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Real Estate Market Update for Coweta, Fayette, and S. Fulton Counties

Good News and Bad News for Peachtree City, Fairburn and Newnan Area Home Sale Markets

Coweta County: Including Newnan, Sharpsburg, Senoia, Grantville, and Parts of Palmetto

Patience continues to be key for home sellers in Coweta County. There is no price range that is under 100 days on market (average) and the overall average market time for listings is 159 days. The strongest sales are in the $125,000 to $175,000 price range, and the weakest performing price range continues to be in the $1 million+ market, where the average days on market is as high as 323 days.

The good news is there is evidence that the tax credit is driving an increase in buyer traffic as is shown in the current number of pending sales. Remember, these should lead to a healthy increase in September and October closings. Pending sales are up by almost 7%.

Foreclosure activity had retracted during the period of January to June and remained static in July. However, August saw a 15.4% increase in the number of new foreclosure listings.

Ending on a positive note for Coweta County, it’s only a matter of time before FALLING INVENTORY levels—down about 25% over last year!--translate into higher sales prices.

Fayette County: Including Peachtree City, Tyrone, Brooks, and Fayetteville

Fayette County inventory levels were down almost 30% in August, continuing a trend of dwindling available homes for sale that keeps the market healthy in this area. While the average days on market is still higher than in years past (119 days average in general and as much as 404 days for the luxury market), the number of pending sales is up significantly. In fact, pending sales are up a full 1/3 over August of 2008, and that should generate a nice September for home buyers and sellers.

A lower number of foreclosures is helping keep inventory levels down. July had 16% fewer, and August had 34.5% fewer new foreclosure listings in Fayette County!

S. Fulton County: Including Union City, Fairburn, College Park, East Point, and parts of Palmetto

Wow! The number of listings under $100,000 is unbelievable—365—and the average days on market in this segment is a low 97. South Fulton County is one of the most affordable areas in the Atlanta metro, because the market correction in this area has come largely due to an exceptionally high foreclosure rate, making it really painful for area home sellers.

The good news in S. Fulton County is that area sales are SUPER HIGH and inventory levels have fallen overall. While the median price is only $90,000 here, the number of sales since January 1 is a staggering 1,528 (compare that to 700 in Coweta County and 708 in Fayette County) and there are 230 pending sales in the system. Almost half of the pending sales are within the under $100,000 segment, with the next strongest segment being the $100,000 to $124,000 range.

With almost every offer being met with competition here, I am seeing foreclosures in this area sell well over list price—as much as $20,000-$30,000 OVER the ask price on several occasions. So, if you find a property that you like in this area, and it’s listed at a price that is well under market, don’t delay!

Deadlines Loom for Home Buyers Who Want the Tax Credit

If you are thinking of taking advantage of the tax credits that are now available to first time home buyers (“first time” home buyers are buyers who’ve not owned a primary residence in the last 3 years), you’ll need to start watching the clock.

FEDERAL DEADLINE

To be eligible for the Federal Tax Credit of up to $8,000 (10% of the sales price up to $8,000), you must close on the property no later than December 1, 2009.

STATE DEADLINE

To be eligible for the State Tax Credit of $1,800 (given in $600 increments), you must close on the property no later than November 30, 2009.

NEW LOAN TIMEFRAMES

Facing new process guidelines, many lenders are now requesting 45 days to close a loan, especially if the loan is a government (think FHA, VA or USDA) loan. That would mean that you need to be UNDER CONTRACT to purchase your home no later than October 17, 2009. If you’re doing a conventional loan where a 30-day close is still available, your “under contract deadline” would be November 2, 2009.

Important things to bear in mind:

• Loan volume is at a staggering high and is anticipated to stay high as people are posturing to purchase in time to take advantage of the tax credit. Don’t wait until the last minute and expect your lender to perform miracles to meet the deadline!

• If you’re buying a foreclosure, the closing process will take about 7—10 days longer on average, since additional time has to be built in on the front end for the offer to be negotiated and accepted, and on the back end to accommodate the closing process.

• Remember, you still have to FIND the property and have your agent negotiate an offer. This can take anywhere from a day or two to a month or two. I’ve worked with buyers for as much as two YEARS before they found the right property.

So, make sure that if you are thinking of buying a house and are expecting the tax credit(s) to be a part of your purchase strategy, October 17th and November 2nd are important deadlines for you to remember if you’re getting a loan!

Note: Please see the menu tab labeld "$8,000 Tax Credit" for more details on eligibility for the federal and state tax credit incentives.

I wanted to share this important reminder on taking title as "Joint Tenants" from Jim Donaghue of Donaghue and Chandler Attorneys.  Pay attention:  Jim is offering a unique opportunity for Georgia property owners at the end of the article. 

I have recently been reminded how important it is for couples to hold title as joint tenants: a young couple with a small child bought a house, and the Warranty Deed did not vest title as joint tenants. The husband had an accident, leaving the wife with a small child. Because the Warranty Deed did not vest title in the couple as Joint Tenants, the wife found herself in a bind. She had to spend over $1000.00 plus costs to administer the husband's estate, and found herself owning the house jointly with her 3 year old child. She continues to find herself in a bind, since she had to get a court order to allow herself to either refinance or sell the property (since the child isn't legally competent to execute any title documents) at an additional legal expense, and additional time requirement. This situation will not be resolved until the child turns 18 (at which time the child could legally claim half the house!)

Another recent closing involved an older couple who bought a few years ago, and again title was held as tenants in common... In this case, the survivor paid over $2600 to probate the will to allow him to sell the property.

Please don't let this happen to any of your clients... this is too easy to remedy, and too expensive to leave to chance!

UNLESS one of the following statements is true, a married couple should hold title as joint tenants without exception:

A) A prenuptual agreement specifies property ownership rights
B) An in-depth, highly organized, estate plan calls for a different form of ownership (PLEASE NOTE: a Will, by itself, does NOT satisfy this requirement)
C) Both members of the couple have additional heirs that they want to share in the ownership of the property, and therefore decide (after due consideration) to take title as Tenants in Common... If this is the case, the couple should have wills drafted that reflect their intent.

If you are unsure how you hold title, take a look at the Warranty Deed you should have received in the mail following your purchase closing. If the vesting language (the Grantor language) does not specifically mention taking title as Joint Tenants, I highly recommend you take immediate action to protect your spouse from additional, unnecessary problems.

Additionally, if you have refinanced since you bought the house, and the loan was only in one spouse's name, title may be only in that spouses name. If you are unsure, please give us a call and we'll be happy to assist.

For properties located in Georgia, Donaghue & Chandler, LLC, will prepare and record a quit-claim deed vesting title in you as Joint Tenants, should you not be currently, for $50.00. Taking this step will save your surviving spouse a great deal of additional heartache in the event of an accident or illness.

CONTACT DONAGHUE AND CHANDLER at 678-902-4000 or visit them online at www.dandc-law.com