Brian Vanderhoff's North Fulton Real Estate Blog

We offer many different options and pricing to help you sell your home. 

Labels: Discounted listing, Home Sales, sell your home

Tightening inventory and declining distressed sales both have contributed to asking prices and sales prices rising in Forsyth County.

The lower inventory is driving buyer demand, especially for properties with updated features and finishes.

Despite some communities still dealing with the occasional short sale or foreclosure; the county as a whole is doing well.

February sales data is in and the number of single-family homes sold this February jumped 49 percent compared to February 2012.

Recent Bob Strader
Housing sales in North Atlanta take off, will prices follow?
2013-Mar-18
Homes in Roswell selling 37 percent faster
2013-Mar-11
Will water’s rise lift home sales on Lake Lanier?
2013-Mar-04
Home sellers: You’ve missed your first showing
2013-Feb-25
Does new residential development signal recovery or concern?
2013-Feb-18
More...
The average sales price for those homes leapt from $240,063 to $264,960. A whopping 10 percent increase over a year ago.

Although prices are showing strong gains, we still have a way to go before we return to peak-level values.

A comparison of home values in Forsyth County to their near peak levels shows prices are still down approximately 20 percent from their highs.

New construction inventories are positioned to climb over the coming summer which may prove to be a release valve for the low inventory and give re-sellers more competition. However, there are a couple of reasons why I think buyer demand is likely to remain strong.

First, companies are moving more people; the number of relocation buyers is increasing. Secondly, we will see the "boomerang" buyers. Those buyers who lost their home in a short sale or foreclosure during the housing bust. Those buyers will be re-entering the market, anxious to return to home ownership.

Labels: Foreclosed, foreclosed homes, foreclosed homes for sale, foreclosed properties, foreclosure, Foreclosures, foreclosures for sale, Forsyth, Forsyth County, Forysth, Home Sales

Now is definitely the time to be a homebuyer. Potential new homeowners have a lot of bargaining power in the current market, and can choose from a slew of different house types, including fixer uppers and move-in ready homes. Deciding which type of home makes the most sense for you depends on your temperament, remodeling know-how and move-in time frame, experts say.
“If you know what it will cost to fix up the house then you are in a wonderful position,” says David Lupberger, the home improvement expert for ServiceMagic. “Unfortunately, people underestimate the cost of the fix up.”
The housing meltdown flooded the market with foreclosed properties and a record number of short sales, which have created bargain prices, but many of the houses require a lot of updating and renovations. At the same time, there’s also a large inventory of move-in-ready houses.
“Most fixer uppers tend to be short sales and foreclosures,” says Doug Azarian, sales associate at Kinlin Grover Real Estate. “In foreclosures and short sales situations, the sellers don’t have the money to make the mortgage payment--let alone pay for maintenance.”
Before choosing whether to go with the fixer upper or a home that requires zero to little work, real estate experts advise considering your lifestyle and temperament. If you are working long hours, raising a family or have little spare time, a move-in ready home may be more ideal. But if you have the free time and the patience to deal with the stress associated with a renovation, a fixer up could be the way to go.
“If you enjoy working on homes and putting your unique stamp on them, or have the patience and budget to hire someone, a fixer-upper might be for you,” says Angie Hicks, founder of Angie’s List. “If you’re not handy, don’t like dealing with the minutia of a home improvement project, you should buy a move-in ready home – or one that doesn’t have major repair issues.”
When going the move-in ready route it’s imperative to ensure you’re not overpaying for the house. Buyers get swept up by updated kitchens, neutral wall colors and beautiful hardwood floors, but some upgrades aren’t worth the asking price. According to Lupberger, you have to know the market and the cost per square foot in a given neighborhood. Working with a knowledgeable realtor will ensure you aren’t over paying.
According to Hicks, most buyers are looking for turnkey homes or ones with fresh paint and bathrooms and kitchens that don’t need repairs because they don’t have the money to put into fixing up a home.
According to Azarian, when trying to find the ideal fixer-upper, location is everything. “If you buy in a better location at a discount and can be patient about fix ups, it’s worth it.” He lists new floors, kitchen and bath renovations and even roof replacement as repair worth doing if the price tag is low enough.
Calculating the cost of repairs is no easy task. Lupberger suggests adding 20% to your estimated costs because there are always unwanted surprises along the way. For example, if the house has lead paint or asbestos, expect to pay 30% to 40% more on the repairs, says Lupberger.
“There’s a lot of downside if you don’t know exactly what you are doing,” says Lupberger. If you have no home improvement skills, bring along someone that does to check out the house—including the foundation, heating and cooling systems, windows and the roof.
“Be aware of cosmetic or superficial fixes that a homeowner has made to get the house through the sale,” adds Hicks. She says hiring a home inspector is important because a good one can spot cover up or cosmetic fixes that won’t last long.
A home inspector “may cost you a few hundred dollars, but it will be money well spent, especially if a costly repair is revealed,” she says.

Labels: home fuyers, home inspections, Home Remodeling, Home Sales, homes

Homeowners are ready to make 2012 a banner year for remodeling and the latest cost-for-value research suggests that getting the most bang for every buck is more important than ever.
The Remodeling Market Index (RMI) hit a five-year high at the end of 2011, indicating that residential remodeling should continue to grow in 2012, according to panelists at a press conference at NAHB’s International Builders’ Show. After a slow start, home improvement spending is expected to trend up later this year, according to the Leading Indicator of Remodeling Activity (LIRA) released by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University. If this momentum continues to build during the second half of the year, remodeling activity is on course to end 2012 on a positive note.
However, consumers want to get the most for their money. A recent survey by Better Homes and Gardens released last week at the Home Builders Show found that consumers find it more important than ever to get the most value out of every dollar (61 percent in 2011, up from 56 percent in 2010), and will spend more time looking for bargains and deals in order to get the most value for their money (Up to 54 percent in 2011, from 52 percent in 2010).
Living space and the way it’s utilized also continues to be top of mind for consumers. In this latest survey, conducted in December 2011, consumers wished for a median square footage of 1,791 sq. feet, down from 1,846 sq. feet the year prior. There’s more attention given towards the aesthetic and function of a space, rather than the amount of space. They’re not as willing to invest in the bigger, but instead investing in what’s better. Affordability and efficiency - both in space and energy - rank topmost.
In terms of remodeling priorities for consumers, baths are outpacing kitchens. Bathroom remodeling stayed constant in 2011 and 2010 (31 percent) and kitchen remodeling was stable at 25 percent in 2011, compared to 24 percent in 2010.
Remodeling Magazine’s annual Cost vs. Value report for 2011-2012 found that the trend right now is replacement over remodeling-swapping out the old for the new rather than doing a total gut job, which can be much more costly. Exterior replacement projects-such as new garage doors and a new entry door-offer some of the best returns at resale, allowing home owners to recoup close to 70 percent or more of the costs of the project at times of resale.
The following are the top, mid-range projects from this year’s report, based on what home owners stand to recoup at time of resale:
1. Replacing the entry door to steel
Estimated cost: $1,238
Cost recouped at resale: 73 percent
2. Attic bedroom (converting unfinished attic space into a bedroom with bathroom and shower)
Estimated cost: $50,148
Cost recouped at resale: 72.5 percent
3. Minor kitchen remodel (including new cabinets and drawers, countertops, hardware, and appliances)
Estimated cost: $19,588
Cost recouped at resale: 72.1 percent
4. Garage door replacement
Estimated cost: $1,512
Cost recouped at resale: 71.9 percent
5. Deck addition (wood)
Estimated cost: $10,350
Cost recouped at resale: 70.1 percent
6. Siding replacement (vinyl)
Estimated cost: $11,729
Cost recouped at resale: 69.5 percent

Labels: Foreclosures, Home Remodeling, Home Sales, home sales report, home selling, Homeowners

It would be unrealistic to say that the real estate market is utterly rosy right now, but neither is it thorn-filled by any means. In fact, things are decidedly looking up: July got some good news, when the National Association of Realtors reported that pending home sales rose 5.2% from downwardly revised June levels, beating economists’ expectations. This is good news for both buyers and sellers.

While challenges still exist—for instance, getting the best price when selling, or securing financing when buying—there are some once-in-a-lifetime opportunities out there, and plenty of happy results can be had for both buyers and sellers. The key for both groups is to remain flexible, adaptable and diligent. To that end, here are some dos and don’ts for today’s buyers and sellers:

For Sellers:

DO’S
Be flexible. Often it’s the little things that push a buyer into the “yes” zone. If the buyer goes on and on about how much they love your icemaker, throw it in. If the closing has to be pushed ahead more than you expected, try to be as flexible as possible and pack the moving van a little quicker.

Clean up. One person’s prize doll collection is another person’s cluttered nightmare. Similarly, a living room filled with Beanie Babies could elicit a reaction of fear, rather than “Aw, how cute!” from a buyer. Put away any personal collections that not only cause clutter, but also make it hard for a buyer to see the home as his or hers, rather than yours.

DON’TS
Don’t be greedy. The market—not your emotions—dictates your home’s price. If comparables in the area, and several trusted real estate agents tell you your home is worth $400,000, you’re not fooling anyone by pricing it at $500,000—and you’re only doing yourself a disservice. Pricing it at market, even a little below, could generate a bidding war, and ultimately get you more money.

Don’t get personal. If you’re selling your house for a certain amount, and someone offers something much lower, don’t take this as a personal affront and refuse to counteroffer. Letting your emotions get in the way can potentially ruin the deal. What’s the harm in making a counteroffer?

Don’t procrastinate. In the current climate, you might be scared to try to sell your home, as you may have to face a lower selling price than you may have gotten before the recession. But remember, the house you buy might be even lower, commensurately. It’s all relative. So if you’re serious about selling, consider doing it now. Also, acting before the cold months come is a good idea, as the winter months are historically harder for home sales.

For Buyers:

DO’S
Get a home inspection. It’s important to hire a trusted home inspector to check out the house’s potential issues and problems. Don’t skip a home inspection because you’re afraid of what you might hear—many issues sound more serious than they actually are, and can be fixed easily. And if something deal-breakingly serious is turned up, as disappointing as that is, it can save years of heartache and financial outlay. Better to walk away from a clunker.

List your place before you look for another. If you’re truly serious about looking for a home, list your place first. In the current economy, banks want to make sales as uncomplicated as possible—and contingency sales, which can be very complicated, are often rejected.

Talk before you act. Don’t ever start a home search without a firm budget not only in mind, but literally written down. Mutually agree with yourself—or with your partner, if you’re buying with someone else—long before you start seriously searching. Going out of that zone because of a place you just “gotta have,” or are emotional about, could put you in dire financial straits later. You don’t want to buy a house that isn’t affordable for you, and then be worried about paying for dinner and a movie on Saturday night.

DON’TS
Don’t be a design snob. If someone’s enormous bathroom has wallpaper border containing frolicking kittens and pastel flowers, or a wall that’s a nuclear shade of green, we understand this can send you into style shock. But stand fast and ignore bad décor. Instead, try to envision the space raw. Besides, you can always redecorate once the home is yours.

Don’t make a silly offer. There’s nothing wrong with making an offer below asking price—it’s no secret that today, many homes are selling for under the asking price. But going 40% below the asking price may anger the seller. Some sellers, especially more emotional ones, won’t even bother counter offering an outrageously low offer. Feel free to make a deal—just don’t make an offer so low that you’ll be kicked off the table.

Labels: Forclosures, Foreclosed, foreclosed homes, foreclosed homes for sale, foreclosed land, foreclosed properties, foreclosure, Foreclosures, foreclosures for sale, Home Buyers, home buying, Home Sales, home selling, Homeowners, homes, homes sellers

Interested in a beautiful new home near Holcomb Bridge and Roswell? The Stonewyck community, with new homes by Sharp Residential, is in the perfect location for buyers searching for North Fulton County real estate. This intimate gated community of 18 homesites has homes priced from the $360,000s.

The newest floorplan in the community, The Stonewyck, is perfect for buyers looking for a spacious home with the newest design trends that is a real value. The Stonewyck has a massive two-story great room with fireplace, lined with a curved wall of windows to fill your home with natural light. There is an elegant guest suite adjacent to the gourmet kitchen with raised bartop counter, breakfast area, granite countertops and stainless steel appliances; and that’s just the lower level.

On the upper level, there are three bedrooms in addition to the luxurious owner’s suite, with a tray ceiling and large bathroom. There will be no fighting over closet space with his-and-hers closets. Many rooms in The Stonewyck floor plan have vaulted ceilings as well, which stem from the builder adding gables to the design of the home.

Residents of Stonewyck love its easy access to Ga. 400, North Fulton County location, and access to the amazing public schools the area offers. The Homeowners Association provides for lawn care, giving you maintenance-free living, to be able to enjoy other hobbies instead of yard work.

To visit the Stonewyck community by Sharp Residential, or for more details on the featured floor plan The Stonewyck, call Mike Barsky at (770) 752-0738 or visit www.sharpresidential.com.

Labels: Alpharetta, Fulton, Fulton County, Georgia, Home Buyers, home buying, Home Sales, home selling, homes, houses, milton business alliance, Milton City, North Fulton, Sharp Residential

Following a sharp drop in the months immediately after the expiration of the home buyer tax credit, pending home sales have modestly risen, according to the National Association of Realtors.
The Pending Home Sales Index, a forward-looking indicator, rose 5.2% to 79.4 based on contracts signed in July from a downwardly revised 75.5 in June, but remains 19.1% below July 2009 when it was 98.1. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.
Lawrence Yun, NAR chief economist, cautioned that there would be a long recovery process. “Home sales will remain soft in the months ahead, but improved affordability conditions should help with a recovery,” he said. “But the recovery looks to be a long process. Home buyers over the past year got a great deal, and buyers for the balance of this year have an edge over sellers. For those who bought at or near the peak several years ago, particularly in markets experiencing big bubbles, it may take over a decade to fully recover lost equity.”
Yun added, “Affordability could reach a generational high in the second half of this year because of rock-bottom mortgage interest rates, helped partly by the Fed’s very accommodative monetary policy. The loan underwriting standards are tighter, but home buyers can improve their chances of getting a loan by staying well within their budget.”
The PHSI in the Northeast rose 6.3% to 62.5 in July but is 21.1% below a year ago. In the Midwest the index increased 4.1% to 66.7 but remains 25.7% below July 2009. Pending home sales in the South rose 1.2% to an index of 86.3, but are 15.6% lower than a year ago. In the West the index jumped 11.6% to 95.0 but is 17.6% below July 2009.
The national index had fallen 29.9% in May and another 2.8% in June.

Labels: for sale, Forclosures, Foreclosed, foreclosed homes, foreclosed homes for sale, foreclosed land, foreclosed properties, foreclosure, Foreclosures, foreclosures for sale, Georgia homes, Home Buyers, home buying, Home Sales, home sales report, home selling, homes

Cobb County's home sales dropped more than 20.2 percent, while home prices in Cherokee County increased 2.1 percent

It's a buyer's market in Cobb.

Sales of new and used homes dropped more than 20.2 percent in Cobb County in 2007. Still, overall prices eked up 1.3 percent.

Sales of new homes in Cobb fell from 4,125 in 2006 to 3,090 last year, a 25.1 percent decline. Resales were down 18.5 percent in the same period, from 11,467 to 9,350.
Median prices of new homes in Cobb rose 4 percent, from $294,822 to $306,620, while resales fell 1.1 percent, from $188,000 to $186,000, according to data from SmartNumbers for the Atlanta Journal-Constitution's 2008 Home Sales Report.

In adjacent Cherokee County, new home sales dropped 27.1 percent, from 3,214 to 2,344 last year, and resales declined from 3,434 to 2,777, a 19.1 percent drop, according to the report. Median prices for new homes in fast-growing Cherokee rose from $244,950 to $250,000, or 2.1 percent, while resale prices edged up from $182,000 to $187,000, or 2.7 percent.

Total sales were down 21.2 percent in Fulton County, 16.3 percent in Forsyth and 29.6 percent in Gwinnett, according to the SmartNumbers data.

Every ZIP code in Cobb County except for two showed a drop in the number of sales from 2006 to 2007.

And three fourths of the ZIP code areas had lower sales numbers than in 2003.

Smyrna-Vinings, ZIP code 30339, fared best with a 22 percent increase in number of house sales. The total median price in that ZIP rose 57 percent from 2006 to 2007. In resales, fewer than half of Cobb's ZIPs saw a decrease, with 30106 showing the biggest drop, 6 percent, from 2006 to 2007.

Labels: Cherokee COunty, Cobb County, Home Sales

While last year's home sales fell 22 percent metrowide, Vinings' prices jumped up 57 percent.Hybrid cars are one answer to soaring gas prices. So what about a hybrid neighborhood? Could it be immune to housing's woes? Maybe so.

Every metro county last year saw declining residential sales, the AJC's annual Home Sales Report shows. And in about half the ZIP codes, the median price also tumbled.
But in ZIP 30339 in Cobb County, much of which is unincorporated Vinings, sales last year sizzled, the report says. Prices jumped 57 percent, and the number of units sold increased 21.5 percent.

That's remarkable considering that last year sales metrowide fell 22 percent and resale prices began their steady decline, which is now at 6.5 percent. The real estate research company SmartNumbers collected the local data from deeds.
No other locale in the 20-county report had across-the-board positives like 30339, home to 17,000 people at the junction of I-75 and I-285.

But what made Vinings shine?

Sue East, who with her husband Jeffrey and three children moved from Forsyth County to Vinings in April 2007, offered an answer: Vinings is the perfect blend of urban and suburban."You feel like you're in a small town, but you're in the hustle and bustle of the city," she said.

Vinings residents dangle their toes in the city instead of fully submerging, said Jackie Benson, a Vinings resident who chairs the Georgia chapter of the Congress for New Urbanism, a Chicago-based group that advocates building walkable communities.
"It's kind of a safe urbanism," Benson said. "It's a perceived security for people who were used to suburbia."

Vinings is an amalgam of families, young singles and retirees. Vintage split-level and ranch homes share quiet subdivision streets with McMansions. Condominiums and townhomes line busy thoroughfares. Nature and the built environment perform a delicate balancing act. New construction pays homage to the old.

"It's not been overdeveloped," said Shane Coldren, an asset manager and president of the Vinings Homeowners Association. "The character of Vinings has remained largely single-family homes on large lots."

Then there's the convenience. Nearby are job centers along I-75, Hartsfield-Jackson International Airport via I-285 and Buckhead across the Chattahoochee River. The private Lovett Academy, Westminster Schools and Pace Academy are all a short drive away, which is particularly important to Vinings' high-achieving, affluent households.

The estimated median household income for 30339 — $63,753 — is about 35 percent higher than Georgia's median income.Consciously or not, more home buyers are weighing travel time because of gas prices, which makes Vinings increasingly attractive, said Tom Walsh of Tunnell Spangler Walsh & Associates, a community-design and architectural firm.

"The future is sort of written on the wall," Walsh said. "Gas is going up, it's not going down."Vinings Jubilee, the town center of sorts, opened in 1986 with a faux historic look of wood and brick that harkens back to the community's 19th century origins as a burg for railroad employees. Its shops include Banana Republic and Ann Taylor. In the evening at Jubilee, friends gather on parking-lot patios at The Grape wine bar and Garrison's Broiler and Tap. Or they settle in across Paces Mill Road at Vinings Inn, a truly old building with a candle-lit bar upstairs and live acoustic music.

More than half of 30339's residents have never married, according to market research firm Claritas. Pre-school teacher and mother Connie Lide said Vinings is more relaxed than Buckhead, her former home. Bicyclists, a skateboarder and dog-walkers traversed a neighborhood road as Lide walked her "old, old" Boston terrier, Chippy.
"I just think everybody's friendlier," she said. Ron Sifen, past president of the Vinings Homeowners Association and a candidate for the Cobb County Commission, said organizations play a big part in Vinings life.

Vinings Civic Club, Vinings Rotary Club, Vinings Historical Society, Vinings Club, Vinings Friends and Vinings Women's Club are all active. The Easts moved to Vinings to be closer to institutions that matter to them — Trinity Presbyterian Church in northwest Atlanta and the Westminster Schools in Buckhead, which daughter Lauren attends.

They live in a six-bedroom, English country-style brick house whose construction Sue East oversaw. Their home is worth much more than $377,580, which SmartNumbers says was the median sales price last year in 30339. "I carried every piece of porcelain in my house in the back of my van," East said. "I hired and fired."

Paintings by a Montgomery artist of the three East children — Lauren, as well as Nicholas and Daniel — hang in a front room. They're wearing powder blue outfits; the backdrop is a formal flower garden. Residents tout Vinings' natural beauty. Ponds near the East home attract geese, bullfrogs and snapping turtles; their yard contains 27 rose bushes. Coyotes have been known to wander the community, snatching pets.

During a tour on roads that curved and undulated under a thick tree canopy, Debby Bolt, a real estate agent and 24-year resident of Vinings, told her passenger to watch for mountain laurel.On Polo Road, horses nibbled near $2 million homes and towering power lines. Industry and luxury live side by side in Vinings. "It doesn't matter here," Bolt said.

Signs alert residents to the presence of Colonial Pipeline, which transports gas underground from the Gulf of Mexico to New England.

CSX railroad is more obvious. Its trains cut through town 50 times a day, halting traffic on Paces Ferry Road.

That's an interruption Bolt doesn't mind. "The train's got a consistency to it. It just puts your whole day in perspective when you hear it," she said. "Do you want me to show you another lake before we head up the mountain?"

Vinings Mountain — officially Mount Wilkinson — rises about 1,000 feet. It's home to the glass office tower Overlook III and One Vinings Mountain, a 156-unit luxury condo building that opened in early 2007.

By year's end, One Vinings Mountain was 91 percent sold, said Alan Dean, senior managing director at Trammell Crow Residential. Homeowners wanting to downsize bought many of the units, he said.

That project alone was a big reason why new-home prices in the Vinings area soared 68 percent to $407,040 and new-home sales rose 22 percent. The average selling price of a One Vinings Mountain condo was approximately $600,000, Dean's figures show.

"High-priced units can sway the stats," UGA's Humphreys said.

The building's fitness amenities, its views of Atlanta's skyline and Kennesaw Mountain, and Cobb's school-tax exemption for residents 62 and older were big selling points.

Seniors Betty and Paul Smith took a different path, however. They upsized.
The Smiths moved to Vinings in 1973 when a three-quarter-acre lot could be had for less than $8,000. Now the cost is in the high six figures.Houses on their street were being demolished and replaced with residences twice as large. "We ended up looking like the guest house or cottage house on the street," Betty Smith said.

So they sold their split-level to a builder who razed it, and moved into an enormous new home around the corner. With acreage so valuable, tear-downs are occurring all over Vinings. The pace of development is "a huge, big deal in Vinings," Bolt said. The nearly-finished Vinings Main, which will have offices, retail and attached homes along Paces Ferry Road, is the kind of project that concerns some residents because of the traffic it will generate, she said. Yet, development hasn't reached the point where people are saying life has become too urban, let's move, Bolt said.

Labels: Home Sales, vingings

Sales of previously owned homes inched up in November but that didn't change the overall bleak picture for an ailing housing industry that has been suffering through a painful slump.

The National Association of Realtors reported Monday that sales of existing single-family homes, condominiums and townhouses rose 0.4 percent in November from October, to a seasonally adjusted annual rate of 5 million units. Over the last 12 months, however, existing home sales have plunged 20 percent, underscoring the troubles in the housing sector.

Economists were calling for sales to either move up slightly or hold steady for November.

Home prices continued to sink.

The median price of a home sold last month was $210,200. That marked a 3.3 percent drop from a year ago. It was the fifth biggest annual decline on record. The median price is where half sell for more and half sell for less.

Sales were mixed across different regions of the country.

Existing home sales jumped 10.3 percent in November from October in the West. They were flat in the Midwest. However, they fell by 2 percent in the South and by 3.3 percent in the Northeast.

The inventory of unsold homes in November was 4.27 million homes. At the current sales pace it would take 10.3 months to exhaust that overhang.

"Inventory is still high and further reduction in prices may be required in some areas to induce buyers back into the market," said the association's chief economist, Lawrence Yun.

A dip in 30-year mortgage rates in November probably helped give nationwide existing home sales the small boost last month, the association suggested. Yun thought the small increase could be taken as a sign that the market might be stabilizing. That said, previous signs of stabilization earlier in the year have been dashed. A credit crunch which took a turn for the worse in the summer has aggravated housing problems.

The housing market has been suffering through a severe slump following five years of record-breaking activity from 2001 through 2005. Sales turned weak as did home prices. The boom-to-bust situation has increased dangers to the economy as a whole and has been especially hard on some homeowners.

Foreclosures have soared to record highs and probably will keep rising. A drop in home prices left some people stuck with balances on their home mortgages that eclipsed the worth of their home. Other home buyers were clobbered as low introductory rates on their mortgages jumped to much higher rates, which they couldn't afford.

Problems in housing are expected to persist well into 2008 -- a major election year.

The housing and mortgage meltdowns have raised the odds that the country will fall into a recession. And, the situation has given Democrats and Republicans-- including those who want to be the next president -- plenty of opportunities to spread blame around.

The economy's growth is expected to have slowed sharply to a pace of just 1.5 percent or less in the final three months of this year. Former Federal Reserve Chairman Alan Greenspan recently warned that the economy is "getting close to stall speed." The big worry is that housing and credit troubles will force individuals to cut back on spending and businesses to cut back on hiring and capital investment, throwing the economy into a tailspin.

To help bolster the economy, the Federal Reserve has sliced a key interest rate three times this year. Its latest rate cut, on Dec. 11, dropped the Fed's key rate to 4.25 percent, a two-year low. Many economists are predicting the Fed will lower rates again when it meets in late January.

On Friday the government reported that new-home sales plunged by 9 percent in November to a pace of 647,000, the lowest in more than 12 years.

The new-home numbers are thought to give a more current account of the health of the housing market because they are recorded when a contract is signed. The existing home figures lag behind because they are based on contract closings, many of which reflect deals negotiated months earlier.

Labels: Alpharetta, Home Sales, homes sellers, Increased Home Sales, Johns Creek, milton, Roswell

WASHINGTON -- Sales of new homes posted an unexpected gain in September although the improvement came after sales had fallen to the slowest pace in more than a decade.

The Commerce Department reported Thursday that sales of new homes rose by 4.8 percent last month to a seasonally adjusted annual rate of 770,000 units. That level of activity was still 23.3 percent below a year ago, indicating that housing remains in a steep downturn.

Analysts had been expecting sales would fall by 2.5 percent last month from an August sales pace that had originally been reported as 795,000 homes. However, that figure was revised sharply lower in the new report to show a sales rate of just 735,000 in August, the slowest sales pace in 11 years.

Meanwhile, orders for big-ticket manufactured goods dropped an unexpected 1.7 percent last month following an even bigger 5.3 percent plunge in August. The first back-to-back declines in factory orders in more than a year raised new worries about how much harm would be inflicted on the economy from a severe housing slump and credit crunch.

In a third report, the Labor Department said that the number of newly laid off workers filing claims for unemployment benefits fell by 8,000 last week to 331,000.

The report on home sales showed that the median new home price in September -- the point where half the homes sold for more and half for less -- rose to $238,000, up 2.5 percent from August, which had seen prices fall to the lowest level in nearly a year.

The rebound in home sales was led by a 37.7 percent surge in the West. Sales were also up 0.5 percent in the South. But sales of new homes fell by 19.5 percent in the Midwest and 6.6 percent in the Northeast.

The September drop in orders for durable goods reflected weakness in such areas as autos, fabricated metals, computers and electronics products, and electrical appliances.

That decline followed several other reports showing economic weakness, including continued steep slides in sales of existing homes and reports from banks and investment houses that they were having to take big write-offs due to losses in such areas as mortgage-backed securities.

Losses that began in investments on subprime mortgages, where deliquency rates are soaring, had caused a severe credit crunch in August as the market for many kinds of investments nearly dried up.

The concern is that if the economic disruptions become serious enough, they could drag down overall economic growth, which has already slowed under the impact of the steep downturn in housing.

Many analysts, however, believe the economy will still be able to avoid an outright recession because the Federal Reserve, which cut a key interest rate for the first time in four years, will keep cutting rates to stimulate economic growth. The Fed meets again next week.

In a new report released Thursday, the congressional Joint Economic Committee estimated that 2 million subprime mortgages could go into foreclosure over the next 18 months as initially low introductory rates reset at much higher levels. The JEC report said that states will lose $917 million in property tax revenue as housing values are depressed by the wave of foreclosures.

"State by state, the economic costs from the subprime debacle are shockingly high," Sen. Charles Schumer, chairman of the JEC said in a statement. "From New York to California, we are headed for billions in lost wealth, property values and tax revenues."

Schumer called on the Bush administration to more more aggressively to help families find ways to avoid going into default on their home loans.

The report on durable goods showed that orders for transportation equipment fell by 6.3 percent last month after an even bigger 12.3 percent fall in August.

Demand for commercial aircraft did rebound, rising by 18.2 percent in September after a 40.2 percent plunge in August as demand picked up at aircraft-maker Boeing Co.

But orders for autos fell by 2.9 percent after an even bigger 8.2 percent drop in August, reflecting the continuing troubles for domestic automakers struggling with foreign competition and consumers' shift away from gas-guzzling vehicles.

Orders for military aircraft were also down a sharp 37.3 percent in September after having surged in August.

Excluding transportation, orders for durable goods would have risen by 0.3 percent following a 1.8 percent drop in orders outside of transportation in August.

Labels: Home Sales, New Homes, Real Estate