Horton Team Real Estate

The number of foreclosures are still climbing.

Forbes, lists the following cities as having the most vacancies, both rental and homeowner vacancies. See article for more information.

1. Kansas City, MO
2. San Francisco, CA
3. Tucson, AZ
4. Dayton, OH
5. Charlotte, NC
6. Springfield, MA
7. Albany, NY
8. Miami, FL
9. Salt Lake City, UA
10. Portland, OR
11. Seattle, WA
12. Poughkeepsi, NY
13. Buffalo, NY
14. San Jose, Ca
15. Jacksonville, FL

Fortunately, metro Atlanta is not in this list, in contrast from a couple months ago (see below).

Labels: vacancies

There is another glimmer of hope for an improving housing market: builders have reentered the market and are again buying lots on which to build houses. These builders are taking advantage of the reduced price on foreclosed properties, and they are expressing confidence that there will be a market for new homes in the near future.

It may only be a minor and temporary reprieve, but the current inventory level of houses for sale in metro Atlanta has declined from a year ago. The Atlanta Business Chronicle reports that there are 30,000 less houses listed for sale than there was a year ago. Much of the decline has to do with houses simply being taken off the market (withdrawn and expired listings). Those who do not have to sell, are deciding not to sell for less. If this continues, it will be good for the market. Buyers will gradually absorb the glut of foreclosures allowing things to return to normal. It will take time, but at least it is a hopeful sign of better things to come.

After Las Vegas and Detroit, Atlanta has more vacant rentals and single family homes than any other metropolitan area in the country. See the article in the AJC.

There were approximately 375 houses sold in Gwinnett county in November based on a quick look in FMLS. November last year there were 664 houses sold. The National Association of Realtors reports that the current inventory of houses listed for sale stands at 11.2 months - meaning that at the current rate of sales, it will take 11.2 months to sell all the homes currently listed.

According to a recent study referenced by the Atlanta Business Chronicle, more than half of home buyers are not interested in buying a home in foreclosure. That is good news for sellers in the short term, but it is bad news for the market. Ultimately this will drive down the price of foreclosed properties even more which will then lead to a reduction in the value of all home prices.