Monthly Archives: April 2010

What will tomorrow bring, post homebuyer tax credits?

Posted on April 30, 2010 by | Leave a comment

By: Christine Macrenaris

April 30th … Tax credit deadline. I am not writing today with answers or insights, I have questions.

The big question on my mind:  What will traffic and sales look like post April 30th?  At 3 sites (White Provision, 1010 Midtown and Villa Sonoma), we’ve written more than 35 contracts in the frenzy of first time homebuyers getting in under the deadline. These contracts were written in a 20-day period since April 10th. The good news is that 35 closings will take place before the June 30th deadline!

The real estate market has reinvented itself multiple times over the past 18months, and I can’t wait to see what the new form takes on starting tomorrow!  Per Brad Horner’s blog post today, recent news indicates that positive changes are coming.

→ Leave a comment

Posted in Tax credit, Uncategorized

Friday Five: Top real estate headlines of the week

Posted on April 30, 2010 by | 1 Comment

By: Brad Horner

Call it “the light at the end of the tunnel”… call it “a step in the right direction”… call it “wishful thinking”… Call it what you will, but you can’t deny that there has been a handful of very positive – and, hopefully, very telling – real estate headlines in the past week or so.  Below are our top five:

  1. Builder confidence improves in April The National Association of Home Builders/Wells Fargo Housing Market Index (HMI) surged four points to 19 in April 2010, its highest level since September 2009.  Builders report a “real improvement” in traffic and sales during the month and “positive momentum” at the start of the spring home buying season.  The South actually had a substantial HMI gain in April, from 4 points to 21.
  2. Home prices post first annual increase in 3 years Tuesday’s Standard & Poor’s/Case-Shiller home price index reported the first annual increase (in February 2010, the last month reported) since the end of 2006.  And nationally, home prices are up more than 3% from the bottom in May 2009. 
  3. Mortgage applications on the rise Mortgage applications in the United States rose by the largest amount in seven weeks – increasing 13.6% in the week ending on April 16, according to The Mortgage Bankers Association’s index.  The gauge of purchases climbed 10.1 percent, and a drop in mortgage rates boosted the refinancing measure by 15.8 percent, the first gain since the end of February.
  4. New-home sales see biggest jump in 47 years Sales of new homes surged 27% in March 2010 (in great contrast to the record low in February 2009), the strongest month since July2009.  Sales grew a “whopping” 44% in the South.
  5. Home price reduction levels drop 26 percent 20% of current home listings were reduced in price at least once compared to 27% of listed homes in April 2009, representing a 26% decline nationally. 

The tax credits were certainly factors behind these positive headlines, therefore the coming months (following the end of the credits) may still feel like an uphill battle.  But 65% of consumers shopping for homes say that the end of the home buyer tax credit is unlikely to deter them.

I call this a positive note on which to start the weekend!

On a related topic, we regularly share the latest real estate headlines via Twitter.  Click here to follow us!

→ 1 Comment

Posted in Friday Five, Uncategorized

Mosaic at Millenia experiences surge of investor sales in Q1 2010

Posted on April 27, 2010 by | Leave a comment
Securing multiple purchase contracts per week is a trend that has not been seen in Orlando’s residential real estate market in quite a few years, but it is quickly becoming the norm at Mosaic at Millenia, where Coldwell Banker NRT Development Advisors manages marketing and sales.  Most notable about the sales is that virtually all of the buyers are cash investors, pointing to a return of the real estate investor market in Orlando, which abruptly went from being one of Forbes’ top 10 U.S. real estate markets for investment in 2008 to having one of the highest housing vacancy rates in the U.S. in 2009.  
 
Coldwell Banker NRT Development Advisors ignored traditional real estate marketing practices to sell the units and instead tapped its global network of brokers to identify target buyers.  It didn’t take long to spread the word about Mosaic at Millenia’s uncommonly high occupancy rates, plentiful selection, quality construction and realistic pricing, as well as Orlando’s strengthening economy, before NRT Development Advisors received a surge of contracts.  In the past two months, Mosaic at Millenia experienced a level of investor interest that Florida hasn’t seen in years, possibly pointing to the beginning of a local – or event statewide – market revival.
It seems as if international investors are itching to get back into Florida’s real estate game.  While they may be much more exhaustive when analyzing today’s purchases, these cash buyers are clearly not afraid to jump on sound investments when they see them – as evidenced at Mosaic at Millenia.

→ Leave a comment

Posted in Investors in Florida, NRT Development Advisors, Real Estate, Sales and Marketing

A Springtime Evening of Art

Posted on April 27, 2010 by | Leave a comment

 By: Amber Cooley 

The Logan, a boutique condominium community of 13 homes in the heart of Brookhaven, hosted a Springtime Evening of Art event on April 9th. The event highlighted the original work of two local artists, Jennifer Keim and Sir Fred Greer, as well as, the unique architecture of The Logan community. 150 guests attended the event which was hosted atop two rooftop patios in the penthouse suite. Visitors also had the opportunity to tour the designer model and other select floor plans. With pricing recently reduced to 1 bedrooms from the $150s, 2 bedrooms from the $190s and the penthouse priced at $386,900 – visitors enjoyed the variety of floor plans, ideal location and privacy that the community offered. Combined with the traditional and thought provoking work of the artists and the boutique feel of the community, the Springtime Evening of Art proved to be a great success and was enjoyed by all! 

For more information about The Logan, please visit theloganatl.com or call 404-841-6678. 

→ Leave a comment

Posted in Uncategorized

Friday Five: Impact of foreclosures on the metro-Atlanta housing market

Posted on April 23, 2010 by | Leave a comment

By: Brad Horner

Forgive me for blogging about NRT Development Advisors’ 1Q10 report for the second time this week, but we have had a lot of discussion in the office regarding what the data says about consumer buying trends and how to reexamine clients’ sales and marketing strategies based upon the report’s findings.

One thing that stands out in the report is the significance of foreclosures in the local real estate market.  These bank-owned homes offer great opportunities for buyers to purchase new construction or resale homes at a significant discount.  But they also influence the pricing of owner-occupied homes, as a result.

Below are the report’s top five findings about the impact of foreclosed homes in the metro-Atlanta market during 1Q10:

  1. Foreclosure activity represented 29.7% of the 1,339 new construction single-family sales and 38.6% of the 10,862 resale single-family transactions during 1Q10.  Of the resale single-family homes sold below $100K, 53.6% were foreclosures.
  2. Multi-family resale prices continue to fall and have reached the lowest first quarter average price on record. This decline is likely attributable to an over-supply of multi-family housing and foreclosures, which have an average sales price of $79,094.
  3. The resale of multi-family and single-family resulted in an 8.3% increase in absorption over 1Q09, while new construction sales declined 17%. This large disparity is most likely due to more aggressive pricing and the number of foreclosures and short sales in the resale market.
  4. Overall, foreclosure sales in 1Q10 were down when compared to 1Q09 volume, with multi-family new construction foreclosure volume being down by 43%. While the decline in foreclosure volume is a positive sign, it is most likely only temporary as foreclosure notices in the 13-county region climbed to 12,568 in March 2010, the highest figure since September 2009 when there were 12,318 foreclosure notices.
  5. The FDIC and Fannie Mae are developing disposition strategies, and many experts also believe a substantial amount of delinquent and pre-foreclosure homes are being held back by banks, which could mean foreclosure volume will gain momentum throughout 2010. According to a recent Housing Wire article, analysis of data from Lender Processing Services revealed Georgia has one of the largest discrepancies between delinquent loans and foreclosure inventory (10.5%), possibly resulting a double-dip in housing as delinquent loans move through the pipeline.

Requests for the full report should be sent to Judy Price at Judy.Price@NRTDevelopmentAdvisors.com.  Previous reports can be downloaded here.

→ Leave a comment

Posted in Uncategorized

Coldwell Banker NRT Development Advisors’ quarterly market report finds stabilizing home prices and declining inventory

Posted on April 21, 2010 by | Leave a comment

By: Brad Horner

Though the Q1 2010 report* recently released by Coldwell Banker NRT Development Advisors confirmed stabilizing sales prices and declining inventory, there continues to be mixed messages in the market.  Fears of metro Atlanta’s high unemployment rate, over supply of condominiums and moderate consumer confidence are balanced by low interest rates, affordable prices and the extension and expansion of the home buyer tax credit.

Highlights about the 15-county metro area from Q1 2010 report include:

  • Sales prices for single-family have begun to show some signs of stabilization with prices increasing 13.6 percent over 1Q09 for resale transactions. However, prices for condominiums and townhomes declined 4.1 percent overall compared to 1Q09.
  • Inventory levels for single-family and multi-family new construction have continued to decline and ended 1Q10 42.2 percent below the 1Q09 level.
  • A gain in absorption in the resale market helped to offset a significant decline in new construction sales, resulting in a 4.5 percent improvement over 1Q09.
  • The resale of multi-family and single-family resulted in an 8.3 percent increase in absorption over 1Q09, while new construction sales declined 17 percent.
  • Recovery in the housing market typically begins in the resale segment, and both single-family and multi-family absorption are up 10.9 percent and 7.8 percent, respectively, when compared to 1Q09 levels.
  • Foreclosure activity represented 29.7 percent of the total new construction sales and 38.6 percent of total resale transactions during the period.
  • Overall, foreclosure sales in 1Q10 were down when compared to 1Q09 volume with multi-family new construction foreclosure volume being down by 43 percent.
  • While total permit volume continues to remain at historically low levels, slight signs of improvement have begun to emerge. Single-family home permits have continued to increase since October 2009 and are currently 74.9 percent higher over February 2009 levels. Five counties had triple-digit improvement over the same period last year: Gwinnett, Cobb, Douglas, Fayette and Coweta.

Many buyers are cautiously returning from the sidelines, but they have a new set of priorities and requirements that needs to be addressed.  Because the current market is unlike any we have experienced in the past, it is more important than ever to work with a sales and marketing partner that has a thorough and complete understanding of today’s challenges.

Requests for the full report should be sent to Judy Price at Judy.Price@NRTDevelopmentAdvisors.com.  Past reports can be downloaded here.

*Information for the quarterly review is complied largely from the company’s proprietary Universal Data Base, a system that pulls data for the entire metropolitan Atlanta market from both FMLS and GAMLS, deleting any duplication.  The report includes submarket profiles for Cherokee, Clayton, Cobb, Coweta, DeKalb, Douglas, Fayette, Forsyth, Fulton (North and South), Gwinnett, Hall, Henry, Newton, Paulding and Rockdale counties.  Multi-family home sub-market profiles are also included for Buckhead, Intown, Downtown and other urbanizing areas.

→ Leave a comment

Posted in Company news, Market data, NRT Development Advisors

The Stacks at Fulton Cotton Mill Creates a Partnership with the Community

Posted on April 16, 2010 by | 1 Comment

In December, The Stacks at Fulton Cotton Mill announced a Design a Loft Contest.  For this competition The Stacks partnered with SCAD’s Atlanta campus to get interior design students involved. 

 From January 4 through January 29, The Stacks opened up Unit E126 to aspiring designers to submit design presentations for the loft’s living room, and local students from the Atlanta campus of Savannah College of Art and Design exceeded expectations with their professional-quality entries.  SCAD student Christine Hudson is the first place winner, and as a result, her design has been implemented as a model unit at The Stacks that is now on display for the public and available for purchase. 

The lofts at The Stacks offer aspiring designers a wonderful palette to create a livable design to showcase to the public. Hudson and other competitors were required to adhere to a budget of $5,000 or less (including design fee, furniture, merchandise, paint, lighting and installation) and had to accommodate the profile of a 33-year-old clothing boutique owner who is currently renting in Inman Park but is looking to purchase a new home with her boyfriend who works for the Georgia Preservation Society.  The design presentation requirements included two presentation boards per entry: one for the floor plan and furniture layout and one for illustrations of merchandising and color samples.  Entrants also had to provide itemized costs as well as a design concept statement.

 Hudson’s design concept for the loft living room utilizes a blue, brown and grey color scheme, and features a mixture of modern furniture and antique pieces.  Her chosen furnishings contain clean lines, while the reclaimed wood and artwork convey a message of conservation.  Decorative touches such as a dress form and a floral patterned chair appeal to the prospective female buyer, while the black barstools and simplistic drawing table maintain a masculine component for her boyfriend.

 Not only did this design competition enrich local students’ educational experiences, it also shows prospective loft dwellers what The Stacks has to offer. The Stacks property was originally the Fulton Bag & Cotton Mill which was built in 1881 and was one of Georgia’s most successful late 19th century textile mills.  Originally, the Mill was created to manufacture bags out of cotton bales for use in grain distribution, but when WWI began, the Mill also began to develop and manufacture tents for our troops overseas. Today, The Stacks remain a significant part of Atlanta’s industrial history and are one-of-a-kind homes that serve as the city’s only real New York style lofts with 26-foot ceilings, huge windows, cement floors and so many different floor plans.

Design a Loft Winning ModelThe Stacks at Fulton Cotton Mill is located at 170 Boulevard Ave, SE;404-588-2728. For more information, visit www.stackslofts.com

→ 1 Comment

Posted in Company news, Event, Interior Design Contest, Real Estate, SCAD

Friday Five: Factors to consider when selecting comps

Posted on April 16, 2010 by | Leave a comment

By: Brad Horner

One-third of U.S. consumers polled this week by Gallop indicated that they believe home prices would rise in the next 12 months.  And the recent Standard & Poor’s/Case Shiller home price index backs up this sentiment, as it reported the eighth consecutive monthly increase in home prices.  Yet analysts predict that home prices might fall again during the second half of 2010.

So how do you determine a home’s value during such an inconsistent market?  That’s a big question that NRT Development Advisors regularly receives when counseling clients about home pricing strategies.  Our answer: Comps.

Comps allow sellers and buyers to compare “apples to apples” and determine the price of what such a home   could realistically sell for in the current market.

Below are the top five factors you should consider when selecting comps:

  • Size – This includes the number of bedrooms and baths, additional rooms such as a study or playroom, number of garages and lot size.
  • Square footage – Cost per square foot is an important measure in determining a home’s value. For example, if your home’s value per square foot is $250 and the average per square foot of nearby similar recently sold homes is $275, it shows that your home is valued less per square foot than nearby similar homes.
  • Features –Look for the presence or absence of similar characteristics, such as chimneys, decks, walk-in closets and oversized bathtubs. And don’t forget about energy-efficient upgrades, including appliances and insulation.
  • Exterior features – This includes brick, siding, gables and more.  Brick homes are typically worth more than homes constructed with other materials.
  • Foundation – Is the home built on a basement or slab?  Homes on a basement are typically valued higher because there is more room for expansion.

By analyzing the current listing prices of competition and final prices of recent comparative closings, sellers can appropriately price their homes to make them an attractive option, and buyers can know that they’re getting a fair deal on a purchase.

→ Leave a comment

Posted in Appraisels, Friday Five, Value of a home

Buying Bulk and REO Provides Opportunity and Risk for the Investor

Posted on April 13, 2010 by | Leave a comment

By: Holly Rabits

David Fletcher, a columnist with Realty Times, stated in a recent article, “Purchasing units in fractured condominiums in bulk may prove to be a smart investor ‘play’ in today’s market, especially if the asset has a multiple number of lenders selling individual units in the same property.” The strategy according to Fletcher is to purchase a large number of units from the developer, then purchase other bank-owned units in the same community to lower the total price per unit.

This idea works well in today’s market especially if the investor plans to re-sell the units because it gives flexibility in pricing and allows the investor to offer the units at below market pricing and have control of the units for sale in the property.

I am in agreement with Mr. Fletcher on this idea and also agree that an investor does not have to wait for the market to bottom out because the average cost of the bulk sale and REO is close enough.

Of course the investor also has to be careful about the laws pertaining to successor developers and the financial ramifications that can result when purchasing more than seven units in any single property.

With this said, it’s still a great opportunity as the cash flow often works for a ‘buy and hold pattern’ or selling to first time buyers, if financing is available, or to second home owners who want to have an inexpensive place in Florida.

We are beginning to see this happen in fractured condominiums in Florida whereby an investor wants to buy bulk and has already purchased REO units. From NRTDA’s point of view, it also works because it allows us to come in and staff a property and develop a re-launch program that is deemed to be more successful because we are not competing with REO or other bank assets. The sales process and pricing becomes more stable allowing for better buyer perception.

Still, with this all said, the association fees need to be in tact and the property purchased should always have a thorough inspection. Look before you leap! With any opportunity there is almost always risk. When will we ever see these prices again? A thoroughly calculated risk with thorough due diligence can most probably prove to be very successful for investors.

→ Leave a comment

Posted in REO

Coldwell Banker NRT Development Advisors leads Atlanta luxury condo sales in Q1 2010

Posted on April 12, 2010 by | 1 Comment

By: Brad Horner

Though local housing experts predict that Q1 2010 might mark the new housing bottom following the three-year downturn, Coldwell Banker NRT Development Advisors experienced an increase in qualified traffic during the quarter and lead Atlanta’s luxury condo sales at the luxury properties ($500,000 and up) it markets and sells on behalf of builders, developers and banks.

Two condominiums with the strongest sales volume in metro-Atlanta include Gallery Residences and 10 Terminus Place - at which Coldwell Banker NRT Development Advisors manages sales – because they offer these highly coveted buyers more than just a home; they also offer an exceptional lifestyle.

Gallery Residences, the 27-story Buckhead condominium, features upscale amenities including 24/7 concierge service, an onsite art gallery, panoramic views, a state-of-the-art fitness facility, a tennis court, a fully-equipped business center, furnished guest suites and more.  And, 10 Terminus Place, the 32-story mixed-use development at the intersection of Peachtree Road and Piedmont Road, is known for its conveniences such as spa and massage services, access controlled parking, a fitness and yoga center, a saltwater pool and spa and porter service.

For such high-end properties, Coldwell Banker NRT Development Advisors utilizes the expertise and experience of the company’s Coldwell Banker Previews International marketing platform to create tailored messaging and positioning campaigns.  As a result, the company has continually increased its sales pipeline throughout 2010, illustrating a very active segment of the market that is focused on superior location, quality construction and value.

It is clear from Q1 activity that as consumer confidence continues to improve, upscale buyers will increasingly return from the sidelines and take advantage of the extraordinary opportunities available in today’s market.

→ 1 Comment

Posted in Company news, Condo, Real Estate, Sales and Marketing