Strong December Cal-Culator Shows Promise for 2014

Strong December Cal-Culator Shows Promise for 2014

After a bitterly cold winter in Atlanta, both in temperature and in the housing industry, things are beginning to thaw. Last month, The Cal-Culator rose 0.1 to a 5.1, from October’s record low of 5.0. The December Cal-Culator jumps to a 5.5 and closes 2013 on a positive note.  Rising home prices, fewer distressed sales, increased inventory and rising number of home sales all contribute to Atlanta’s road to recovery into the New Year.

The December Cal-Culator

One of the defining characteristics of the Atlanta residential real estate market in 2013 was the housing inventory crunch. Luckily, the past few months have offered relief for hopeful homebuyers locally and nationally. The December Case-Shiller Index reported that listing inventory in Atlanta was up 21.4 percent from February 2012. The inventory of national homes for sale in November was up 5 percent from the previous year, the first year-over-year gain in inventory since early 2011, according to The Wall Street Journal.

“We saw an extended period of low inventory late last year and early in 2013. But the recent trend is rising and we appear headed for a more normal level of inventory for next spring,” reported Atlanta Real Estate Scoop. “Buyer activity remains strong led by baby boomers and first-time buyers.”

Home prices, an indicator of a strong housing industry, steadily increased in the last quarter of 2013. A Clear Capital Home Data Index Market Report indicated that national home prices rose from 10.9 percent from 2012 while Atlanta saw home prices rise 13.6 percent over the past year, as reported in the latest Case-Shiller Index.

The rise can partially be attributed to buyers holding out to sell their homes for more than their appraisal value and fewer foreclosures on the market, according to Atlanta INtown, “Market Watch: A real estate forecast for 2014.”  As home prices are rising, so are new home sales data.  The Commerce Department’s new-home sales reports for November reported that sales were up nearly 17 percent from November 2012, making it of the strongest months of new home sales since 2008. However, overall sales decreased ­­– but for a good reason!

“While existing and pending home sales have slipped in recent months, distressed sales – foreclosures and short sales – account for much of the drop,” said Jed Kolko, chief economist for Trulia. “The mix of sales continues to shift from distressed to non-distressed, which is a sign of market recovery.”

Construction starts for homes are also seeing double-digit gains. The U.S. Census Bureau reported that November saw a 20.8 percent increase, amounting to a seasonally adjusted annual rate of 727,000, for single-family homes from October.

Economists believe that these trends will likely carry over into the New Year as buyers are continuing to take advantage of historically low mortgage rates and home prices. Check back for the next Cal-Culator on Feb. 11 to see how 2014 is faring.

Happy New Year! 2014 should be a very good year....

Another new year is a few hours away.  We encourage everyone to never settle and make your hopes and dreams

for the new year a reality. 

With good friends and family your year is already on the right track.  Have a Very Happy New Year!

Exec Offices 5:00 pm toast to the end of a great year.

www.southeastmortgage.com

John David “J.D.” Crowe Promoted to President of Southeast Mortgage of Georgia, Inc.

Southeast Mortgage of Georgia, Inc., SEM, is pleased to announce that John David “J.D.” Crowe has been promoted to President of Southeast Mortgage of Georgia, Inc., SEM, effective January 1, 2014.

JD will be responsible for Licensed Mortgage Originator sales, maintaining SEM’s best in class service standards, and Secondary Operations.  JD will manage the three primary functions required to deliver exceptional mortgage services to our referral partners and clients.

JD is a proven high producing Licensed Mortgage Loan Originator who not only knows how to develop sustained Realtor and referral relationships he also fully understands Direct GSE Lender Operations.  Both skills developed in one individual is rare and a formidable leadership trait in the Mortgage Industry.

JD has owned his own mortgage operation, originated as a broker, originated as a correspondent, originated in a National Bank, and has originated mortgages at a Direct Non-Bank Lender.  JD has experienced all the avenues available to today’s mortgage originators which makes him uniquely qualified to leverage his knowledge of the various channels.

JD has been the Georgia Broker Association President twice with his final tenure responsible for coordinating the merge of the Broker Association with the Georgia Mortgage Bankers Association.  In 2014, JD will be the President of the Georgia Mortgage Bankers Association.

“JD has been a good friend and effective member of our Executive Group for the past 4 years.  He has proven himself as a well-rounded tenacious Executive that can abstractly think and engineer to a desired result.  I am confident as President JD will continue to adapt SEM to serve its Licensed MLOs, Clients, and Referral Partners with innovative strategies to ensure SEM accomplishes its mission to fill the mortgage service provider void in Georgia.”  Cal Haupt, Chief Executive Officer, Southeast Mortgage of Georgia, Inc.

Cal Haupt is the Chief Executive Officer at Southeast Mortgage of Georgia, Inc. with primary responsibility for Organizational Effectiveness, Overall Strategy, Finance / Accounting Oversight, and the long term direction of SEM.

Janice Shell is the Chief Operating Officer at Southeast Mortgage of Georgia, Inc. with primary responsibility for Risk Management and Production.

 

www.southeastmortgage.com

770-279-0222

2014 will be a year of evolution at Southeast Mortgage

Thank you all for the 20 years of great memories and the fulfilling challenge of growing the State's largest Non-bank Lender from one client.

2014 will be a year of evolution at Southeast Mortgage and exciting announcements that give our Mortgage Loan Originators and Referral Partners more resources and a WOW experience.

Left - Beverly Straka Lazar, Cal Haupt, Jan Shell

2014 Senior Officer Group

 

www.southeastmortgage.com

770-279-0222

We wish you and your family a safe and Happy Holiday!

 

www.southeastmortgage.com



 

Fed Taper Signals UP cycle in Real Estate Industry.. Go Economy

While many have made their lists and have checked them twice, my list has had only one item for 2013.  Please let the Fed Start the Taper.......  Today is the day!

Why?  Because a steeper yield curve is required to send the economy into the next phase of the recovery.  Call it Consumer Confidence, Higher Employment, Wealth Effect, Pent up demand; does not matter what label you use the correlation of all the labels creates the next expansion phase of the recovery.  History has proven this relationship over and over.  So buckle up for the next five years and lock em when you have an approval.

Consumers looking for a home don't worry about higher rates because rates, appreciation, and wages are all relative and generally rise together nullifying any dislocation in value.  Buying a home is one of the best investments you can make both financially and in your family.

Cal Haupt
Chief Executive Officer
Southeast Mortgage of Georgia, Inc.
www.southeastmortgage.com

The November Cal-Culator Offers a Bit of Relief for Atlanta Housing Industry

The annual winter slowdown in the residential real estate industry has officially struck Atlanta, but has had a lesser impact than past years. Last month, The Cal-Culator displayed the largest decline and the lowest number since its recent creation. The October Cal-Culator posted a 5.0, a 0.9-drop from the previous month due to the 16-day government shutdown and higher mortgage rates, among other factors.

The November Cal-Culator

The November Cal-Culator ranks a 5.1 due to a number of positive signs in mortgage rates and home prices, combined with multiple paralyzing housing industry factors such as home sales and home inventory.

After last month’s shattering drop, the latest National Association of Realtors’ quarterly report provided data that showed that the winter housing industry has been gaining steam from rising home prices. In the year’s third quarter, the median existing single-family home price increased in 88 percent of measured markets with 33 percent of areas reporting double-digit increases.

Unfortunately, the rise in home prices is a result of the housing crunch that is still plaguing many metropolitan areas, including Atlanta. Realtor.com’s Winter Home Buyer Report revealed that a quarter of winter buyers were still in the market because they were unable to find a home during the last home-buying season.

Though home prices rose, existing home sales fell for the second month in a row. The annual pace of existing home sales fell 3.2 percent to a seasonally adjusted annual rate of 5.12 million in October, down from 5.29 million in September, “Existing Home Sales Fall For 2nd Month In A Row In October, Prices Up As Inventory Stays Tight.”

“The erosion in buying power is dampening home sales,” said Lawrence Yun, chief economist with the NAR. “Moreover, low inventory is holding back sales while at the same time pushing up home prices in most of the country. More new home construction is needed to help relieve the inventory pressure and moderate price gains.”

In more positive news, mortgage rates have been edging lower this winter after a summer of higher rates. The average rate for a 30-year, fixed-rate loan continued to fall to 4.22 percent from the August high of 4.58 percent, according to mortgage buyer Freddie Mac. In comparison, the 30-year-loan averaged 3.34 percent in early 2013.

In November, Atlanta homeowners saw relief in underwater mortgages. The Atlanta Journal Constitution reported that fewer metro Atlanta homeowners owed more on their homes than the properties were worth. The third quarter posted 38 percent of metro homeowners were dealing with negative equity, compared to 44 percent in the second quarter.

Despite the improvements, metro Atlanta still ranks second in the nation among large metropolitan areas (behind Las Vegas) with the highest negative equity rates, reported the Atlanta newspaper. Housing recovery is strongest in Cobb, North Fulton, Cherokee, Forsyth and Gwinnett counties.
The next Cal-Culator will be released Jan. 7 and will hopefully start off 2014 in a positive direction.