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The second leg down, is looking up, for the move up into Intown Atlanta’s residential neighborhoods

This post first appeared on my Intown Atlanta Real Estate Examiner page…

John Mauldin is the most interesting and circumspect  financial writer that I read. I‘ve written about his opinions and his free weekly newsletters before.

This week’s Outside The Box is on point, and right on the money for today’s buyers and sellers. Yes, all real estate is local. But, when I wrote about the Lakewood to Buckhead Butterfly Effect before, I meant it…

John offers “financial intelligence for the informed investor” for free.

Here’s a few pieces of “A Closer Look at the Second Leg Down in Housing…”

“In my analysis, price stands out as being the prime mover of the next leg down.

“Home prices remain too high.”

“One of the things that Markets are best at is price discovery – the determination of a price for a specific item through basic supply and demand factors. Without the heavy hand of the government intervening, the residential real estate market is about to experience what price discovery is all about . . .”

“Two of the major homebuilders look particularly weak.”

“Until the picture clears up, we remain uncommitted, keeping a healthy amount of cash in our accounts. We advise readers do the same . . .”

“Housing” is not what it used to be, Intown Atlanta and Decatur Buyers and Sellers:

Here’s how:

1. because 59.3% of all listings in 8 metro counties failed to sell in the first quarter of 2010

2. because 86% of listings in 8 counties were initially overpriced in the first quarter of 2010

3. because any given neighborhood’s numbers are just about as good as those, right now…many are much, much worse

Regardless, savvy “move up” sellers who want to take advantage of a tremendous market move, can do so right now in a historic way. Prices are back to what they were in 1998, and that was a tremendous time to buy…with mortgages at way higher interest rates than today’s historic lows!

Bright, cash enabled families making sensible market moves across Intown Atlanta and Decatur – right now, they are about 8-10% of the market in any given month. Find that market, buyers and sellers – the rest is somewhat distressed.

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