Stop Asking Your Real Estate Agent “Is Now a Good Time to Buy in Atlanta?”

Thanks, Dan Green, for offering to take this one off my shoulders.

For Americans wanting to buy a new home, there are always two time frames to consider: Now and Later

It’s why prospective home buyers love to ask the question: “Is now a good time to buy?” If now is not a good time, they reason, certainly later must be.

Strangely, though, “Is now a good time to buy?” is a question that people ask their real estate agent but never their mortgage guy. It’s probably a good thing, too, because loan officers have seen a lot of changes over the last few months and we’re expecting a lot more this year.

But it’s okay. You can ask Dan Green, a mortgage planner: “Is now a good time to buy in Atlanta?”

Is This a Good Time to Buy in Atlanta?

How can I trust you? Every time I ask, “When is a good time to buy?” Your answer is, now.

Take time to read the post by Matt Thompson, a real estate agent writing in Gig Harbor Undressed.

(h/t to Larry Cragun)

MLS Moments: Atlanta Real Estate Market Review

I've just finished reviewing the mls listings activity through February. As a reminder (disclaimer), this is market information that I have compiled, not the Atlanta multiple listing services. The geographic focus is the North Atlanta suburbs. (See the zip codes included.)

The number of closed sales may continue to adjust as reports are filed with the local mls office. 

The reported year-to-date numbers through February 2008:

•  7230 active mls listings UP
•  776 are "under contract" pending closing UP
•  664 sold and closed UP
•  $380,929 average sales price DOWN
•  95 average days on market. UNCHANGED

You can see the number of single-family houses on the market are up from last week's report. So are the number of properties closed. However, the increase in new listings (168) continues to out pace the increase (90) in mls listings reported as closed.

The number of homes for sale (inventory), in contrast to the number of homes closed, enables us to calculate the absorption rate for our market area. This is simply a numeric way to report supply and demand trends.

It's important to note the absorption rate can be quite different between price ranges and zip codes. Earlier this week we gave a good example of what our client wants to buy, and how few matching homes are available for sale.

Are you an analytical type? Keep track of our market reports. Subscribe to MLS Moments.

Your comments are invited. Look for Comments in the title bar. 

Atlanta Mortgage Rate Update

Strategic Financing Sells Homes Faster

With interest rates on the rise, it's become increasingly difficult for many homeowners with Adjustable Rate Mortgages. Each month, they watch their monthly payments increase as interest rates climb closer to the lifetime caps of their loans. In addition, property owners who are looking to sell are finding that their properties are staying on the market for longer periods as buyers have more options to choose from.

Thankfully there is a solution for both of these issues. This special mortgage program has no margin and no index, yet it offers greater financial flexibility because of its tiered interest rates. During the first year of the loan, the borrower pays a rate that's 2 full percentage points below the current prevailing rate for a 30-year fixed. During the second year, the borrower pays a rate that's a full 1 percentage point below the prevailing rate. From years 3 through 30, the loan caps out at a rate that's much lower than their current loan's cap rate. This provides the borrower with greater cash flow, stability, and instant relief from interest rate nightmares.

For those who are seeking to sell homes more rapidly, attaching a strategic financing program to a specific property for a limited time will create both buyer incentive and a sense of urgency, making marketing and selling the property a breeze. Buyers are inspired to act quickly in order to take advantage of this unique financial benefit. Strategic financing is a perfect solution to today's challenging market.

Mortgage Interest Rates*

Rates as of 03/07/2008:

30-Year Fixed: 6.125%. (APR 6.265%)

15-Year Fixed: 5.55%. (APR 5.730%)

5-Year Fixed ARM: 5.000% (APR 5.131%)

5-Year Interest Only: 4.125% (APR 4.250%)

Rates increased over the last week. Our float down option allows you to be protected if rates drop prior to closing.

BTW… Here's a great Dan Green Mortgage Reports article on How to Use Interest Only Loans to Your Advantage.

*Rates are subject to change due to market fluctuations and borrower's eligibility.

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