Whole Foods is on board for the new Alpharetta mixed used development of Avalon (formerly Prospect Park).  The 80 acre park located at Old Milton Parkway and GA- 400 will feature single family homes, townhomes, and high end residences for rent.  A “Main Street” will feature a movie theater and  mixed use buildings which will consist of offices and apartments over retail space. Whole Foods will be a major selling point for attracting other retailers and certainly springs this new Alpharetta mixed use development off to a great start.

Over the last year, two sub markets in the City of Atlanta saw median home values increase over 10% and NE Cherokee County sales increased by 121.7%. Last quarter, Sandy Springs (inside 285) sat with the highest home inventory at 13.8 months and saw only 35.5% of listings sell.  Eastern Gwinnett County led the region with 63.1% of all sales noted as distressed. Many surprises are in some of the date, some with clear explanations, other result in head scraching.What is the story behind the charts and statistics?

Although the typical fixed rate mortgage loan is a 15 or 30 year term, it appears that the 20 year mortgage has become a new favorite. While most borrowers are not aware that they can take out a 20 year mortgage, many lending institutions offer loans in 5 year increments (10, 15, 20, 25 etc).  The shorter term loans work wonderfully for those who have currently paid a good portion of their existing loan, and are looking to refinance to a lower rate and term. Often a borrower can reduce both the rate and term, but keep monthly payments at or even below what they were currently paying.

Georgia resumes its’ high ranking for foreclosure filings hitting #4 in the nation last month. According to a recent AJC article, Georgia filed 12,467 homes for foreclosure just in the month of January. This adds up to one in every 328 homes, as compared to the national average of one in every 624. It is predicted that these figures will continue to rise with the month of January seeing a 17 percent increase from the previous month.

 Why does Georgia have so many foreclosures? Strong foreclosure laws, unprecedented growth, and mortgage fraud contribute greatly to these figures. It is important to note, however, that REO inventory in Georgia and the Metro Atlanta area is highly concentrated to certain areas and this should be taken into account when examining the statistics for the Atlanta and Georgia areas.

The size of the American home is declining. The days of the 8,000 square foot McMansion, filled with on credit furniture, flat screen TVs and extravagant theater rooms have come to an end. Of course, this type of lifestyle was impossible for most Americans to maintain and the trend is now toward smaller sized homes. This is not to say that large homes will not be purchased or built, but the folks purchasing them may actually be able to afford it.

Foreclosures in the Atlanta Metro area will be here for years to come.  Are buyers actually pursuing these foreclosures or are they finding out that they are not worth the hassle, money and surprises that may creep up?  Often the process makes buyers shake their heads and wonder if they should have went the traditional route with a seller and agent.  Buyers are finally realizing that most are not….read more about Why Buyers are Rapidly Losing Interest in Foreclosures

Traditionally lenders have delayed short sales and made it near impossible to avoid foreclosure. Now banks have decided that working the short sale is less costly and a quicker process than foreclosures. Lenders are quickly approving deals and are even offering cash incentives for borrowers to avoid heading to foreclosure.

Despite all of the discouraging news regarding the Atlanta housing market, there still is quite a few sub-markets that still are holding their own.  Virginia Highland is one of those areas that is driven by its’ demand from locals. The retail, restaurant, and entertainment spots are a major draw along with the beautiful bungalow and 2 story home lined streets. As recently reported, Virginia Highland is on the National List of  Hot Sub-Markets.

In an attempt to repair the hardest hit housing markets, the Federal Housing Finance Agency has begun pre qualifying investors to participate in a bulk REO rental program. Investors who qualify can purchase bundles of foreclosed properties and then turn these properties into rentals. What cities have been hit the hardest? Atlanta takes the lead in REO Inventory and Georgia is in the top 3 states. What does this say about the Atlanta Housing Market as a whole?

Once again, mortgage rates fall to historic lows. Will these low rates do anything to stimulate the economy? Experts blame the economy with market projections falling short in the 4th quarter.  With the exception of one-year adjustable mortgages, all mortgage rates dropped to new lows. For full details and current mortgage rates, read the CBS News article.