We’re Faster than the National Average!
If you are a home owner you may think that the market starts to slow this time of year as people start to return from vacationing and preparing for the school year.
The National Association of Realtors says that the most homes sold ever in May of this year! The Smyrna/Vinings market is just as hot -- The Castles By Chrissy Team sold the most homes ever in June! We put one home under contract in three days and another home sold in less than 12!
As your Vinings/Smyrna expert specializing in state of the art technology, we promise you better communication, better technology, and the best service!
Visit www.soldonsmyrna.com to learn more about how we sell your home –
and come back often as we update our site weekly with new information.
Just SOLD!!
Woodland Gate
5069 Healey Drive
5 bedroom 4 bath
$479,000
Vinings Voices with a Shout of Smyrna
No Signs of a Slowdown in Real Estate
You’ve heard the news for years now, and especially lately, about the impending bubble waiting to burst on the thriving housing market -- but it still hasn’t happened. What do consumers, deciding if it’s still a good time to buy or sell a home, need to know about the forecast for the housing market? Is it possible even after years of skyrocketing values that real estate will remain a sound investment for the foreseeable future?
Lower-than-expected mortgage interest rates will push home sales to a fifth consecutive record in 2005, according to NAR Chief Economist David Lereah. In fact, long-term interest rates look very favorable. Lereah anticipates a both existing-home sales and new-home sales to hit new highs this year, and he says home prices will continue to rise citing the following factors:
The supply of homes remains tight
“The simple fact is we still have more buyers than sellers in most of the country,” says Lereah. “This supply-demand imbalance is continuing to put pressure on home prices, but we should get closer to equilibrium by the end of the year.”
Demographic trends favor housing expansion
Boomers, retirees, boomer kids who are first-time homebuyers, and an influx of new immigrants buying homes will help keep the real estate market solid. “These demographic factors all combine for great support for demand for homebuyers going forward,” adds Lereah.
Real estate is still a safe haven vis-à-vis stocks and bonds
Compared the ho-hum stock market, real estate is still a good place to invest your money. Says Lereah, “This is also increasing demand for homebuyers and should continue for the rest of the year.”
That being said, there are also some signs of potential trouble in the market, according to Lereah:
A rise in speculation
“Speculation is not dominating the market, although it is on the rise,” Lereah says. Despite the increase, he adds that most residential real estate purchases are rational.
High home price-to-income ratio
“The home price-to-income ratio is alarmingly high, especially in California, rising from 23 percent in 2003 to 32 percent in 2004,” says Lereah.
Increased use of ARMs
In the past year, ARMs have made up 30 to 40 percent of mortgage loans, when they should actually be around 25 percent. “The increase in the use of adjustable rate mortgages at a time when fixed mortgage rates are at historic lows is troubling.”
What about the bubble?
''Obviously, there are some local bubbles,'' Lereah says. ''But I tend to think that with most of the bubbles, the air will come out slowly, rather than popping.''
The takeaway
Lereah expects home sales to hit another record high in 2005, with price gains slower, but still above historical norms. Mortgage rates will reach 6.1 percent by the end of the year and move to 6.5 percent by 2006, still an historical low. “Relative to inflation, home prices will continue to experience above-average returns in 2005,” he says.
National Association of Realtors, July 2005
FOR ADDITIONAL INFORMATION ON THE PROPERTY LISTED ABOVE OR THE TIP PROVIDED
PLEASE FEEL FREE TO EMAIL CHRISSY@CASTLESBYCHRISSY.COM OR CALL ME AT 404.925.5335
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