Active Rain Blog Text Christine May 03/02/08
In spite of all the media gloom and doom, the Greater Augusta market has picked up for me. The area cost of living is 13% below national average attracting more and more new businesses. There is current and future growth at Fort Gordon due to Homeland Security and the National Security Agency (NSA). In addition, a new reactor at Plant Vogel will add to the incoming to the Augusta area. First T-Mobile opened a call center and now a second new call center creating 300+ jobs was just announced to serve a health care company. These are just a few examples that indicate good growth potential for this area over the next few years with thousands of new residents
We all should know that the time to buy is when prices and interest rates are low.
The Augusta market never had and "explosive" price increases like other parts of the country. Homes here did not get greatly overpriced so there is no need to "slash" pricing like we've seen in Florida.
Over the past 6- 12 months or so I've noticed:
•1. EXISTING home sale prices have been generally "flat" and not declining much if at all. Instead of 30-90 days on the market sellers can expect 90-180 days on the market
•2. NEW CONSTRUCTION - instead of price increases every 3 months - prices have stayed FLAT or even decreased some. Builders slowed down and even temporarily stopped new building "start ups" and are taking a wait and see attitude. Some builders have excess inventory and others are just sitting on the sidelines till demand increases.
•3. FORECLOSURES: There are more foreclosure properties than ever before that can be picked up cheap and make good deals for owner occupants or savvy investors.
•4. CORPORATE OWNED homes can be a great deal! Typically relocation properties are good deals but now corporations are "dumping inventory" and offer great value. Across the country, these sellers are used to the softer markets and assume Augusta is weak too. Not wanting to hold this inventory, I'm seeing these sellers willing to negotiate much better deals than in the past.
•5. There is now a value issue related to declining value market areas. The Martinez/Evans area is not considered a "declining or high risk area" by lenders. Some values are being discounted 5-10% below appraisal value - which means if a buyer wants to buy in a high risk area - they have make 5-10% additional down payment on their loan.
•6. Sellers that are not prepared for longer marketing times are more willing to rent out their homes than in the past.
•7. Another observation I have is that although there are still discount brokers offering limited marketing service, it's more important than ever to have a complete marketing program to set houses apart. Increased inventory levels have created great selection for buyers and available homes must be presented effectively.
I'm confident in our market overall but am observing shifts and changes for everyone in our real estate industry. There is currently and will be a shake out of some and opportunity for growth for those that adapt. At the end of the day, professionalism and hard work will determine the survivors in the business. For consumers, it's more important than ever to select your service providers with care.
Christine May, Broker, ABR
Licensed in GA and SC
EXIT REALTY LEADING EDGE
141 North Belair Rd. Suite 101
(approx. 1/2 mile from the Columbia Rd. Intersection)
Evans GA 30809
Office (706)-869-9478
Fax (706)-860-9431
http://www.augustahomestore.com
broker@augustahomestore.com
www.RealEstateSchoolOfGA.com
www.ExitRealtyCareersGA.com
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