors. Additionally, a new home does not require the costly updates or remodeling that can accompany the purchase of a re-sale home.

Beazer Homes surveyed 548 adults nationwide, Jan. 4-7, 2008, between the ages of 25 to 72 with a minimum annual household income of $40,000.

(Reprinted with permission from RISMedia. For more real estate best practices visit www.rismedia.com)

Industry Targeting Boomers 55+

WASHINGTON, D.C.- With the 55-plus population expected to exceed 85 million by 2014, the nation's home builders have been increasingly catering to the unique needs and interests of mature homebuyers, according to a new study that was released by the National Association of Home Builders (NAHB) in conjunction with their International Builders' Show®  in Orlando.

According to the data compiled by NAHB's 50+ Housing Council, more than a quarter of a million people will opt to buy new housing in communities specifically built for those ages 55 or better, and more than 100,000 units constructed in 2008 will be targeted to this growing niche market. The report, Profile of the 50+ Housing Market, also dispels some common perceptions about the older home buyer: first, "downsizing" is a relative term and, second, the vast majority of these buyers won't be relocating to the Sun Belt.

"Our data shows that 55+ home buyers may be 'downsizing,' but not by much," said Paul Emrath, NAHB's lead researcher on the study. "The average home in an active adult community still includes more than two bedrooms and more than 2,000 square feet of living space."

The report found that homes in age-restricted active adult communities were only slightly smaller than other homes purchased by 55+ home buyers in both square footage and the total number of rooms, including bedrooms and bathrooms, but were less likely to have a specialty room such as a den or library. In addition, the majority of age-restricted housing buyers (59 percent) indicated they felt they were moving into a better home than their previous one, although fewer than half (41 percent) said their new home cost more than the old one.

"These boomer buyers may be scaling back in their home size, but they aren't willing to sacrifice quality," said Robert Tippets, immediate past chairman of the NAHB 50+ Housing Council and an active adult builder from Utah. "They're still looking for new homes that are well-designed and have many of the latest bells and whistles," he says. "What they are 'downsizing' is the maintenance that comes with owning the typical home with the big yard." 

According to the American Housing Survey data that NAHB's researchers analyzed,  most buyers (77 percent) chose a new home in a particular age-restricted community because they liked the home's look and overall design, while the top reasons they chose the community was the design (49 percent) and to be close to friends and relatives (28 percent). More than half of all new buyers in 55+ communities move within the same county as they currently live.

The report also suggests that new home buyers in this niche market are not as adversely affected by the current troubles in the mortgage market. Fewer than half of the customers who bought a new home in an age-qualified active adult community needed to take out a mortgage. Of those who did, the study found, the loan-to-value ratio was under 50 percent. Nearly all home buyers in these communities who made a down payment reported that the down payment came from the sale of a previous home.

"These consumers have substantial equity in their existing homes and greater accumulated wealth," said Mark Stemen, senior vice president with K. Hovnanian's active adult division in the mid-Atlantic and a member of NAHB's 50+ Housing Council. "They are discretionary buyers and their purchases are very much driven by a desire for the lifestyle these types of communities offer," Stemens said, noting that they are also buyers who are more likely than other groups to buy a new or custom home.

How they might be affected by the slower housing market, he said, is in the selling of their existing homes. Despite that, however, Stemen remains bullish on the active adult segment of the housing industry. "Given the strong demographics of the baby boom generation, the active adult buyer will continue to be a very important housing consumer for a long time to come," he said.

February 20, 2008 - Originator Times

Paul Pastore's Top 10 Reasons It's a Great Time To Buy:

1. Selection, selection, selection.
Regardless of price range, there are plenty of houses from which to choose. There's a great selection of attached homes, condos and townhouses. You can find large lots, small lots, and a lot that will accommodate your boat or RV. You have many options. When resale inventories are low, buyers are forced to make compromises. Not today.

2. No bidding wars.
In 2005, we knew one family who made offers on 10 homes. They lost the first nine to the feeding frenzy that existed in the market - other buyers bid the properties up substantially from the original listing prices. There were even escalation clauses where buyers authorized their agents to outbid other offers by thousands of dollars. There's no competitive bidding in the buyer's market of today.

3. You can make an offer.
A few years ago when you made an offer, the only question was how high above the list price you should reach in hopes of being the best offer on the table. Today the sell price vs. list price ratio is about 96 percent. Sellers won't be insulted if you "make them an offer they can't refuse."

4. Patience is tolerated.
In the hot seller's market, everything was rushed. You had to find a house before other buyers did, then hurry up and make the offer. Today, buyers can take their time. They can look at several homes and think about their decision for a while.

5. Due diligence is welcomed.
In this market, a buyer is encouraged to obtain a home inspection, termite inspection and appraisal. In 2005, many buyers waived these contingencies in order to gain an advantage.

6. Plenty of specs.
Buyers sometimes had to play games if they wanted a newly built home. There were lotteries and waiting lists. Some buyers even slept in their cars in order to get to the head of the line.

7. Repair requests are accepted.
After buyers complete a home inspection, they're allowed to submit a repair request to the sellers. But in the past, sellers often insisted the home be sold as-is. Many times, there were back-up buyers waiting for the primary buyers to upset the sellers, whose home was increasing in value almost daily.

8. Few, if any investors.
It's estimated that one third of all sales in 2005 were to investors. These buyers caused the market to inflate and affordability to decline. Mortgage fraud became commonplace. It's a great time to buy without having to compete with hundreds of prospective landlords.

9. Location, location, location.
Today's buyers can find homes closer to work. In this market, reasonably priced homes are within biking or walking distance to schools, rapid transit lines and relatives.

10. Real financing is available.
The "wink, wink" zero-down, no-doc, adjustable, sub-prime loans are gone. Fixed rates are back. FHA financing, first-time homeowner bond programs, and special loans for teachers or police officers are back in business. The bottom line: It's a great time to buy real estate!

Copyright © 2008 RE/MAX International Inc. 1/22/08

Law of supply and demand says: Buy a home now

By DAVID ELLIS
Published on: 01/18/08

For those first-time home buyers and even those looking to move up to a larger home, I offer a rather simple suggestion to start out 2008: Buy now.

Widely reported national statistics have shown a slump in the number of sales and price levels in the housing market not seen since the early 1990s. However, compared with national numbers, housing statistics in metro Atlanta paint a brighter picture, suggesting there might never be a better time to buy a home, which has created a buyer's market.

(ENLARGE)

David Ellis is executive vice president of the Greater Atlanta Home Builders Association.

Given Atlanta's market stability, healthy economy, historically low interest rates, excess in the supply of new homes (yielding significant builder-to-buyer incentives) and the gains in energy and water efficiencies in new homes, this is an outstanding time to buy a home.

However, the window of opportunity is small. Despite news of record-level foreclosures, many economists and analysts believe loan defaults and foreclosures brought on by poor lending practices will begin to recede in the coming months, that the Atlanta market has bottomed out and that the housing market will soon show signs of a rebound, perhaps as early as mid-2008.

Recently, Roger Tutterow, professor of economics at Mercer University, provided some rather encouraging information at an economic briefing for the fourth quarter.

Home-buying conditions improved as measured by the most recent Metropolitan Atlanta Consumer Confidence Survey. As Tutterow noted, "We saw a significant improvement in consumers' perceptions of home-buying conditions in the most recent consumer confidence survey. The combination of more product selection and improved affordability are driving this improvement."

Nevertheless, supply is still greater than demand. The nature of the home-building process is much like the motion of a freight train. It takes a while to get up to speed, carries a great deal of momentum and also takes a significant amount of time to slow down, hence the current excess in supply and highly motivated sellers, particularly among builders of new homes.

On the bright side for everyone, the economy here remains robust (one of the reasons Atlanta has not seen severe fluctuations in housing prices), highlighted by projections that Atlanta will show positive job growth when final numbers for 2007 are reported in the first quarter. Despite the doom-and-gloom articles on national statistics that appear regularly in print, the Atlanta housing market has shown considerable stability, along with cities like Seattle, Dallas and Charlotte, a long-term benefit for home buyers.

According to the federal housing price index, which covers both new home sales as well as resales, Atlanta home prices dropped only one-hundredth of a percent for the third quarter of 2007.

Former Federal Reserve Chairman Alan Greenspan was quoted in the Jan. 15 edition of The Wall Street Journal as saying he believes new home sales may have bottomed out because the number of purchases financed by subprime and Alt-A mortgages — a category between subprime and prime — has fallen to zero.

Potential home buyers should remain mindful, as should homeowners, that a home is one of the best long-term investments one can make.

According to the National Association of Realtors, the value of a home doubles, on average, every 10 years. During the past three decades, home values have increased an average of 6.6 percent per year. Ultimately and for most, a home is not a commodity, it's a place to live. Buying a home is a solid long-term investment in your family and its future.

According to William G. Lako Jr., managing director of Atlanta-based Henssler Financial Group, "Homeownership is still most investors' largest investment. It remains a crucial component of wealth creation for most households."

Anyone considering buying a new home in 2008 would do well to act both quickly and prudently. The best deals on new homes are happening right now and will decrease as supply aligns itself more closely with the demand.

Housing pros say 'glass is half full'

By Julie B. Hairston
The Atlanta Journal-Constitution
Published on: 01/19/08

Local real estate industry leaders made another stab this week at counteracting the growing tide of gloomy news about mortgages, foreclosures and home sales.

At a panel discussion assembled by the Mortgage Bankers Association of Georgia and the Georgia Association of Mortgage Brokers, representatives of bankers, brokers, real estate agents and builders encouraged consumers to "think of the glass as half full" despite the current woes of the housing market.

They pointed out that mortgage rates are low —- 5.87 percent for a 30-year, fixed-rate loan —- and likely to fall even lower, home prices are negotiable, and purchase incentives such as upgrades and discounts are widespread.

"It's a great time to buy," said Rick Floyd, president of Opteum Mortgage.

On the heels of news from the U.S. Department of Commerce that housing starts hit a 27-year low in December, David Ellis, executive vice president of the Greater Atlanta Home Builders Association, characterized the slump as "good news."

Metro Atlanta contains so much for-sale housing that selling all of it would require more than 10 months, more than twice the level considered optimal, Ellis explained. So a slowdown in construction gives the market time to absorb some of the excess.

"It's a challenging time for the people I represent," Ellis said.

In response to the panel's message, the president and CEO of the Atlanta Neighborhood Development Partnership Inc., a grass-roots organization that promotes affordable housing, said that tightening mortgage markets are squeezing many families.

"The reality is that most families, particularly those of moderate income, usually have less-than-perfect credit," said John O'Callaghan in a subsequent telephone interview. "If you have great credit, now is a good time to buy. But if you have less-than-perfect credit, you are going to have a hard time purchasing a home that meets your family's needs."

The panel found itself before a somewhat sparse audience on Thursday, perhaps deterred by winter weather.

But Powder Springs resident Lynette Joseph braved the cold to learn more about the housing market and the shifting requirements for mortgage lending.

A fledgling real estate investor with three properties in her portfolio, Joseph is hoping to build a retirement nest egg by buying and selling metro Atlanta houses.

She left the panel discussion with renewed enthusiasm. "I learned that the market is not as bad as the media has made it out to be with foreclosure statistics," Joseph said. "I'm walking with confidence as a young investor that I can still prosper in this industry."

Moderated by 11 Alive Consumer and Business Editor Bill Liss, the panel acknowledged the economic "correction" triggered by the default of millions of high-risk loans that had been sold to Wall Street investors.

So far, American investment banks have written off losses on those investments totaling more than $100 billion, according to an estimate given to congressional leaders by Fed Chairman Ben Bernanke on Thursday.

The defaults have been accompanied by a rising tide of foreclosures, which have reached record levels in metro Atlanta.

These foreclosures not only affect the families who lose their homes, according to O'Callaghan, they also limit the ability of surrounding homeowners to tap the value of their homes for important maintenance investments.

Still, qualified buyers have no reason to hang back from the market, Floyd said.

"There are issues going on in America. There are issues going on here in Atlanta," said Floyd. "But look at it as 'the glass is half full.' "

For borrowers with steady, documentable income and a good credit history, loans remain readily available and likely to contain attractive terms. Government incentives for first-time buyers can help overcome many barriers to homeownership, the panelists said.

"Although credit has tightened, there are still a lot of programs and products out there today that can get people into a home," Floyd said.

2008 prognosticators show existing home sales going up

By John Adams
Published on: 01/06/08

The Federal Reserve cut the federal funds rate by a quarter-percentage point recently to the lowest level in nearly two years. The move is designed to stimulate the economy and prevent a credit crunch from hurting consumer and business lending. Real estate sales should benefit from this.

Banks typically base their prime interest rate on this federal funds rate plus 3 percent, bringing the prime down to 7.25 percent. Lowering the prime rate tends to lower overall borrowing costs and encourage consumer and business spending.

Lowering the prime helps everyone making payments on loans that have an interest rate tied to prime, including many ARMs tied to the one year T-bill, most home equity loans, many business loans, and even some credit cards. In addition, by leaving more money in consumers' wallets, the central bank hopes to encourage local banks to lend more money.

So how will Georgia real estate owners fare in 2008? There are favorable factors on the horizon for this new year:

• The cost of borrowing is still remarkably low, with 30-year fixed-rate loans for owner-occupants hovering around 6 percent, making this a great time to lock in a long-term loan. Interest rates tend to move up and down in cycles, and this home loan rate is very near the historical lows of 2003. And let's face it — the cost of borrowing is one of the prime drivers of real estate sales.

• Georgia has largely dodged the real estate meltdown that has hit Michigan, California, Florida and New Mexico. In fact, the economy here is strong and growing. We are adding jobs daily. And that's another driver in real estate sales.

Our part of the United States has experienced much more stable growth and less of the speculative frenzy that drove up home prices wildly in some parts of the country. Remember that all real estate is local, and what's happening in New Mexico is not relevant to what's happening in your neighborhood. Many of those negative reports miss this point completely.

• Home prices in Georgia have not slipped, and, in fact, are still rising, though modestly. The average home in Georgia is worth more today than it was a year ago. As hard as it is to believe, your real estate is still a good investment and is likely to be worth more in the future.

• People still need a place to live, and they almost always prefer to live indoors.

With an additional 2 million to 3 million new residents projected to arrive in the Atlanta area over the next 20 years, we will need a lot more housing units than are currently available. And that new housing will cost more, not less. I am not suggesting a housing boom during 2008, but I am saying that demand is going to increase, and we will need new housing to meet that demand.

• This current market won't last. The southeastern United States (even Florida) continues to attract new jobs and new residents. People are moving here to fill jobs, and other people are moving here for a sunny retirement.

In a recent study, the Realtors' chief economist Lawrence Yun stated that he believes the worst part of the credit crunch has worked its way through the economy, and projected existing home sales in the United States to trend up in 2008.

He projects existing home sales to reach a total of 5.67 million for 2007, making last year the fifth highest on record. He looks for a total of 5.70 million homes sold in 2008, compared with the 6.48 million units sold in 2006. His prediction for new-home sales is slightly gloomier, stating that a recovery for this part of the market is unlikely before 2009. The new-home market traditionally makes up around 16 percent of all home sales annually.

These things tend to go in cycles, and when the current new-home inventory finally dries up, and the glut of foreclosures gets absorbed, demand will force prices higher in the years ahead. How high remains to be seen.

I am willing to go on record as predicting that 2008 will be seen as the year of the real estate turnaround in the Atlanta metro area. Home demand will be strongest in the detached single-family "under $300,000" range, and sales will begin to pick up in spring, then improve through the remainder of the year.

Atlanta Is a Magnet for Younger Job Seekers

By Stephanie Chen
From The Wall Street Journal Online

ATLANTA -- In the weeks before he graduated from the University of Pittsburgh in 2005 Chris Valasek eagerly hunted for a local computer science job nearby. The avid Steelers fan had always wanted work near his hometown.

But in job interviews he was told over and over again that he needed more work experience. He wound up taking an offer from a technology company in Atlanta.

Nearly two years later, Mr. Valasek has grown attached to the city's lively neighborhoods and soul food, as well as his job in the city as a researcher at IBM Internet Security Systems. He plans on staying for a few more years -- though he admits he won't be rooting for the Falcons this season.

"There are a lot of jobs out here, and it's nice to be able to spend money instead of always worrying about if I'll make it to the next check," says the 25-year-old Mr. Valasek, who lives with his girlfriend in the trendy Midtown area.

In the last decade, Atlanta has become a magnet for recent college graduates seeking jobs in technology, health care and law. In 2006, 12,492 new people ages 20 to 29 moved to the city, marking a 21.4% growth from the year before, the census reported.

Meanwhile, the population in the city's metropolitan areas has shot up to a record four million in 2007 with the city itself experiencing the largest single-year population gain in more than 35 years, according to the Atlanta Regional Commission, an intergovernmental planning agency.

A year ago, Mr. Valasek says that he let his jobless best friend from Pittsburgh crash with him. Within two weeks, his friend found a job at a computer technology company.

The city is home to 13 companies in the Fortune 500. Several international companies have opened offices in the past six months, including Wipro Ltd., an Indian information-technology company that created 500 new jobs, and UCB, a Belgium biopharmaceutical company that produced 125 additional jobs.

For $1,300 a month, Mr. Valasek and his girlfriend Sara Jackson, who also works in the Atlanta area, rent a spacious two-bedroom Midtown loft apartment that's within walking distance of all types of activities: posh dance clubs blaring hip-hop, college-like neighborhood bars and a variety of restaurants and cafes.

Midtown's housing stock has been increasing: There are 10,378 housing units in the neighborhood up from 2,500 in 1997. One 35-story mixed-use building, set to open in fall 2008, will boast an eighth-floor one-acre outdoor grass plaza overlooking the city featuring a pool and a bar. Developers are already recruiting young professionals at a half dozen local law firms to live in the building, says Steve Baile, a senior vice president at Daniel Corporation who oversees the operations in Atlanta.

Allison Blakely, a 24-year-old graduate of Northwestern University and a Colorado native, moved to Atlanta in October 2005 from Chicago. She picked the city over a job offer in New York and is now making $45,000 a year as a weekend producer at CNN. Ms. Blakely says she wasn't ready for the hustle of Manhattan and her salary probably wouldn't have covered the exorbitant rents.

"I have my own little one bedroom apartment, and I love it," says Ms. Blakely, who lives in the Buckhead area, another young professional hot spot laced with recently-constructed high rises and condos, and giant shopping malls touting high-end designer stores. She pays about $850 a month for a luxury apartment in a gated community with a clubhouse and pool where crowds of young people relax on weekends. "All my friends in other cities have roommates."

Some young professionals complain that Atlanta lacks an urban edge and that the city's sprawl isolates them from other young professionals. Ms. Blakely says that she misses public transportation and pedestrian friendly neighborhoods.

Developers are trying to give Atlanta a more city-like ambience. There are 35 major developments underway in Buckhead along a three-mile stretch of Peachtree Street, including high-rise rentals, condos and hotels. Street-level boutiques are also planned, says Sam Massell, president of the Buckhead Coalition, a nonprofit group of business professionals. Mr. Massell says the influx of young professionals into the community influenced developers to build high-end condos starting at $300,000 compared to the traditional luxury condos costing about $2.5 million.

Despite the new construction lining the city, Michael Elliott, an associate professor of regional and city planning at the Georgia Institute of Technology, says Atlanta still retains a diverse collection of old Southern-style homes in neighborhoods alongside new high-rises. He adds that the mixture of buildings helps attract young professionals because they want to feel like they are in a city with an identity.

Samantha Williams, a 23-year-old Georgetown University graduate, who studied history, says she sees Atlanta as a launching pad for the bigger cities. She came here in September 2006 and quickly secured a job as a program specialist at Communities in Schools of Atlanta Inc., a nonprofit working to reduce school drop-out rates.

Magazine: 'RE/MAX is the No. 1 Real Estate Franchise'

RE/MAX is the nation's No. 1 real estate franchise - and the No. 10 franchise overall - according to Entrepreneur magazine's 29th Annual Franchise 500 survey.

The survey appears in the January 2008 issue and on the magazine's Web site.

7-Eleven beat out Subway to capture the top position overall. Subway, which had ranked No. 1 for the past seven years, came in at No. 2, with Dunkin' Donuts at No. 3.

RE/MAX has a long, successful history in the survey. It ranked No. 11 overall a year ago, No. 8 in 2006, No. 10 in 2005 and No. 19 in 2004.

Among real estate franchises, RE/MAX ranks No. 1 for the eighth time in the past nine years. The closest competitor - ERA - came in a long way back, at No. 43.

RE/MAX ranks No. 1 overall in the Low-Cost Franchises category. It finished No. 2 last year.

Additionally, RE/MAX tops all real estate competitors at No. 7 on the Global Franchises list and No. 10 among Fastest Growing Franchises.

All companies in the rankings are judged by the same criteria, the most important being financial strength and stability, size and growth rate. Also considered: number of years in business, length of time franchising, startup costs, litigation, percentage of terminations and financing options.

The factors are plugged into a Franchise 500 formula, with each eligible company receiving a cumulative score.

Copyright © 2007 RE/MAX International Inc. 12/12/07

NAR: Another Monthly Gain for Pending Home Sales

The Pending Home Sales Index, a forward-looking indicator based on contracts signed, increased 0.6 percent in October, marking the second consecutive monthly gain, according to the NATIONAL ASSOCIATION OF REALTORS®. The index rose to 87.2 from an upwardly revised reading of 86.7 in September. However, the October index still was 18.4 percent below year-earlier reading of 106.8.

“The broad trend over the coming year will be a gradual rise in existing-home sales,” says Lawrence Yun, NAR’s chief economist. “But because sales are exceptionally low in the final months of 2007, total sales for 2008 will be only modestly higher than 2007. The index rose to 87.2 from an upwardly 2007.” A recovery for new-home sales is unlikely before 2009, he adds.

Yun says the worst part of the credit crunch has already worked its way through the data: “Now that mortgage conditions have improved, some postponed activity should turn up in existing-home sales over the next couple of months, and I expect sales at fairly stable to slightly higher levels.”

Existing-home sales in 2007 are likely to total 5.67 million this year, the fifth highest on record, and then rise to 5.70 million in 2008. By comparison, home sales in 2006 totaled 6.48 million.

Regional Pending Home Sales Data

Pending home sales in the Northeast jumped 16.0 percent in October to 80.6 but is 11.1 percent below a year ago. In the West, the index rose 8.4 percent to 87.3 but is 16.9 percent lower than October 2006. The index in the Midwest slipped 1.4 percent in October to 85.5 and is 11.7 percent below a year ago. In the South, the index dropped 7.8 percent in October to 91.6 and is 25.3 percent below October 2006.

“The improvement in the Northeast reaffirms a trend apparent for some months now that shows signs of recovery, noteworthy because that was the first region to slump, and the gain in the West indicates some easing of interest rates for jumbo loans,” Yun says.

He says that raising the loan limits on FHA and GSE-backed conventional loans will markedly improve mortgage availability.

A Look at Prices: Slight Growth Expected

Prices for existing homes should be down 1.9 percent to a median of $217,600 for all of 2007, and then rise 0.3 percent to $218,300 in 2008.

“Home price growth in the vast affordable midsection of America will help raise the national median existing-home price slightly in 2008. I then expect price appreciation to return to more normal patterns in 2009, perhaps rising one or two percentage points above the rate of inflation,” Yun said.

Even with a modest decline in the national aggregate price this year, it’s important to keep in mind that nearly two-thirds of the metro areas in the U.S.are showing price increases, Yun says.

“The apparent disparity results from fewer sales in high-cost markets, so a change in the mix of sales is dragging down the national median home price.”

Areas showing healthy price gains include disparate markets such as Gary-Hammond, Ind.; Binghamton, N.Y.; Corpus Christi, Texas; and Spokane, Wash.“We can’t emphasis enough how much local conditions vary, even within a given area, so it’s important for consumers to make decisions based on local market conditions.”

Forecast for New Home Sales

New-home sales are forecast at 788,000 this year and 693,000 in 2008, down from 1.05 million 2006; no sustained improvement is seen for new homes until 2009.

Because builders have correctly adjusted production, housing starts, including multifamily units, will probably total 1.36 million this year and 1.16 million in 2008, down from 1.80 million last year.

The median new-home price is projected to drop 3.0 percent to $239,100 for 2007, and then decline another 0.2 percent to $236,600 in 2008.

Economic Outlook: Mortgage, GDP, Employment

The 30-year fixed-rate mortgage is estimated to rise slowly to the 6.4 percent range by the end of 2008, with additional cuts in the Fed funds rate lowering short-term interest rates.

Growth in the U.S. gross domestic product (GDP) should be 2.1 percent in 2007, down from a 2.9 percent growth rate last year; GDP growth is forecast to improve to 2.4 percent in 2008.

The unemployment rate is likely to average 4.6 percent for 2007, unchanged from last year, but rise to 5.0 percent in 2008. Inflation, as measured by the Consumer Price Index, will probably be 2.8 percent this year and 2.7 percent in 2008, down from 3.2 percent in 2006. Inflation-adjusted disposable personal income is estimated to grow 3.1 percent this year, the same as in 2006, and then grow 2.2 percent next year.

Daily Real Estate News, December 10, 2007

Local Stats More Telling: NAR

by Lew Sichelman

A record 30,000 real estate agents and brokers were sent home from their annual convention in Las Vegas last week with one important message: Go forth upon this great land -- members of the National Association of Realtors (NAR) can never be accused of not being patriotic -- and set the record straight. Tell one and all, but especially their local media, that the housing market isn't so bad.

Certainly not as bad as the rip-and-read television networks and the national wire services portray it to be, at least not in their neck of the woods, where NAR contends that local newspapers and TV stations run with unbalanced wire reports of a dying real estate market without checking sources or looking at what's actually going on in their own particular towns and cities.

"Real estate is alive and well," proclaimed outgoing President Pat V. Combs in an amateurish, convention-opening skit that was a take-off on the popular CSI (Crime Scene Investigation) television shows and purported to uncover why housing was getting such a bad rap when, in fact, 2007 should go down as the fifth best year ever for existing home sales and 2008 should be an even better year.

The conclusion: The national media has been "seduced by a few vocal but misinformed analysts," the politically powerful trade group believes.

To the 1.36 million member NAR, it's all about perspective. The group wants reporters to go behind the national numbers and cover both sides of the story. Yes, for example, inventories of unsold homes are higher than they've ever been. But that's on a national level. In some places, houses are popping off the shelves as soon as listing agents can stack them.

And so Combs, a broker from Grand Rapids, implored the Realtor congregation to "return home and refute reports" that the sky is falling.

"Reports of real estate's demise are greatly exaggerated," she said, advising her minions to warn their local media to "steer clear of unverified sources claiming to be experts."

"There are plenty of opportunities for consumers and Realtors in the current market," she said.

NAR's new President, Long Beach, Calif., broker Richard Gaylord, picked up the torch, saying that one of his goals for 2008 is for NAR to become a comprehensive source of real estate information to help local media as well as buyers and sellers understand why their home markets may be different from what the national trends suggest.

"You stories influence whether people buy or sell homes," Gaylord said during a press briefing. "And we need to do a better job of presenting information based on facts."

Some would say NAR is looking at the market through the proverbial rose-colored glasses. But on a point-by-point basis, new chief economist Lawrence Yun makes a good case.

The high number of foreclosures and the credit crunch "are real problems," he said in his role as a lab technician during the CSI sketch. "But the market fundamentals are still strong -- interest rates are low, the economy is growing and the number of jobs is on the upswing."

Later, in an hour-long, power-point presentation that included nearly 75 slides, Yun told a room packed with the Realtor faithful that today's market is nothing like previous downturns when the economy was slumping, there were significant job losses and/or interest rates were couched in two digits, not one.

Now, he pointed out, the economy is humming right along, two million jobs have been added in the last two years, and mortgage rates are still at affordable levels and near their all-time lows.

Published: November 21, 2007

Georgia home prices remain stable despite perceptions

By John Adams
Published on: 11/18/07

Believe it or not, your home is likely worth more today than it was a year ago.

Two recent studies have highlighted the strength of metro Atlanta housing prices, even as most other parts of the nation have seen price declines of up to 10 percent over last year.

The first study is the widely followed S&P/Case-Schiller Home Price Index, which claims to be the leading measure of U.S. home prices. It covers data through August of this year and shows declines in the prices of existing single family homes in 15 of the 20 metro areas surveyed. The area with the largest decline was metro Tampa, with a double-digit drop of 10.1 percent since August of 2006.

Atlanta was among the five gainers, but claimed less than a 1 percent increase over the period.  Areas reporting the biggest price gains were Seattle at 5.7 percent, followed by Charlotte at 5.6 percent. Portland showed a 2.8 percent increase, while Dallas squeaked out a gain of half a percent for the past year.  The Case-Schiller team of economists recognized in the 1980s that home prices tended to be "inflexible" downward. That's because many owners will refuse to sell at a price less than what they paid for a property.

This inflexibility is observed most strongly in residential real estate and has been shown to have a strong stabilizing effect on home prices.

In addition to Tampa's weak performance, home price drops were seen in Las Vegas, Phoenix, Miami and New York. In addition, both San Diego and San Francisco made the list of losers, leading to the conclusion that those areas hardest hit were the same ones that had experienced rapid price run-ups in recent years.

I suspect part of Atlanta's ability to retain even a minimum level of price appreciation is that our price gains over the past decade were modest compared with many parts of the nation. It seems that Atlanta's housing prices were fueled more by job growth and relocation than by the frenzy and speculation that drove some areas.

This conclusion is supported by a recently released study of America's metropolitan areas by the Brookings Institution, called Blueprint for American Prosperity. This study concludes that America stands in a position of economic strength, but that we need to leverage key assets such as innovation, human capital and infrastructure. The study suggests that these assets tend to concentrate principally in our nation's major metropolitan areas.

This study produced what it calls MetroNation Profiles, a sort of state-by-state review of the top 100 metropolitan areas, and gives statistics associated with those areas, highlighting the importance of these economic engines. In this study, metro areas often cross state boundaries.

For example, Georgia contains all or part of three of the nation's 100 largest metropolitan areas — Atlanta, Augusta and Chattanooga — which alone account for 60 percent of the state's population, 62 percent of the state's jobs, and 71 percent of the state's gross domestic product (GDP). All 15 of Georgia's metros constitute 81 percent of the state's population, 84 percent of the state's jobs, and 89 percent of the state's GDP.

It is a widely established fact that home prices tend to follow job growth, and if an area's prices are holding up well in the current real estate market, there should be a correlation with job growth. The good news is that the study found metro Atlanta to be ranked 10th in job growth among all metro areas nationwide, with some 67 percent of all jobs in the state being Atlanta-based.

Yet, the fact that home prices in metro Atlanta are up will come as a surprise to most Atlantans.

I conducted a completely unscientific poll over the past couple of weeks, asking everyone I talked with whether they believed home prices were up, stable, or down over the past year. Almost everyone was convinced that real estate prices were down significantly.

Stay tuned for the release of the Federal House Price Index coming up on Nov. 29. This report is a study of price movements based on a much larger sample of homes than the Case-Schiller Index, and includes both resales and refinancings through the end of September.

Source: Atlanta Journal and Constitution

Housing Market Likely to Pick Up Next Year

Jim Woodard

The sluggish home sales market should bottom out by the end of the first quarter of this coming year, it was noted in a recent study and report from the National Association of Home Builders.

Despite current market problems, the housing market will start to turn around next year for a number of reasons. The overall economy and job growth will continue to move ahead at a decent pace, core inflation is under control, the credit crunch in mortgage markets is showing signs of easing, the supply-demand equation will be better balanced as builders begin to whittle down their excess inventories, and another Federal Reserve interest rate reduction of a quarter-point on Oct. 31 will help keep mortgage rates low.

That's the prediction of David Seiders, chief economist for the association.

"With the housing sector facing a large backlog of unsold inventory, new construction starts and permits won't begin to move forward until sales firm up. Home sales should bottom out by the end of the first quarter of next year, and housing starts will be up in the third quarter, assuming the inventory overhang stabilizes," he said.

The tightening standards for home mortgages will not derail a national recovery in the housing market, according to the association. However, it will complicate the system for a while.

The negative impact of the new standards on housing markets comes in two forms. First, tightening lending standards have reduced the availability of some loans and raised the price to riskier borrowers. Second, it creates the potential for a cycle of defaults and price declines, depending on the local home price environment and strength of the local economy, the National Association of Home Builders report noted.

The association's short-term forecast is based on several assumptions - skillful management of monetary policy by the Federal Reserve, maintenance of solid growth in personal income and employment, a manageable wave of home mortgage foreclosures and better performance of mortgage markets going forward.

The report observed that the long-term potential for housing activity is very good.

"By the end of 2009, we may be at a pace of 1.5 million units of new housing production (including manufactured homes). Once we are out of the woods, we should see good growth in front of us - maybe 2 million units per year," it stated.

Q: Are all real estate markets now in trouble?

A: While there is much press coverage about today's troubled real estate markets, there are many markets throughout the country that have minimal subprime mortgage exposure and are now experiencing a stable market.

These markets experienced modest and sustainable home price appreciation during the boom years and have relatively strong local economies. The markets are positioned to outperform the national trends with earlier and stronger recoveries than the more troubled markets, according to the National Association of Home Builder's chief economist.

These little-publicized markets are primarily located in the Pacific Northwest, mountain states and in the Southeast. The areas are now recording single-family home construction permits at or above pre-boom levels.

"The contrast between the strongest and weakest markets across the country points out substantial regional variation and suggests that steep nationwide home price declines and mortgage defaults are unlikely," Seiders said.

Q: Are mortgage problems deepening?

A: Not according to one report. It noted good news on the mortgage front. More people are managing to keep up with payments on mortgage loans made in recent months, according to data from First American Loan Performance, a research firm.

The trend reflects more conservative lending policies adopted by mortgage companies this year in the wake of a surge in defaults and foreclosures, said Mark Carrington with First American.

"Even so, defaults continue to rise in proportion to the overall number of home loans outstanding nationwide, mostly those made between 2003 and 2006 when lending standards were growing more lax," he said.

Q: Is it common for college students or their parents to purchase a residence near the campus instead of signing up for a dorm?

A: It is indeed becoming increasingly common. Parents of college-bound offspring are purchasing a condo or small house in the area of the college for their student's residence while attending the college or university. In some cases, it appears to be more cost-effective than paying for a room in a dorm.

The student will often rent out a portion of the purchased unit to another student to minimize the investment. When the student's attendance at the college is completed, the unit will be sold, hopefully at a profit.

There are now about 3 million campus houses and condos that have been purchased by students or their parents, according to a report from the National Association of Realtors. That represents about 8 percent of the nation's 37.4 million investment properties, but excludes 6.8 million vacation homes.

In addition to the possible financial advantage, owning such a residence gives the student more freedom and a choice of roommates. For parents, it offers a chance to recoup some of the rising costs of higher education, assuming it turns out to be a good investment.

Many parents are spooked by the unknowns in such an arrangement. Can the extra space be rented at the projected rental amount? Will the student handle his extra freedom responsibly? Will the property later sell at a profit? These and other concerns tend to keep the dorms fully occupied.

Send inquiries to Jim Woodard, Copley News Service, P.O. Box 120190, San Diego, CA 92112-0190. Questions may be used in future columns; personal responses should not be expected.

Copyright 2007 Copley News Service

Visit Copley News Service at www.copleynews.com.

America's Wealthiest Suburbs

America's wealthiest suburbs: How top 100 counties ranked

Our latest study finds where the big money lives

Rank	County or Independent City	Wealth index	Per capita income	Annual Incomes    over $200,000	Living Below Poverty	Houses with 9 or more rooms	4 or more cars
1	Hunterdon County, N.J.	19.47	$44,133	15.00%	1.80%	22.10%	10.00%
2	Fairfax County, Va.	19.38	$46,499	15.20%	3.60%	26.90%	6.90%
3	Fairfield County (outside Bridgeport) CT	17.77	$50,692	17.40%	2.40%	20.60%	7.40%
4	Howard County, Md.	17.67	$41,512	11.50%	3.20%	29.10%	7.80%
5	Loudoun County, Va.	17.51	$40,380	11.50%	0.90%	30.40%	5.80%
6	Montgomery County, Md.	17.36	$43,073	12.90%	3.30%	24.10%	5.40%
7	Somerset County, N.J.	16.04	$43,407	13.60%	2.70%	20.20%	5.40%
8	Morris County, N.J.	15.98	$43,085	13.00%	2.40%	19.20%	6.10%
9	Marin County, Calif.	15.54	$49,145	14.40%	4.60%	6.90%	6.70%
10	Douglas County, Colo.	14.97	$39,917	9.60%	1.50%	28.80%	7.70%
11	Santa Clara County  (outside San Jose), Calif.	14.81	$43,836	13.50%	5.00%	6.10%	6.70%
12	Arlington County, Va.	14.46	$53,543	13.50%	5.40%	12.00%	2.40%
13	Davidson County  (outside Nashville), Tenn.	14.18	$55,787	17.50%	0.20%	25.60%	3.00%
14	Williamson County, Tenn.	13.99	$38,753	11.50%	3.80%	34.70%	8.00%
15	San Mateo County, Calif.	12.62	$40,051	11.40%	5.20%	5.40%	7.40%
16	Alexandria(independent city), Va.	12.21	$52,530	11.20%	2.60%	5.40%	0.90%
17	Nassau County, N.Y.	12.01	$37,932	11.50%	3.30%	14.10%	6.30%
18	Westchester County, N.Y.	12	$43,780	14.60%	4.60%	13.90%	3.50%
19	Chester County, Pa.	11.84	$37,236	10.90%	4.10%	21.80%	6.60%
20	Bergen County, N.J.	11.45	$39,316	10.50%	3.70%	12.80%	5.20%
25	Fayette County, Ga.	10.48	$33,081	6.00%	3.70%	27.90%	11.40%
37	Fulton County (outside Atlanta), Ga.	8.69	$37,226	10.30%	5.70%	23.50%	3.90%
49	Forsyth County, Ga.	7.43	$31,721	5.70%	4.20%	25.70%	7.10%
90	Cobb County, Ga.	2.94	$30,550	4.60%	6.60%	18.40%	6.00%
97	Cherokee County, Ga.	2.48	$30,171	4.00%	6.00%	20.90%	6.60%

bizjournals - November 5, 2007 by G. Scott Thomas

Georgia's Business Climate Ranked No. 2 in Nation

Georgia's business climate ranked No. 2 in nation

By MARILYN GEEWAX
The Atlanta Journal-Constitution
Published on: 11/02/07

Washington — In an annual comparison of each state's business climate, Georgia has come in at No. 2, moving up two notches from last year.

The rankings, released Thursday in Site Selection magazine, showed that the Southeast continues to dominate as the region most attractive to business leaders.

Magazine editor Mark Arend said the latest survey confirms the well-established pattern of moving factories and offices to the less-unionized South, he said. The most popular sites "tend to be right-to-work states," he said.

Also, Southern states "are the fastest-growing states, so they have a good supply of labor with the right skills," he said.

"And they have great logistical infrastructure, like state highways, ports and airports."

Moreover, the South has warmer weather, which many people prefer. "Quality of life factors in there," said the editor of the bimonthly magazine based in Norcross.

The magazine bases its annual rankings, released each November, on a survey of corporate real estate decision makers and data on projects announced or under construction.

The decision makers say their highest priority is the availability of workers with the right skills, Arend said. Second is the ease of permitting, and third is the level of state and local taxes. Other priorities include the availability of land and buildings at good prices and the quality of higher education, he said.

One state excels in all areas, he said. For the third straight year — and the sixth time in seven years — North Carolina topped the list.

Behind the Southeast, the Midwest is the No. 2 preferred region for new business sites.

Mortgage Rates Are Near Six-Month Low!

McLean, VA – Freddie Mac (NYSE:FRE) Thursday released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 6.26 percent with an average 0.4 point for the week ending November 1, 2007, down from last week when it averaged 6.33 percent.  Last year at this time, the 30-year FRM averaged 6.31 percent.  The 30-year FRM has not been this low since the week ending May 17, 2007, when it averaged 6.21 percent.

The 15-year FRM this week averaged 5.91 percent with an average 0.4 point, down from last week when it averaged 5.99 percent.  A year ago, the 15-year FRM averaged 6.02 percent.  The 15-year FRM has not been this low since the week ending May 10, 2007, when it averaged 5.87 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.98 percent this week, with an average 0.4 point, down from last week when it averaged 6.03 percent.  A year ago, the 5-year ARM averaged 6.05 percent.  The 5-year ARM has not been this low since the week ending May 17, 2007, when it averaged 5.92 percent.

More information may be found at http://www.freddiemac.com (Source: Freddie Mac)

166,000 New Jobs Created in October

The best job-creation number in six months hit the wires this morning.  Non-farm payrolls were reported at 166,000 for the month of October.  This is more than double market expectations of 80,000 new jobs.  The unemployment rate held steady at 4.7%.  Stocks opened higher, but have since retreated on poor earnings estimates and a down-grade of Merrill Lynch from the mortgage liquidity fall-out.  Bonds experienced some improvement throughout the day, so rates may be lower on Monday.  The reason is that even though more jobs were created than the market expected, the average wage increase was .2% instead of the .3% expectation, helping to calm fears of inflation.

Existing Home Sales and New Home Sales Come in Weaker

Existing home sales for September showed an unsold inventory of a 10/5 month supply and that the median home price dropped 4.2% year over year to $211,000.  The biggest problem areas were of course

California

and

Florida

.

Federal Reserve Cuts Federal Funds Rate to 4.5%

The Federal Reserve cut the key lending rate that banks lend to each other by .25% to 4.5%.  In their comments they noted that the risk of inflation was balanced with the risk of recession signaling that there are probably no further rate cuts in the near future.  The rate cut primarily affects credit cards and home equity lines of credit and sometimes has an adverse impact on mortgage bonds.

Commentary

With unemployment remaining at 4.7%, inflation remaining under 2%, and conforming mortgage rates close to 6-month lows, this is a great market for buyers, especially first time home buyers.  Unfortunately, the negative press is weighing heavily and keeping many folks on the fence.  While some forecast that the housing market recovery may take another year, if current economic conditions continue, we believe we should look for a recovery by the first part of next year.

New Home Sales Rebound in September

Thursday October 25, 10:37 am ET
By Martin Crutsinger, AP Economics Writer

Sales of New Homes Rebound in September After Hitting Slowest Pace in More Than a Decade

WASHINGTON (AP) -- Sales of new homes posted an unexpected gain in September although the improvement came after sales had fallen to the slowest pace in more than a decade.

The Commerce Department reported Thursday that sales of new homes rose by 4.8 percent last month to a seasonally adjusted annual rate of 770,000 units. That level of activity was still 23.3 percent below a year ago, indicating that housing remains in a steep downturn.

Analysts had been expecting sales would fall by 2.5 percent last month from an August sales pace that had originally been reported as 795,000 homes. However, that figure was revised sharply lower in the new report to show a sales rate of just 735,000 in August, the slowest sales pace in 11 years.

Meanwhile, orders for big-ticket manufactured goods dropped an unexpected 1.7 percent last month following an even bigger 5.3 percent plunge in August. The first back-to-back declines in factory orders in more than a year raised new worries about how much harm would be inflicted on the economy from a severe housing slump and credit crunch.

In a third report, the Labor Department said that the number of newly laid off workers filing claims for unemployment benefits fell by 8,000 last week to 331,000.

The report on home sales showed that the median new home price in September -- the point where half the homes sold for more and half for less -- rose to $238,000, up 2.5 percent from August, which had seen prices fall to the lowest level in nearly a year.

The rebound in home sales was led by a 37.7 percent surge in the West. Sales were also up 0.5 percent in the South. But sales of new homes fell by 19.5 percent in the Midwest and 6.6 percent in the Northeast.

The September drop in orders for durable goods reflected weakness in such areas as autos, fabricated metals, computers and electronics products, and electrical appliances.

That decline followed several other reports showing economic weakness, including continued steep slides in sales of existing homes and reports from banks and investment houses that they were having to take big write-offs due to losses in such areas as mortgage-backed securities.

Losses that began in investments on subprime mortgages, where delinquency rates are soaring, had caused a severe credit crunch in August as the market for many kinds of investments nearly dried up.

The concern is that if the economic disruptions become serious enough, they could drag down overall economic growth, which has already slowed under the impact of the steep downturn in housing.

Many analysts, however, believe the economy will still be able to avoid an outright recession because the Federal Reserve, which cut a key interest rate for the first time in four years, will keep cutting rates to stimulate economic growth. The Fed meets again next week.

In a new report released Thursday, the congressional Joint Economic Committee estimated that 2 million subprime mortgages could go into foreclosure over the next 18 months as initially low introductory rates reset at much higher levels. The JEC report said that states will lose $917 million in property tax revenue as housing values are depressed by the wave of foreclosures.

"State by state, the economic costs from the subprime debacle are shockingly high," Sen. Charles Schumer, chairman of the JEC said in a statement. "From New York to California, we are headed for billions in lost wealth, property values and tax revenues."

Schumer called on the Bush administration to more aggressively to help families find ways to avoid going into default on their home loans.

The report on durable goods showed that orders for transportation equipment fell by 6.3 percent last month after an even bigger 12.3 percent fall in August.

Demand for commercial aircraft did rebound, rising by 18.2 percent in September after a 40.2 percent plunge in August as demand picked up at aircraft-maker Boeing Co.

But orders for autos fell by 2.9 percent after an even bigger 8.2 percent drop in August, reflecting the continuing troubles for domestic automakers struggling with foreign competition and consumers' shift away from gas-guzzling vehicles.

Orders for military aircraft were also down a sharp 37.3 percent in September after having surged in August.

Excluding transportation, orders for durable goods would have risen by 0.3 percent following a 1.8 percent drop in orders outside of transportation in August.

How to Buy a Home with Absolutely No Money Down

"Now you can realize the dream of owning your own home with zero down payment."

The Zero Cash Down Payment Program offers you a way to buy a home with no down payment. That’s right zero down payment. You may have owned a home before and are presently renting, or are a first time homebuyer and need a way to break into the housing market but held back because you thought you required a substantial down payment. You may be in the position where you do not want to liquidate your financial assets to use as a down payment on a home. Regardless of your present situation, you want a way to get into or to reenter the housing market without having to make a cash down payment. The Zero Cash Down Payment Program may be just the answer you need. Here’s what is required to qualify for the Zero Cash Down Payment Program.

Program Qualifications

1. An excellent credit history

No recent history of bad debts

Consistent and timely payment of current liabilities

2. Limited liabilities

You will be required to disclose all current liabilities you have in order to determine how much more debt you can carry. (i.e., present car loan, credit cards, etc.)

3. At least 3 years of employment stability

You will be required to show proof of employment for the past 3 years, i.e., a letter of employment from your employer or financial statements for the past 3 years if self-employed.

4. The financial ability to carry larger monthly payments

Without a down payment you will be required to meet the obligation of larger mortgage payments. Your monthly payments could vary from a few to several hundred dollars more per month.

Under the Terms of the Program You Can Purchase Many Types of Properties

They include:

Detached or semidetached homes

Freehold town homes

Condominium town homes

It is important to note that not all properties qualify for the Zero Cash Down Payment Program. To ensure that you get an accurate picture of what properties may or may not be included in this program in your particular area, it is advisable that you review the terms of the program with your Realtor^®.

Benefits of the Zero Cash Down Payment Program

1. No Down payment

If you are renting, why pay your landlord’s mortgage? Why not reap the benefit of building your own equity? Are you renting because you are held back from owning your own home because you think you need a substantial down payment? The general perception of many would-be-homebuyers and even that of some Realtors^®. is that a substantial down payment is required in order to purchase a home. This is simply not true. Because of this perception many would-be-home-buyers feel they have to save for years before they have enough money for a down payment so that they can finally enter the housing market. In the meantime they are lining someone else’s pockets, while waiting a long time before they can start building their own equity. Well, with the Zero Cash Down Payment Program you don’t need a down payment to buy a home.

2. Buy a Home Now!

If needing a down payment is keeping you from owning your own home, this new program offers you an immediate way to get into the housing market. With the Zero Cash Down Payment Program you don’t have to wait to purchase a home.

3. Approved Bank Program

It is important to know that the Zero Cash Down Payment Program is an approved bank program. Review this program with your lender or Realtor^®. who has specialized knowledge in financing and can assist you with the Zero Cash Down Payment Program.

Coming next... The Long View

Windows of Opportunity

RISMEDIA, Oct. 9, 2007-The market facts tell us that-right now-there is a truly unique window of opportunity for well-informed buyers of residential real estate. As we look back historically, there have been previous “windows of opportunity” for buying real estate, stocks and other investments. How many times have we heard those familiar words, “I sure wish I had bought when ….?”

The problem is that for most consumers these windows of opportunity are easy to see historically but are often missed as they occur. People who make money in real estate do not just buy low - they buy the right property at the right price and in the right location for their specific needs.

Nationally, many pundits are saying that next spring is probably the right time to buy - and that is true in many parts of the country. The facts tell us that right now is the right time to buy the right real estate in Atlanta. There is an abundance of inventory, sellers are motivated, mortgage rates are low and long-term trends for future values are excellent.

National Market:

First let’s review the national market. We hear all over the media terms like “real estate recession” and “real estate bubble.” Yes, that does get attention - which sells advertising. That is how the media makes money. So let’s review some of the facts that will help you make money!

CNN Money reported on September 25th that “Home Sales Dropped for the 6th Consecutive Month to the Lowest Levels in 5 Years.” And that is true. However, the national market is largely the story of 7 states. California, Nevada, Arizona and Florida had huge run-ups in prices driven by speculators and flippers.

Those markets are now correcting, as they should. Midwestern states like Michigan, Ohio, and Indiana are suffering from population trends moving in the wrong direction.

Foreclosures have been increasing as adjustable mortgages and other “exotic loans” reset to higher payments. In October, we will see a peak in ARM adjustments for 2007. Another significant adjustment will occur in March of 2008. The result will be several million homeowners with substantially higher monthly payments. That means more foreclosures are likely ahead. The sub-prime crisis and some questionable lending practices have led to a serious restructuring of the mortgage industry. Fifty mortgage lenders have already closed their doors. This led to the recent Fed actions including pumping $38 billion of liquidity into the market, lowering the Fed funds rate twice by a half point, pushing legislation to allow the FHA to underwrite more mortgages and for more disclosure in the mortgage process.

More foreclosures will create more supply and even better opportunities for buyers.

Caution: Buying foreclosures is much more complicated than most realize.

New home construction is challenged. Builders were over-building in many markets and are now stuck with significant inventories. This is especially the case in the western states and Florida. Many of the large public companies in this segment are seeing their stocks tumble and shareholder lawsuits are growing. Homebuilders have stopped building spec homes in most markets until they finish moving their inventory. New homes supply is significantly dropping which means that the current overall supply will be absorbed faster than normal. That means that this buyers market will not last.

Atlanta Market:

So what does all this mean to Atlanta? Atlanta did not experience a big run-up in prices and has great prospects for the long-term trends that will positively affect home values. In the first half of 2007, the Atlanta real estate market was off slightly - running around 2004 to 2005 levels. Since June, there has been a significant drop. In August, Smart Numbers reports that closed sales were off 34.6%, which is the largest decline on record since 1996. Pended sales and units were off even more. Significant market declines create buying opportunities.

So what is causing this? There are multiple factors including:

Potential buyers that cannot sell their existing homes - especially those moving from other markets.

Potential buyers that can no longer qualify for the mortgage on the price of home they wanted to buy.

Potential buyers simply waiting on the sidelines trying to figure out - “when is right to get back in the market.” Much of this is caused by media-driven fear and consumer confidence is at an all-time low.

Historically, the Atlanta market has strong sales in the spring and early summer. The market starts to slow in July, August and September. In October, we typically see a noticeable jump and then the market slows again through the holidays. Mortgage rates have historically seen a similar pattern and we expect them to drop further later this year with increased Fed action. Smart Numbers reports that “days on the market” plus expired and withdrawn listings are at all-time highs. This signals that sellers have gone through the denial and anger stages and are now accepting the fact that they need to improve the competitiveness of their property to sell it.

That means that - right now - is a great time to buy the right real estate in Atlanta. Supply is high, sellers are willing to make deals and mortgage rates are historically low.

Home Values:

So what affects home values over time and what are the odds that your investment in real estate will pay off in the future? Home prices are generally driven by supply and demand, population and job growth, costs of new construction and mortgage rates. Atlanta currently has an overabundance of supply. Single family homes currently show over 13 months of supply. That said, new homes starts are significantly lower so the current excess supply is expected to be absorbed in the next 12- 18 months. This is why - listen to these trends on Atlanta.

Atlanta has an incredible future. Our economy is strong and diversified. We have an active and business-friendly government. Hartsfield-Jackson airport is an incredible asset, which allows passengers to reach more places in the world quicker than any other metropolitan area.

• Atlanta created 60,000 new jobs in 2006 - 3rd in the nation. (Bureau of Labor Statistics)

• Atlanta has the highest percentage increase of new millionaires - 1st in the nation. (Claritas)

• Atlanta is the #1 destination for young professionals. (Geolytics & U.S. Census)

• AARP rated Atlanta as the best city for baby boomers and seniors to live.

• In the last 6 years, Atlanta added more people than any metro in the nation. (Fortune)

• Fortune magazine says that Atlanta is expected to add 2 million more by 2020 - roughly the size of Denver

• The Census Bureau and Virginia Tech released a report that says that in the next 25 years, Atlanta will be the center of a “Megapolitan” cluster of over 7 million people.

Atlanta has been a national leader in housing starts for the past 10 years with over 70,000 new home starts in 2006. The costs of lumber, concrete, land, development and labor are expected to increase - causing the average cost per square foot of a home to rise. Housing starts in 2007 are considerably down and the forecasts for 2008 and 2009 are also lower.

Mortgage rates remain historically low. The recent fed cuts have not yet translated to long-term rates that help lower mortgage rates - but we expect rates to go lower for the remainder of the year.

Additional action by the Fed is likely.

CNN recently rated Atlanta as the leading large metro and the 4th city overall that is poised for a real estate “bounce back” in 2008 and 2009. Atlanta is a great place to buy “the right” real estate. That is why Donald Trump is building Trump Towers Atlanta. That is why many wealthy individuals are buying and investing here. They see the next wave coming and are smart enough to buy ahead of the wave when prices are lower. And we wonder how the wealthy get wealthier?

The Right Choice for Buyers:

Real estate investors make the highest returns by making the right choice in selecting an expert to advise them through the process. We have provided a perspective on the national market and the general Atlanta market. However, the submarkets locally can be very different. Areas of town, neighboring communities, homes on different streets or individual homes can have very different investment values. Donald Trump does not buy real estate by himself. He finds an expert, who knows their local market, is a great negotiator, knows real estate contracts, knows property valuations and delivers great client service.

The facts tell us that right now is the right time to buy “the right” real estate in Atlanta. There is an abundance of inventory, sellers are motivated, mortgage rates are historically low and the long-term trends for future values are excellent.

The Right Choice for Sellers: For sellers, this type of market requires a different approach. Buyers are comparison shoppers. When there are many opportunities, buyers only want to consider the best opportunities. They will not waste time on properties they perceive to be overpriced, in need of significant repairs or that require upgrades. In a buyer’s market, your value proposition must be clear and compelling.

Here are some keys to success in a buyer’s market.

First, your property must be found. Since over 80% of buyers search for properties on the Internet, your property must be exposed in all the right places online. Your listing agent should be exposing your listings on as many major national and local Web sites as possible. They should also be actively working the Realtors that do business in the area. Last, but not least, they should be targeting neighbors and other potential buyer segments directly.

Second, your property must be highly prioritized and distinctive. You must understand how the leading Web sites prioritize their listing searches. Most favor multiple photos, virtual tours, video and other rich media. Showcase, featured and branded listings on major Web sites such as Realtor.com are also very helpful. If your listing is buried deep in the search pages, it will never be found!

Third, your unique value proposition should be displayed in beautiful rich media so that consumers want to come see more. This requires high-quality images with impact text descriptions.

It is more important than ever to create a powerful value proposition that makes your property stand out. Print materials must also be beautiful and distinctive. Again, larger “rich media” images help make your property stand out. These require the use of higher quality pictures - not the same images that are used for Web sites. Otherwise, your brochures will only have very small pictures and they may still be grainy.

More and more sellers are realizing that the market has changed and they need to improve the competitiveness of their value proposition to sell their property. They understand that we are in a buyer’s market and their approach to selling their property must be different to attract buyers. They also realize that they will have the opportunity to take advantage of this market for their next purchase.  Especially for sellers that are moving up in price, they see the opportunity to make more profit on their next home. Some sellers may be tempted to take their property off the market and just wait. This is a risky strategy. We are very bullish on the long-term trends for Atlanta.

However, there are no guarantees that the market will turn back quickly. As homes mature, they require more repairs and may need significant upgrades to compete in the future. There are no guarantees that mortgage rates will remain as low as they are today. This is especially true with an upcoming election cycle. New home construction starts are likely to return to higher levels and may increase your competition.

Coming next... Before Disaster Strikes...

When Should Homebuyers Jump In?

Investors who time any market hope to buy at the nadir and sell at the zenith, but homebuyers have a trickier time knowing when to sit on the sidelines and when to jump in. The reason? There are several.

Buying a home is one of the largest financial investments a homebuyer will make. Transaction costs are expensive enough that homeowners remain in their homes approximately six years before trading up or down. As the recent buyer's market shows, homes aren't liquid, and may not find buyers at the price and in the time frame that sellers prefer.

On the other hand, homeownership provides significant benefits including property rights, tax benefits and other government subsidies including support for a mortgage lending market, quality of life, appreciation, and equity.

Since two factors move markets -- fear and greed -- it's easy for buyers to be overanxious to buy in a seller's market and reluctant in a buyer's market. In a seller's market, prices rise, sellers hold firm, inventories are short and days on market are short. In a buyer's market, buyers are fearful that home prices will either flatten or drop below what they paid, causing inventories to rise, days on market to increase, prices to drop, and sellers to sweeten deals.

If buyers pay attention to housing news, they can be discouraged: interest rates are near year-ago highs, builder confidence is down, and some predict that housing will drop in value for the first time since 1968.

So is it the time to buy?

Here are a few factors for you to consider:

According to a recent article, "When The Housing Rebound Comes," by George Mannes for Money Magazine, the time for buyers to jump in is when conditions improve. Mannes suggests that buyers look for four signposts: declining inventory (preferably under 6.5 months of inventory on hand); houses selling faster; Realtors opinions of local market conditions growing more favorable; and signs that sellers are less desperate, such as fewer incentives and homes selling closer to asking price.

For some buyers, the lesson that it's time to buy is a hard one. They may wait so long that the home they hoped would go down in price sells to someone else. They have to start their search over finding that the remaining homes don't compare to the "one that got away." They may wait for interest rates to drop, and find that they stubbornly stay at higher rates. They're knocked out of the neighborhood and price range they wanted to buy into and find themselves looking at homes with fewer features, less square footage, or more distance from work, family and friends.

When those scenarios happen, buyers learn that there's an opportunity cost for waiting.

If you're a buyer, you sadly realize that to get the home you want -- at both the price and interest rate you want -- will be nearly impossible. If you're lucky, you'll get two out of three. So, if you're waiting to see what other buyers are going to do, you'll soon find that once buyers move collectively, they will either drive prices down or drive them up. If prices are down, but likely to recover, do you really want to compete with other buyers on the way back up?

In other words, the price of feeling more comfortable about buying is inevitably paying higher prices and having less to choose from.

So here are some surefire ways to tell that it's really time to buy:

You found the home you really want.

It's affordable.

You can get a reasonable loan.

It will serve you and your family for years to come.

You're not looking for perfection. No home is perfect.

You've given up trying to beat the market.

You're comfortable with your compromises, whether it's location, size, price, features, or condition.

You're confident the home you chose is desirable enough that you will be able to sell it in any market.

Written by Blanche Evans

Coming next...  Avoiding 7 Costly Mistakes of Selling Your Home

Homeownership is Good for You

Buying a home has gotten tougher in recent years, and finding affordable housing is an even greater endeavor, but the struggle is worth the effort.

The National Housing Conference's Center For Housing Policy and Enterprise Community Partners, two housing advocacy groups, say more than just a roof over your head, homeownership with solid neighborhoods in the mix can enhance the lives of families and their children and improve their futures.

A group of reports, "Vital Links: Housing's Contributions to the Nation's Health and Education Objectives," makes the case for affordable housing by revealing its benefits.

In short, the reports say, homeownership is good for you in a number of ways, including:

Affordable housing is good for your health because it frees up family resources for nutritious food and health care expenditures. Families paying a large share of their income for housing are left with insufficient funds to meet other essential needs, including nutritious food and health care.

Residential stability provided by affordable housing reduces stress and related adverse health conditions. Homeless children are more vulnerable to mental health problems, developmental delays and depression than children who are housed. Frequent moves, living in doubled-up housing, eviction and foreclosure are also related to elevated stress levels, depression and hopelessness.

Homeownership also contributes to health improvements by fostering self-esteem, better physical and mental health, lower blood pressure and lower levels of depression and alcohol abuse.

Green building and transit-oriented development strategies can lower exposure to pollutants by improving the energy efficiency of homes and reducing reliance on personal vehicles. Forty percent of the nation's energy use is consumed in households and private transportation.

Some affordable housing strategies help families move to communities with stronger school systems and more education-supported environments. While frequent moves appear to have a negative impact on educational achievement, moves to better school systems (or to communities that offer stronger support for education) may have an independent positive impact on educational achievement.

Children who experience homelessness face numerous educational barriers, including difficulties accessing preschool and Head Start programs, as well as after school care and obtaining personal records necessary for enrollment. Homeless children are more likely than their low-income peers to drop out of school, repeat a grade, perform poorly on tests and in the classroom and suffer from learning disabilities and behavior problems.

Children of homeowners do better in school, up to 9 percent better in math scores, 7 percent better in reading achievement and 1 to 3 percent lower in behavioral problems, than those who live in rented homes. Children of homeowners also stay in school longer and have higher high school graduation rates than similarly aged children living in rented homes, the studies reveal.

Written by Broderick Perkins

Coming next... Selling your Home is a Slumping Market

Is Now a Good Time To Buy a House?

If your finances are solid and you can afford the home you want with a conventional mortgage -- and you're buying for long haul -- the time is right.

When shopping for homes where the market is weak, consider buying a newly built home. Homebuilders are hoping to lure buyers with discounts as much as 20% and other valuable incentives, such as granite countertops, luxury appliances and in-ground pools. The National Association of Home Builders reports that 56% of builders are offering financial incentives, up from about 45% a year ago.

There are markets where home prices continue to show steady growth, including Seattle, Atlanta and Dallas, according to Standard & Poor's. If you're shopping in these regions, you'll find the best values if you prove yourself to be a qualified buyer who can quickly close the deal. That means getting your mortgage pre-approved, where you have a written guarantee that you'll get the loan for the amount you need. Also it would help to avoid placing contingencies on the sale, such as the need to sell an old home before closing on the new one.

There are enough contingencies in the market right now without adding too many more.

Yahoo Real Estate 9/6/2007

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The Three Types Of Defects

During visits to various homes, you will see certain types of defects. These defect types are Cosmetic, Functional, and Fundamental. Understanding the differences in these defects will help you to make a wise homebuying decision.

1. Cosmetic defects are obvious to the naked eye such as faded paint, worn carpet, torn or unattractive wallpaper. These items are easy to correct for a finite amount of money. Even an old roof is a cosmetic defect since it can easily be corrected. Cosmetic defects can be advantageous as they may actually affect the price to a degree greater than their cost to correct.

2. Functional defects are defects of obsolescence. Older styled kitchens, dark paneling or cabinets, small bathrooms and obsolete floor plans are good examples of functional defects that can be corrected or improved, but at a higher cost.

3. Fundamental defects are the big problem. Things such as power lines, drainage detention ponds, busy streets, proximity to commercial development or undesirable nuisances are prime examples of fundamental defects, but there are others. We want you to avoid such things as steep driveways, the first or second house in the subdivision, backing up to a busy road, views of water towers or power line towers, corner lots and odd floor plans or elevations.

Remember to think RESALE before buying. Carefully consider defects in any home that you hope to buy. All of these items will negatively affect, to some degree, your own personal enjoyment of a home, how much it appreciates in value, and your ability to easily resell it at a later date. You will find that we will readily point these things out and discourage you from buying a home with severe defects that cannot be remedied. We want to find you a home that you will love for as long as it fits your needs and not discover these defects a few weeks after you move in. Eventually you will want to sell your home and we want you to be happy in your choice and in our service and call us to help you sell it.

Coming next... Remodel or Move?

Why Should You Have a Buyer's Agent

(Georgia state law prohibits Broker from representing Buyer as a client without first entering into a written agreement with Buyer under O.C.G.A § 10-6A-1 et. seq.)

In the not too distant past, a Buyer would go out and look at homes with an agent, find one that they liked and make an offer on it. At that point, they initialed a clause in the contract that disclosed to them (generally for the first time) that their agent actually worked for the Seller and owned his allegiance to the Seller, since the Seller pays the commission on the sale. This was upsetting to many Buyers since they had revealed a lot about themselves, their financial position and, most importantly, their negotiating strategy, only to find out that "their" agent was duty bound to get the best price and terms for the Seller, since the Seller paid their commission.

Ethical agents recognized the unfairness of this arrangement and began to offer Buyer Agency to their Buyers and would disclose to the Sellers that they had done so and would not be representing the Seller’s interests. In 1992, this procedure was codified in the Brokerage Relationships In Real Estate Transactions Act (BRRETA) and it has since become common practice for all Buyers to be represented by a Buyer’s Agent.

Buyer Agency does not cost the Buyer anything. RE/MAX Communities does not collect a retainer fee as some companies do and the real estate commission is still paid by the Seller. As Buyer’s Agents, we can represent you in the purchase of any kind of properties, including homes for sale by owner. In almost every case the Seller of a FSBO is willing to pay the sale side of the commission to an outside agent and this amount is already factored into their asking price.

Buyer Agency places certain requirements upon the Broker and his agents. Recent amendments to BRRETA mandate the execution of the Buyer Brokerage Agreement prior to a Broker/Agent acting on your behalf as a Buyer's Agent. This Brokerage Agreement can be broken at any time by either party and, while we are always dependent upon your loyalty, we feel that we can only earn your loyalty by providing outstanding service to you.

Coming next... The Three Types of Defects

Seven Questions Every Home Buyer Should Ask Before Selecting an Agent

1. What are your company’s resources

2. What is your company’s track record?

3. Do you have a systematic approach that includes lists and checklists?

4. Can you help me find and understand the best financing?

5. What is the agent’s role in this process?

6. What services will you provide during the home buying process?

7. Ask yourself, "Is this agent:

    a. Trustworthy?"

    b. Caring?"

    c. Committed?"

    d. Professional?"

Coming next... Why You Should Have a Buyer's Agent