Important News and Techniques for Today's Real Estate Market

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.