The Georgia Realtors Association just released April housing data. Overall, trends for April 2017 vs. April 2016 point to lower supply as inventory levels declined 16% to 35,749 units and new listings decreased 7.5%, resulting in a median sales price increase of 7%. Based on current absorption rates, the months supply of inventory is down 24% to 3.5 months.
Recently I’ve read a few articles on the potential impact of the President’s tax reform plan on housing. Specifically, the increase in the standard deduction and how that affects the benefits of the mortgage interest deduction. Currently the standard deduction for tax year 2017 for joint filers is $12,700. If your mortgage interest payments plus other deductions exceed this amount, then you probably itemize your deductions. As an example, if you buy a $400,000 home and put 10% down with a 30 year fixed mortgage at 4.0%, in the first year you’ll pay roughly $14,200 in interest, so you’d itemize.
Trump’s plan would potentially double the standard deduction to $24,000, so joint filers would get a $24,000 deduction regardless of whether they actually spend $24,000. The tax benefit of the mortgage interest deduction is therefore decreased or eliminated. While opinions vary, the concern is that by removing the tax advantage of owning (and borrowing) versus renting, housing demand will decline and hence home prices as well.
If you purchased a home in 2016, make sure you file for your homestead exemption by your county's deadline (April 1st deadline for Fulton County). The homestead exemption is a direct reduction in the taxable value upon which your taxes are calculated and can result in significant property tax savings. In order to qualify for 2017, you must have owned and occupied the home as of January 1st. Visit your county's website for more information. Here is the link for Fulton County information: Fulton County Homestead Exemptions
The Atlanta Business Chronicle reports that Atlanta is #3 in the U.S. for single-family housing permits from Jan - Oct of 2016 with 19,804 permits, an increase of 16% over the same period last year. The data includes the Atlanta / Sandy Springs / Marietta MSAs. Houston was #1 with 30,388 permits and Dallas was #2 with 25,441 permits. Among states, Georgia ranks 5th with 30,581 permits, well behind Texas who led the nation with 90,540 permits.
The Atlanta Business Chronicle reports that a developer’s newest office building in Alpharetta’s emerging City Center development would shun a modern glass facade in favor of brick and stone. The new building would feature about 36,000 square feet of office space and possibly two restaurants on the ground floor. The other newly proposed additions to the City Center project include a four-story building with 129 apartments and 18,890 square feet of ground-level retail. Another four-story building with 39 apartments and 15,780 square feet of ground-level retail is also in the design phase. Alpharetta owns all the parcels, about 3.5 acres, where the newest buildings would rise. A deal for the land could close by the end of the year. The newest buildings go before the city’s design review board Nov. 18th.
In real estate, "absorption rate" is the rate at which homes are sold during a given time period, calculated by dividing the total number of homes on the market by the average number of sales per month. The absorption rate is an estimate of how many months it will take to absorb the supply of homes in a specific market. The market could be your state, city, or even neighborhood. Especially in a community like Windward, neighborhood absorption rates vary widely due to differing price points, schools, amenities, etc. A detailed absorption rate analysis helps you plan the marketing of your home to meet your family's timing needs.
The National Association of Realtors published Corelogic's report on median property tax rates across the country. Georgia's median rate came in at 1.10% of property value. Illinois came it at the highest at 2.67% and Hawaii came in lowest at 0.31%.
Emancipation Day is a Federal holiday this Saturday that is being observed today, so, the personal income tax filing deadline has been moved from Friday April 15 to Monday April 18.
Emancipation Day marks the day that the Compensated Emancipation Act was signed by President Abraham Lincoln.
The Atlanta Business Chronicle reported that Backgroundchecks.org has ranked Alpharetta as the fourth safest city in Georgia based on FBI violent crime stats and propriety BackgroundChecks.org research data. The top ten safest cities were as follows:
Newport Realty is proud to have represented the McGuire's in the purchase of their new Windward home!
Read MoreThe Georgia Association of Realtors just issued January year-over-year indicators. In general, higher demand and lower supply led to modest price increases as compared to January 2015.
According to the Alpharetta Neighbor, State Rep Brad Raffensperger has filed a resolution to re-create Milton County, which existed from 1857 to 1931 with the county seat in Alpharetta. During the Great Depression, Milton and Campbell counties were merged with Fulton. The resolution would require 120 votes in the statehouse to move forward.
The Georgia Association of Realtors just issued December year-over-year indicators. Pending sales and average and median sales prices all increased while inventory levels, days on the market, and months supply (down 25%!) all decreased.
If you sold a home in Fulton County earlier this year, chances are you might be due some money from the buyer. Check your settlement statement for the tax proration. If the 2015 taxes were not yet available, the calculations were probably done using the 2014 numbers. Well this year, Fulton County reduced their millage rate by roughly 4.4%. This equates to about $135 in tax reduction per $100,000 of taxable value. Since the seller gives the buyer a credit for unpaid taxes, there's a chance that you may have overpaid. But don't worry, typically the buyer and seller sign an agreement stating that they will adjust the prorations once the actual bills are received, so you can still get reimbursed what you're owed.
Just had my first drone video done for my listing at 3635 Newport Bay Drive and I am really pleased. I wanted to showcase the home's fabulous exterior amenities and great location on Lake Windward. Mission Accomplished! Check it out: 3635 Newport Bay Drone Video
The Atlanta Business Chronicle reports that the Georgia DOT is expanding the flex shoulder lane program on GA 400. The northbound shoulder lane will run from Abernathy Road to Northridge Road and from Old Milton Parkway to Windward Parkway. The new southbound lane will start at the MARTA North Springs Station and end at Abernathy Road.
US News & World Report just released their rankings of US High Schools. Schools were given gold, silver or bronze medals based on four criteria; Student / Teacher Ratio, College Readiness, Mathematics, and English. Four of the top ten Georgia high schools are in the immediate area:
#6 Milton High School
#8 Northview High School
#9 Johns Creek High School
#10 Alpharetta High School
The planned expansion route recommends stations at Holcomb Bridge, Encore Parkway, Old Milton, and Windward Parkway.
The Atlanta Board of Realtors just released March trends compiled from FMLS data.
60 Minutes aired a story last night about the level of formaldehyde in some flooring sold by Lumber Liquidators. If true, there could be major implications for residential real estate similar to those caused by Chinese drywall, polybutylene pipe, and Masonite siding. An excerpt is below:
"Lumber Liquidators is the largest and fastest-growing retailer of hardwood flooring in North America, with over 360 stores in 46 states and revenues of more than a billion dollars a year. But hardwood isn't the only product they sell. More than 100 million square feet of the company's cheaper laminate flooring is installed in American homes every year. Lumber Liquidators is a U.S. company, but much of its laminate flooring is made in China, and as we discovered during our investigation, may fail to meet health and safety standards, because it contains high levels of formaldehyde, a known cancer causing chemical. Lumber Liquidators insists its Chinese-made laminate flooring is safe, but it doesn't appear that way based on what we learned from our own reporting"
Newport Realty Associates, LLC is a full service residential real estate firm based in Alpharetta, Georgia
It’s a really competitive market right now for buyers, so agents are using every resource to give their clients an advantage. One of these is the “love letter” that buyers often provide with an offer . . .
In this crazy market it’s not unusual to hear about a home that sold just a few years ago selling again for considerably more money. So if you’re lucky enough to be in that position, do you have to pay taxes on the gain?
I often hear people refer to their agent as “my realtor” or say they are thinking about getting their “realtor’s license”. For the record, all realtors are licensees, but not all licensees are realtors . . .