Atlanta Home Prices Dropped 10.6 Percent for Year Ending August 31st

Atlanta Home Prices Dropped 10.6 Percent for Year Ending August 31st. The Atlanta Business Chronicle reported Atlanta home prices dropped 10.6 percent for the year ending August 31st, 2009.  The article cited the S&P Case-Shiller home price index as the source for a story that led with a bit more encouraging news.  Atlanta home prices had a 1 percent rise from July to August.  There was a 2.3 percent rise in home values from June to July.

Demand May Peak with the November 30 Expiration of the Federal Tax Credit. First time home buyers drove much of the increased demand for Atlanta housing.  Unfortunately, this demand may peak on November 30, 2009 when the Federal Tax credit for first time home buyers expires.  There is talk in congress of revising or extending the Federal Tax Credit for first time home buyers but the price tag is an obstacle in light of the costs for the new health care bill  working it’s way through the House and Senate.

“The first-time home buyer credit helped to boost sales. However, if the credit is allowed to expire by the end of November, “demand will take a hit — home sales will drop — and house prices will resume their downward course, brought down by the weight of rising foreclosures and rising unemployment rates,” noted Patrick Newport, a U.S. economist with IHS Global Insight.

“Our view is that home prices will drop another 5 percent from current levels, and will hit bottom in 2010,” he said in a news release.” Case-Shiller: ATL home prices rise again, Atlanta Business Chronicle.

Federal Stimulus Has Yet to Clear Inventory From Housing Meltdown. Despite the success of the Federal Tax Credit program for first time home buyers, housing inventory levels far exceed normal levels.  Many economists beleive a housing recovery must be realized before any sustained recovery of the National economy can occur.

How The Housing Market is Altering The Way Real Estate Agents Operate. The first time home buyer market has been the only real source of activity for many Atlanta real estate agents.  Some real estate agents are starting to focus solely on the first time home buyer market with their marketing dollars.  Listings of million dollar homes are sitting dormant and real estate agents do not get paid until a property sells and closes.  This shift in market place activity has forced many agents outside their comfort level as they seek a market where transactions are occurring and commissions can be earned.

“Luxury” has been replaced by “Affordable” as a key word in the marketing of Atlanta real estate.  With the tremendous disruption of the marketplace by recent changes in regulations for lender appraisals for new mortgage loans, you can expect this trend will continue well into 2010.

Sally English is a Real Estate Agent in Atlanta Georgia. Sally English and The English Team are real estate agents specializing in homes convenient to Emory University, homes convenient to the Centers for Disease Control and the VA Medical Center.  Call Sally English at 404-229-2995  for advice about buying or selling a home in Metro Atlanta.