Karen's Real Estate News & Notes

August 2011 News & Notes

2011-08-02T10:38:00.000-07:00

Hope you enjoy my August Newsletter:

http://www.sharperagent.com/links/91F95B35

July 2011 News & Notes

2011-07-01T07:27:00.000-07:00

Hope you enjoy my July Newsletter! A direct link can be found below:

http://www.sharperagent.com/links/97182AF9

March 2011 News & Notes

2011-03-02T06:49:00.001-08:00

Hot off the presses - my March newsletter!! For a more readable format click on the images below and enjoy!!

Quiet Listing - Golf Course Views at a Low Price!

2011-02-10T07:01:00.001-08:00

This 3 bedroom/2 bath condo is on the top floor with gorgeous golf course views! It is officially hitting the market on March 1st - Get in before the general public finds out!!

More photos and information available upon request. Click on the flyer for a larger image:

February 2011 News & Notes

2011-02-02T07:20:00.000-08:00

Below is my February Newsletter with information on throwing a Superbowl Party and links about the St Philips Antique Show and How Much Home You Can Really Afford. Click on the image for an expanded view and enjoy!!

Come See What Lockridge Forest is All About!!

2011-01-21T06:17:00.001-08:00

I'll be at Vic Ar until 5pm - come by and see me!!

November 2010 News & Notes Newsletter

2010-11-01T13:13:00.000-07:00

Hope you enjoy my November newsletter! For a larger, more readable, format- click on the image and it will expand! If you want to start receiving the newsletter directly to your inbox, shoot me an email at karenanderson@dorseyalston.com

September 2010 News & Notes

2010-09-03T11:33:00.000-07:00

Hope you enjoy my newsletter! For a larger view, click on the image:

August 2010 News & Notes

2010-08-03T17:22:00.001-07:00

Hope you enjoy my August newsletter! For a more readable link, click on the photo for a larger image:

Clermont Hotel up for sale - Atlanta Business Chronicle

2010-07-06T12:15:00.000-07:00

Anyone in the market? :)

Clermont Hotel up for sale - Atlanta Business Chronicle

New Construction in Smyrna Significantly Reduced!

2010-06-15T10:57:00.000-07:00

Just announced, my builder is dropping the prices on his new construction home's in Smyrna by up to $130,000!! Walk to shops, restaurants, the spa, Starbucks, a children's park, The Silver Comet, etc. Click on the photo for a larger image and contact me for more details:

June 2010 News & Notes

2010-06-01T11:16:00.000-07:00

Hope you enjoy my June Newsletter!!! For a larger view, click on the image and it will expand:

Best Places for New Grads to Live and Work

2010-05-07T11:26:00.000-07:00

Check out the number one place for new college graduates to move! But who wants to rent when it's so cost affective to BUY! Graduates need some write-offs to help with those new salaries...

Best Places for New Grads to Live and Work

Apartments.com and CareerRookie.com, CareerBuilder’s college job search site, have identified the 10 best cities for recent college graduates to both find a job and an affordable apartment.

The list was compiled by identifying the top U.S. cities with the highest concentration of young adults, the largest inventory of jobs requiring less than one year of experience, and the most apartments affordable on a median new graduate’s salary.

Here’s the list of selected cities and the cost of renting a one-bedroom apartment.

1. Atlanta, $723
2. Phoenix, $669
3. Denver, $779
4. Dallas, $740
5. Boston, $1,275
6. Philadelphia, $938
7. New York, $1,366
8. Cincinnati, $613
9. Baltimore, $1,041
10. Los Angeles, $1,319

Source: CareerRookie.com and Apartments.com (05/05/2010)

Mortgage rates at six-week low

2010-05-06T12:53:00.000-07:00

Great time to buy a place, give me a call!!

ATLANTA BUSINESS CHRONICLE - BY Jeff Clabaugh

Long-term mortgage rates fell to a six-week low and adjustable rate mortgages also eased, according to Freddie Mac’s weekly rate report.

A 30-year fixed-rate mortgage averaged 5 percent in the week ending May 6, down from 5.06 percent last week. A year ago, 30-year mortgages were averaging 4.84 percent, said Freddie Mac, which has a regional office in Atlanta.

One-year adjustable rate mortgages fell to 4.07 percent, while some hybrid adjustable rate mortgages fell to an all-time low.
“Treasury bond and note yields declined this week, and rates on fixed-rate mortgages and hybrid ARMS followed suit,” said Freddie Mac (NYSE: FRE) chief economist Frank Nothaft. “Rates for both the 30-year and 15-year fixed-rate mortgages were the lowest in six weeks [and] initial rates on 5/1 hybrid ARMs hit an all-time low [of 3.97 percent] since they were added to the survey in the beginning of 2005.”

Earlier this week, the National Association of Realtors reported pending sales of existing homes rose for the second consecutive month in March. Three of the nation’s four census regions showed an increase in sales

May 2010 News & Notes

2010-05-04T07:31:00.001-07:00

Hope you enjoy my newest newsletter! What free activities are happening at Piedmont Park this month? New homeowners, do you have the tools you need? And finally, some great news in residential real estate! Click on the page you want to read for an enlarged, readable image:

Wednesday, April 14th Wine and Cheese Event

2010-04-13T12:31:00.000-07:00

Realtors - come to our wine and cheese tomorrow night and preview three gorgeous new homes! We will be having a $300 drawing at the end of the night AND there is a $10,000 bonus to the agent that sells one of these homes!! Click on the photo for more details!

April 2010 News & Notes

2010-04-03T13:20:00.000-07:00

Hope you enjoy my April Newsletter! Click on the picture for a larger, more reader friendly image!

Mortgage rates back below 5%

2010-02-13T11:16:00.000-08:00

Atlanta Business Chronicle by Jeff Clabaugh

Long-term mortgage rates are back below 5 percent, according to Freddie Mac’s (NYSE: FRE) weekly rate report.

The average rate on a 30-year fixed-rate mortgage fell to 4.97 percent in the week ending Feb. 11, down from 5.01 percent last week. A year ago, 30-year mortgages were averaging 5.16 percent, said Freddie Mac, which has a regional office in Atlanta.

It is the third week this year that long-term mortgage rates have dropped below 5 percent.
Low rates are attracting more existing homeowners than buyers.

Since the beginning of 2010, two out of three mortgage applications have been to refinance an existing mortgage, according to the Mortgage Bankers Association.

Low rates are also helping to boost sales. The National Association of Realtors Thursday reported that sales of existing homes rose by 14 percent in the fourth quarter.

February 2010 News & Notes

2010-02-01T17:45:00.000-08:00

Take a moment and check out my February newsletter! For a larger view click on the page:

Need a Pet Portrait?

2010-01-11T11:15:00.000-08:00

My sister has started marketing her pet portrait business. She has an undergraduate degree in Art and Film Editing and a Masters of Fine Arts. And her portraits are very, very life like!

January 2010 News & Notes

2010-01-04T17:11:00.000-08:00

My January 2010 Newsletter is now posted! Click on the image to expand the view to a readable format! Hope you enjoy...

December 2009 News & Notes

2009-12-02T08:33:00.000-08:00

In order to enlarge the image please click within the link. Enjoy my December newsletter, let me know what you think!

November 2009 Newsletter

2009-11-02T09:43:00.001-08:00

To read, click on the page and it will expand to a larger size!

October 2009 News & Notes

2009-09-30T10:27:00.000-07:00

To read the newsletter, click on the page and it will expand to full size! Happy Reading!

Pending Home Sales Increase Nearly 7 Percent

2009-06-05T10:59:00.000-07:00

The Pending Home Sales Index , a forward-looking indicator based on contracts signed in April, rose 6.7 percent to 90.3 from a reading of 84.6 in March, and is 3.2 percent above April 2008 when it was 87.5.

Lawrence Yun , NAR chief economist, says buyers are responding to very favorable market conditions.

“Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market,” he says. “Since first-time buyers must finalize their purchase by November 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers.”

Geographical Breakdown

Northeast: The Pending Home Sales Index shot up 32.6 percent to 78.9 in April and is 0.8 percent above a year ago.
Midwest: The index rose 9.8 percent to 90.4 and is 11.1 percent above April 2008.
South: The index slipped 0.2 percent to 93 in April but is 3.5 percent higher than a year ago.
West: The index rose 1.8 percent to 94.8 but is 2.9 percent below April 2008. NAR President

Charles McMillan says there are numerous buyer assistance programs around the country.

“Some states are offering bridge loans that allow first-time buyers to use the tax credit for downpayment and closing costs, but there are many other local government and nonprofit programs available to buyers, depending on location,” McMillan says.

Last week, HUD announced that qualifying buyers can use the tax credit for closing costs on FHA loans, to buy down the interest rate or make a larger down payment.

Affordable Housing

NAR’s Housing Affordability Index is in record territory. The affordability index rose to 174.8 in April from an upwardly revised 171.9 in March, which makes it the second-highest monthly reading on record after peaking at 176.9 in January of this year.

The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income.

A median-income family, earning $60,900, could afford a home costing $296,800 in April with a 20 percent down payment, assuming 25 percent of gross income is devoted to mortgage principal and interest.

Affordability conditions for first-time buyers with the same income and small down payments are roughly 80 percent of that amount. The affordable price was well above the median existing single-family home price in April, which was $169,800.

Pending vs. Existing Sales

Yun cautions that the reporting sample for pending home sales is smaller than that of existing-home sales, so it is subject to greater variability.

“In addition, the relationship between contracts on pending home sales and closings on existing-home sales is taking longer than in the past for several reasons,” he says. “Mortgage processing time has increased, it is taking many months to close on those homes requiring short sales with lender approval, and some sales are falling through at the last moment.”

The total number of existing-home sales is expected to improve but with dramatic local market variation in the timing of recovery. “The market has already bottomed in some areas, but this is an unusual housing cycle with some areas improving rapidly while others languish or decline,” Yun says.

Existing-home sales for May will be released June 23. The next Pending Home Sales Index will be on July 1.

Source: NAR (06/02/09)

Another Sign the Economy is Coming Back

2009-05-21T12:58:00.000-07:00

Great news came out today!! Here is what the Atlanta Business Chronicle had to say about it:

The Conference Board's Index of Leading Economic Indicators rose this month, the latest sign that an economic recovery may be around the corner.

The LEI, which gauges economic activity in the next three to six months, advanced 1 percent in May, the biggest monthly gain in more than three and a half years. It follows a 0.2 percent decline in April.

May's LEI gain was the first increase in seven months.

Stock prices, interest rates and rising orders for manufacturers were among things that contributed to the increase, according to the Conference Board.

Earlier this week, a report showed confidence among U.S. Homebuilders rose this month.
University of Michigan's Consumer Sentiment Index also rose more than expected this month.
The last two consumer confidence reports from the Conference Board also rose. It will report May confidence at the end of the month, and it is forecast to post its third consecutive increase.

Big Improvement to First Time Home Buyer Tax Credit

2009-05-15T20:37:00.000-07:00

BIG NEWS BIG NEWS!!

Daily Real Estate News May 12, 2009

Big Improvement to First-Time Buyer Tax Credit Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday said that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment.

Previously, most buyers wouldn't receive the funds until after they filed their tax return, and that deterred some people from using the credit. The NATIONAL ASSOCIATION OF REALTORS® has been calling for the change.

“We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Donovan says. His remarks came in an address to several thousand REALTORS® gathered Tuesday morning at "The Real Estate Summit: Advancing the U.S. Economy," at the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo in Washington, D.C..

He says FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.

Call me and let's have this credit work for you at the closing table!!

Atlanta is Named as a Top Destination for Movers

2009-05-06T12:29:00.000-07:00

Looks like Atlanta has held on to the top spot as a destination city for the second year in a row! I've always considered Atlanta the place for young professionals because of jobs, weather, activities and transportation. Additionally, when I think of moving by U-Haul, I think of my early years when I first finished college. I moved into my very first home, a condominium that accrued nicely in value, with a U-haul and four male friends that I lured into helping me with free pizza and beer. That being said, it makes since that the U-Haul group agrees with me that Atlanta is the number one destination city! See the original blurb below:

U-Haul International, Inc., America's number one choice for do-it-yourself movers, today released the results of the annual 2008 U-Haul National Migration Trend Report, titled "The 2008 Top 50 U.S. Destination Cities." According to moving data reflective of nationwide statistics for calendar year 2008, Atlanta takes the No. 1 spot for the second year in a row, while Houston takes second place, moving up from the No. 8 rank last year. Los Angeles climbed to No. 3 from No. 13 last year, while Las Vegas maintained at No. 4 for the second year in a row, and Denver, Colo. moved up to fifth place from the No. 9 rank last year. Portland, Ore.; Chicago, San Antonio, Austin, Texas and Orlando, Fla. rounded out the top 10.

Bill provides tax credit if house is bought soon

2009-03-27T07:58:00.000-07:00

I know I already posted today about the lowest mortgage rates, ever! But the good news for first time home buyers just keeps on coming!! If you live in Georgia and you are a first time home buyer, you need to get moving. They just passed a bill giving first time home buyers a $3600 TAX CREDIT but only if you close in the next six months... so come on give me a call!

Bill provides tax credit if house is bought soon
By Walter C. Jones Morris News Service
Friday, March 27, 2009

ATLANTA --- The state could pay those who act quickly to buy their next home under legislation that passed the Senate on Thursday.

House Bill 261, sponsored by Rep. Ron Stephens, R-Savannah, would grant a $3,600 tax credit to people who buy a house in the next six months.

The Senate tacked two amendments onto the version approved by the House: one to include condos and documentation for the taxman, and a second to allow tax refunds to be donated to multiple sclerosis education.

The measure passed 42-4 in the Senate, with supporters calling it an aid to economic recovery.
With the Georgia housing industry suffering a 13 percent slump because of a growing inventory of unsold homes, other industries are being affected, said Sen. Chip Pearson, R-Dawsonville.

"The local hardware store, moving company, paint store, service business and others are all affected by housing, and this legislation has them in mind," he said.

Long-term mortgage rates hit record low

2009-03-27T06:09:00.001-07:00

The Atlanta Business Chronicle announced yesterday that mortgage rates have hit the lowest rate, ever. Not only are we at record lows but home prices are down to such a rate that they are now affordable to more Americans than ever before. If these two facts alone are not enough to send first time home buyers running to their Realtors (or Brokers), I don't know what will! Usually with prices and rates, if one is up the other is down.... we are looking at both being low! Give me a call and let's get you in a home before rates climb back up.

I can not remember who first told me this quote but I think it's very fitting for anyone waiting to see if it will drop just a little bit more: "you don't know you've reached the bottom until you've started climbing up the other side and you are looking backwards."

Give me a call and let's get you in your new home! Full story below:

Thursday, March 26, 2009, 2:08pm EDT

Long-term mortgage rates hit record low
Washington Business Journal - by Barton Eckert Contributing Writer

The 30-year fixed-rate mortgage rate has dropped to its lowest level on record.

The average rate is the lowest in McLean-based Freddie Mac's weekly survey dating to 1971. Freddie Mac (NYSE: FRE) says its Primary Mortgage Market Survey shows the 30-year fixed-rate mortgage (FRM) averaged 4.85 percent with an average 0.7 point for the week ending March 26, down from last week when it averaged 4.98 percent. Last year at this time, the 30-year FRM averaged 5.85 percent. The 30-year FRM has not been lower in the life of Freddie Mac’s weekly survey, which dates back to 1971 for the 30-year FRM.

The 15-year FRM this week averaged 4.58 percent with an average 0.7 point, down from last week when it averaged 4.61 percent. A year ago at this time, the 15-year FRM averaged 5.34 percent. The 15-year FRM has never been lower in the life of Freddie Mac’s weekly survey, which dates back to 1991 for the 15-year FRM.

Rates for 30-year FRMs peaked last year at 6.63 percent on July 24th. With this week's 30-Yr FRM, the interest rate difference is almost 2 percentage points, which amounts to a savings of about $225 in monthly mortgage payments for a $200,000 loan.

Jenny Pruitt is Merging into Harry Norman

2009-03-24T12:42:00.000-07:00

Knew it was going to probably happen at some point but it was officially announced today that my previous company is merging into my current company! I think this is a great opportunity for Harry Norman and very excited to join forces with Jenny Pruitt!

Jenny Pruitt becomes Harry Norman
Atlanta Business Chronicle - by Lisa R. Schoolcraft Staff Writer

Jenny Pruitt & Associates and Harry Norman Realtors have officially merged, taking the sole name of Harry Norman, Realtors.

The move to consolidate started in October 2008 when both residential real estate companies merged their back offices.

The transition from all of the Jenny Pruitt & Associates offices to Harry Norman, Realtors will probably take about 90 days to complete, said Martha Hayhurst, president of Harry Norman.
"The great thing for the consumer, it's the same people," she said. "The expanded alliance of these two companies will make it more dominant in the marketplace."

Harry Norman, Realtors and Jenny Pruitt & Associates are Atlanta-based sister companies of HomeServices of America Inc., an indirect subsidiary of Omaha, Neb.-based Berkshire Hathaway(NYSE: BRKA), which is a large holding company controlled by billionaire Warren Buffett.

Jenny Pruitt & Associates was acquired in October 2001 and Harry Norman, Realtors was acquired in May 2006.

They operated under the holding company HomeServices of Georgia Inc.

"The agents are very pleased and excited on both sides," said CEO Dan Parmer. "We've worked as sister companies for three years and had the same back office and management for a year."
The name change was the next logical step, he said.

The company decided to continue with the brand Harry Norman, Realtors because of its nearly 80 years in the market. Jenny Pruitt & Associates, founded in 1988 by Jenny Pruitt, also has longevity, but agents and management from both companies agreed Harry Norman, Realtors made more sense, he said.

Jenny Pruitt left her namesake company in 2007 to form Atlanta Fine Homes Sotheby's International Realty.

The expanded Harry Norman, Realtors now has 1,474 agents in the market, Parmer said. It has franchises that stretch from Savannah to Highlands, N.C.

There are no plans to consolidate offices in metro Atlanta, Parmer said.

"Harry Norman, Realtors has about four Buckhead offices," Hayhurst said. "His philosophy was always to be where the people are. This way we've just expanded the ability for clients to get to any office."

Renters Lose Edge on Homeowners

2009-03-23T17:20:00.000-07:00

Renters Lose Edge on Homeowners
Cost Gap Returns to Historical Norms in Some Markets as House Prices Drop

By NICK TIMIRAOS
The relative cost of owning versus renting is swinging back in favor of homeownership in some U.S. markets, buoyed by several quarters of sharp declines in home prices.

At the height of the housing boom, as home prices surged, demand for rentals started to rise as the gap between owning and renting widened significantly. Even after the housing market soured, apartment demand grew as former homeowners became renters, allowing landlords to push healthy rent increases.

Now, after two years of rapid home-price depreciation, the relationship between the cost of rental payments versus after-tax mortgage payments is tilting toward ownership in a number of metropolitan areas.

Over the past 18 years, after-tax mortgage payments have averaged 26% more than rent payments, according to Green Street Advisors, a real-estate consultancy based in Newport Beach, Calif. In 2006, at the height of the housing bubble, mortgage payments reached as high as 66% more than rent payments. But by the end of 2008, average monthly rent for the largest 50 metropolitan areas was $1,045, compared with after-tax mortgage payments of $1,300, assuming a rate of 5.5% on a 30-year fixed mortgage. That means mortgage payments averaged just 24% more than rent payments, the narrowest gap since 2001.

A new housing development in Las Vegas, a market like several others in the U.S. where the cost equation has shifted in favor of homeownership.

In more than half of the top 50 U.S. housing markets -- including Los Angeles, northern Virginia and Las Vegas -- the ratio is now below its 18-year average. In Los Angeles, for example, mortgage payments averaged 60% more than rent payments between 1990 and 2008. Now, those payments average 30% more than rent.

"We're not saying on an absolute basis that it's cheaper to own a home, but on a relative

basis...owning is looking much more attractive than it has in a long time," said Andrew

McCulloch, a Green Street analyst. While the shift doesn't mean that renters will rush to buy homes soon, "it's not a 'no-brainer' anymore if they're going to rent versus own," he said.
If mortgage rates fall to 4.5% -- and some economists have called for the government to push rates to that level to ease the housing crisis -- mortgage payments would average 14% more than rent payments, a level last reached in 1998.

While lower rates could further boost home affordability, that may not be enough to overcome a psychological barrier for many would-be buyers who believe homes will become even more affordable. "One of the challenges in the housing market is not only affordability but also willingness to buy," said Nicolas Retsinas, the director of Harvard University's Joint Center for Housing Studies. "People are still worried about falling prices."

And lending standards are much tighter than they were during the housing boom, when less-creditworthy tenants left apartments in droves to take advantage of no-money-down financing. At the housing market's peak, nearly one in four renters left to buy homes, said Richard Campo, chief executive of Houston-based Camden Property Trust. That rate fell to near its historical norm of around 12% by the end of 2008. "The nonqualified renters are not moving out this time," said Mr. Campo.

A separate report by Moody's Economy.com also finds that home prices relative to rents are more in line with their historical relationship. Using data that measure average home prices and rent payments for 54 metro areas between 1984 and 2004, Moody's Economy.com estimated that eight markets are "undervalued." In those eight markets, home prices relative to rents are below or within 5% of their historical levels. "The bottom is coming into view," said Mark Zandi, chief economist at Moody's Economy.com, "But we've still got a ways to go."

The report notes that home prices relative to rents remain well above historical levels in 30 markets, including Philadelphia; Portland, Ore.; and Virginia Beach, Va.

Lower prices and interest rates are spurring some buyers to get off the sidelines. Jason Schanta, 37, an independent contractor, has been ready to buy for three years, but he said he waited because Southern California home prices had become "outrageous."

"I'm not an economic guru but I knew the bubble was going to burst," he said. He is ready to buy a $500,000 home if Bank of America Corp.'s Countrywide Financial unit approves a short sale on the property in San Juan Capistrano, Calif. (In a short sale, the lender agrees to sell a home for less than the value of the mortgage.) Mr. Schanta currently rents a three-bedroom house for $2,250 a month, and says that he will pay just $150 more in mortgage payments and taxes for a house that has an additional bedroom and 350 more square feet. "Renting now costs just as much as buying," he said.

Others are finding that they could pay less on their mortgage than they would on rent. Carla Zeineh, 22, and her husband recently began shopping for a home in Irvine, Calif., and discovered that with a 5% mortgage rate, her monthly payment on a $350,000 two-bedroom home with 20% down could be less than the $1,800 month that they pay in rent on their two-bedroom condo

Interesting Idea - Selling New Construction Condos in This Market

2009-03-20T06:01:00.000-07:00

Cousins’ new plan to sell condos

Atlanta Business Chronicle - by Douglas Sams Staff Writer

Cousins Properties Inc. thinks it may have found the answer to survive Atlanta’s worst condo market in a generation.

The Atlanta-based developer is launching a buyer-incentive program at 10 Terminus Place, its 32-story condo tower in Buckhead that opened last fall. The incentives include guaranteeing the value of the condos — which average between $600,000 and $800,000 — for the first three years and allowing buyers to walk away during that same time with no damage to their credit.
“We’re taking all the risk out of the equation,” Cousins CEO Tom Bell said. “We’re also letting people see how much confidence we have in this market.”

Ten Terminus is one of 35 condo projects in the hard-hit Buckhead market, where just slightly more than half of 3,061 units were sold at the end of last year, according to real estate market research firm Haddow & Co.

Only 13 of 137 units sold since the 10 Terminus was completed in 2008. Seventeen units are under contract.

The condo market’s struggles are affecting even the high-end units in Buckhead such as those at 10 Terminus, John Williams’ The Mansion on Peachtree and Regent Partners LLC’s Sovereign at 3344 Peachtree.

Of the 11,237 condos available within the intown Atlanta market last year, less than half were sold, according to Haddow & Co.

While other residential developers have offered discounts and lease-to-own programs to spur sales, Cousins is one of the few in position to give buyers the benefits of full ownership from the start of their initial down payment.

The condo tower is one of three buildings rising at Terminus, the 10-acre mixed-use development Cousins launched in 2006. While Cousins carries debt on the two office towers, it does not have a mortgage loan on 10 Terminus, allowing the company to offer steeper concessions.

“What makes this unique is that there is no construction loan,” said David Haddow, president of Haddow & Co. “I’m not saying they are the only one in this position, but they are certainly one of the few. This also obviously shows they believe in their product and Buckhead.”
The 10 Terminus buying incentives begin March 20.

Cousins will finance the condos for a 5 percent down payment. Banks are often requiring 20 percent down payments. Cousins will offer the condos at a 4 percent interest rate versus the typical bank interest rate of at least 6 percent.

One incentive targets people who want a new condo, but can’t buy one because they’re struggling to sell their homes. It’s one of the biggest challenges facing 10 Terminus, Bell said. Buyers who put 20 percent down on a 10 Terminus unit, however, can move in with no payments for a year while they try to sell their homes.Cousins will offer the incentives on up to 25 condos initially, then re-evaluate the program.

The company is just one of many developers fighting slow sales amid the U.S. housing slump.
Cousins originally planned to sell out 10 Terminus by the end of this year, but a tight lending market forced the company to reset its goal to the end of 2011, a move that reduced its rate of return on the $80 million tower by at least 4 percent. Cousins also took a $2 million write-down on the project earlier this year.

Ten Terminus is the only condo tower that Cousins has in its portfolio.
Last August, Cousins and development partner The Related Group sold the last residences at 50 Biscayne, a 54-story, 528-unit luxury condominium tower in Miami, for $30 million, getting out of one of the toughest condo markets in the country.

Good News for Small Businesses!!

2009-03-12T17:18:00.000-07:00

Survey: 69% of U.S. small businesses profitable last year

Atlanta Business Chronicle - by Ryan Sharrow

A new survey has found that 69 percent of U.S. small businesses were profitable in 2008.
The survey, conducted by Herndon, Va.-based Network Solutions and the University of Maryland Robert H. Smith School of Business, polled 1,000 small-business owners in December 2008 and January 2009.
Sixty-nine percent of those reporting a profit said their success last year was equal to or better than their performance in 2007. The survey also found that 70 percent of small businesses expect their companies to be in business in five years, as opposed to closing, being sold or transferred.
There are more than 27 million small businesses in the U.S. that employ more than 40 million workers, according to the US Census Bureau.
Nearly 50 percent of the small-business owners surveyed believe the economy will improve or remain unchanged in 2009. And 67 percent of the companies plan to spend the same or increase overall business spending this year.
Companies surveyed were for-profit, privately owned businesses with fewer than 100 employees and had a payroll and/or contributed to at least 50 percent of the owner’s household income.
Seven percent of the companies reported that they broke even last year.
“Small business owners’ optimism during the current economic downturn has a correlation to how competitive they are in being customer oriented,” P.K. Kannan, director of the Center for Excellence in Service at the Smith School, said in a statement. “Those that are more engaged in understanding their customer needs, creating relationships with customers and increasing the value of their customer base through marketing activities and innovations are also those that are the most optimistic.”
The survey is part of a new “Small Business Success Index” launched Thursday by Network Solutions and the Smith School. It is designed to measure the health of U.S. small businesses.

March 2009 News & Notes

2009-03-04T11:01:00.001-08:00

My new March newsletter is now available! This month I on the second page I focused on tips to prepare for a new home purchase!!

March 2009 News & Notes

I am a now a Broker AND Buyers are coming out all over!

2009-03-04T10:52:00.001-08:00

I know it has been forever since I posted on my blog, but promise it was for good reasons! I've been in the midst of working on my broker's license while assisting new clients on their home purchase. Good news all around. And as of 9:45am this morning, I passed my final exam and can now say that I am an Associate Broker with Harry Norman Realtors!

On to real estate! It looks like we may have finally "hit the bottom". Several different news organizations have come out in recent weeks and said that they believe we are at the bottom and will now start heading back up the other side. Here is the article posted in the Atlanta Business Chronicle:

Lower Home Inventory Levels Indicate Bottom is Near

The overall the number of homes on the market in Atlanta have gone down from a high around 111,000 to around 85,000. Additionally, in the last two weeks four new buyers have asked me to help assist them in their home purchase. So, everything is pointing to an improving market.

For those that keep waiting to see if it will "drop just a little bit lower" remember, you don't know you've hit the bottom until you are heading but the other side and look back...

Forbes Magazine Optimistic for Atlanta in 2009

2009-02-19T13:52:00.000-08:00

I have personally seen an increase in activity in the Atlanta market in the last month and hope it is a sign of times to come. Forbes Magazine seems to believe that Atlanta is primed to start recovering in 2009. See Below:

Forbes Magazine Optimistic for Atlanta in 2009

Forbes Magazine predicts good news is around the bend for the Atlanta real estate market in 2009. Forbes expects new home starts to be up 32.5% for single family homes in the metro area, and job growth to continue at 2% for 2009. While the job growth number might seem modest, it beats most areas of the country, and has been consistent with Atlanta for a number of years.

Forbes named ten US cities expected to begin a long term recovery in 2009: Albuquerque, NM; Charlotte, NC; San Antonio, TX; Portland, ME; Austin, TX; Salt Lake City, UT; Colorado Springs, CO; Minneapolis, MN; Atlanta, GA; and Oklahoma City, OK. With good news from an established source, the continued dedication of Georgia’s real estate professionals, and a public still in need of housing things could be looking up soon.

Fannie, Freddie to suspend foreclosure sales

2009-02-17T17:28:00.000-08:00

Fannie, Freddie to suspend foreclosure sales

Washington Business Journal - by Tierney Plumb Staff Reporter

Fannie Mae and Freddie Mac said they will suspend all foreclosure sales involving occupied single-family and two- to four-unit properties through March 6.
The suspension will give give loan servicers more time to help troubled borrowers find an alternative to foreclosure.
The housing giants, which were seized by the government last fall, had said they would suspend evictions and foreclosure sales between Nov. 26 and Jan. 9, a decision affecting thousands of proposed sales.
The latest suspension does not apply to vacant properties in foreclosure.
McLean-based Freddie (NYSE: FRE) and D.C.-based Fannie (NYSE: FNM) own or guarantee almost half of the country's mortgages.
Freddie Mac said it gives lenders servicing its mortgages broad authority to provide forbearance to borrowers who are not yet delinquent. In addition, lenders can provide permanent rate reductions, mortgage term extensions, forbearance of principal or other modifications to borrowers who are already delinquent.

Foreclosure Rates Fall in January 2009

2009-02-12T09:56:00.000-08:00

U.S. January foreclosures fall: RealtyTrac

Thu Feb 12, 6:32 am ET

NEW YORK (Reuters) - U.S. home foreclosure filings in January decreased from December, an indication that an array of efforts to curb the process may be making an impact, real estate data firm RealtyTrac said on Thursday.

Foreclosure activity was still 18 percent higher than a year earlier, the 37th consecutive month with a year-over-year increase. Nevertheless, the fall in foreclosure filings last month provides a glimmer of hope for the hard-hit U.S. housing market.

Home foreclosure filings in January totaled 274,399, down 10 percent from December, RealtyTrac, an online market of foreclosure properties, said in its U.S. Foreclosure Market Report. The figure is a total of default notices, auction sale notices and bank repossessions.

RealtyTrac, based in Irvine, California, said the national foreclosure rate in January was one foreclosure filing for every 466 U.S. households.

"The extensive foreclosure efforts on the part of lenders and government agencies appear to have impacted the January numbers - particularly the Fannie Mae and Freddie Mac moratorium on all foreclosure sales that was extended through the end of January along with Florida's voluntary 45-day freeze on all new foreclosure actions and scheduling of foreclosure sales that was announced at the beginning of December," James J. Saccacio, chief executive officer of RealtyTrac, said in a statement.

January foreclosure activity showed a sharp improvement versus the previous month. In December, foreclosure filings were up 17 percent from the previous month and up nearly 41 percent from December 2007.

Foreclosures have largely been result of an increasing number of homeowners struggling to make mortgage payments amid the worst U.S. housing market downturn since the Great Depression.

"January REOs, which represent completed foreclosure sales to the foreclosing lender, were down 15 percent nationwide from the previous month," Saccacio said.

"And in Florida overall foreclosure activity was down 20 percent from the previous month," he said.

Real Estate Owned, or REO, are properties that have been foreclosed on and repurchased by a bank. But fewer foreclosures help assuage one of the housing market's biggest banes, which is a huge supply of unsold homes.

"Any inventory off the market at this point is a good thing, but the problem is that many homes that have been taken back by banks have not yet been included in the data," Rick Sharga, senior vice president at RealtyTrac, said on Wednesday.

There is more inventory in the pipeline and that will probably show up in the months ahead, he said.

"As for the January data, I would not read too much into it and it is doubtful that we are about to hit a bottom," he said.

Nevada's foreclosure activity decreased from the previous month but continued to register the highest rate in the country, with one foreclosure filing for every 76 households, followed by California and Arizona.

All three states had been among the hottest U.S. housing markets during the boom years.

Nevada had 14,444 foreclosure filings in January, down nearly 4 percent from the previous month and a 137 percent increase from January 2008.

California foreclosure activity in January decreased 14 percent from the previous month, but the state continued to register the nation's second highest state foreclosure rate. One in every 173 California households received a foreclosure filing during the month.

California, the most populous U.S. state, reported 76,761 foreclosure filings, the most of any state and up 34 percent from January 2008.

Arizona ranked third highest in the nation with one foreclosure filing for every 182 households in January, with 14,674 filings, down 8 percent from December and nearly 62 percent higher than a year earlier, RealtyTrac said.

Florida ranked fourth highest in the nation with one foreclosure filing for every 214 households in January, with 40,770 filings, down nearly 20 percent from December and 35 percent higher than a year earlier, RealtyTrac said.

2009-02-11T17:45:00.000-08:00

February Newsletter

If you have not had an opportunity to read my February newletter, it has been uploaded to my website (http://www.karenanderson.info/) and can be found at the following link:

http://karen.anderson.harrynorman.com/Content/Content.aspx?ContentID=511861

2009-02-11T17:07:00.000-08:00

Ron Peltier, the chairman of Home Services (Warren Buffett's real estate company and my ultimate boss) came out with an interesting article on the current state of the real estate market that I wanted to share. To those of you on the fence about purchasing a home - there is no time like the present and you never realize you are at the "bottom" until after you are already heading back up...

FOR IMMEDIATE RELEASE Contact: Israel Kreps
Kreps DeMaria PR
305.663.3543
ikreps@krepspr.com

UPTURN IN DECEMBER HOME SALES A HOPEFUL SIGN THAT
U.S. RESIDENTIAL REAL ESTATE MARKET MAY BE BOTTOMING-OUT
IN TERMS OF TRANSACTION VOLUME,
SAYS CHAIRMAN OF HOMESERVICES OF AMERICA

MINNEAPOLIS, MN (February __, 2009) – Analysts predict that many challenges will continue to face the U.S. residential real estate market before a full recovery is achieved, but an unexpected upturn in December home sales could signal that one of those crucial benchmarks -- transaction volume -- is on the brink of bottoming out.
“There are many issues that have to be resolved before we can say that the real estate market is truly in recovery, but transaction volume is one of the lynchpins of the process,” says Ron Peltier, chairman and CEO, HomeServices of America, Inc., the second largest, full service independent residential real estate brokerage firm and the second largest brokerage-owned settlement services provider (mortgage, title, escrow and insurance) in the United States.
“To see residential sales activity increase despite the nation’s economic challenges suggests that we have hit a point where consumers are beginning to feel confident about the value of their purchase,” continues Peltier. “Recovery cannot reach fruition unless the consumer feels secure in the long-term value of owning a home, and it seems that we are entering the ‘tipping point’ of that process.”
Peltier notes that housing affordability has reached a 20-year-high. Also, the impact of distressed properties, which HomeServices companies now account for 35% of aggregate sales, has spurred activity.
While sales activity rose at year end, home prices fell about 16 percent in 2008 and are now down about 25 percent from the recent market peak.
“There has been tremendous erosion in values – largely because of the high number of distressed sales and foreclosures,” he said. “The foreclosures have created a bifurcated market, where unfortunately, the sheer volume of distressed properties is dragging down

the entire marketplace. We anticipate this phenomenon will begin to dissipate towards the end of 2009, as consumers absorb these properties, and ongoing government stimulus programs continue to push the economy -- and specifically the financial markets -- in a positive direction.”
Recently, the National Association of Realtors® reported that existing-home sales – including single-family, townhomes, condominiums and co-ops – jumped 6.5 percent in December, while housing inventory fell 11.7 percent at year-end.
For the entire year, the U.S. posted 4.9 million existing-home sales, a 13.1 percent drop from 5.6 million transactions in 2007. Peltier noted that overall volume in the five million existing-home sales is the sustainable level, a 25 percent decrease from the recent market peak of 7.2 million, a volume chiefly fueled by speculators.
“It’s no coincidence that the 25 percent decrease in volume mirrors the departure of speculators from the market,” continues Peltier. “We believe five million existing home sales is the appropriate floor to regain stability in the market.”
“Buyers who have been sitting on the sidelines now have a compelling reason to move forward with a purchase in the months ahead,” he said. “Housing is an extremely good value these days.”
Peltier added that if mortgage rates remain low, as expected, median sales prices are likely to stabilize by the end of 2009, despite the nation’s overall economic weakness.
“We do not expect a ‘U-shaped’ recovery curve it will be a slow and steady growth line that will start in 2010,” concludes Peltier, “values in some areas, particularly the hardest hit markets, may slide more, but we are hopeful that wholesale drop in values may be nearly over, and that is good news for the health of our overall housing market.”

About HomeServices of America
HomeServices of America, Inc. based in Minneapolis, Minn., is the second-largest homeownership service provider in the United States. Owned by MidAmerican Energy Holdings Company, an affiliate of Berkshire Hathaway Inc., HomeServices’ operating companies offer integrated real estate services, including brokerage services, mortgage originations, title and closing services, property and casualty insurance, home warranties and other homeownership services. HomeServices Relocation, LLC is the full-service relocation arm of HomeServices of America which provides every aspect of domestic and international relocation to corporations around the world. HomeServices operates in 19 states under the following residential real estate brand names: Carol Jones REALTORS; CBSHOME Real Estate; Champion Realty Inc.; Edina Realty; EWM REALTORS; Harry Norman, REALTORS; HOME Real Estate; Huff Realty; Iowa Realty; Jenny Pruitt and Associates, REALTORS; Long Companies; Prudential California Realty; Prudential Carolinas Realty; Prudential First Realty; Prudential York Simpson Underwood Realty; RealtySouth; Rector-Hayden REALTORS; Reece & Nichols; Roberts Brothers Inc.; Semonin REALTORS and Woods Bros. Realty. Information about HomeServices and the locations of its subsidiary companies is available at http://www.homeservices.com/.