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Conversations about Atlanta Real Estate

Strategic Equity Management

[ Add Comment ] 06/18/08 | Jim Greenie | Filed under: Atlanta Real Estate, Buyers, Mortgages

There are several reasons why purchasing a home is preferable to renting one. Rent payments go directly into the pocket of a landlord, while mortgage payments result in the accumulation of equity and the eventual ownership of the property. The tax advantages of home ownership are also significant since mortgage interest is tax deductible.

Ironically, these two benefits do not always work well together! Financial planning expert and best-selling author, Douglas Andrew, has revealed some surprising misconceptions as well as some innovative strategies in his book, Missed Fortune 101. Andrew explains that most homeowners believe that paying down their mortgages quickly and increasing their equity is the best investment they can make. However, doing so results in a decrease in the tax benefits available since the loan is paid off sooner, causing the interest deductions to disappear.

As an alternative, Andrew suggests that homeowners obtain a fixed-rate, long-term mortgage. Rather than putting down a large down payment or paying extra principal, he recommends placing these funds in a carefully chosen investment vehicle that will earn a higher rate of return. By using the tax benefits of the interest deductions and the compounding of interest on the investment account, homeowners have the potential to earn a higher rate of return. In addition, should an emergency need for cash arise, the investment account will be much more liquid than the equity of the home.

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Conversation Tags: mortgages

MLS Moments - Market Update

[ 1 Comment ] 06/16/08 | Kathy Drewien | Filed under: Atlanta Real Estate, MLS Moments

The market update for North Atlanta shows a continued positive trend first reported on June 3. The increase in the number of houses sold tripled the increase in the number of houses listed.

More simply, since June 3, there is a:

377 increase in homes sold
110 increase in houses for sale

Houses for sale in North Atlanta - 8331 with an average listing price of $580.917.

Houses sold, pending close - 968 with an average list price of $392,173. Average market time is 83 days.

Houses sold and closed year-to-date is 2729. The average list price is $386,962, compared to $368,544 average sold price. Average market time is 89 days.

Review all multiple listing market reports to track trends in our market area.

Weekly Market Reports

Real Time Price and Inventory Trends

Conversation Tags: Atlanta real estate data | multiple listing service

Atlanta Mortgage Rates - June 13

[ Add Comment ] 06/13/08 | Jim Greenie | Filed under: Atlanta Real Estate, Mortgages

Mortgage rates are inching upward due to inflation.

This is not the type of market to sit around thinking about refinancing, or floating your mortgage rate. Here’s a short recap of how much rates have gone up for the conforming 30-year fixed :

June 13 - 6.25%
June 6 - 6.0%
May 30 -5.875%
May 23 -5.625%

	Conforming	APR	Payment per $1000	Jumbo	APR	Payment per $1000
30-Year Fixed	6.25%	6.391%	$6.16	7.375%	7.476%	$6.91
15-Year Fixed	5.875%	6.107%	$8.37	7.125%	7.286%	$9.06
5-Year Fixed ARM	5.75%	5.887%	$5.84	6.125%	6.219%	$6.08
5-Year Interest Only	5.875%	6.013%	$4.90	6.25%	6.344%	$5.21

As always, this is not a guarantee nor is it a commitment of interest rate.

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MLS Moments Answers “How’s the Market in Atlanta?”

[ Add Comment ] 06/09/08 | Kathy Drewien | Filed under: Atlanta Real Estate, MLS Moments

“How’s the Market in Atlanta?” “Much better, thank you.“

May closings are still being reported in the multiple listing service, and I’m pleased with what I see in comparison to last week’s report.

The number of homes closed in our market area increased by 180, a total of 2592 reported.
The number of homes for sale in the same area increased by only 68.

And yet, there are still a lot of For Sale signs in every neighborhood.

Let’s look at how this breaks down by price range with an eye on the absorption rate. Absorption rates are a mathematical calculation of how long it will take to sell all the homes on the market, based on the number of houses for sale and the number of houses sold per month.

These numbers are from the First Multiple Listing Service (FMLS) and deemed reliable, but not guaranteed. As always, we are consistently using our defined market area.