Home prices at 10 year low (Atlanta, Alpharetta: sales, foreclosure, rent)

[SW30303]

Originally Posted by samiwas1

*sigh* we really want to move into a larger house instead of our modest townhome, since we have a baby on the way. Plenty of savings, good income, etc. Sad to see so many great houses in great areas that we could easily afford. I wish we had gotten out when our houses were more than double the value they are now just three-four years ago).

Yet, we (along with many, many other people) are stuck with a way underwater mortgage. We can't refinance because the value is so low. As far as I can tell, 30318 was one of the harder hit zip codes in town. Without nearly draining our savings, we couldn't get out of this one. And that would leave us with nothing to purchase the next one. By the time this one goes back up to where we can get out, the other houses will most likely be out of our reach. I'm afraid we're stuck here.

Such a crappy situation for so many out there!

Very unfortunate. Same deal with me. Timing didn't work out for me either. Upside down pretty severely.

It is an opportunity for some others, however.

[mrpanda]

Sami,

I also bought a large home in Gwinnett at the peak of the market in June of 2006. As an amateur who knew nothing about Altanta real estate, I paid full price and the Korean real estate agent who maybe did 45 minutes of paper work on a property i found walked away with $16,000 commission. I still have a bad taste in my mouth when i think about this woman. I've probably lost about $150,000 on paper and luckily I had just enough equity in the home two years ago to refinance from 6.375% 30 year to 4.75%. I am also very lucky that I found a really good tenant who just renewed his 5th year lease. If it wasn't for this tenant, I probably would have lost this home to foreclosure.

To off set this $150k loss on paper, I purchased a new construction home in June 2011. I just closed on a refinance for a 3.875% 30 year no fee loan last Friday. To my suprise when i got an appraisal done on my current home the home appraised $57k higher than my purchase price back in June. Honestly, i was a little concerned that my home may have appraised lower than my purchase price. I guess the majority of Atlanta's real estate is going down, but there are some few pockets in Atlanta where i think real estate prices are starting to rise. I think some highly sought after areas like Milton and Peachtree City will start to rise first. Atlanta real estate as a whole still does not look very pretty, therefore you have to be very selective as a buyer today.

Originally Posted by SW30303

Very unfortunate. Same deal with me. Timing didn't work out for me either. Upside down pretty severely.

It is an opportunity for some others, however.

[tigerprint456]

Well that is good news for a prospective buyer. For a homeowner that is not good news but that really goes with location of house. All houses have not gone down in value in Atlanta, in fact many have gone up.

[bdawk]

Originally Posted by mrpanda

I guess the majority of Atlanta's real estate is going down, but there are some few pockets in Atlanta where i think real estate prices are starting to rise. I think some highly sought after areas like Milton and Peachtree City will start to rise first. Atlanta real estate as a whole still does not look very pretty, therefore you have to be very selective as a buyer today.

There is a lesson to be learned as to what property you buy and where.

I also recently had a positive experience. We live just inside he Milton boundaries. We bought our place in 2010 - at a high mortgage rate that was a bit high - they seemed to spike a bit just around that time point.

We just refinanced to get a lower rate and the appraisal came in at about 5% more that we paid for it in 2010.

[MovedfromFL]

Originally Posted by mrpanda

Sami,

I also bought a large home in Gwinnett at the peak of the market in June of 2006. As an amateur who knew nothing about Altanta real estate, I paid full price and the Korean real estate agent who maybe did 45 minutes of paper work on a property i found walked away with $16,000 commission. I still have a bad taste in my mouth when i think about this woman. I've probably lost about $150,000 on paper and luckily I had just enough equity in the home two years ago to refinance from 6.375% 30 year to 4.75%. I am also very lucky that I found a really good tenant who just renewed his 5th year lease. If it wasn't for this tenant, I probably would have lost this home to foreclosure.

To off set this $150k loss on paper, I purchased a new construction home in June 2011. I just closed on a refinance for a 3.875% 30 year no fee loan last Friday. To my suprise when i got an appraisal done on my current home the home appraised $57k higher than my purchase price back in June. Honestly, i was a little concerned that my home may have appraised lower than my purchase price. I guess the majority of Atlanta's real estate is going down, but there are some few pockets in Atlanta where i think real estate prices are starting to rise. I think some highly sought after areas like Milton and Peachtree City will start to rise first. Atlanta real estate as a whole still does not look very pretty, therefore you have to be very selective as a buyer today.

How were you able to get another mortgage when you already owned a place? Are banks just looking to see that you have a stable tenant in house #1 before they lend you money to buy house #2?

I'm looking at homes in both Orlando and north GA. (we used to live up there but moved back to FL) What I see in both areas is LOW inventory! This means it's a seller's market again, if the seller is able to sell at the market price now (ie not underwater from 2006)

The school zone is key - desireable areas with good schools are holding value now. In fact, in my area of FL, realtors say prices are UP 10% from a year ago. In GA, areas like Suwanee and John's Creek are desireable destinations for white collar professional families who transfer in.

I'm sure part of the reason for low inventory is that foreclosures are being held off the market until the court battle is sorted out (over robo-signing, MERS, title issues, etc). Once that is cleared, it will still take a long time to get these foreclosures to market in FL because we are a judicial state and the court system is backlogged. In GA, you are a non-judicial foreclosure state, so it can only take a few months for a foreclosure to happen (and get to market).

Most short-sales are under contract very quickly here too. Rental rates are sky high and mortgage interest rates are low, so people are being prodded to buy.

[FromGA]

Originally Posted by MovedfromFL

How were you able to get another mortgage when you already owned a place? Are banks just looking to see that you have a stable tenant in house #1 before they lend you money to buy house #2?

I'm looking at homes in both Orlando and north GA. (we used to live up there but moved back to FL) What I see in both areas is LOW inventory! This means it's a seller's market again, if the seller is able to sell at the market price now (ie not underwater from 2006)

The school zone is key - desireable areas with good schools are holding value now. In fact, in my area of FL, realtors say prices are UP 10% from a year ago. In GA, areas like Suwanee and John's Creek are desireable destinations for white collar professional families who transfer in.

You can easily check what a home sold for by using zillow, and selecting "Recently Sold" (yellow). No need to go by what the realtor told you. I dont think anything too grand is going on, and you can get a place even in Johns Creek at any price range you want.

There may be some specific attributes that may be showing appreciation (gated, golf comes to mind) where the supply is limited by how many ever gated, golf communities exist. But for the vast majority, even in desired zipcodes, it is still a buyer's market. In these zipcodes prices may have more or less stabilized, while prices in rest of the metro may be still falling.

I noticed a couple of days back new foreclosures / short sales even in the gated golf communities. Also, it is not what a house appraises for. It is what one (or similar house in the neighborhood) can get when the house is put on sale.

Originally Posted by MovedfromFL

I'm sure part of the reason for low inventory is that foreclosures are being held off the market until the court battle is sorted out (over robo-signing, MERS, title issues, etc). Once that is cleared, it will still take a long time to get these foreclosures to market in FL because we are a judicial state and the court system is backlogged. In GA, you are a non-judicial foreclosure state, so it can only take a few months for a foreclosure to happen (and get to market).

Most short-sales are under contract very quickly here too. Rental rates are sky high and mortgage interest rates are low, so people are being prodded to buy.

I think the court battle is already settled ($25B?) settlement, so it will be interesting to see how this affects any stability in the housing market. In 2009/2010, it was the federal home buyer incentive. In 2011, it was the moratorium. Perhaps end of 2012 will bring a true bottom.

[FromGA]

Buffett admits being ‘dead wrong’ on timing of housing recovery but remains optimistic overall - The Washington Post (http://www.washingtonpost.com/business/buffett-admits-being-dead-wrong-on-timing-of-housing-recovery-but-remains-optimistic-overall/2012/02/25/gIQA3GViZR_story.html?tid=pm_business_pop - broken link)

[adio]

off question......


is there a reason why the houses in ellenwood are so cheap (zip 30294)?????????

[FromGA]

From today's Case Schiller Home Price Index report -- it is for December 2011:

"After a prior three years of accelerated decline, the past two years has been a story of a housing market that is bottoming out but has not yet stabilized."

(this is for the national index, not looking at a specific metro)

[Peachcity]

People see this "housing decline" as a temporary bad thing, but in reality all the market is doing is going down to what houses given the supply SHOULD cost. It is sad if your home value has dropped but the bottom line is it was overpriced when you bought it. That's really the simplest way to put it.

Your home are going down ( or up in some cases) to the price they really should be. Don't expect to make a profit off it. Buy a home to LIVE in and hopefully one day not have to pay rent or mortgage anymore. That's is what a home is for. If you want to invest in something for returns do gold of stocks or something, but buy a house to live in and expect nothing else out of it but a roof over your head.