“Although down from the peak percentage in the first quarter of 2009, the portion of total sales represented by foreclosed properties remained high throughout 2009.

Fourth quarter 2009 foreclosures were also a lesser portion (27.4%) of total sales compared to 4Q 2008 (32.2%)

The percentage is slightly higher than in the third quarter of 2009.

Foreclosures were 35.6% of fourth quarter 2009 sales in the <$200,000 price range. Since the percentage one year ago in this price range was 44.5%, the pressure is obvious on sellers who are not in distress.

Short sales place even more pressure on those sellers who “don’t have to sell…”

In 2010, the expectation of foreclosure and short sale properties arriving on the market in “possibly record numbers” is a financial phenomenon that savvy sellers can not ignore.”

You can find the rest of the article here, at Examiner.com…

“While segmenting sales by price range shows that the increase in sales came mostly in the price ranges below $300,000, sales rose above those of fourth quarter 2008 in all but the highest 2 price ranges – $750,000 to $1 Million, and $1 Million and up.

Sales increased by 14% in the <$200,000 price range and by 22% in the $200,000-$299999 range.

Of course, buyers and sellers must get to the closing table to even show up on the SOLD chart…”

Here’s the rest of the article at Examiner.com…

That’s right, we had a +14% sales increase fourth quarter to fourth quarter from 2008 to 2009.

Sales picked up, but were still behind fourth quarter 2007.

“Buyers in the eight primary metropolitan Atlanta counties – Cherokee, Cobb, DeKalb, Douglas, Forsyth, Fulton, Gwinnett, and Paulding – bought 8222 houses between October, November and December last year.

In 2008, buyers bought 7214 houses and in 2007, buyers bought 8746 houses.

During the fourth quarter of 2009 signs appeared that a long-awaited recovery in detached residence sales may be happening. However, comparing the fourth quarter of 2009 to the fourth quarter of 2008, is like comparing apples and oranges.”

Here’s the complete article, my second article published for examiner.com…

Start with this – what exactly is “Housing and Urban Development?”

“HUD is the nation’s housing agency committed to sustaining homeownership; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation’s fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.”

HUD issued some game changing guidelines recently for the underwriting of FHA loans, and the purpose of this article is to help you understand what this means for 2010 buyers and sellers of residential real estate.

Lets start with one of the simple game changes.

-  As of April 5th, 2010 FHA loan funded buyers need to change from 1.75% to 2.25% for their “FHA up front funding fee” on their contracts

What does this mean?

-  For every $100,000 in loan amount, it costs a buyer $500 more, up front

-  If  a buyer decides to roll this amount into their FHA loan, then it costs the buyer a little less than $3 dollars per month

OK, that’s fairly simple and easy to understand – since FHA is in federal receivership, they need to make a little extra money and we expect that they will shore up their financial status over the coming years…yeah, right…

What are the underlying reasons for this change and any other changes? How will this make a long term impact?

What will this mean when my daughter is ready for her first house?

I believe that it means that she better hope she’s a cash buyer in 2035 – cash will still be king!

FHA Announces Policy Changes to Address Risk and Strengthen Finances

New Measures Will Help FHA Better Manage Risk, While Maintaining Support for the Housing Market and Access for Underserved Communities

Read the rest of this entry »

“During the fourth quarter of 2009 signs appeared that a long-awaited recovery in detached residence sales may be happening.

However, comparing the fourth quarter of 2009 to the fourth quarter of 2008, is like comparing apples and oranges.

The depths of the fourth quarter of 2008 are not likely to be seen again soon. Regardless, there are still areas of concern which could limit the degree and time frame of a full recovery.”

Click here to read the rest of this article at Examiner.com.

I am now the “Atlanta Real Estate Examiner” at examiner.com.

They bills themselves as “INSIDER SOURCE FOR EVERYTHING LOCAL.”

Subscribe to The Intown Insider RSS feed to get all of my posts.

If you want regular, realistic market statistics and quick reads on local real estate economics, local styles and  local trends, 3 – 4 times  a week, then subscribe to my Examiner.com RSS feed.

Either way, thanks for reading, thanks for your referrals and thank you for the opportunity to earn your business.

This photo and commentary are here to answer a question posed by Kirk Nace on Facebook today …

Kirk Nace asked  me “where do the recent spiking foreclosure numbers (as reported by the AJC today – a 27% metro increase) compare with the actual number of total sales per month? What does distressed supply v. demand ratio tell you about the future of pricing?”

Here’s what we know from 2009 in metro Atlanta:

• As the number of foreclosure sales (red trend line) increased, the median sales price (gold trend line) of non-foreclosure properties has declined

• The number of foreclosure sales fell somewhat after July 2009, likely contributing to somewhat more stable sales prices during that time

Looking ahead, since January spiked “unexpectedly” (Kirk Nace and I expect this, but the feel good prognosticators don’t) we expect that the metro Atlanta median sales price trend will continue to decline in 2010, particularly in the second half of the year…probably by 8-9%.

As always, many of the Intown neighborhoods that I serve will hold up way better than others, and many of these neighborhoods are barely seeing ANY foreclosure inventory – just lots of old-fashioned overpricing and hopefulness marketing!