Lake Oconee-Reynolds Plantation Real Estate Market Trends – Georgia

News for Lake Oconee-Reynolds Plantation, GA - December 10th, 2010 1:05pm
5 Predictions for 2011
Freddie Mac analysts point to five features that they believe will likely characterize the 2011 housing and mortgage markets:

1. Low mortgage rates. With Fed observers expecting the central bank to keep the federal funds rate at its current target range of 0 percent to 0.25 percent for most (or all) of 2011, relatively low mortgage rates will be a feature of the 2011 mortgage market. Thirty-year fixed-rate loans are likely to remain below 5 percent throughout the year, and initial rates of 5/1 hybrid adjustable-rate mortgages will likely remain below 4 percent in 2011.

2. Prices have hit bottom. House prices are likely to begin a gradual, but sustained recovery in the second half of 2011.

3. Housing will remain affordable. With affordability high, many first-time buyers will be attracted to the housing market in the New Year, likely translating into more home sales in 2011 than in 2010.

4. Refinances will dwindle. Many eligible borrowers have already refinanced and the federal Making Home Affordable refinance program is expiring on June 30. While fixed-rate loans are likely to remain low, they will move up gradually, making it even less likely that refinances will be attractive to most home owners.

5. Delinquency rates will decline. Based on the last several business cycles, the share of loans that are 90 or more days delinquent or in foreclosure proceedings — known as the "seriously delinquent rate" — generally crests within a year of the start of the recovery in payroll employment, and this economic recovery appears to fit within that pattern. Payrolls began to rise last January, and by the spring the seriously delinquent rate had begun to fall.

Source: Freddie Mac (12/09/2010)


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News for Lake Oconee-Reynolds Plantation, GA - November 30th, 2010 10:04am
Distressed Properties Can Be a Good Deal, But Be Careful
Real estate investors may be able to secure a good price on a "distressed property": a foreclosure, lender-owned property or Short Sale.

As many as half of the listings in some markets fall into that category. In the past, prices for distressed properties were well below those of traditional resales. However, while you can still get a good deal, it's not as easy as it used to be. And investors should perform due diligence and be aware of potential problems before seeking that type of property.

Dick McCole of RE/MAX Realty Affiliates in Gardnerville, Nev., specializes in working with investors and also holds the Certified Distressed Property Expert designation, meaning he's trained in working with buyers and sellers of distressed properties. He informs his clients of the opportunities and pitfalls of investing in such properties.

A few years ago, McCole says, investors were primarily interested in lender-owned foreclosures because of the extraordinary values they represented.

More Competition for Foreclosures
"But now, they're also looking at more traditional resales," he says. "The price break on foreclosures is getting less and less, for a variety of reasons. With the inventory of properties dwindling, there's more competition for lower-end homes, both among investors and buyers looking for a home."

Another factor: Lenders are less willing to accept extremely low offers.

"In the past, you could sometimes offer them 50 cents on the dollar and they'd accept it," McCole says. "Today, instead of accepting a really low offer, they'll reject or counter it. And they usually get close to the asking price."

The Short Sale market is on the upswing, McCole says.

"You're probably going to get a better deal than with a foreclosure," he says. "The other thing is that Short Sale properties have generally been occupied by the owners, and you won't face deferred maintenance issues as you do with foreclosures."

An inspection is vital, especially with a foreclosure that may have been unoccupied for months. The previous owners may have damaged the property or removed appliances and fixtures.

Inspect With Utilities On
"You should insist on having inspections with the utilities turned on," McCole says. "If a property has been sitting empty for a long time, and the showers and dishwasher haven't been running, gaskets and rubber washers can dry out and create leaks."

With a foreclosure, repair costs often amount to 10 to 20 percent of the sales price, McCole says.

Still, if you find a property at a good price and repair costs seem reasonable, a distressed property can be a good option.

"You have a good chance to recoup your costs and end up with a good long-term investment," McCole says.

Find a RE/MAX investment specialist in your area (In the Residential Sub-Specialties field, check "Investments")

The advice offered here comes from sales associates affiliated with independently owned and operated RE/MAX offices and may not be applicable to all areas. Contact an independent RE/MAX agent near you for expertise tailored to your locale.
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News for Lake Oconee-Reynolds Plantation, GA - November 30th, 2010 10:01am
Don't Wait: The Time To Buy Is Now
By Michael Drotman
RE/MAX Execs
Manhattan Beach, Calif.

You may have heard or read advice that suggests you should wait until next year to buy a home because prices are likely to go even lower than they are now.

That may or may not be true. But even supposing prices do decline further, will it really benefit you to delay your purchase? There are exceptional values available right now in many markets on homes and investment properties. Combine these great values with the low monthly payments provided by extremely low interest rates, and it becomes clear that there's no real advantage to waiting.

Let's explore the issue:

No one knows what's going to happen with prices - or when. It's possible these may be the lowest prices ever, and the still-low interest rates will keep your monthly payments affordable.
Let's say prices go down in the next year. How long do you plan to be in the home you buy now? Three years? Five years? Ten years or more? Unless you plan to sell next year, it's irrelevant whether prices go up or down in the next 12 months.
The most important question to ask yourself is this: Do you think prices for homes in your area will go up or down during the time you plan to own the home? History suggests that in most areas, prices of homes tend to increase over time.
What if prices go down, but interest rates go up? Even if homes are priced lower, your monthly payment may be higher for the same home, or homes in the same price range.
If you have a home to sell before buying, everything is relative. Yes, it's possible the price of the home you want to purchase may be less next year - but if it is, the home value will be lower also. This means you will have less equity to use as a down payment, and thus a higher loan amount, when purchasing your next home. This could equate to a higher monthly mortgage payment.

The reality is that, in many markets, you can buy a lot of home for the money, with low monthly payments, right now.

Learn more about home financing on remax.com.

Find a RE/MAX agent in new construction in your area Under Designations, select Certified New Home Specialist or Residential Construction Certified; or under Specialties, select New Construction.

Find homes for sale in your desired neighborhoods.

The advice offered here comes from sales associates affiliated with independently owned and operated RE/MAX offices and may not be applicable to all areas. Contact an independent RE/MAX agent near you for expertise tailored to your locale.
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News for Lake Oconee-Reynolds Plantation, GA - July 21st, 2010 12:44pm
Vacation homes sales on the rise again after serious slump
Amy Pyle
Jul 20th 2010 at 10:00AM More Text SizeAAAFiled under: Home, Real Estate, Retire, Mortgages

Americans are back in the second home market in significantly greater numbers, according to the National Association of Realtors.

In this country, where most of the sales occurred, half of the vacation homes purchased were in the South, followed by the West, Midwest and Northeast. Elsewhere, people clearly are looking for bargains. Among the favorite locales are several South and Central American countries, as well as Turkey and Croatia.

And one Panama vacation property company opting to crow about it neglects to mention that vacation home sales remain far below what they were before the recession began.

Vacation home sales rose 7.9% to 553,000 in 2009, from 513,000 in 2008, but that 2008 tally was down 30.8% from 740,000 in 2007. The plunge back then was largely attributed to a lack of equity from a primary home providing a convenient -- if perhaps ill-advised -- down payment for a second home. Clearly that remains a factor for many, just not for the three in 10 who paid cash for their vacation homes in 2009.

Working in the vacation home market's favor is the burgeoning population of Baby Boomers, the first of whom turn 65 later this year. "Currently, 40.1 million people in the U.S. are ages 50-59 -- a group that dominated sales in the first part of the past decade and established records for second-home sales," according to the Realtors association release.

While many have found their savings decimated by the recession, some can still preserve the dream of shopping for a second home -- to occupy occasionally or perhaps eventually permanently (26% of vacation home buyers surveyed by the Realtors assocation outlined future plans to move in full time). For other retirees, Wanderlust means buying or leasing an RV to travel the country's K-O campgrounds or downsizing a primary home to help fund more traditional travel.

A lot opt to stay relatively close to home with that second house, suggesting some still retain their job or other community and family ties -- at least for now.

"The typical vacation-home buyer in 2009 was 46-years-old, had a median household income of $87,500, and purchased a property that was a median distance of 348 miles from their primary residence," the Realtors reported. "34% were within 100 miles and 40% were more than 500 miles."

The median transaction price of a vacation home rose slightly as well, from $150,000 to $169,000, which the Realtors association attributed to renewed interest in areas of Florida and California, where prices have dropped sufficiently to be attractive to buyers, but remain above prices elsewhere in the country.




Tags: real estate, sales of vacation homes, second homes, vacation homes



Read more: http://www.walletpop.com/blog/2010/07/20/vacation-homes-sales-on-the-rise-again-after-serious-slump/#ixzz0uL8IpzWy
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