The Low-down on Zillow (and other public search sites)

A recurring discussion in my line of work - with both clients, friends, and other agents - is Zillow and the infamous "Zestimate" that they have marketed so brilliantly to the public.  There was a great article written recently about just this, which delves into what this and other public real estate sites can offer you.  I can't begin to tell you how many times a client has emailed me about a home they saw for sale on one of the public sites, only to find out when I look in our MLS that it sold weeks ago.  Or even more common - the Zestimate they see online is a widely inaccurate estimate of their home's value.

Don't get me wrong - the public sites are a good tool for many things. They are a quick way for a consumer to find out what a home last sold for as well as community information regarding demographics, schools, and crime rates. However, they are not particularly great at doing what they claim they are made for, namely helping the public to search for a new home. That's what a Realtor is for!

A good Realtor can quickly set you up with a custom search site that pulls directly from the MLS and therefore is both accurate and up-to-date. Likwise, the only way to get an accurate idea of the value of your home is to have an experienced and knowledgeable agent create a Comparative Market Analysis for you, which is specific to your unique property. Plus we can also provide everything the public sites are decent at with regards to community info, sales history, and market trends.

So all of this is to say: if you would like information about your home's value or you are just interested in what your neighbor's home sold for, contact a Realtor! We are more than happy to help - it's our job, after all!

My Recent Sales

Here's a quick peek at some of the awesome homes I have sold recently. My listings have all sold in under 30 days in the last 6 months and most of them sold at or above list price!

East Cobb

Duluth

Marietta

Smyrna

Grant Park

Roswell

Marietta

Roswell

Roswell

Woodstock

Cabbagetown

Old Fourth Ward

Midtown

Buckhead

Roswell

Smyrna

Woodstock

Sandy Springs

Marietta

Alpharetta

Woodstock

Thanks to all my amazing clients for following my extensive list of instructions to get their homes ready to list.  =)   It is a testament to all their hard work that these homes sold as quickly and for as much money as they did!

5 Housing Trends That Will Dominate 2016

This year may have marked the best for housing since 2007, but the market will likely get even rosier in 2016, according to a recent real estate forecast by realtor.com®. One of the main drivers behind the brighter 2016 is the projection that employment will continue to grow, which will add to consumers’ wallets and allow them to purchase their first home or upgrade to a new one. Realtor.com® highlights the following housing predictions for 2016: 

1. ‘Normal’ is coming. Expect a healthy growth in home sales and prices – at a slower pace than in 2015. “This slowdown is not an indication of a problem—it’s just a return to normalcy,” writes Jonathan Smoke, realtor.com®’s chief economist. “We’ve lived through 15 years of truly abnormal trends, and after working off the devastating effects of the housing bust, we’re finally seeing signs of more normal conditions.” New construction and distressed sales are expected to return to more historical levels, and home prices are expected to follow at “more normal rates consistent with a more balanced market.”  

2. Generational buying trends shape up. Young adults’ presence on the housing market has been largely predicted for years, but 2016 may finally be the year they make a move in a larger way. Millennials represented nearly 2 billion sales in 2015 – one-third of home buyers. They are expected to continue to be a major buying pool in 2016 with the majority of buyers between ages 25 and 34 expected to be first-time home buyers next year. But two other generations will also have a big presence in 2016: financially recovering GenXers and older baby boomers who are entering retirement, realtor.com® notes. “Since most of these people are already homeowners, they’ll play a double role, boosting the market as both sellers and buyers,” Smoke notes. “Gen Xers are in their prime earning years and thus able to relocate to better neighborhoods for their families. Older boomers are approaching (or already in) retirement and seeking to downsize and lock in a lower cost of living.”  

3. New-home construction focuses more on affordability. Builders have been faced with higher land costs, limited labor, and concerns about the demand of the entry-level market. As such, they have shifted to constructing more higher-priced homes, which has caused new-home prices to rise significantly faster than existing-home prices. In 2016, they likely will shift to more affordable product to cater to the entry-level buyers. “We are already seeing a decline in new-home prices for new contracts signed this fall,” notes Smoke. “In addition, credit access is improving enough to make the first-time buyer segment more attractive to builders.”  

4. Higher mortgage rates. Mortgage rates will likely be volatile in 2016. But the recent move by the Federal Reserve to guide interest rates higher should push mortgage rates higher in the new year than the historical lows they have been at for years. The 30-year fixed-rate mortgage will likely end 2016 about 60 basis points higher than today’s level. “That level of increase is manageable, as consumers will have multiple tactics to mitigate some of that increase,” Smoke says. “However, higher rates will drive monthly payments higher, and, along with that, debt-to-income ratios will also go higher.” The markets with the highest home prices will see the effects from the higher rates the most.  

5. Rents to go up even higher. Rental costs are skyrocketing, and the costs are likely to only go up in the new year. More than 85 percent of the nation’s markets have rents that exceed 30 percent of the income of renting households. “Rents are accelerating at a more rapid pace than home prices, which are moderating,” Smoke says. “Because of this, it is more affordable to buy in more than three-quarters of the U.S. However, for the majority of renting households, buying is not a near-term option due to poor household credit scores, limited savings, and lack of documentable stable income of the kind necessary to qualify for a mortgage today.”

Been thinking of selling? Now is the time!

If you have considered selling in 2016, NOW is the time! With inventory levels at their lowest mark in over 10 years, listing your home for sale before the busy spring buying season will give you the most exposure to buyers and allow you to get the best price for your home.

The National Association of Realtors (NAR) just released their latest Existing Home Sales Report on Friday. Read more HERE. Contact me today to get a FREE Comparative Market Analysis of your home and decide if it makes sense to list!

Fed Authorizes First Rate Hike in 9 Years

Earlier this month, the Federal Reserve raised interest rates for the first time in nine years, ending a historic era of nearly 0% interest rates that began seven years ago today. As expected, the outcome of the Federal Open Market Committee's two-day meeting was an increase in the target range of the federal-funds rate by 25 basis points, to 0.25% to 0.50%. So what does this mean?

• The Fed’s recent .25% rate increase directly affects the Prime Rate, which is now up to 3.5%. Virtually all Home Equity Lines of Credit are tied to Prime, meaning HELOC payments will be higher in January.
• On a positive note, the Fed’s rate increase is pushing savings rates up. However, expect credit card rates to push up, too.

This change comes in the wake of months of rising house prices, an unemployment rate that has now fallen to pre-recession levels, and the strongest housing market we have seen in years. Even with the rate hike, interest rates are still historically low.

• According to Zillow Real Estate research, the breakeven point when buying a home becomes financially better than renting a home after only 1.9 years.
• Also, according to Zillow, the average income needed to support a rent payment is at the highest level ever, whereas the income needed to purchase a home is near an all-time low.

The FOMC forecast that the appropriate rate at the end of 2016 would be 1.375%, implying at least four rate hikes next year.

It anticipates that the economy would evolve in a way that warrants gradual rate hikes. Now that the Fed has made the first move, the pace of future rate hikes would become the focus of markets going forward.

It's been a busy year!

2015 has been a banner year! 

Here is just a quick glimpse of what I have been up to!

Roswell Country Club

Roswell

Marietta

Smyrna

West Midtown

Old Fourth Ward

downtown Decatur

Smyrna

Sandy Springs

Woodstock

Roswell

Indian Hills Country Club (East Cobb)

West Midtown

Berkeley Hills Country Club (Duluth)

East Atlanta

Norcross

Woodstock

Burckhead

Indian Hills Country Club (East Cobb)

Marietta

Horseshoe Bend Country Club (Roswell)

Brookhaven

My listings have been selling for over 99% of list price and in less than 20 days. 

Thinking of selling? I would love to help!  

Housing Showing Stable Pace in October

Great news! Housing indicators show ongoing strength as prices, housing starts, and future building permits continue to rise nationally. Georgia's statistics reflect the national trend. Housing indicators for Georgia for the month of October are as follows: 

• Median Prices rose 11% to $163,700       
• Average Prices rose 9% to $202,605       
• New Listings increased 4%
• Pending Sales increased 19%
• Closed Sales increased 9%  
• Inventory Levels increased 1.8% to 44,100   
• Months Supply of Homes for Sale decreased 5% to 5.7 months      
• Days on Market decreased 2.6% to 75 days
• Percent of Original Price Received decreased .5% to 93.9%     

It's a great time to sell! If you are considering a move, I would love to help!

5 Reasons to Sell Before Spring

I am a big proponent of not waiting until Spring to list your house, this year in particular due to the even more severe shortage of inventory than normal.  This article, from http://www.keepingcurrentmatters.com, explains why.

Many sellers feel that the spring is the best time to place their home on the market as buyer demand increases at that time of year. However, the fall and winter have their own advantages. Here are five reasons to sell now. 

Only Serious Buyers Are Out 

At this time of year, only those purchasers who are serious about buying a home will be in the marketplace. You and your family will not be bothered and inconvenienced by mere 'lookers'. The lookers are at the mall or online doing their holiday shopping. 

There Is Far Less Competition 

Housing supply always shrinks dramatically at this time of year. The choices for buyers will be limited. Don't wait until the spring when all the other potential sellers in your market will put their homes up for sale. 

The Process Will Be Quicker 

One of the biggest challenges of the 2013 housing market has been the length of time it takes from contract to closing. Banks have been inundated with both purchase and refinancing loan requests. Both of these will slow in the winter cutting timelines and the frustration these delays cause both buyers and sellers. 

There Will Never Be a Better Time to Move-Up 

If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by over 25% from now to 2018. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30 year housing expense with historically low interest rates right now. There is no guarantee rates will remain at these levels in years to come. 

It's Time to Move On with Your Life 

Look at the reason you decided to sell in the first place and decide whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?
You already know the answers to the questions we just asked. You have the power to take back control of the situation by pricing your home to guarantee it sells. The time has come for you and your family to move on and start living the life you desire. That is what is truly important.

Thanks to Kim Jones from Fidelity Bank for passing along this great article! 

Several sources predicting a continued rise in home prices!

The past 6 months have seen a real surge in the housing market.  I know I personally have been swamped, which is fantastic!  Inventory is incredibly low and homes are selling faster and for more money than I have seen in years.  Recently several national sources have come out with studies supporting what I have personally been seeing and predictions that this great market will continue. Great news!  If you have been considering selling your home, now is the time! Most of my listings since November have sold in less than a week and for at least 98% of the list price (if not OVER list price).  I would love to help yours do the same!

Check out these articles for more information about the improved housing market we are seeing:

Fannie Mae: Confidence in Home Price Gains Reaches Record Levels

Firm Forecasts 8% Increase in Prices, Decrease in Mortgage Rates

CoreLogic: Home Prices Post 12.1% Annual Gain in April

Buy vs. Rent: Why now is the time to buy!

Falling home prices have sent many would-be buyers to the sidelines. If all goes well, record low interest rates and rising rents may soon prompt some of them to take a second look at buying.

Unfortunately, that's a big "if," according to Paul Diggle, a housing economist at Capital Economics.

Much of the decision to buy a house still depends on your personal finances and preferences, your career or family life, or level of financial security.

But if you’re comparing just the cost of owning and renting, buying a house may soon be the better choice, according to Diggle.

Until recently, home ownership was no bargain compared to renting, according to his analysis. A 33 percent drop fall in home prices, a plunge in mortgage rates and 15 percent rise in rents since the housing crash has evened the scales. Today, the median monthly mortgage payment of about $700 has fallen to about the level of a median monthly rent check. If mortgage rates keep falling and rents keep rising, the equation will tip even further toward owning.

But that analysis doesn’t include the total cost of owning versus renting. A full accounting includes closing costs, maintenance, insurance and property taxes, tax savings from mortgage deductions, gains or losses from home equity, among other factors. Renters have to think about broker fees and future rent hikes. Both have to make assumptions about future trends in housing prices and rents.

When you take those factors into account — which Diggle has done with a homegrown “calculator” — someone who plans on staying put for seven years would come out ahead by about $9,000 if they bought a median-priced home rather than being a tenant in a median-priced rental. Diggle’s calculation assumes that rents keep rising by about 3 percent a year and that house prices stay flat in 2012 and 2013 and begin rising in 2014 at about 3 percent a year.

If house prices fall further, all bets are off, said Diggle. In that case, the renters come out ahead.

“At the moment, (that) downside scenario is more likely to materialize than the upside one,” he said.

Even if Diggle's calculator were to signal a “strong buy” for home ownership, he doesn’t expect that would spark a buyers' stampede. Most first-time buyers or households who lost a home to foreclosure don’t have the 20 percent down payment many lenders are insisting on. They may also have trouble getting a mortgage without a credit score of 700 or more — a higher bar than the 650 score that was the norm for the past two decades.

“A large share of the population has dropped out of the pool of potential buyers,” he said. “Given that the choice between owning and renting a home is a luxury than many Americans simply do not have, the fact that this does appear to be the time to buy will have only a minimal effect on actual sales. Accordingly, we expect only a modest housing recovery over the next few years."

- By John W. Schoen, Senior Producer, MSNBC