Clayton Co. 3rd Quarter 2008
Clayton County real estate activity 7.1.2008 through 9.3.2008
3022 properties currently for sale throughout Clayton Co.
40% of those properties are listed for under $100,000
344 properties are under contract and may or may not close
70% of the under contract properties were listed under $100,000
843 properties sold within the 3rd Quarter
67% were sold for under $100,000
1066 properties expired unsold
The market in Clayton County is flooded with properties for sale, which is great for buyers because oversupply means lower prices. Investors and home buyers can certainly benefit from low prices, lots of selection and low interest rate mortgages.
Regardless of what you are hearing about the availability of home loans, there is always money for credit worthy buyers.
It is the buyers with slow credit and no money in the bank and no down payment that are having trouble getting financing. The lending culture for years has been to find a way to squeeze every buyer into some kind of mortgage, even if they really cannot afford to buy.
The low starting interest rates for interest only loans and a variety of adjustable rate mortgage products gave buyers a starting payment they could afford. Selling points of those mortgages were the assumptions that buyers would get a raise and make more money and the value of the home would increase.
The reality is that home prices continue to fall while the cost of living continues to increase, jobs are not secure, companies are failing and the expected raises aren't happening.
When the interest rates adjust, the payments keep going up until the homeowners can't make the new payments. These homeowners can't sell because prices are falling instead of increasing and they owe more than the market value of the home. When they qualified for the loan, neither the lenders or the buyers factored in unexpected expenses, ie: a new transmission for the car, illness, job loss, babies, divorce etc. When a couple qualifies for the maximum loan and one of them stops contributing financially, neither can afford the payments.
When homeowners can't make their payments it is too easy to walk away, especially if they did not make a down payment. Letting the homes go into foreclosure continues to drive prices even lower. This downward trend also shows homeowners that allowing a foreclosure no longer carries the stigman it did in the past. The mentality seems to be that everybody else is doing it so why not?
This market climate creates excellent opportunities for buyers to purchase a home for far less that the value of a few years ago and get more house for the money.
This is a great time to buy so if you can, take advantage. My thirty years of real estate experience, through many up and down cycles, has convinced me that no matter how low the market goes, it always comes back, often with a vengance The variable is time.
No one really knows how long this downturn will last but it is clear that a down market creates opportunities for investors and home buyers. Some buyers are waiting for the bottom of the marke to get the best price. We know the market is at the bottom when it starts going back up. Don't miss out on great buys.
Call me at 770.460.9448 for the help finding the very best properties for the very best prices.
Sellers. It is not the best time to sell so, if possible, wait. If you really want to move, considering renting the house until the market turns. If neither waiting or renting are options for you, call me at 770.460.9448 for a FREE market consultation. Let my 30 years experience work for you.
sells real estate
RE/MAX Around Atlanta
Think Green to save money and the planet