Atlanta Real Estate Archives - Page 4 of 13

Generation X Not Buying Metro Atlanta Homes

The market for Metro Atlanta homes as well as the nationwide real estate home buying market has often placed the blame on recent drops in the number of homebuyers on the Millennials. A new study now shows that Generation X should shoulder part of the responsibility as well.

Fewer Gen Xers and millennials are buying Metro Atlanta homes

The rate of homeownership in the U.S. has consistently fallen each year since 2005. New evidence shows that Gen Xers are part of the decline. Owning a home among the age group 35-54 has declined more than any other age group for the past 22 years.

Fewer Gen Xers and Millennials Buying Metro Atlanta Homes

Harvard University’s State of the Nation’s Housing 2015 report reveals homeownership among those aged 35-54 has dropped the most of any other age group since 1993, especially those under age 44.

Daniel McCue, senior research associate at The Joint Center for Housing Study of Harvard University said, "The market peaked right when they were at peak first-time buying age.”

The generation’s older members were particularly unlucky because when they were at the age where most people tend to trade up to larger homes, the housing crisis occurred. "They were subject to the decline in home prices, which made [some homes] subject to distress, underwater and delinquency," McCue said.

The current homeownership rate of 63.7% has been buoyed in large measure by Baby Boomers. This trend seems unlikely to continue for the Gen Xers due to their smaller population. When we look at Millennials, their homeownership rates are low … they have a much higher chance of building careers and catching up, but for those aged 35-44 it's more of a question.

Generation X, which the Harvard study defined as people born from 1965-1984, occupy an important place in today’s housing market. As they trade up to larger, more affluent homes, inventory becomes available for new first-time purchasers of Metro Atlanta homes.

However, the study finds, such is not the case. The number of homeowners aged 35-39 has dropped 23% from 10 years ago.

Gen Xers seem to be staying put in the rental market longer than before. The normal cycle of renting and moving onto homeownership and making room for younger renters to follow isn't happening as quickly.

Furthermore, it appears they may not become buyers of Metro Atlanta homes any time soon since greater rental demand has pushed rent to new highs, making it harder for them to save money for a sufficient down payment.

In addition, the lack of job and wage growth continues to make ownership of Metro Atlanta homes a challenge to most and a fiscal hardship to many. In households aged 35-44 incomes are at mid-1980s levels and for people aged 45-54 incomes are at the lowest levels since the late 1960s.

Experts say repercussions and scars from the recent housing crisis have made prospective buyers hesitant to buy. However, Gen Xers could participate in owning Metro Atlanta homes as those who lost their homes through foreclosures or short sales return to the home buying market.

Of the 11 million homeowners who lost homes to foreclosures during the housing crisis, only about 2 million have returned to the home buying market. It is expected that the market will see a gradual return of the remaining 8-9 million as they convert from paying rent to owning again, but industry experts warn it may take some time to fully realize the gain.

Find more articles pertaining to Metro Atlanta homes under our Metro Atlanta Real Estate section of articles to your right just below our Metro Atlanta Real Estate Categories.

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Another Metro Atlanta Housing Bubble Brewing?

A recent S&P/Case-Shiller Home Price Index was the latest report to show a relentless rise in housing prices, causing some economists to ask: Is another Metro Atlanta housing bubble forming?

Economists point to several reasons why this isn’t a concern, namely that while prices keep rising, the rate of growth has slowed. In the first three months of this year home prices gained 0.8%, according to the S&P Case-Shiller national index. That’s down from 2.8% in the first three months of 2013 and 1.2% during the same period of last year.

Over the long-term, housing has tended to rise about 1% annually above inflation. According to the Bureau of labor Statistics, $1 in pre-bubble 1997 is $1.46 in 2015 dollars. A 1% gain over the past 17 years adds 18.4%.

If we add inflation and a 1% annual gain, we find a historically justified target around 110 on the Case-Shiller index.

The chief economist for the National Association of Realtors has gone on record as saying that prices could surpass the peak set during the last housing boom…

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Economists also aren’t concerned about a Metro Atlanta housing bubble because far fewer new homes are being built than a decade ago so there is little concern about oversupply. And most buyers are using cash or getting 30-year, fixed-rate mortgages that don’t carry the same risks as the sub-prime, adjustable-rate mortgages that many received during the boom.
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Some economists said that’s a sign of a normal housing market because in a bubble prices typically rise in tandem across the country, rather than responding to the strength of local economies. That doesn't seem to be happening now, which is strength for the argument that a Metro Atlanta housing bubble is not in the picture, at least not for now.
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Stay abreast of news that could trigger a Metro Atlanta housing bubble, as well as a bubble nationwide, by staying plugged in with our website. And don't forget, we post news daily at Twitter and on our Facebook Page to help you stay up to date on events related to the housing market.
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Rent Trap Stopping First Time Metro Atlanta Homebuyers

First time Metro Atlanta homebuyers are in a trap they can't seem to get out of, and it's called a "Rent Trap."

First time Metro Atlanta homebuyers seem to be caught in a rent trap they cannot get out of.

Everyone has pretty much come to the conclusion that interest rates won't stay low much longer, and home prices continue to rise. New three percent down programs from Fannie and Freddie sweeten the deal for new buyers. FHA’s mortgage insurance premium cut makes FHA affordable again. Incomes are up.

To top it all off, greedy landlords everywhere seem to be practically pushing their tenants out the door, with rents rising every month. Rent vs buy comparisons show renters how much they are losing by staying put. According to Reis, Inc., the average US monthly rent has climbed 14 percent in the past five years—double the rate of home price appreciation. Rents rose 3.5% last year according to Zillow, which forecasts another 3.5% hike this year. Rents are forecasted to keep rising in 2016, though record numbers of new apartment openings are expected to slow down increases to about 2 percent, according to Zillow.

Renters Not Rushing to Become Metro Atlanta Homebuyers

In what could be considered a reverse trend, rising rents do not appear to be playing a significant role in motivating renters to become Metro Atlanta homebuyers. This contradicts what some in the housing market think as they expect more renters ought to be actively looking to purchase a home. Rising rents are primarily a sign of increased demand rather than a signal that home purchases will be increasing.

Instead of acting as an incentive to buy a home, rent hikes are keeping renters captive by siphoning off cash that otherwise might have been saved to make a down payment or pay closing costs. Even to save the 3 percent down required of the new Fannie and Freddie programs, it takes two years or more for the average first-time Metro Atlanta homebuyer to muster enough for a down payment. Every time rent increases, it’s going to take even longer to save enough to become a homeowner.

In the past, renters making the national median income could expect to pay about 25 percent of their income on a typical apartment. Today, renters should expect to spend roughly 30 percent of their income on the median apartment

Find more news pertaining to the recent number of Metro Atlanta home sales under our Atlanta Real Estate News Section of articles to your right just below our Atlanta Real Estate Categories.

We also post tips on Facebook and Twitter. Follow us there for many other mortgage related tips as well.

Metro Atlanta Home Prices Return to Sanity

Ten years ago, Metro Atlanta home prices were unquestionably too hot. As few as four years ago they were too cold. Now, it would seem as if Metro Atlanta home prices have returned to some form of sanity when compared with incomes, rents and other fundamentals, while rising at lower single digit rates.
Metro Atlanta home prices seem to have returned to some form of sanity when compared with incomes, rents and other fundamentals.

Metro Atlanta home prices seem to be settling into a balance in which buyers are comfortable spending what they can afford given their income and savings, but aren't willing (or able to persuade lenders) to stretch beyond that. Among buyers there is neither a sense of desperation to buy now on the assumption prices will rise rapidly, nor of fear they will plummet.

For a while in 2013 and early 2014, Metro Atlanta home prices were rising at a double-digit percentage rate, which if sustained could have rapidly led housing back to its bubble-era extremes. But the reality — of caution on the part of home buyers and their lenders — took over. In the 12 months ended in March, the S & P Case-Shiller national home price index rose only 4.1 percent, not much higher than the rise in Americans' incomes and broadly consistent with longer-term trends.

Metro Atlanta Home Prices Dependent on Mortgage Rates

The collapse that began in 2007 created a different set of problems, as the lengthy process of foreclosures and short sales dragged out, and the only buyers in the market seemed to be investors looking to buy cheap houses to rent out.

Now, investors are retreating as prices recover, and people buying houses to live in are returning — though not with the fervor and pay-anything sensibility of a decade ago.

The fact that the relatively balanced Metro Atlanta home prices of today are dependent on mortgage rates being near historic lows does create some risks. If rates were to rise abruptly, it could sharply reduce housing affordability and push down prices.

It all depends on why rates rise, and how quickly. If rates are rising because of stronger economic growth, the housing market should be able to absorb the hit and it will be perfectly manageable. But if mortgage rates rise for external factors or for reasons not warranted by growth in the economy, it would be damaging.

In other words, a reversal in the era of low interest rates and cheap money wouldn't have consequences just on Wall Street. It could matter a lot on your street as well.

Get more information as it pertains to Metro Atlanta home prices in our section on Atlanta Real Estate to your right under Atlanta Real Estate Categories.

Remember, we post tips daily to Twitter, and also on our Facebook Page. We'd love you to check us out there too.

Burglar Proof Your Metro Atlanta Home While on Vacation

According to the FBI, nearly 2 million burglaries occur each year. If you’re heading off on vacation this summer, burglar proof your Metro Atlanta home while you enjoy your time away by not telling the world you’re gone, and by having your neighbor help out.

According to the FBI, burglaries cost victims about $4.5 billion in property losses in 2013. The average dollar loss per burglary offense was $2,322.

Ways to Burglar Proof Your Metro Atlanta Home

Deterrence starts with good locks, secured windows — even on the second floor – and hiding valuables so thieves won’t even want to bother. You’ll also want to make your home look like it’s occupied.

Here are some other things you should consider taking care of before you leave your home prey to thieves looking for their next target.

Many local law enforcement agencies will help you burglar proof your Metro Atlanta home while you’re away. Give your local police a call and ask. Many will do occasional drive-by’s of your home while you’re gone.

A little preparation will go a long way in preventing the worst, as burglars are more likely to skip homes that look like they are tough to break into. So go de-stress and take care of things to burglar proof your Metro Atlanta home ahead of your next trip.

Don’t forget, we post tips daily on Twitter and Facebook, sometimes pertaining directly to ways you can burglar proof your Metro Atlanta home. Find us there as well.

Will Metro Atlanta Home Ownership Rates Fall Further?

The Metro Atlanta home ownership rate has dropped to 65 percent according to the US Census Bureau. This is after holding above 66 percent for the past three quarters. The last time the rate was this low, former President Bill Clinton was in office serving his second term.

With the nationwide home ownership rate also at 65% and home values increasing, the housing industry and consumer groups are pressuring lawmakers to make the American Dream more accessible to the masses. Advocates are pushing for new mortgage standards crafted to prevent another crash.

The question is, will Metro Atlanta home ownership fall even further before the rate begins to turn upward?

Real estate analyst Jason Meister, former Fannie Mae executive Tim Rood and Fox Business News’ Neil Cavuto talk about the state of the housing market in this short video report.

Younger-aged groups fear the worst in the market downturn signaling that economic stability among those looking to achieve financial freedom have the biggest obstacles.

Home buyers in the 35 to 44 year old age group were hit hardest. Their Metro Atlanta home ownership rate dropped almost 9 percentage points to just over 61 percent. Only those 65 and older showed any signs of stability in home ownership rates throughout the market downturn.

First time buyers and minorities are among the groups that see the sharpest declines since the housing crash, many times losing their homes to foreclosure while big banks reap the benefits by exploiting regulatory loopholes.

Regulators could soon be proposing a weaker version of a rule that would put pressure on banks to keep more of a stake in risky mortgages they securitize. But Congress has yet to tackle this anomaly. Until that happens, those finding it tough to own a home will find themselves falling further behind.

Don’t forget, we post tips daily on Twitter and Facebook, sometimes pertaining directly to Metro Atlanta home ownership. Find us there as well.

Metro Atlanta Rental Property Rates Keep Climbing

Metro Atlanta rental property rates were 4% higher in April than a year before, according to a report from Zillow. That's the fastest increase in two years, outpacing Metro Atlanta home prices, according to the report.

Metro Atlanta rental property affordability is getting worse, and it doesn't look like it will be getting better anytime soon. Svenja Gudell, senior director of economic research at Zillow, said "This is here to stay. We will continue to see rental increases, and affordability will worsen before it gets better."

Income Not Keeping Up With Metro Atlanta Rental Property Increases

Metro Atlanta rental property rates have been steadily increasing since 2000 and unlike home prices, which took a hit when the bubble burst, there's been no disruption to slow rent prices, explained Gudell. Income hasn't kept up with all these Metro Atlanta rental property increases. Renters are having to spend much more of their monthly income on rent and it's a concern everywhere.

Low mortgage rates make home buying an attractive option, but large rent checks can make saving for a down payment tough. On a national level, homeowners can pay an average of 15.3% of their income on mortgage payments each month, while renters will dish out roughly 30% on rent. Gudell said tenants in high-income areas can expect to pay closer to 50% of their income on rents.

A new survey by Freddie Mac finds that soaring rents are not turning renters into homeowners, but actually delaying homeownership for many. Of those who experienced a rent increase in the past two years, 70 percent would like to buy a home but cannot afford to at this point. Half (51 percent) said they now have to put off their plans to purchase a home. Some 44 percent indicated they'd like to buy a home and have started looking.

There are bunch of things keeping renters from becoming homeowners and that usually means the folks that would be normally making the switch to become homeowners are still leasing all the rental units.

Get more information as it pertains to Metro Atlanta rental property and Metro Atlanta real estate in our section on Metro Atlanta Real Estate to your right under Metro Atlanta Real Estate Categories.

Remember, we post tips daily at Twitter, and also on our Facebook Page. We'd love you to check us out there too.

Larger Metro Atlanta Homes Are Back

According to recent data from the U.S. Census Bureau, larger Metro Atlanta homes are making a comeback, and bigger than ever. After a few years of shrinkage in the aftermath of the Great Recession, the median square footage of newly built Metro Atlanta homes last year tipped the scales at over 2,400 square feet. That's nearly 1,000 square feet larger than the median home built in 1992. The death of the McMansion has been greatly exaggerated.

Buyers Screaming for Larger Metro Atlanta Homes

Larger Metro Atlanta homes are making a comeback

Back in 2011, many observers were predicting the end of the McMansion era. But five years into the recovery that hardly even feels like one, homebuilders have returned to the old ways of building larger Metro Atlanta homes. The recession was supposed to usher in a return to the dense, urban and walkable. Instead, the opposite has happened.

Young first-time buyers, who are less inclined to buy big suburban houses, are largely staying away from the market altogether. Credit requirements are still much tighter than they were before the housing collapse, so much of the activity in the housing market is from wealthier families looking to trade up – and they're looking for bigger and better Metro Atlanta homes.

On one level, builders building Metro Atlanta homes may be inclined to build communities that reflect their own values. This isn't a problem if potential buyers share those values too – but what if they don't?

One potential sign of trouble might be the homeownership rate, which at the end of 2014 reached its lowest level in 25 years. That's not necessarily a bad thing. Data shows the economy added millions of new households in 2014 as more people lived in shared arrangements – including some of those young adults staying with mom and dad – struck out on their own. Most of them decided to rent. That could carry over to an uptick in the homeownership rate in the coming year as more renters decide to buy.

Sizes of Metro Atlanta homes are rising even as sales have slowed because builders have competed for affluent buyers who aren't likely to run into trouble qualifying for a mortgage and saving for a down payment.

Get more information as it pertains to buying Metro Atlanta homes in our section on Atlanta Real Estate to your right under Atlanta Real Estate Categories. We also post tips daily on Twitter and Facebook, sometimes pertaining directly to Metro Atlanta homes and the current trend of the Metro Atlanta housing market. Find us there as well.

Myths of Buying and Selling Metro Atlanta Houses

There are several myths that have long circulated when it comes to buying and selling Metro Atlanta houses. We decided to try and bust those myths in this article.

What Everyone Misses When Buying and Selling Metro Atlanta Houses

The most important rule in real estate is location, location, location. Not true! The most important rule in real estate should be future location, future location, future location. Home buyers eager to maximize their returns need to look 10 or 20 years down the road to assess what will happen to the neighborhood, not what it is today.

Buy the worst house in the best neighborhood. Wrong! The house will always be the worst house in the neighborhood, and buyers in a great neighborhood are likely to look past your ugly duckling when you go to sell. Price gains on these "worst houses" actually under-perform their surrounding neighborhood rather than being carried along with them. Instead, a shopper should buy the worst house in the hottest neighborhood — and to do so within the first five years of the neighborhood getting hot.

When it comes to buying and selling Metro Atlanta houses, remodeling the kitchen, with a lot of fancy upgrades, is one of the smartest moves you can make to boost your home's value. WRONG! Kitchen renovations, at any level, offer among the lowest return on investment of the home improvements you can make. Instead, a modest bathroom makeover might have the biggest impact on your home's value.

When selling Metro Atlanta houses, list early in the year to catch the spring home-buying rush. Wrong again. With more home buyers starting their search online, it's better to list in late March, generally speaking, so your listing is near the top of search results. The "New rule of Thumb" for maximum results: Don't list your house for sale before March Madness or after the Masters.

The mortgage interest deduction is essential to the health of the nation's real estate market. Not so fast. Some are calling the mortgage interest deduction ill-conceived public policy. The federal government is essentially spending $100 billion in the form of lost tax revenue annually to help Americans living in homes that cost about $865,000. It's especially ironic that the (mortgage interest deduction) is consistently sold to the American people as a populist policy to help the little guy. In reality, it's the exact opposite.

Home ownership is the foundation of the American Dream. Not any more, or so it seems. An analysis of data indicates public policy designed to boost homeownership among low-income buyers has the opposite effect of lifting people out of poverty. That's in large part because of less affluent neighborhoods, where many of these new home owners can afford to buy, experience lower appreciation and higher price volatility than more affluent neighborhoods.

Find more articles pertaining to buying and selling Metro Atlanta houses under our Atlanta Home Buying Tips and Atlanta Home Selling Tips to your right under Atlanta Real Estate Categories. We also post tips on Facebook and Twitter. Follow us there for more tips on buying and selling Metro Atlanta houses as well.

Metro Atlanta Home Sales and Prices Rising

Metro Atlanta home sales continue to increase as more and more homes come on the market, a sign of strength in housing as the Spring home buying season swings into high gear.

Metro Atlanta home sales have been constrained by a shortage of properties on the market, which has pushed up home prices and limited choices for potential buyers.

Metro Atlanta Home Sales Rising With Nation

Metro Atlanta home sales are rising right along with the rest of the country

The National Association of Realtors said just recently that existing home sales increased 6.1 percent to an annual rate of 5.19 million units, the highest level since September 2013. The percent increase was the largest since December 2010.

Economists polled by Reuters had forecast home resales rising to only a 5.03 million-unit pace last month.

The report was another indication that the economy is regaining some momentum after hitting a speed bump at the start of the year. But data on retail sales, housing starts and manufacturing suggest the rebound in second-quarter growth will probably be insufficient to convince the Federal Reserve to start raising interest rates in June.

The outlook for housing is favorable against the backdrop of a strengthening labor market.

The Mortgage Bankers Association said applications for loans to purchase homes increased 5 percent last week to the highest level since June 2013. It was the fourth time in five weeks that purchase applications rose.

At March's sales pace, it would take 4.6 months to clear houses from the market, down from 4.7 months in February. A supply of six months is viewed as a healthy balance between supply and demand.

With supply still tight, the median price for a previously owned home increased 7.8 percent from a year ago.

That was the largest percentage gain since February 2014 and suggested that the pace of home price increases, which had been slowing after double-digit growth for much of 2013, appears to be re-accelerating.

First-time buyers accounted for 30 percent of transactions last month, well below the 40 to 45 percent share that economists and realtors say is required for a strong housing recovery.

Get more information as it pertains to Metro Atlanta home sales and prices in our section on Atlanta Real Estate to your right under Atlanta Real Estate Categories.