Sunday, April 3, 2011

Atlanta: #1 city to buy property in the USA

The 10 best cities for home buyers

You better believe it -- the real estate market is back. It's time to buy again, and here are the 10 cities with the most affordable homes, according to a new report from Deutsche Bank.

 
 
Atlanta
 
Atlanta

Rent as % of after tax mortgage payment: 151.2%
Median home price change, 2006-2010: -33.2%

Many of the cities on this list now have the most affordable housing simply because their real estate crashes were so much more pronounced than elsewhere in the nation. The farther the prices fall, the sooner it inevitably becomes more affordable to buy than rent.

Atlanta is no exception. It tops the list with average monthly rent of about 50% more than the average after-tax mortgage payment. The metropolitan area had the dubious distinction of leading the nation in home construction during most of the decade before the bubble burst. Despite the fact that it now has the most affordable homes in the nation, however, prices continue to slide in Atlanta -- down nearly 14% year-over-year in February. When will those Atlanta renters recognize the clearance sale going on all around them?

(Deutsche Bank's study measures affordability in two ways: the share of income that Americans are paying to own a home, and the cost of owning vs. renting.)

Wednesday, January 26, 2011

Fun article about house re-model horrors

NEW YORK (CNNMoney) -- You've heard of McMansions, but what about Frankenhouses?
These are homes that have been "renovated" to feature things like pipes running through living rooms, bedrooms strung together like garlic cloves, and fluorescent floors

It's scary what people do to their homes.

HomeVestors -- famous for its "We Buy Ugly Homes" billboards -- specializes in buying these homes that no one else would want. In fact, they're often so bad that they have to label listings as "for investors only" because they're not suited to ordinary buyers.

For example, those pipes running through the living room? They would have to be completely redone before the house could even get inspected.

"We get a lot of the houses after real estate agents have given up on them," said David Hicks, CEO of HomeVestors.

He calls them horror houses and marvels at some of things that former owners must have thought were brilliant ideas at the time. Here are some of the worst creations he's found:

Dysfunctional floor plans: Someone needed more bedroom space so they added on, but it messed up the traffic flow. It was much worse than just having to walk through one bedroom to get to another. "You had to walk from the living room through a bedroom to get to the kitchen," said Hicks.

Imagine stumbling through Grandma's boudoir whenever you hungered for a late-night snack.

5 bedrooms - 1 bath: It's a hard sale when the house has many more bedrooms than baths. Five full bedrooms with a single bath, for instance, makes the morning traffic jam very tough.

It's even harder if the bath is completely misplaced. HomeVestors bought a house where there were three bedrooms on the second floor and two on the third, a total of five. Yet there was a single bath located in the basement.

"If you had to go, you had to go down three flights in the middle of the night," said Hicks.

Poorly converted garages: Needing more space, homeowners often make new bedrooms out of old garages. But thoughtless conversions ruin the curb appeal, with the new residential wing still looking like the old garage.

"It ends up looking really bad," said Hicks, "and you don't even have a garage anymore."

Big kitchen - no living room: Some homeowners have hobbies or interests that they devote major floor space to -- at the expense of everything else.

"One owner converted the living room into a huge kitchen," said Hicks. "They had a great kitchen, complete with a huge island, but no living room."

Bedrooms with no closets: This can evolve in a couple of ways: The previous owner could have removed closets to increase the bedroom's floor space or added bedrooms to a house where there was too little room for closets.

Whatever the cause the effect on buyers is negative. Read my lips: People want closet space. Look at the homes-for-sale ads. What do they say: "Great closet space."

Really bad colors: An awful color scheme may turn off homebuyers so much that they are blind to the home's other virtues. "We got one house that had multi-colored, neon-bright floor tiles in the entryway," said Hicks.

Buyers entered in, they exited out.

Jungle fever: Everybody loves trees and shrubs, but let it get too lush and it turns into a problem.
"When the vegetation starts to block the light and make the interior real dark, that's bad," Hicks said.

Missing parts: Neglected houses can look hideous, true, but they can be dangerous as well. 
HomeVestors purchased what was basically a nice old place in Hampton Roads, Va., but it had several issues, the worst of which was an outside basement entrance to nowhere -- except basement. It was essentially just a big open pit.

"We lose more real estate agents that way," Hicks said. To top of page

Friday, January 21, 2011

Great News for Sellers!

This is some great new for sellers!

By Blake Ellis, staff reporter


NEW YORK (CNNMoney) -- Sales of existing homes jumped in December, marking the fifth month of gains in the past six months, based on an industry report released Thursday.

Previously-owned home sales climbed 12.3% in December to an annual rate of 5.28 million, from 4.70 million in November, according to the National Association of Realtors.

That puts sales at the highest level since the homebuyer tax credit expired in June, said Stuart Hoffman, chief economist at PNC Financial Services Group.

The December rate came in much higher than expected. A consensus of experts surveyed by Briefing.com had forecast an annualized sales rate of 4.8 million. However, sales were down 2.9% from 12 months earlier and fell 4.7% in 2010.

"December was a nice finish to the year, but looking at the bigger picture -- home sales and prices have been scraping along the bottom for the last three years," Hoffman said. "So, while we're not digging a deeper hole -- the housing market is still quite weak, and there are still more homes available on the market than there are likely to be buyers."

The median price of all existing homes sold in December was $168,800, down 1% from a year ago.
Meanwhile, the inventory of homes on the market fell 4.2% in December to 3.56 million units. That's enough inventory to last 8.1 months, and is down from a 9.5-month supply in November.

While that's an improvement, Hoffman said that data doesn't reflect the large number of foreclosures that could soon enter on the market.

"What's hidden behind the curtain are potential foreclosures adding to those inventory levels," he said. "Even as we have jobs growing, inventory is still large and more foreclosures are going to be coming on the market. Prices will go down and it's going to continue to be very much a buyer's market."

That said, Hoffman expects sales to gradually improve -- rising about 4% or 5% -- by the end of 2011, as the employment picture improves.

"I do think there will be more sales in 2011, because job growth will support homebuyers," Hoffman said. "We're getting back to the underlying demand without the homebuyer tax credit, but housing is still not contributing much to the overall economic improvement in the economy."