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.

Is Atlanta a Buyer’s Market or a Seller’s Market?

It depends.

Here’s a question raised by one of our readers in response to our report on North Atlanta market statistics:

With home prices increasing, does that mean supply is decreasing? How is the average home price increasing if inventory is high (assumption)?

The answer to that question requires a review at the hyper-local level.

Are you asking about houses in North Atlanta? South Atlanta? Intown? With lots of acreage? A close commute? Within the best school district? What price range?

Try looking for a 4-bedroom home in a great school district (no stucco please), priced between $375,000 and $450,000, built within the last 7 years on a 1/2 acre lot.

I found a total of 7 at 2:00 this afternoon — a little less than 6 months inventory. For a seller with a home meeting this description, it is a seller’s market.

The prices of North Atlanta homes are increasing simply because the value of homes has continued to increase - even though the homes are taking a little longer to sell.

Spread the word… North Atlanta is a strong, viable market!

MLS Moments

We are far enough into 2008 to have some solid mls real estate sales information to begin tracking patterns and trends. Before we get ahead of ourselves, I think it’s important to review some basic mls sales data from the past few years. This will establish a baseline against which we can compare our analysis for 2008.

The chart below shows the total number of single family homes listed in the North Atlanta MLS Listing Area that sold in 2005, 2006 and 2007. As we track the number of 2008 mls sales for the same real estate market area, you can refer back to this baseline. (Note: This information is not compiled by the Atlanta mls real estate services.)

In 2005, (according to my research of the mls listings) the total number of single family homes sold in North Atlanta was 11,663; in 2006, the number increased slightly to 11,909. The total number of North Atlanta mls listings sold in 2007 dropped 19% to 9,622.

Looking at the average sales price during the same time period gives us a different perspective on the strength of the real estate market in North Atlanta.

You can see in the chart here that the average sales price increased 9% – from $345,503 in 2005 to $377,793 in 2007 — while the volume decreased over the same time period. It will be interesting to learn if the trend of increasing sales prices will continue into 2008.

Another real estate pattern to note is the average days on market (DOM). In the North Atlanta market, the average DOM has increased from 61 days in 2005 to 72 days in 2007 — a rise of 18%.

So, what do the 2008 mls listing statistics tell us today?

There are 362 single family homes reported as sold through the multiple listing service in January 2008, with an average of 95 days on market. The average price range in the North Atlanta Market Area for January is $402,158.

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

• 7062 7230 7352 active mls listings (updated: 3/7/08; 3/15/08)
• 742 776 771 are “under contract” pending closing (updated: 3/7/08; 3/15/08)
• 574 664 788 sold and closed (updated: 3/7/08: 3/15/08)
• $385,703 $380,929 $377,198 average sales price (updated: 3/7/08; 3/15/08)
• 95 94 average days on market. (unchanged: 3/7/08: 3/15/08)

Okay, the baselines are set. What I want to do now is track these 5 markers on a weekly basis. I’ll strike through the changes as new listings, pending contracts and closings are reported to the multiple listing service.

If you have a proficiency with spreadsheets and graphs, and want to contribute a meaningful display, be my guest.

North Atlanta Real Estate in Review

Comprehensive analysis of North Atlanta real estate statistics and trends.

The market area of North Atlanta includes the communities in Cobb County east of I-75, Fulton County east and west of GA-400, south Cherokee County, Gwinnett County west of I-85, and south Forsyth County.

These areas are further defined by the cities of Marietta, Alpharetta, Roswell, Dunwoody, Sandy Springs, Buckhead, Woodstock, Norcross, Duluth, Suwanee, Buford, Sugar Hill and Cumming. The map pinpoints these cities within the respective counties.

The market area is further defined by high school districts and zip codes. See chart inside publication. 

Disclaimer: Kathy Drewien, Property Lines, compiled this information using the mls as a source only. The findings and analysis are not compiled in anyway by the Atlanta multiple listing services.