What Does the Lack of Foreclosure Deals Mean for the Economy?

Today we discuss the availability of deals on foreclosure homes and why they’re harder to find than in years past. 

 
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Today I’d like to talk to you about the topic of foreclosures and about whether or not there are still good deals available on foreclosures. If you’d asked about foreclosure deals four or five years ago, I would have said there were tons out there, and half of what sold at the time were foreclosures. However, in today’s market, it’s a little bit of a different story. Foreclosures are becoming harder to find. The ones that are out there, if they’re priced-well, are receiving lots of interest and likely have multiple offers thrown at them. Investors and homebuyers are bidding those prices up. It’s harder to get the deals on foreclosures now than what we saw a few years ago: Is this a good or a bad thing?

It’s harder to get the deals on foreclosures now than what we saw a few years ago

If you’re looking for a deal, it’s a bad thing because of how hard they are to find. In the grand scheme of the economy and the real estate market, however, it could be seen as a good thing. It shows that the market is improving, prices are rising, and homeowners are no longer underwater like they were a few years ago because the values have increased, which has helped them be able to sell, instead of being forced into foreclosure. We are still working with buyers who are getting great deals on homes, so if you are looking for something, reach out to us. Oftentimes we hear things before they officially hit the market. It may or may not be a foreclosure—it could just be a motivated seller. If you’re in the market for a new home, let us know, and we’ll help you find a good deal.

How Is the Market Affecting the Appraisals of Homes?

We continue to be in a seller’s market, which is affecting how appraisals come in for homes under contract. I’ll explain everything in today’s video.
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Today I wanted to talk to you about what’s going on with appraisals in the current market. In our last video, we gave you a snapshot of what the market currently looks like from a supply and demand perspective. Currently in our market, we have high demand and a low supply of homes, which is causing home prices to increase. So how is this affecting appraisals for the sellers that we work with? We’ve had more instances this year than in recent memory where we get a home under contract for a certain value, and the appraisal comes in lower than that value. This is a problem. Why are we seeing lower appraisals? Appraisers are looking back over the last three to six months of sales in the area, comparing similar homes to the seller’s, and coming up with their opinion of the value of the home based on those factors, as well as any improvements or updates done to the home.

Currently in our market we have a high demand and a low supply of homes.

In my opinion, the true market value of a home is what the seller and buyer agree on, but the banks have to protect themselves. Because of this, we’re seeing these low appraisals. I still continue to encourage sellers to list their home at a price that is a little higher than the homes that sold recently in the area, especially in this current market. If you find yourself in that situation where the home appraisal is lower than the purchase price, you have a few options to take care of that problem. You can reduce the price down to the appraised value, the buyer can pay that difference in cash, or you can meet somewhere in the middle. Some buyers aren’t willing to pay the extra money, and the low appraisal can kill your deal. If you get a cash offer for your home, it might be worth it to really consider taking that deal. Most cash buyers don’t spend the extra money on the appraisal, so you don’t have to worry about it. If you have any other questions about this topic or there is anything we can do for you, a friend, or a coworker, give us a call. We’d be happy to help!

What Does the Future Hold in Our Housing Market?

As we enter 2017, I foresee interest rates continuing to rise and inventory staying low. However, as you’ll see, it isn’t all bad news.

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Now that 2016 is at an end, what can you expect from the real estate market in 2017?

One prediction everyone can seemingly agree on is that interest rates will continue to rise. For buyers, this means you might be better off buying sooner rather than later. Buying sooner means locking in a lower interest rate and making your payments better for the entire life of your loan.

If you’re a buyer, you may want to act sooner rather than later.

This trend could cause sellers who are already locked into a really good rate in the home they currently inhabit to opt out of moving to avoid a higher interest rate and a higher payment with their next home.

Currently, inventory levels are really low. There aren’t a lot of homes available, especially in the lower and more average price ranges. These price ranges are a firm seller’s market. As you get into the higher price ranges, though, we’re still in a buyer’s market. As the economy improves, we may see more activity in these price points. Activity in this area has been slow up to this point, but I wouldn’t be surprised if that improves in 2017.

As rates rise and sellers settle in, that will probably make our low inventory problem even worse. I do believe that inventory levels will stay low in 2017, and home prices should continue to rise. If demand starts to subside, however, that may stymie the overall price increase. In the meantime, builders are acting far more conservatively.

Part of me feels like this market resembles the one we had back in 2006 and 2007, when prices were rising and everybody was getting rich buying and selling. The key difference, though, is that lenders are now asking for far more documentation from buyers than they were back then before they issue a qualification. Buyers, in turn, are far more qualified than they were a decade ago. That distinction alone might prevent us from entering the same recession as we did after that market peak.

In addition to home prices, rent prices have also been rising. If that continues, we may see more first-time home buyers entering the market who would rather own a home than deal with landlords increasing their monthly rate.

Lastly, more and more affluent buyers want to live close to town and in walkable neighborhoods. For Athens, this means the hospital area, the Five Points area, and the Boulevard neighborhood.

As you know, my team and I opened our brokerage this year, and 2016 was fantastic for us. We’re looking forward to having the same success in 2017. If you or anyone you know is interested in buying or selling, don’t hesitate to give us a call. We look forward to hearing from you!

Is the Athens Real Estate Market Healthy?

Looking to buy or sell a home in Athens, Georgia? Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price  Evaluation so you know what buyers will pay for your home in today's market. You may also call us at (706) 621-6085 for a FREE home buying or selling consultation to answer any of your real estate questions.

Hey there everyone, welcome back to my blog. Today I want to start off by apologizing to you all. I made a commitment a few years back to produce great, educational videos and send them out to you twice a month. I have not given up my goal, but I have failed you lately. I haven't produced anything over the last month, and the only excuse I have is that we have been busy.

Today, I am getting back on the horse, and I am back with some very useful info for you about the Athens real estate market. So far, 2015 has been a much busier year in the market than 2014 was. If you look at the numbers for Athens and Clark Counties, sales are way up. Last year, through June, we had 497 residential sales. This year, through June, that number was 612. In addition to this, the average sales price in Athens has risen from $162,000 to $177,000 in just the last year!

In Oconee County, the number of sales has been pretty consistent with what we saw last year, but prices are rising significantly. The average sale price has moved up from $296,000 to $315,000 in the last year. In Athens County as a whole, home prices are up by about 10%.

If you are thinking of buying or selling in the near future, now is a great time. If you have any questions for us, or need assistance buying or selling, we would love to help. Give us a call or send us an email, and we will talk to you soon!