Baby it's cold outside! And, many would say the same for the 2008 Atlanta real estate market. The 2008 real estate market will have its own place in history....and, our memories. But now it is time to put 2008 up on a shelf and look forward, with optimism, to 2009.
If you are buyer or a seller and you are trying to read the crystal ball to determine when is the best time to buy or sell, here are some predictions from the CEO of Prudential GA Realty (this was also shared in my earlier post Atlanta Market, October, 2008 Recap).
Dan Forsman, CEO/Prudential Georgia Realty looking forward predicts:
- New home builder starts will remain very low the remainder of 2008 into 2009
- As a result of low new homes starts, the inventory of re-sale and bank owned properties will begin to be absorbed
- Foreclosures that become bank-owned properties will continue to impact our market the remainder of 2008 and 2009
- Excess single home inventory will be absorbed and levels back to normal by 2010
- New home starts will increase but at a slower pace in 2010 through 2012
- Home values will remain flat through the remainder of 2008 and through most of 2009
- Home values should start increasing in 2010 and 2011 as inventories decline and population grows
- A Sellers market to return in the spring, 2011
Rates as of December 18:
FNMA 30 year fixed (720+ credit) 4.750%
FHA 30 year fixed 5.00%
So what can one take from all this?
If you are a buyer, these rates are so phenomenal you can be assured as the economy and housing market improves (and they will!) you will never see these rates again. For that matter, these rates will probably be short-lived; and, you will see the return of a seller's market. Current inventory levels make home buying a "smorgasbord of choice"! And, sellers are negotiating on price like never before to get their homes sold! So from my perspective...."What are you waiting for?"
So after just saying this you may be asking: What if I'm a seller? I might not be too impressed with the forecast predictions noted above." However, keep in mind, doesn't it stand to reason, what you loose on the sale side you should make up for on the buy side? And in addition, you too, will benefit from these great mortgage rates and enjoy selecting from the "smorgasbord of choice"!
Either way, if waiting is your current strategy until you see "improvement" in the market, you should be prepared to pay more and experience higher interest rates. Even in these apparent difficult economic times, you can find a silver lining: Interest rates, inventory selection and price! So if you have been sitting on the fence not sure when to make the "move"....in my opinon...."What are you waiting for?"
Some statistics to share with you:
•· 43,442 homes sold in Atlanta market since the first of the year
•· Average days on market: 94
Homes are selling...and, you can look for my recap of 2008 for Atlanta and Suwanee early next year.