Archive for March, 2010
The BIG Number: March
categories: Alpharetta Real Estate, Milton Real Estate, The Big Number
0.33%
The percentage of all homes listed for sale over $1M that have sold this year in Alpharetta / Milton. Synonym for "A snowballs chance…."
On the last day of each month I post a "Big Number" or interesting figure related to real estate in our area.
Posted by Bob Strader | Currently 5 Comments »
Will Market Improvements Spell Trouble for Existing Home Sellers?
categories: Alpharetta Real Estate, Foreclosures, Forsyth, Milton Real Estate, New Construction
It doesn’t sound like it makes sense, right? How can things get better but spell trouble for home sellers? Or maybe you’re reading this and asking "How can you even say they are getting better?". Before I get into any potential problems, let me start with the point about things getting better. Things are trending in the right direction, albeit at a very slow pace, but signs of recovery are there.
Signs of Improvement
Current inventory levels are down approximately 40% from the 2007 market peak. Even with the flow of foreclosures, there has been capacity to consume those distressed properties. In the first Qtr. of 2009 distressed sales made up nearly 38% of all home sales in Metro Atlanta. That number is now around 25%. Most sellers on the market today either need to sell or have the equity necessary to sell at current market value. Property owners who would normally be on the market just to "see what they could get" or toying with moving, generally speaking, aren’t out there.
The fourth Qtr. of 2009 was the first quarterly increase in units sold over the past 2 years, showing a 14% increase over the previous year. And we are seeing an increase in the RELO client. This data in anecdotal but our team alone has worked on several deals over the past 4 weeks involving RELO clients. Companies are moving their employees and the properties we’ve been looking at are disappearing fairly quickly.
So Where’s The Problem? - Mortgage Delinquencies and New Construction
Rising mortgage delinquencies will ensure that we will have foreclosures and short sales in our market for at least the next 2 - 3 years. As you can see in the chart to the right {click chart to enlarge}, courtesy of calculatedriskblog.com .
It appears that delinquencies may have dropped slightly from their peak, but unless some of the programs being implemented by the government and banks actually help homeowners and slow that process, then it could possibly begin rising again.
When the market tanked, new construction fell off a cliff, and we’ve had literally no new construction for the past 2 years. But now builders are grabbing developed lots at great discounts, new home starts are showing up and the sounds of hammers can be heard in more than a few communities. Most of these locations are in Forsyth County but over the summer we’ll see construction begin in some stalled communities throughout Alpharetta and Milton.
Buyers tend to gravitate towards new construction when available. That coupled with the fact that buyers are also looking for great deals (foreclosures) I think some pressure could be felt by the normal equity owner looking to move-up, down or relocate, due to the increased competition with new construction…along with foreclosures. That said, I think any pressure will be short-lived. As the economy and the housing market continues to improve, competition will increase for sought-after communities and school districts, ultimately putting the re-seller back into a stronger position. Of course the product they have to offer can always set them apart, which is why we are seeing well priced homes in good condition and locations sell quickly despite the current market.
Am I on target or off base? Let me know what you think….
Posted by Bob Strader | Currently 5 Comments »
Why We Need to Become Milton County
categories: Alpharetta Real Estate, Johns Creek Real Estate, Local Information, Milton Real Estate
Another hurdle was cleared last week when the bill, HR 21, passed through the State Planning and Community Affairs Committee. The next step is to clear the House Rules Committee and the House of Representatives - a two-thirds majority required. Jan Jones, a Milton resident and the House Speaker Pro Tem has been a driving force in re-creating Milton County and has been instrumental in getting the issue this far to date.
I won’t go through the history of how Milton became part of Fulton county, if you’re familiar with the issue at all you’ve read about it already. What I do want to discuss is why I believe we should become Milton County again. There are two main issues that drive the decision, those are: Tax dollars and Services. However, I think the School System and Property Values are other important reasons for Milton County.
The Funding of Dysfunction
Tax dollars and Services are linked and the return on our investment is inadequate. For far too long our tax dollars have helped to fund mis-managed Atlanta services that continue to get worse rather than better. Water systems in shambles and a tax assessment process that is incapable and incompetent. How can they operate for 15 years without updated assessments on commercial property? Jan Jones pointed out in a recent AJC article that "In 2008, audits showed the county had no asset inventory, no oversight of purchasing and tracking and an inability to locate roughly $160 million in asset purchase".
Fulton County has seven commissioners managing a county 80 miles long with a population larger than six different states. There is a reason that the cities of Sandy Springs, Johns Creek and Milton formed - greater local control. There is no local control within Fulton. I want to see business locate in Atlanta and to see the city thrive, but not by extending it’s reach further out into the suburbs to for more tax dollars.
Head of the Class
It’s been all over the news, massive layoffs and budget cuts for Fulton County Schools. Certainly, the budget issues aren’t limited to Fulton. Gwinnett, DeKalb, Cobb and others are all facing budget shortfalls from the State. But there are some counties that have been able to mitigate the impact of those cuts, Forsyth County for example. While they will also receive fewer funds from the State, Forsyth County Schools won’t be laying off hundreds of teachers and cutting school programs.
As a Realtor who lives and works in North Fulton, I can attest to the high demand that home buyers have for North Fulton Schools. Our school system would only be better if we had more control, increasing higher demand and increasing property values.
The Rub
There is just one issue that hasn’t been discussed out there and it has to do with the cities in North Fulton. Would we need to have city services for Alpharetta, Milton, Roswell, Mountain Park, Johns Creek and Sandy Springs if the county of Milton were re-created? Should some of the cities merge? No doubt there would be overlap in services and costs could be contained. So, here is my question to you: If we become Milton County, should Alpharetta annex Milton? Should there be a Johns Creek? Do you even agree that we should become Milton County again?
Posted by Bob Strader | Currently 15 Comments »
Nine Reasons to Buy a Home in North Fulton
categories: Alpharetta Real Estate, Johns Creek Real Estate, Milton Real Estate, Roswell Real Estate, Schools
There are several considerations buyers take into account when moving. The right home, the commute, community, access to shopping and entertainment. But one of the biggest reasons home buyers choose a particular area is for good schools. So here are nine reasons for buyers to search for a home in North Atlanta, because nine Fulton County High Schools were named AP Honor Schools.
Of the nine schools, eight were named AP Merit Schools for having at least 20 percent of students taking AP exams and with at least half of those exams receiving a score of 3 or higher. One of the nine, TEACH Charter High School, was the only Fulton County school to be named an AP Challenge School for having fewer than 900 students and offering AP classes in core areas. Here is the list of schools:
· TEACH Charter High School
· Alpharetta High School
· Centennial High School
· Chattahoochee High School
· Milton High School
· North Springs Charter High School
· Northview High School
· Riverwood International Charter School
· Roswell High School
The eight AP Merit Schools have made the list for the third year in a row. The College Board administers AP exams each spring, with scores ranging from 1 to 5. Students who receive a 3, 4 or 5 on AP exams are eligible to receive college credit or may be exempt from some introductory college courses.
Posted by Bob Strader | Currently No Comments »
Interview with Alpharetta City Councilman DC Aiken
categories: Alpharetta Real Estate, Local Information, Local Market Conditions
I had the opportunity to sit down with Alpharetta City Councilman DC Aiken and ask him about the city, how it is faring in the current economy, what projects are going on, what’s happining with Prospect Park and Westside Parkway and his take on the likleyhood of Milton County.
Part 1
Part 2
DC Aiken is an Alpharetta City Councilman and VP for SunTrust: www.suntrustmortgage.com/dcaiken
Posted by Bob Strader | Currently 2 Comments »
