Click here to read a copy of the article. In 2010, the State of Georgia General Assembly approved State Bill 346 which states that in 2011 all counties must send every property owner an annual Notice of Current Assessment, indicating property value. In addition, your property value cannot exceed the sale price if it was sold in the previous year. Counties must include any open-market sales including short sales and foreclosures for purposes of determining property values. If you would like to see a report on pre-foreclosures, foreclosures and bank-owned property sales in your local area, please contact me and I would be happy to provide this for you. Property owners will have 45 days to appeal an appraisal. Click here for an article that describes your options to pursue lowering your property tax bill.
If You Have Questions, Contact Me To Learn More!
When Will Home Values Rise Again?
So when will Metro Atlanta home values return to peak levels again? Our analysis predicts that by the 2015 - 2016 timeframe, our home values will return to the levels of 2007. The Case-Shiller Index reports that home values in Metro Atlanta are down around 21% from the peak of summer 2007. We expect values to remain flat for 2011 and 2012 due to large numbers of short sales and foreclosures. We predict that over 60% of total transactions in 2011 will be short sales and foreclosures. By 2013, we expect short sales and foreclosures to return to more normal levels. The new homes inventory will still be historically low. At the peak, we had 60,000 new home starts in Metro Atlanta. In the last 12 months, we saw less than 5,800 starts. The reality is that most homes are being sold below their replacement cost - so builders cannot consistently make a profit today. There are some "pockets of opportunity" for builders where they have secured lots at reduced rates and the competitive landscape is right. However, we do not expect to see a dramatic rise in new home starts between now and the 2013 timeframe. Therefore, we will have an undersupply of inventory beginning in 2013. For our analysis, we are assuming housing demands remains at the current levels. There is a reasonable argument that it may improve but we are trying to be conservative. So yes, 2013 will bring back a seller’s market and we will see a few years of abnormally high appreciation rates! The historical appreciation for Georgia has been around 4% so we predict a 7% appreciation rate in 2013, 2014 and possibly 2015. By the 2015 - 2016 timeframe, the new homes engines will start up again. We expect to get back to around 25,000 starts per year. Then, supply and demand will rebalance and we expect to see the normal 4% appreciation per year return. Of course, every local market is different so contact me to discuss your specific situation.
The key indicator to watch will be the pace of short sales and foreclosures entering the market during the next two years. If they enter the market too fast, we could see home value drop further. If they enter too slow, we could see flat home values for a longer period. We have reports that can show the numbers in your local area and help you make better real estate decisions.
Did you know that even move-down sellers should be active in this market? Even if you lose money on your current property, I can show the math which proves the benefit of selling now versus waiting for the value to return on your current home. This analysis considers the rising future prices, plus incremental carrying costs plus rising mortgage rates. The amount of money at stake is staggering!
Contact me to learn more or get an analysis of your specific situation.
Real Estate Magazine Highlights Prudential Georgia Realty
Real Estate magazine recently published an article about Dan Forsman (President and CEO) and the rise of Prudential Georgia Realty to become the market leader for Metro Atlanta, North Georgia, the Southern Crescent and West Georgia markets. The article provides some insight about Dan’s story - which is truly a classic American success story. It also describes how PGR has invested in an "advanced infrastructure of marketing, technology, information resources and agent support" that has been the key to our growth in market share over the past three years. Trendgraphix reports that PGR has the most transactions, represents the most buyers and has more listings than any other aggregate brokerage. Click here to read the entire article. Contact me to learn more about how we can help you make better real estate decisions.
Thank You.
I hope you found this newsletter informative. The real estate market is changing quickly. I have access to the latest market trends and proprietary informationthat is not available to the public.
If you are considering listing your property for the winter or spring market, contact me quickly. The market is changing fast right now and you need to have a winning marketing strategy based upon the most up-to-date market facts.
If you are interested in buying, I can help you find the right property. There are many new details to consider when looking at the options today. This is especially true for short sales, builder foreclosures, bank-owned properties and auction properties.
