The North Fulton Blog

It's been a while since I spoke about the local real estate market in the Alpharetta area.  Over the past 6 weeks or so, sales seem to be improving.  I know I've had 6 new sales on my business which is why most of my current listings on this website were under contract.  So why is the market changing?  Well there are a number of factors that tend to impact the market.  Interest rates seem to be remaining low and affordable.  That's good!  We also seem to have fewer homes coming on the market which translates into less competition for the existing homes on the market.  I hear a lot of sellers saying they're going to wait until Spring 2009 to try and sell.  That's good and not so good!  The government legislation that recently was signed into law will help on several fronts.  It has revamped several parts of the FHA loan program, making it more useful to homebuyers.  One step backwards that this law included was the elimination of the 3% Down Payment Assistance from the seller.  In many cases this was the only way some buyers could get into a home.  There is still some talk about this part of the law being revised, but we'll have to wait to see.  Another piece of the law was a $7500 tax credit to first time home buyer's.  This will give them the ability to make a downpayment on their new home.  Now this "tax credit" really is a 15 year interest free loan from the government.  It will have to be paid back over that period of time.  But it's main purpose is to get buyers out buying homes and will stimulate the real estate industry and in turn, our economy.  That's good!  There is another piece of this law that will work to help homeowners that are getting close to foreclosure.  Those that are behind or unable to pay their mortgages that have re-set to higher levels will be able to refinance the loans into a fixed rate FHA loan.  That will help save a lot of homes from going to foreclosure. 

All of these things taken together are starting to paint a better picture for most potential homebuyers.  I guess the one negative that we all hear is the news media that continue to beat the drum about the sorry state of affairs in real estate, how many homes are being foreclosed and the continuing downward spiral of home values, the so-called burst bubble.  Well, in this area of the country, we never had a bubble to burst in the first place.  We have had for years a slow steady pace of incremental market growth.  We have been able to sustain that slow pace of appreciation, too.  It's not like the market of 2 years ago when there were multiple offers on homes, but  homes are still selling each and every day.  We all need to take a few steps back from what we hear on the news and look at the reality that surrounds us.  The real estate market is not in bad shape.  And it's getting better.

I'd be interested in hearing what you think.  Write me!