ATLANTA MARKET - OCTOBER, 2008 in REVIEW

There was some glimmer of hope in September, 2008; but, what a difference a month makes. October number results are more gloomy than anticipated.

OVERALL ATLANTA  MARKET RECAP

• A decline of nearly 29% in closings for ALL residential properties was noted this month compared to a year ago.
• Ranks as the 23rd year-to-year percentage decline.
• According to RealtyTrac, Georgia's foreclosure inventory is declining; but, the state still ranks as one of the country's highest  in foreclosure inventory
• Home prices were down approximately 9% from a year ago
• 9,900 foreclosure filings in October
• Predications loom a 4.5% interest rate on NEW mortgage loans will be approved to help stimulate the housing market

A LOOK BACK OVER OCTOBER, 2008

Dan Forsman, CEO/Prudential Georgia Realty looking forward predicts:

1. New home builder starts will remain very low the remainder of 2008 into 2009
2. As a result of low new homes starts, this should help absorb the inventory of resales and bank owned properties
3. Foreclosures that become bank-owned properties will continue to impact our market the remainder of 2008 and 2009
4. Excess single home inventory will be absorbed and levels back to normal by 2010
5. New home starts will increase but at a slower pace in 2010 through 2012
6. Home values will remain flat through the remainder of 2008 and through most of 2009
7. Home values should start increasing in 2010 and 2011 as inventories decline and population grows
8. A Sellers market to return in the spring, 2011

Further Articles of Interest:
Atlanta Business Chronicle: Georgia Sixth-Highest in October Foreclosures
Realtor.org: Could Lower Rates Hurt Home Sales