Notice change in housing market?

Are you noticing a change in the real estate market lately?

The median sales price of a single-family home in metro Atlanta rose in the second quarter, according to a report today by the National Association of Realtors.

AJC reporter Michelle Shaw writes that the metro Atlanta median sales price was $121,400 in the second quarter of 2009, up 5 percent from $115,600 the previous quarter.

Still, the current median sales price is 23 percent lower than it was this time last year.

If you’re a buyer or seller, have you seen a change?

And you real estate agents, what are you seeing now?

24 comments Add your comment

Chip

August 12th, 2009
1:07 pm

I think the trend of late has been slow improvement. The problem is inventory of unsold homes some of which have been vacant for almost two years coupled with the ruthless banks cracking down on all lending except for those who have managed to dodge this recession. At this rate I don’t see things improving for those of us who are still in the housing market for at least another year and pray inflation stays in check or all hell breaks loose.

Sagegirl

August 12th, 2009
2:16 pm

A friend was telling me that her friend who had just been through foreclosure had worked out “a deal” with her lender stating that she could live in her home rent free/payment free until the lender finds a buyer for the house. It sounded a little far fetched to me. Anyone have any idea if this could be true? Is that the way it’s happening now?

JMH

August 12th, 2009
2:57 pm

Sagegirl, I don’t know about the rent/payment free part of that deal but there is a trend with banks offering struggling homeowners all sorts of deals because they (banks)are so overrun with foreclosures. Nothing is for FREE though, I can promise you that!

The sad part about all this fiasco is that those that are walking away from their homes and caught up in this recession are more than likely ruined forever, financially speaking. No one is talking about what the future is going to hold for all these folks who have been affected (foreclosure / short sale) – whether they were a true victim or not.

JMH

August 12th, 2009
3:07 pm

As to the question at hand, a RE agent friend says that the median sales price had indeed risen because that was about the only price range that is selling right now. The RE agent said there have been bidding wars (which I find shocking) over houses at this price. I suppose if that is what everyone is going after house-wise then that must be the case!

blackbird13

August 12th, 2009
3:10 pm

More sales, but almost all of them foreclosures or short sales. I think JMH has a point: there is a whole new class of people with ruined credit. How is this going to affect the country as a whole?

Nativeson71

August 12th, 2009
3:29 pm

I would like to know what ‘all these people do for a living’ that every new subdivision near me (Smyrna) is in the $400,000 / $500,000 price range. Do this many people make this much money to afford at this price point.

blackbird13

August 12th, 2009
3:39 pm

“I would like to know what ‘all these people do for a living’ that every new subdivision near me (Smyrna) is in the $400,000 / $500,000 price range.”

I’ve been wondering that for years too. I was reading a financial advice book written in 2005 that claimed it was ok to spend 5-10 times annual income on a house. No wonder there are so many foreclosures.

Maggie's Dad

August 12th, 2009
3:39 pm

When I lost my job and realized I was not going to be able to keep my home in Atlanta, I notified the bank of the situation, and they agreed to a short sale. It took over a year to sell it and during that time I did not, could not, make any payment due to not working. So in essence I was living there free. The house lost $100,000 during the year it was on the market but it did sell and after almost two years I am now able to get another loan for buying a house in my new location that is half price of what I could buy a home in Atlanta.

citizen

August 12th, 2009
3:51 pm

Blackbird13@3:10 PM …how is this going to affect the country as a whole?…Sadly, it will create a whole new class of predatory lenders preying on the less informed and vulnerable individuals who can least afford to fight this type of business practice.

dixie pixie

August 12th, 2009
4:11 pm

I have a beautiful, well-maintained home that has been on the market for over a year. I had to move due to my father being involved in an accident (he was hit by a tractor-trailer). I went to the bank to see about the possibility of a short sell and was refused b/c I still have a job and am paying mortgage on another home close to my parents. So, if anyone is looking or knowing anyone looking to purchase a very nice home in Conyers- – -send them my way! :)

Trizzle

August 12th, 2009
4:17 pm

the main problem is people being able to get loans. Sure the houses out there are priced great right now, but if you dont have a 750+ credit score, even if you pay all your bills on time, they wont even look at you.

JohnF

August 12th, 2009
4:52 pm

After nine months of absolutely no activity in my condominium building (built new in 2007) there have been three sells in the last month. One was a resale short-sale and the other two were two of the remaining five unsold units from the developer….and just slightly less than the original listing price. At least there won’t be any auctions. We have had our unit on the market as well for almost eight months (at a price that will be a huge loss) but we have had an uptick in showings the last couple of weeks…so I’m optimistic.

JMH

August 12th, 2009
4:59 pm

“sadly it will create a whole new class of predatory lenders preying on the less informed and vulnerable individuals who can least afford to fight this type of business practice”………..

“predatory” lenders, as critics would like to call them, have been around for a long time and the vast majority operate well within the law. What we have recently seen is an abundance of “predatory borrowers” that falsified information and shopped for mortgages until someone gave them what they wanted – all part of the lovely Community “reinvestment” Act that got us here to begin with.

Most these folks that have gotten in over their heads are going to able to get loans in the future, but they are going to be considered VERY high risk borrowers and these so called “predatory” lenders are going to be the only place to turn and give you that 2nd chance. Like them or not, that is what your going to have.

One must realize that we can’t continue to save people from their own mistakes. Folks are going to have to pay for these recent mistakes. Either get the money / loan from these B lenders or live in poverty. That’s about the only choice you are going to have.

PT

August 12th, 2009
5:24 pm

25% of America now has poor to average credit, you havnt seen anything yet. This housing downturn will last another 10-15 yrs

PT

August 12th, 2009
5:27 pm

Lenders also need to evaluate each poor credit score on a per basis. If a person had a 750 score for 15 years then something had to cause it. Its not necessarily getting in over their heads.

JMH

August 12th, 2009
5:42 pm

“Lenders also need to evaluate each poor credit score on a per basis. If a person had a 750 score for 15 years then something had to cause it. Its not necessarily getting in over their heads.”

PT, I hate to tell you but this is NOT going to happen. The vast majority of those that that did the right thing, planned, saved and lived within there means are not going to sit by quietly and pay for the mistakes and misfortune of others, no matter what the excuse. Just look at the outcry over the Obama healthcare reform issue for an example. In my opinion as well as many others the housing crisis / recession will be no different scenario.

Steve

August 12th, 2009
7:31 pm

There will be massive increases in year over years sales as we move forward, not because sales are tremendously better, but because sales were so drastically low a year ago.

Home prices fell as much as they did,not because home values fell, but because the majority of homes being sold now are lower-end homes being sold to first time homebuyers (who are being incentivized to purchase because of the $8000 tax credit.) If the gov’t expands the tax credit to be for all buyers, the average sales price will dramatically increase overnight because higher-end buyers will jump back in the market. All this good news will drive the market higher and higher.

The housing crisis is over. We may bounce along the bottom for a while, but we are definitly eventually going much higher on prices. I give it two years before we are back to the high-water mark of the bubble, then we are really off to the races as people panic to get a home before prices go higher.

No one is creating more land, prices have no where to go but UP!

Harold

August 12th, 2009
8:15 pm

I don’t see many homes selling near where I am. This is a higher end part of town however. The National Association of Realtors is a sales driven trade group.

Personally would think someone had lost their mind. Buying in a market that has been nose diving. With the possiblity of taking on negative equity!!!! Groups like Realty Trac and the like are all sponsored by Realtors. Basically they are trying to sell something. I think it is fair to saddle someone with negative equity. Based on sales figures from a sales organization.

I am an optimist to. However folks need to look around and see if what they are saying is making any sense at all.

I feel bad that some are in a tough situation. I hope for you. Even for some of you. You may have been the victims of these type of heartless sales tactics. The people that put those figures out know better. And now well it’s just plain obvious.

Brad Steel

August 13th, 2009
7:41 am

The month-to-month changes in median home price is statistical noise. Statistically, it is meaningless. But the change in median price is celebrated with elan but know-it-all home owners and realtors.

And if there is any group that is driven by nothing but facts, it is real estate agents. RE agents know that is factual that the best time to buy or sell a house is always – YOU CAN’T LOSE!!!

Cow

August 13th, 2009
8:04 am

MOOOOOOOOOOOOO

Dr. Science

August 13th, 2009
8:09 am

I am impressed by any cloven-hoofed animal that can type. WWWWOOOwwww!

Nervous Nell

August 13th, 2009
8:52 am

Personally would think someone had lost their mind. Buying in a market that has been nose diving. With the possiblity of taking on negative equity!!!!

The above quotation from Harold is rather misleading. His sentence fragment which declares “the possibility of taking on negative equity” is downright false. The owner who is attempting to sell the home has absorbed the shock of the market and thus the ‘negative equity’. The buyer who purchases the home will be gaining, because all signs point to the fact that we are at the bottom of the market.
Buyers are no longer allowed to put ZERO down and walk away from closing with a check in hand…so there should no longer be homeowners caught ‘upside down’ in their homes.
Realtor bashing is not the answer. It took LOTS of people turning a ‘blind eye’ to get us into this situation….including APPRAISERS, LOAN OFFICERS, and IRRESPONSIBLE BUYERS.

Tommy

August 13th, 2009
9:55 am

This economy may have a way to go. I do not see all that many homes to be sold near me. I did however wonder about all the banks being closed in Georgia and Atlanta. California should have more. I saw one article that half way made sense. Here’s that link.

http://www.city-data.com/forum/atlanta/731583-bank-failures-georgia.html

They have some real nice pictures to.

Tommy

jwhenry

September 2nd, 2009
1:52 am

I own a condo and have an outstanding balance of $140k, consisting of $104k primary and $36k secondary. I took the home equity to consolidate debts. At the time the property was valued at $163k but now it is valued at $134k. I’m looking to sell because i am engaged and will be moving into my fiancee’s home. http://www.obamamortgagerelief.org/.If I have a buyer who offers me within say $5-7k of the outstanding, can i agree to assume a loan on the residual and pay the bank the difference over time with interest? The same bank holds both mortgages.