An over abundance of inventory of homes in Atlanta and its metropolitan area has given buyer’s a greater number of homes to choose from within various price ranges.  Buyers aren’t as quick to pull the trigger as they have been in the past, many are taking a little longer to narrow down their selection before purchasing.  At the national level, negative news media regarding real estate trends is also making home buyer’s more cautious about buying and buying at the “bottom”.  States such as California and Florida have had major real estate problems, while Goergia’s housing market remains strong.  I attribute Georgia’s stabile market due to the growing population which has helped soften the real estate recession here.

As a result of the large inventories of homes, buyer’s being more selective, and negative news media; there is now a buyer’s market and mortgage rates are at historic lows!  Interest rates have dropped the lowest they have been in over 5 years, making this a great time to buy a home.  In addition FHA loans have increased the total loan amount they are offering.  More and more home sellers are helping buyer’s with closing costs in order to help with first time home buyers.

Conclusions:

1. Seller’s that price their homes correctly and in-line with their competition are selling quickly and getting close to their asking price, while over price homes rarely receive any offers.  Most price reductions on overpriced homes result in “chasing the market” in which the house extends it’s time on the market because it is always behind in its price.
2. New Construction - Builders are more flexible on extras and helping with closing costs…some are even offering new cars as incentives!
3. Resale Homes - Sellers should have a market analysis of their home to determine the best price, have their home looking great, and in good repair before putting the home on the market.  They should also be prepared to help with buyer’s closing costs.
4. It is even more important to use a qualified Real Estate Professional now, more than ever.  Buyers can use a Realtor to help narrow down their search, and avoid buying an overpriced home, and Sellers will need Realtor marketing skills and resources to help sell their home.

Popularity: 94% [?]

In an emergency move, the Federal Reserve cut rates by .75% this morning in an attempt to keep the economy from sliding into recession.  This is the first emergency rate move by the FED since September 2001 just after the 911 event. 

Stock markets around the world took a beating yesterday on fears that the US economy and its pending recession will drag down other economy’s with it. 

The DOW open down over 450 points during the first 5 minutes of trading but has recovered some of its losses to only be down just over 300 points at the time of this report.  Continued weakness in the housing sector, slumping retail sales, and rising unemployment are continuing to point to a recession in our economy. 

It also appears that Wall Street is not to impressed with our President’s stimulus package that would put a $650 check in the hands of many Americans.  $650?  Nice gesture but considering that Americans have now lost in excess of 15% of their net worth over the past several months with the fall in housing prices, and declines in their stock portfolios and retirement funds this meager amount will do most likely nothing to stimulate the economy…maybe it will be able to buy a couple of months of gast at the pumps…but that is about all it will do.

Don’t look for mortgages to drop too quickly…while the FED did cut rates today by .75%, don’t look for mortgage rates to move sharply lower in the next couple of days.  The rise of foreclosures is placing a damper on pushing mortgage rates sharply lower. 

Mortgage rates should move lower but not notably lower over the next several weeks.  If continued weakness persist through February, look for 30 year fixed rate mortgages (conforming) to inch below the 5% mark for the first time in many years.

Maybe this will get the housing market to at least stabilize itself and eventually pick up some steam.  I still believe that this is an excellent time to buy as housing prices continue to fal along with falling rates.  Both sellers and buyers need to be more realistic in their views.  Until this happens, housing will continue to suffer.

Popularity: 57% [?]