Cal-Culator - How Did 2015 End for the Atlanta Housing Industry?

How Did 2015 End for the Atlanta Housing Industry?

 The Atlanta housing industry ended the year on a more sluggish note than expected. The

Cal-Culator, Atlanta’s residential real estate index, remained stagnant at 6.9 for October and November, then took a slight dip to 6.8 in December. Tight inventory, home sales and a variety of other housing indicators were factors in the end-of-year decline. Although inventory was tight and the index was relatively flat, we did see a consumer, builder and Realtor shift to licensed service oriented mortgage providers.

 

On December 16, the Federal Reserve increased the Federal funds rate ¼ point for the first time in nearly a decade since the 2007-2009 financial crisis. Based on historical data in Georgia, the start of a tightening policy by the Federal Reserve, signals strong future mortgage growth for a defined period.
While the index holds true for the macro Georgia mortgage market, Southeast Mortgage posted a 99.3 percent growth in December compared to same period 2014.

Tight Inventory
According to Zillow’s November Market Report, the number of homes on the market fell 1.7 percent in November and 7.6 percent from the year prior, marking 10 months of year-over-year inventory declines. However, on a positive note, Atlanta experienced one of the biggest year-over-year inventory increases in the nation ­– a respectable 17 percent.

Home Sales
For the third time in the last quarter of 2015, pending home sales slightly declined due to increasing home prices and inventory, according to the National Association of Realtors. However, pending home sales in the South increased slightly by 1.3 percent in November.

“Home prices rising too sharply in several markets, mixed signs of an economy losing momentum and waning supply levels have acted as headwinds in recent months despite low mortgage rates and solid job gains,” said NAR Chief Economist Lawrence Yun. “While feedback from Realtors continues to suggest healthy levels of buyer interest, available listings that are move-in ready and in affordable price ranges remain hard to come by for many would-be buyers.”

RE/MAX’s National Report
RE/MAX’s December National Report, available for download here, revealed a number of stagnant factors about the housing industry:

• The average Days On Market for all homes sold was up three days, to 65 days, from RE/MAX’s national October average.
• The average number of home sales in 53 metro areas in November decreased 22.6 percent from October and was 1.4 percent lower than the previous year.
• The median sales price for all homes sold in November was down 5 percent from October, though this factor can help in housing affordability.

“Moderating prices help keep homeownership more affordable as we approach the end of a year that saw prices reach pre-recession levels in many markets. Even with anticipated rate hikes, mortgage rates are near historic lows, which also helps home affordability. Many home buyers find better availability and affordability in the winter months, before the traditional spring buying season starts,” said RE/MAX CEO Dave Linger.

Home Values           
Despite the dip, a bright spot at the end of last year was increased home values. Home values rose nationally 3.9 percent while many cities experienced double-digit growth, according to Zillow. Zillow also found the values of all U.S. homes grew $1.1 trillion, up 4.1 percent from 2014, though the year’s pace was slower than 2014.

The first Cal-Culator of 2016 will be released February 9, which will hopefully reveal a break in the sluggish performance.

http://leadership.saportareport.com/homemortgages/

www.southeastmortgage.com
770-279-0222
 

Final 2014 Cal-Culator

Atlanta Real Estate Celebrates Successful Year

Posted on December 8, 2014 by admin

     

With 2014 quickly coming to a close, a look back reveals we have a lot to celebrate.  The past year proved to be promising for the Atlanta real estate industry and the overall economy showing consistent traction toward recovery.  Since the beginning of 2014, the inventory crunch has eased, home prices have elevated, home sales increased, foreclosure levels continued to decline and rates remained historically low.

The November Cal-Culator

 

Despite an overall successful 2014, Atlanta’s real estate industry experienced a standard winter decline in the housing market with the Cal-Culator, Atlanta’s residential real estate index, dipping 0.1 to a 6.2.  Among the factors that contributed to the slight decline in the monthly index include a decline in pending home sales, decelerating home prices and a decline in developers’ sentiment.

Home Prices
The latest S&P/Case-Shiller Home Price Indices reflected that though 2014 has been an overall good year for home prices compared to 2013, the last few months have demonstrated decelerating price growth. The National Index reported a month-over-month decrease in home prices for the first time since November 2013.
While the 20-City Composite, where Atlanta is featured, posted a 0.1 percent decline, Atlanta reported a deeper decrease of 0.3 percent in month-over month numbers. However, Atlanta posted a 4.5 percent increase in 1-year change, one of the highest growths in the Southeast.

Home Sales  
Recent home sales reports indicate improvement in the industry compared to 2013, however the reports also indicate more recent decline. Pending home sales, a forward-looking indicator based on contract signings, declined in October, according to the latest report by the National Association of Realtors. While pending home sales decreased 1.1 percent month-to-month, pending home sales rose 2.2 percent compared to October 2013. The NAR reported that tight credit and a lack of wage growth are contributing to the decline.  “Demand is holding steady but would be more robust if it weren’t for lagging wage growth and tight credit conditions that continue to hamper those individuals looking for relief from rising rents,” said Lawrence Yun, NAR chief economist.

Developers’ Sentiment
The National Association of Home Builders’ Multifamily Production Index released its third quarter numbers in November. The index reached 54 – four points below the previous quarter’s reading. However, despite the four-point drop, the score reveals that more builders and developers reported an improvement in the housing industry over those who reported worsening of the industry.
Though the Atlanta residential real estate index experienced a slight decline in December, we have plenty of reasons to celebrate a successful 2014 and anticipate a promising year ahead.  Stay tuned – the first Cal-Culator of 2015 will be released January 13.
 

www.southeastmortgage.com
770-279-0222

What You Need to Know Before Buying Your First Home

What You Need to Know Before Buying Your First Home

Posted on May 27, 2014 by admin 

 

Last week, we introduced our two-part series about first-time homebuyers with “Are You Ready to Buy Your First Home?”, a look inside the factors that indicate if hopeful homebuyers are ready to make the plunge. This week, we discuss a few things that you need to know as a first-time homebuyer.

Shaun Graham, Vice President of Southeast Mortgage

 

Do I need to be pre-approved for a loan?
A “mortgage pre-approval” is a written statement from a lender indicating that the borrower will most likely qualify for a loan at a certain rate based on income and credit information. However, the pre-approval doesn’t guarantee the loan or the rate quoted.
Though the loan isn’t guaranteed, there are multiple reasons why you should obtain pre-approval. Sellers and Realtors are more likely to engage with someone that is seen as a credible buyer and stands out in a competitive market. The pre-approval will also offer you an idea of what kind of house you can truly afford given the rate.
If you aren’t able to secure pre-approval the first time around there are things you can do to secure approval in the future, including striving to improve your credit score, decreasing your debt-to-income ratio and working toward a more substantial down payment.

What should I take with me with when applying for a mortgage?
With 2014 being labeled as the “year of documentation” by HSH , consumers will need to be extra-prepared with their paperwork when applying for a mortgage. Even if you’re not a first-time homebuyer, the necessary documentation will be new to you if you haven’t applied for a mortgage in the past five years. To satisfy mortgage lenders you will need:

• Photo identification
• Tax returns from the last two years
• Two recent pay stubs
• Bank statements from the last two months
• Proof of homeowner’s insurance
• Rent or utility checks. First-time homebuyers will need to prove they have a history of making payments on time.
• Verification of position and salary
• List of credit card accounts and amount owed on each
• List of assets such as bonds or stocks

Other forms may be need to be provided on a case-by-case basis such as 1099 forms if you are self-employed, gift letters and a signed sales contract after making an offer on a residence.

 Do I need a Realtor?
Having a Realtor is an invaluable asset when shopping for a home as outlined in our previous column “Why Enlisting a Realtor’s Assistance is Still a Necessity for Buyers.” Contracts, often up to 50-pages long, and negotiations can be extremely tricky whether it’s a buyer’s first home or fifth home. Contrary to popular belief, Realtors are bound by to law to act in the buyer’s best interest, therefore, it is highly recommended to take advantage of a Realtor’s experience and guidance.
Though buying your first home can be overwhelming, a mortgage lender and Realtor can be extremely beneficial to help ease the process. In addition, many Realtors offer first-time homebuyers seminars and workshops, often for free.