North Atlanta Now

Market Update for Dec 28, 2009

Keeping you updated on the market!

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It hasn't officially been declared over, but it's becoming apparent the economy has emerged from its longest recession in decades. A string of stronger-than-expected data releases has prompted many economists to boost their fourth-quarter forecasts, with most estimates calling for annual economic growth in the 3.5% to 4.5% range. Sales of existing homes were among those stronger-than-expected data releases. Purchases increased 7.4% to a 6.54 million annual rate, in November, exceeding the upper range of nearly all estimates. It's a remarkable recovery from January 2009, when sales were running at an annual clip of 4.5 million. What's more, strong sales have dropped inventory to a 6.5-month supply while stabilizing prices, positioning the housing market to better absorb the foreclosure overhang that some pundits believe will threaten the market next year. Then again, the foreclosure overhang might not be as threatening as the pundits are suggesting. The unemployment rate has dropped to 10%, helping, not surprisingly, to increase income. On that front, Americans made the largest income gain in six months during November, with personal income increasing 4% over October. More income translates into a greater ability to service a mortgage.

Home Sales Leap in Johns Creek in November

November sales of residential homes in Johns Creek were up 17% over October as well as increaing in average sales price. In October, 46 homes were sold in Johns Creek with an average sales price of $313,328. But in November Johns Creek homes sold at a rate of 1.6 day to total 55 sales with an average sale price of $365,728. Alpharetta and Milton sales declined slightly and Roswell sales remained flat over the same period. This is clearly due to the about to expire New Home Buyers tax credit and the availability of first time buyers homes in sought after Johns Creek.

November Home Sales Leap

By Les Christie, staff writerDecember 22, 2009: 12:40 PM ET

NEW YORK (CNNMoney.com) -- After surging 10% in October, sales of existing homes jumped again in November, growing 7.4% compared with October to an annualized rate of 6.54 million units, according to the National Association of Realtors.

"This clearly is a rush of first-time buyers not wanting to miss out on the tax credit," said NAR's chief economist, Lawrence Yun.

November was originally going to be the last month in which sales to first-time homebuyers would qualify for a federal tax credit of up to $8,000. However, that deadline was extended through June.

In addition, the tax credit was expanded to cover people who already own a home. They can qualify for a $6,500 tax credit if purchase a new house before the end of June. That should encourage "trade-up" buyers.

The strength of sales in November surprised the industry. A panel of experts compiled by Briefing.com had forecast month-over-month sales growth of just 2.5% to 6.25 million from 6.1 million a month earlier.