I have a few clients looking for foreclosures on Lake Lanier so I’ve pulled together some statistics you might find interesting - I did. I took a look at homes for sale on Lake Lanier, by County, and broke that data down by distressed and non-distressed sales. Take a look at the following charts:
| Homes available and sold on Lake Lanier, by County | ||||||
| NOT DISTRESSED | ||||||
| Active | Avg. List Price | Total Sold 2009 | Avg. List Price | Avg. Sales Price | Avg. LP / SP | |
| Dawson | 50 | $722,579 | 5 | $397,240 | $371,000 | 93.4% |
| Forsyth | 107 | $925,853 | 31 | $697,948 | $598,004 | 85.7% |
| Hall | 195 | $876,632 | 49 | $704,457 | $629,982 | 89.4% |
| Gwinnett | 10 | $875,289 | 3 | $558,266 | $483,300 | 86.6% |
| Totals/Avgs: | 362 | $850,088 | 88 | $589,478 | $520,572 | 88.8% |
| Homes available and sold on Lake Lanier, by County | ||||||
| DISTRESSED | ||||||
| Active | Avg. List Price | Total Sold 2009 | Avg. List Price | Avg. Sales Price | Avg. LP / SP | |
| Dawson | 7 | $496,528 | 0 | $0 | $0 | 0.0% |
| Forsyth | 4 | $540,358 | 10 | $515,740 | $436,063 | 84.6% |
| Hall | 6 | $412,283 | 16 | $540,606 | $475,393 | 87.9% |
| Gwinnett | 0 | $0 | 0 | $0 | $0 | 0.0% |
| Totals/Avgs: | 17 | $483,056 | 26 | $528,173 | $455,728 | 86.2% |
The first thing that pops out at me is the low percentage of distressed properties available. Across all counties there are only 5% of all listings that are in a bank-owned or short sale position. However, note that of the properties that have sold last year, 30% were distressed. No surprise there, as most buyers are looking for deals. Another data point of interest is that the average List Price / Sales Price for distressed properties is the same as Non-Distressed.
The next thing that I noticed is the months of supply for Lake Lanier foreclosures. With 26 sold last year and 17 available right now, that is 7.8 months of supply. However, if you look at the two counties where they are mostly being sold, Forsyth and Hall, it’s only 4.6 months of supply. That is essentially a buyers market, for that limited scope.
So, what does all this mean? That the overall number of Lake Lanier foreclosures are limited and you will compete for them. If you have questions about finding the right lake property or negotiating on a foreclosure, contact us: info [at] thenorthgroup [dot] com
Tags: Foreclosures, Lake Lanier, Market Statistics
22%
The percentage of Lake Lanier homes sold in 2009 that were bank-owned or distressed.
Tags: The Big Number
There have been news reports recently that home sales across the country dropped off significantly from Nov 09 to Dec 09, but we looked at the year-over-year trends and found that home sales in Forsyth County for the 4th qtr. of 2009 were up 23.4% over 4th qtr 2008. There are several factors that are contributing to those increased sales, first of which is the first-time homebuyer tax credit. Originally set to expire at the end of November, many buyers pushed to purchase a home before that date. Now that the tax credit has been extended, and expanded to move-up buyers, we should see more activity than normal during the first qtr of 2010.
In addition to the tax credit I’ve noticed the start of a shift in consumer confidence in some sellers. We are working with quite a few who have been in their homes for a number of years and don’t need to sell but feel that if they are going to take advantage of this buyers market, now would be the time as these deals may not be around in another 12 months. I agree with them. We have a long road out, it won’t change overnight, but there are some green shoots of recovery that will take stronger hold as we move further into the year.
The final reason for the increased number of home sales is the availability of cheap, bank-owned developed lots. As I mentioned back in November, builders are beginning to snatch these up quickly and the lack of new construction for the past 18 months, especially in the lower price ranges, have resulted in many buyers grabbing some of these new homes. Sales of developed lots increased 10% in 2009 over 2008. Right now, as of this posting, there are nearly as many lots under contract as there were sold in all of 2009. Expect to hear the sound of hammers and saws this year in Forsyth as builders take advantage of prices and pent-up buyer demand for new construction at reasonable prices.
Other Market Stats
Another important trend is the continued decline in the percentage of foreclosed homes. As you can see in the graph below:
Additionally, it’s good to report that the inventory of homes for sale Forsyth County is at 11.4 months for resales, down 30% from last year, and 7.5 months for new construction, down 54% from 2008. As things continue to improve you may want to know what the effects are on your home or community. Contact us and we’ll break down the statistics for you.
Regardless of a federal judges ruling against Forsyth County, or in favor of the YMCA - depending on how you look at it; Monday evening County Commissioner Patrick Bell hosted a town hall meeting to allow representatives from the Friends of the YMCA and the Friends of Bethel Park to give their reasons why the project should or should not move ahead. Before they began Patrick Bell gave a quick history of the issue. It seems that the YMCA has been pursuing this property for some time so that they can build a camp facility for Camp High Harbour. The County expressed interest in the park with plans to build a 75 space RV park.
The Argument
In short, the Friends of YMCA say that Bethel Park is an under-utilized park which has been partially closed since 1998. The YMCA will develop an $18M project that will include a gymnasium, baseball field, pavilion, pool, outdoor amphitheater, chapel, cabins for kids camp, docks with boats and much more. Camp High Harbour is such a well run and sought after kids summer camp that waiting lists around the country are constantly full. Additionally, at the Corps’ request, the YMCA will update and upgrade Two Mile Creek Park to ensure it will accommodate local park visitors. Initial improvements include adding a new boat launching lane, additional parking spaces, restrooms, relocating the courtesy dock, and shoreline reclamation & stabilization.
The Friends of Bethel Park argue that the county planned RV park would be less restrictive on park access than a summer camp operated by the YMCA, there would be less traffic on Bethel Road and the park would remain open for everyone. It seemed that most of the attendees that evening were residents in the area of Bethel Park and were most concerned about traffic.
“County Commissioners, you are an embarrassment!”
The heated discussion reached a near boiling point when Patrick Bell asked the other county commissioners, sitting in the audience, if they wanted to come up and comment on the issues. When all declined, Bell chastised them by saying they “are an embarrassment” to the county for essentially staying silent now and through the entire process with the Corp of Engineers.
Where the fight stands right now is that the county has spent approximately $50,000 of taxpayer dollars fighting this in court. They have the option to appeal, which could run another $10,000. If they win an injunction they can take it further on in court for an additional $50,000-$60,000 more of taxpayer money. Additionally, it was stated that the County is spending approximately $350,000 each year on the Lanier Park Systems with (arguably) low usage.
In the end it comes down to how many of the county residents want to spend more tax dollars to fight for a taxpayer funded RV park or allow the YMCA to spend their money on what seems to me as a facility the entire county can be proud of, one that their children can use.
Homebuyer Tax Credit Update
Last year there were many First-Time Homebuyers in Forsyth County that purchased homes. And quite a few that didn’t make the deadline or just weren’t in a position to do so. In addition to those, there were many other homebuyers that wished they could have taken advantage of a tax credit.
On November 6, 2009, President Obama signed a bill to extend the tax credit for First-Time Homebuyers. In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010. The bill also opens up opportunities for some Current Homeowners who are not buying a home for the first time. There are some restrictions, such as income limits and purchase price.
I have tried to provide as much detail as possible but I always recommend that clients speak with their tax accountant in regards to specific questions.
What is a Tax Credit?
A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service. In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual’s primary residence.
Who is Eligible?
Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible. Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible. In either case the tax credit is not available if the purchase price exceeds $800,000.
First-Time Homebuyers:
First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000
This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.
Current Owners:
The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years. Again, single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.
Other Situations:
Can Homebuyers Claim the Tax Credit in Advance of Purchasing a Property?
No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.
Can a Taxpayer Claim a Credit if the Property is Purchased from a Seller with Seller Financing and the Seller Retains Title to the Property?
Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Some examples of this would include a land contract or a contract for deed.
According to the IRS, factors that would demonstrate the ownership of the property would include:
1. Right of possession, 2. Right to obtain legal title upon full payment of the purchase price, 3. Right to construct improvements, 4. Obligation to pay property taxes, 5. Risk of loss, 6. Responsibility to insure the property, and 7. Duty to maintain the property.
Are There Other Restrictions to Taking the FTHB Credit?
Yes. According to the IRS, if any of the following describe a homebuyer’s situation, a credit would not be due:
- They buy the home from a close relative. This includes a spouse, parent, grandparent, child or grandchild. (Please see the question below for details regarding purchases from “step-relatives.”)
- They do not use the home as your principal residence.
- They sell their home before the end of the year.
- They are a nonresident alien.
- They are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
- Their home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
- They owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2008, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2005, through July 1, 2008.
Can Homebuyers Purchase a Home from a Step-Relative and Still be Eligible for the Credit?
Yes. As long as the person they buy the home from is not a direct blood relative, the purchase would be allowed.
If a Parent (Who Will Not Live In The Property) Cosigns for a Mortgage, Will Their Child Still be Eligible for the Credit?
Yes, provided that the child meets the other requirements for the tax credit.
If you are beginning the process of searching for a new home in Forsyth County or the Cumming area, please give us a call. We’ll make sure you meet the deadline and end up in a great new home.
Tags: Homebuyer Tax Credit
If you moved to the Cumming area last year, and purchased a home, then you just had your first Christmas there. The decorations are all put away and you’re probably welcoming a normal routine again. But something in the back of your mind is saying “didn’t my Realtor tell me something about a property tax exemption I need to handle in January?”. Hopefully they did and now is the time to file.
What is a Homestead Exemption?
Simply put, it is an exemption for some of the property taxes you would owe on your primary residence and it remains in effect for the entire time you live there. So, if you own the property, reside on that property, and are a legal resident of the County, all as of January 1st of the tax year, you may qualify for homestead exemption.
The exemption amounts differ by county. For instance, in Fulton County the exemption for 2010 is $25,000. That will go up to $30,000 in 2011. In Forsyth County the Homestead Exemption is $8000.
The appropriate forms to file can typically be found on the county website page for the Tax Assessors Office, here are phone numbers and links to a few of those:
Cherokee County – 678-493-6120
Cobb County – 770-528-8600
Forsyth County – 770-781-2106
Fulton County – 404-612-6440
Gwinnett County - 770-822-8800
It’s official - Metro Atlanta is past the bottom - We’re seeing the beginning of the end.
OK, I’m not saying that we have arrived where we want to be, the continuing road to recover will still take a while. However, the numbers for November home sales in Metro Atlanta are in and, as expected, closings shot up significantly for Atlanta and in Forsyth County we are leading the pack.
It’s clear that the first-time homebuyer tax credit did what it was supposed to do. Those that were in a position to take advantage of it did. Now that the tax credit has been extended and expanded to move-up buyers I suspect that the activity we’ll see in the first quarter of 2010 will be much higher than usual.
Here are the numbers for both Single Family and Condos/Townhomes:
What I see is a precipitous drop from Nov 07 to Nov 08 that is almost as large as the significant rise in homes sold from Nov 08 to Nov 09. In Forsyth County, single family homes shot up 63% from Nov 08 and Townhomes (which were essential non-existent) more than doubled. We’ve seen new construction starts and will continue to see more through 2010 due to the overwhelming supply of developed lots in foreclosure.
While it’s still a buyers market, the months supply of inventory for Metro Atlanta has dropped below 10 months and we’ll continue to see that decline as inventory levels continue to move lower because more and more buyers realize that while there are still deals out there; the best deals are now probably behind us.
The number of homes sold increased for all of Metro Atlanta in October but the significant jump in homes sold in Forsyth County show strong signs that a recovery is on the way and Forsyth County Real Estate will lead that recovery for our area.
Metro Atlanta Data
The October 2009 data is in for metro Atlanta and home sales shot up nearly 15% over October 2008. Condos and Townhomes were up more than 24% over Oct 08 which is the highest year-over-year increase since early 2006. The average sales price for single family was $201,038 or 6.9% less than October 2008. However, the average sales price for November 2008 was $193,702. If we exceed that number for November 2009 (and I think we will) then that will be the first year-over-year increase in average sales price in almost 2 years.
Forsyth County Data
The number of single family homes sold in Forsyth County increased as well but with a far greater leap - 39% increase over October 2008. Take a look at the chart below:
| Forsyth County Market Data - Single Family Homes | |||
| Year-to-Year change: Oct 08 vs Oct 09 | |||
| 2008 | 2009 | Change | |
| Units Sold | 133 | 185 | 39% |
| Avg. Sales Price | $276,363 | $260,645 | -5.70% |
| Avg. Days on Market | 149 | 145 | -2.70% |
As you can see, the average sales price is down slightly from last year and the average days on market has improved slightly.
Moving Forward
We will continue to see the numbers move in the right direction, with increased signs of new construction in spots throughout the county. The expanded and extended tax credit will aid in this and help continue to reduce inventory levels throughout next year.
Tags: Forsyth Real Estate, Home Sales, Market Data
Why you should put your home on the market NOW! (and no, I’m not crazy)
As you probably have heard, the first-time home buyer tax credit has been extended through April 30th 2010 and expanded to home buyers who have owned their own home for 5 of the past 8 years - they are eligible for a $6500 tax credit. The government expanded it because it has worked, but we need to continue reducing the number of homes for sale in Cumming, in Forsyth County, everywhere.
So, what does this have to do with listing your home?
When the first-time home buyer tax credit was set to expire at the end of this month that incented a large number of buyers to move forward and purchase a home. In October, for Forsyth County, there were 161 homes sold. Already for November there are 287 homes under contract in Forsyth County. These buyers were qualified to purchase a home all year long, and there have been plenty of “deals” out there for them to take advantage of. It was the tax credit that pushed them off the fence to move forward with a purchase.
With this extension AND expansion to move-up buyers, activity will remain consistent through the next 5 months, which is typically a very slow period. I’m recommending to all my clients considering listing next year to get on the market as soon as possible so they can take advantage of that buyer activity. It doesn’t change the fact that your home has to be priced appropriately, but the buyer activity over the winter will be higher than it typically is for this time of year.
If you are thinking of selling and want to know what the market value of your home is, contact us for a free no-hassle evaluation and detailed marketing proposal.
Tags: Selling Your Home in Cumming, Selling your Home in Forsyth County
New Construction Defying The Market?
There is still concern and doubt about our housing recover here in Metro Atlanta but are home builders defying the market in Cumming or do they know something that many home buyers still seem to ignore? Certainly a great number of first-time home buyers have deemed the tax credit enough incentive to purchase a home and if that credit is extended & expanded many more will do the same. But a large number of buyers are still waiting on the sidelines looking for that elusive “great deal” that may not appear.
Through August of this year over 500 building permits have been issued in Forsyth County, compared to 210 in Gwinnett and 111 in Hall County. Builders are snatching developed lots out of foreclosure at substantial discounts and putting up a number of spec homes. But here is the kicker….they’re selling them at a pretty good clip too! As of right now in Forsyth County there are 376 new homes available for sale, another 81 under contract and 551 sold over the past 12 months. That is an absorbtion rate of just over 7 months with is really very good.
National builders like Pulte are building in the mid to high $200’s at The Estates at Old Atlanta. Local builders like The Knight Group are finishing out Union Station where all their current inventory under contract, I think there are only 4 more lots available. Traton Homes has purchased lots in Fieldstone Preserve and is now building in the $300’s where the homes previously sold in the $700’s.
What this shows is a demand for new homes that rival the buyer demand for foreclosure deals. I guarantee we will see more of this next year, for three main reasons. Banks are anxious to get these lots off there books and many buyers don’t want to deal with repairs & the difficult process and red tape that short sales and foreclosures come with. And finally, Forsyth County and North Atlanta in general still have great demand from both local and relocation buyers.
North Atlanta provides great schools, easy access commutes and plenty of options for dining and entertainment.
Tags: New Construction
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