Bright Spots & Not So Bright Spots of 2010 & 2011
At the beginning of every year, it is a good time to reflect back on what happened in the past year and look forward to the things to come in the New Year. While the real estate industry did not come out of its slump as predicted, it also did not slide any deeper in the Northern Atlanta market. In fact, we remained at a even level over the past 12 months versus all the negative predictions made over the same 12-month period. Some areas have had small gains and others have had small losses but over all we remained at about the same level as we ended 2009.
A Return to Sanity
All the so-called sweeping changes made to the financial industry also have had very little effect on the basic day-to-day operations for most of the real estate industry, again, versus all the negative predictions made. Interest rates have remained very low but some of the hoops we have to jump through to get loans have gotten higher to jump through - but not impossible. In reality, things appear to have gone back to the way they were in the late 60’s and 70’s for the most part, only with much lower interest rates.
The Deals Are Just To Good
That leads me to the future. With lower interest rates and some great deals that are currently out there, I would expect that more investors and many typical buyers will begin to see that this market is not that bad. In reality over the past 20+ years, when have you been able to go out and buy anything -- much less a home -- at a reduced cost of 10% to 30% lower than you could only 2 years ago and also finance it at 50+% less than you could have back in the 70’s?
I Even Found One That I Would Buy
I recently looked at a condominium in Buckhead that was selling for over $300,000 less than it sold for 2 years ago. While I know that the old sales price was probably exaggerated for this 2 bedroom/2 bath 1,800+/- SF unit, it still was on the 17th floor with a fantastic view of Buckhead and beyond and was under contract for less than $200,000. This particular building has fantastic amenities that include a tennis court, a pool, 2 movie theaters, owners lounge with a full kitchen, bar and big screen TV’s, full office facilities for the owners with several conference rooms and computers and a full spa with state of the art work out facilities. Not bad for less than $200,000! With deals like this out there I just can’t see that we are going to remain at this same level for much longer and if sales begin to pick up and demand increases then prices and values will surely rise and we will be back on the road to recovery.
Bottom line, DON’T WAIT -- I know I am not going too! I keep seeing too many deals going across my desk and I do not want to be looking back in a few months and saying - if I only had done this sooner!
About the Author: Robert Koppes is the owner of KT Appraisal Services, LLC and is a Certified Residential Real Estate Appraiser with the State of Georgia (License # CR004733). He holds the CREA designation from the National Association of Real Estate Appraisers and also holds the MRA designation from the National Association of Master Appraisers. Robert has been an appraiser since 1994. Robert’s areas of specialty include valuation of properties in the 20 county Metro Atlanta area with emphasis on Conventional and FHA funding and consultation and valuation of foreclosure properties. He can be reached at 678-254-4050 or by email at firstname.lastname@example.org.