Are We There Yet?

I was reviewing Windward sales from 2007 to the present and comparing homes that have sold more than once in that period.  In general, if you bought in 2007 at the peak of the market, you were underwater for the past seven years.  However, it seems that in late 2014 most homes had recovered to 2007 prices.  Though not exact, if you bought in 2008, you recovered in 2013, if you bought in 2009, you recovered in 2012, and so on.   And if you bought after 2011 and later sold, you generally made money.

What The Fed Said

Here are some highlights of the Fed’s comments on Wednesday:

• Economy has been expanding at a solid pace.  
• Labor market conditions have improved further, with strong job gains and a lower unemployment rate  
• Household spending is rising moderately boosted by recent declines in energy prices 
• Committee reaffirmed its view that the current range for the federal funds rate remains appropriate 
• Fed will continue to reinvest payments from its holdings of longer-term securities to keep its portfolio at sizable levels

So the result is that a lower federal funds rate (the rate at which banks lend to each other) will keep rates on short term loans like 1 to 5 year ARMs low.  And the Fed’s reinvestment in longer term securities should help keep rates on longer term loans in check.  All good news for the still recovering housing sector.

This is a really big deal . .

The Atlanta Business Chronicle is reporting that Mercedes-Benz USA will relocate its headquarters from Montvale NJ to Atlanta this summer.  

• The company is considering four sites in the Central Perimeter area and Alpharetta
• The move will create about 1,000 jobs 
• Largest economic development coup since UPS relocated to Atlanta in 1991
• Mercedes will invest about $100 million in a 200,000-square-foot headquarters, which is expected to be completed in 2017

New Homes in Hills Park!

Newport Realty just listed four new residences built by Blue Door Homes in the Hills Park neighborhood of Atlanta's Westside market.  These are really nice cottage homes priced at $369,000.  Great neighborhood close to everything intown.  Please click on the following link to view the listings: Hills Park Listings

1734 Ellen Street

1800 Annie Street

1804 Annie Street

1810 Annie Street

Rent vs. Own?

As reported in the Atlanta Business Chronicle, apartment list.com just published average rental rates for major US cities including Atlanta.  Some highlights for October include the following:

- Atlanta 2 bedroom rents averaged $1,050. This makes Atlanta the 22nd most expensive major US city with an average price that is 11% above the national average.  Across the Atlanta metro, rents average $850 for a 2 bedroom.

- In October, 2 bedroom rents were up 5.4% year over year, which is 2.2x average growth nationwide. Expensive suburbs like North Druid Hills and Sandy Springs have seen growth rates in the 8% range.

- The most expensive Atlanta suburb is Dunwoody where average 2 bedroom rents were $1,330 for October. That’s 40% above the national average of $950 and 56% above the metro average of $850.

As a comparison. At an interest rate of 4%, the payment on a 30 year mortgage for a $260,000 house (assuming a 20% down payment) would be roughly $1,000 per month.  While this doesn't include taxes or insurance, a homeowner would be gaining over $300 per month in equity!

This One Goes to Eleven!

Harvey Mackay's 11 Steps to Happiness as published in the Atlanta Business Chronicle:

1. Don't let little things bother you. There is always something better to think about.
2. Keep your perspective. Put first things first and stay the course.
3. Only worry about what you can control. If you cannot do anything about a situation, worrying won't make it better.
4. Do your best, but understand that you can't always be a perfectionist. Don't condemn yourself or others for not achieving perfection.
5. When you are right, be gracious. When wrong, be even more gracious.
6. Trust or believe people whenever you can, and when that isn't possible, accept them at their worst and weakest. You can keep your convictions without destroying others.
7. Don't compare yourself to others, which is the guarantee of instant misery. People are different for many reasons.
8. Brush away the chip on your shoulder so that when something happens to you that you don't like, you can take the high road.
9. Give of yourself wholeheartedly or enthusiastically. When you have nothing left to give, someone will return the favor.
10. Make happiness the aim of your life instead of bracing for life's barbs.
11. Remember, you are responsible for your own happiness. Others can do kind things for you, but you must be open to being happy. But don't let that stop you from trying to make others happy!

Realogy? Never Heard of Them

I keep CNBC on in my office so I can panic appropriately when the stock market goes down.  The other day I saw an interview with the CEO of Realogy Holdings Corp. (NYSE: RLGY).  I had no idea that they are the franchisor for Better Homes and Gardens Real Estate, Century 21, Coldwell Banker, ERA, and Sotheby's International.  Their website says that they have over 250,000 sales associates!  No wonder I get so many postcards : )

Another Win for Georgia

The Atlanta Business Chronicle reports that Georgia is the number one state in the country to do business in 2014 according to Area Development Magazine’s fifth annual survey of site consultants.  The magazine ranked states based on their number of mentions by consultants in three overall categories and 18 subcategories including Business Environment, Labor Climate, and Infrastructure & Global Access.  The top five states in order were Georgia, Texas, South Carolina, Alabama, and Tennessee.
 

Three Windward Homes Featured on CNBC

Three homes in Windward were featured on today's edition of Power House on CNBC.  The homes were 1065 Beacon Hill Crossing, 655 Americas Cup Cove, and 2350 Blackheath Trace.

Interestingly, the agent who presented the properties isn't the listing agent on any of them.  I'm sure the listing agents are grateful!

But Pending Sales are Up

According to the National Association of Realtors, the Pending Home Sales Index (a forward-looking indicator based on signed contracts) climbed 3.3 percent to 105.9 in July and is at its highest level since August 2013 (107.1).

For buyers, the news is good.  Lawrence Yun, NAR chief economist, says favorable housing conditions are behind July’s higher contract activity. “Interest rates are lower than they were a year ago, price growth continues to moderate and total housing inventory is at its highest level since August 2012,” he said. “The increase in the number of new and existing homes for sale is creating less competition and is giving prospective buyers more time to review their options before submitting an offer.”

New Home Sales Down Nationally - South a Bright Spot

According to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau, sales of newly built, single-family homes fell 2.4 % in July to a seasonally adjusted annual rate of 412,000 units.  However while new-home sales fell 30.8 % in the Northeast, 8.8 % in the Midwest, and 15.2 % in the West, sales were up 8.1 % in the South region.

Cool Summer, Hot Market

Although we've had a wonderfully cool summer, the Windward market continues to heat up!  There are currently 44 active listings, 3 in due diligence, and 14 pending sales.  In July alone, 17 new listings came on line.  Year to date there have been 72 homes sold, with a median sales price of approximately $454,000.  There were 27 closings in July alone at an average of 98% of list price.

Marta Public Forums on Windward Rail

From the Atlanta Business Chronicle . . .

MARTA will hold three public forums in July to gather comments on plans to expand transit service from the North Springs MARTA station in Dunwoody to Windward Parkway in Alpharetta.  The hearings are part of the planning and public comment process, and that it is just part of the effort to get federal funding. Riding the rails from downtown Atlanta to Alpharetta still could be a decade away.

The public meetings will be held:

Tuesday, July 8, 2014, 6:30 to 8:00 PM
Johns Creek Environmental Campus
8100 Holcomb Bridge Road, Roswell, GA 30022

Thursday, July 10, 2014, 6:30 to 8:00 PM
Georgia State University Alpharetta Center
3775 Brookside Pkwy, Alpharetta, GA 30022

Thursday, July 17, 2014, 6:30 to 8:00 PM
Hampton Inn Atlanta – Perimeter Center
769 Hammond Dr. NE, Atlanta GA 30328

Georgia is Top State for Business

CNBC just ranked Georgia as America's top state for business based on a survey that ranks states based on 10 categories.  Georgia ranked #1 in Workforce, #1 in Infrastructure & Transportation, and #3 in Economy.  Among Georgia's worst categories was Education, where the state ranked #32.  For those of us in the northern suburbs, the only saving grace was that among Georgia schools, US News & World Report recently ranked Northview, Milton, Johns Creek, and Alpharetta High Schools among the top 10 in the state.

Marta is good for Windward

The Atlanta Business Chronicle recently reported that MARTA has extended the public comment period on the “Connect 400” project, which would extend the rail line from North Springs to Windward Parkway.  Although completion could still be 10 years away, this project would greatly improve access to Atlanta's business districts, arts, entertainment, and sporting venues, and the airport.