From the Atlanta Journal-Constitution (April Hunt)
Shock and disbelief greeted Colin Heydt when he opened DeKalb County’s tax assessment notice on his Candler Park home. Across the county in Stone Mountain, Jan Dunaway had the same reaction.
Unlike residents in Gwinnett or Fulton, who have flooded their counties with appeals for lower assessments, many DeKalb property owners insist their home values are far too low.
In order to maintain services, such as police and libraries, residents say they’d prefer to see higher home assessments -- which means higher taxes regardless of rate -- instead of what they think are unrealistically low assessments. The drop in home values has the county thinking of raising taxes up to 4.5 mills, which would increase taxes about $93 a year on the average home, which this year is assessed at $155,700.
“If you are going to take one of the better off neighborhoods and give people 60 percent off their taxes for no apparent reason, something is dramatically wrong,” Heydt, a philosophy professor whose four-bedroom home, with a separate carriage house, plunged 57 percent from an assessment of $440,700 to $189,960.
“I’d be happy to pay more in taxes than what I’m currently scheduled to, because it’s only fair,” Heydt added. “Without an adjustment, you’re talking about the potential for millions of dollars in lost revenue.”
DeKalb’s chief appraiser Calvin Hicks couldn’t believe his ears when calls complaining about values too low started coming in. He defended the county’s assessments but admits the numbers could be off in some areas, including the Candler Park neighborhood.
“It’s as accurate as we can make it, given the confines we’re working with,” Hicks said. “Really, it’s been an unusual year.”
He attributes the plunging values mostly to a new state law that requires distressed sales be included when calculating the market value. Because DeKalb has the third highest number of foreclosures in the state — with 7,645 foreclosures announced between January and May — those sales are pushing down values countywide.
The resulting 13 percent drop in value, down to $20.8 billion, is the worst among metro Atlanta counties. The drop is felt more acutely by homeowners because DeKalb is 65 percent residential and lacks the industrial and commercial properties that have helped prop up values in neighboring Fulton and Gwinnett counties.
Gwinnett, for instance, saw a decline of about 9 percent to its digest while Cobb county’s values fell about 7 percent. Reports show Fulton County may be estimating a decrease of about 8 percent, though official figures were not available.
Compounding the problem was the loss of six experienced appraisers last year to better paying jobs in Fulton, Hicks said. Those workers, who have not been replaced, had the institutional knowledge to question whether a 60 or 70 percent drop really reflected the neighborhoods.
“We’re human,” Hicks said. “If we made an error, we will review that and correct it.”
So far, his office has agreed to re-examine five neighborhoods where property owners think the values are depressed, including parts of Candler Park, areas in and around Avondale Estates and North Druid Hills. If more calls come in, Hicks said his office will review those complaints, too.
Those reviews won’t be done before next week, though, when the county commission is expected to join other metro counties that have raised their tax rates to offset the losses the sour economy has had on property values.
A new state law required every property receive its assessed value this year. The law also makes it easier to appeal that assessment, with many counties offering an online link from their appraiser’s office that will generate a review from the local Board of Equalization.
So far, commissioners have tried to battle the shrinking property tax base with budget cuts. Any movement to boost values would seem to help keep any increase as low as possible.
“I’m concerned because the projections we have on revenue may not include any glitches, so we’ve got to go back and look at these assessments,” said Commissioner Kathie Gannon. “This doesn’t even look like it’s following a formula.”
Commissioner Lee May, who heads the commission’s budget committee, said he believes Hicks’ office is getting a grip on any problems.
“We had a huge increase in previous years and now it’s falling, and it’s complicated to provide an accurate assessment with all of that movement,” May said.
In the meantime, stories abound of neighborhoods where some property values plunged while others barely saw a change.
For instance, homes in Rammel Oaks, a newer subdivision outside of Avondale Estates, held their exact value from 2010, according to county tax records. Undeveloped lots dropped between 55 and 70 percent, including one now valued at $22,320 despite selling in foreclosure in November for $216,000.
In the Fells Ridge subdivision where Dunaway lives, most values shriveled 60 percent. A nurse, Dunaway was stunned to see that her three-bedroom, two-bath home is assessed at just $44,500.
But what had her scratching her head was learning that values of 16 of the 80 homes in the subdivision dipped just 27 percent.
“They’re going to make us poor and charge us more,” Dunaway said of the assessments. “We’re going to pay our taxes one way or another, but for goodness’ sake, don’t raise the millage rates unless that’s what you need to do.”
Posted by Peachtree Mortgage Services, Inc. Take advantage of low home prices and low home mortgage rates while they last! Visit our website at www.peachtreemortgageservices.net, or call us today at 770.481.0052.
Thursday, June 9, 2011
Wednesday, June 8, 2011
Marietta to Keep Tax Rate, Services
From the Marietta Daily Journal (Jon Gillooly)
MARIETTA - The Marietta City Council on Wednesday is set to approve its fiscal year 2012 budget, which calls for no tax increases or service cuts.
The budget, whose fiscal year begins July 1, lists no staff cuts or furloughs, but offers no raises.
Nor does it dip into the city's $12 million reserve fund.
"Our effort has been twofold: one, to cut the budget and not to lay people off, not to furlough, but not to sell the citizens short either," Mayor Steve Tumlin said.
The general fund budget balances revenues and expenditures at $47.53 million, which is $522,460, or 1.1 percent, lower than FY11's original budget of $48.05 million.
"When we saw that the economy was going into recession back in 2008-09, the city aggressively made immediate cuts in order to stay ahead of the reducing revenue that we've experienced over the last three years," City Manager Bill Bruton said.
Such measures included a hiring freeze, cutting the city's capital funds - which are used to purchase equipment and vehicles - and finding grant funding to help pay for equipment purchases, Bruton said.
Marietta does not rely as heavily on property taxes as some governments do.
"When property taxes go down, it has a negative effect on the city, but not as much as other governments," Bruton said, noting that property taxes only account for 20 percent of the city's general fund.
Built into its FY12 budget is $11.5 million from the city-owned utility, Marietta Power, which keeps the city's millage rate down by about 4.5 mills.
The city's millage rate will remain the same at 2.788 mills.
The city's fire department is budgeted at $11.11 million, compared to FY11's $11.19 million, a difference of $78,000. The fire department has 135 employees. The city's police department is budgeted at $13.49 million, the same as last year. The Marietta Police Department has 173.5 employees.
The general fund, which pays for such core services as police, fire, streets and recreation, is one part of the city's overall budget, which totals approximately $270 million. Other funds that make up that budget include federal and SPLOST funds, the city's utility and the city's pension fund.
The total number of city employees funded in the 2012 budget for all departments is 805.5, compared to 2011's 807.5.
"I'm very happy, and I think the success goes to our staff," Tumlin said of the budget. "As mayor I'd like to take credit, but it's the staff. They've done a great job."
Posted by Peachtree Mortgage Services, Inc. Visit our website at www.peachtreemortgageservices.net to view our low Marietta and Cobb County home mortgage rates.
MARIETTA - The Marietta City Council on Wednesday is set to approve its fiscal year 2012 budget, which calls for no tax increases or service cuts.
The budget, whose fiscal year begins July 1, lists no staff cuts or furloughs, but offers no raises.
Nor does it dip into the city's $12 million reserve fund.
"Our effort has been twofold: one, to cut the budget and not to lay people off, not to furlough, but not to sell the citizens short either," Mayor Steve Tumlin said.
The general fund budget balances revenues and expenditures at $47.53 million, which is $522,460, or 1.1 percent, lower than FY11's original budget of $48.05 million.
"When we saw that the economy was going into recession back in 2008-09, the city aggressively made immediate cuts in order to stay ahead of the reducing revenue that we've experienced over the last three years," City Manager Bill Bruton said.
Such measures included a hiring freeze, cutting the city's capital funds - which are used to purchase equipment and vehicles - and finding grant funding to help pay for equipment purchases, Bruton said.
Marietta does not rely as heavily on property taxes as some governments do.
"When property taxes go down, it has a negative effect on the city, but not as much as other governments," Bruton said, noting that property taxes only account for 20 percent of the city's general fund.
Built into its FY12 budget is $11.5 million from the city-owned utility, Marietta Power, which keeps the city's millage rate down by about 4.5 mills.
The city's millage rate will remain the same at 2.788 mills.
The city's fire department is budgeted at $11.11 million, compared to FY11's $11.19 million, a difference of $78,000. The fire department has 135 employees. The city's police department is budgeted at $13.49 million, the same as last year. The Marietta Police Department has 173.5 employees.
The general fund, which pays for such core services as police, fire, streets and recreation, is one part of the city's overall budget, which totals approximately $270 million. Other funds that make up that budget include federal and SPLOST funds, the city's utility and the city's pension fund.
The total number of city employees funded in the 2012 budget for all departments is 805.5, compared to 2011's 807.5.
"I'm very happy, and I think the success goes to our staff," Tumlin said of the budget. "As mayor I'd like to take credit, but it's the staff. They've done a great job."
Posted by Peachtree Mortgage Services, Inc. Visit our website at www.peachtreemortgageservices.net to view our low Marietta and Cobb County home mortgage rates.
Tuesday, June 7, 2011
DeKalb Approves School Construction
From the Atlanta Journal-Constitution (Jaime Sarrio)
The DeKalb school board Monday approved a $475 million construction plan to replace and renovate schools, and to purchase new technology and buses. Now, it's up to voters to approve a special five-year penny sales tax program to pay for it.
In November, residents in Atlanta, Decatur and Fulton counties are expected to vote on the sales tax program, which by law sunsets in March. Because of overlapping boundaries, the districts must hold the sales tax referendum at the same time.
DeKalb's long-term goal is to phase out smaller neighborhood schools in favor of 900-student elementary, 1,200-student middle and 1,600-student high schools. The plan approved Monday would bring the district closer to doing that, said Daniel Drake, director of planning and forecasting for the district.
"It's more of an efficiency on the administrative costs for these schools, throughout the county," he said.
Highlights of the plan include the construction of seven elementary schools for$144 million, an arts school at Avondale Middle and a $22.4 million renovation and addition at Redan High. The plans come after the board voted in March to close eight schools in a massive redistricting that takes effect this fall. School officials said some schools are closing so that larger schools can be built in their place.
Two private firms were hired by DeKalb to survey schools and consider the building conditions and technology needs. The scores of those surveys were meshed together and used to determine which schools would be first in line for improvements.
Some parents at the meeting asked the board to consider schools in their area for upgrades. Speaker Connie Boone asked the board why clean schools were closed during the rezoning and students were moved to schools in disrepair, such as Meadowview Elementary.
“Last month, I got an opportunity to go to Meadowview’s open house… You all decided to keep the oldest and the nastiest school building in the McNair cluster open,” she said. “That school needs to be gutted, renovated or condemned.”
Collectively, the sales tax programs are expected to bring in about $1.5 billion. Other districts are in various stages of developing construction plans before the fall vote.
Dunwoody-area representative Nancy Jester was the only board member who voted against the plan, saying she didn’t have enough time to review the projects and she had questions about the influence of unspecified "outside" groups..
“There are very focused interest groups who have advocated for their projects, and we are benefiting groups that easily organize during the summer,” she said. “I can’t in good conscious vote for this plan.”
Monday evening, board members also OKed a $1.23 billion consolidated budget that includes furlough days for school employees. District officials originally canceled the unpaid workdays, but then reversed the decision last week because of an unexpected $15 million budget shortfall stemming from property tax collections.
Board members discussed whether to raise taxes, but the idea didn't gain traction.
Posted by Peachtree Mortgage Services. Visit our website at www.peachtreemortgageservices.net to check out our low home mortgage rates.
The DeKalb school board Monday approved a $475 million construction plan to replace and renovate schools, and to purchase new technology and buses. Now, it's up to voters to approve a special five-year penny sales tax program to pay for it.
In November, residents in Atlanta, Decatur and Fulton counties are expected to vote on the sales tax program, which by law sunsets in March. Because of overlapping boundaries, the districts must hold the sales tax referendum at the same time.
DeKalb's long-term goal is to phase out smaller neighborhood schools in favor of 900-student elementary, 1,200-student middle and 1,600-student high schools. The plan approved Monday would bring the district closer to doing that, said Daniel Drake, director of planning and forecasting for the district.
"It's more of an efficiency on the administrative costs for these schools, throughout the county," he said.
Highlights of the plan include the construction of seven elementary schools for$144 million, an arts school at Avondale Middle and a $22.4 million renovation and addition at Redan High. The plans come after the board voted in March to close eight schools in a massive redistricting that takes effect this fall. School officials said some schools are closing so that larger schools can be built in their place.
Two private firms were hired by DeKalb to survey schools and consider the building conditions and technology needs. The scores of those surveys were meshed together and used to determine which schools would be first in line for improvements.
Some parents at the meeting asked the board to consider schools in their area for upgrades. Speaker Connie Boone asked the board why clean schools were closed during the rezoning and students were moved to schools in disrepair, such as Meadowview Elementary.
“Last month, I got an opportunity to go to Meadowview’s open house… You all decided to keep the oldest and the nastiest school building in the McNair cluster open,” she said. “That school needs to be gutted, renovated or condemned.”
Collectively, the sales tax programs are expected to bring in about $1.5 billion. Other districts are in various stages of developing construction plans before the fall vote.
Dunwoody-area representative Nancy Jester was the only board member who voted against the plan, saying she didn’t have enough time to review the projects and she had questions about the influence of unspecified "outside" groups..
“There are very focused interest groups who have advocated for their projects, and we are benefiting groups that easily organize during the summer,” she said. “I can’t in good conscious vote for this plan.”
Monday evening, board members also OKed a $1.23 billion consolidated budget that includes furlough days for school employees. District officials originally canceled the unpaid workdays, but then reversed the decision last week because of an unexpected $15 million budget shortfall stemming from property tax collections.
Board members discussed whether to raise taxes, but the idea didn't gain traction.
Posted by Peachtree Mortgage Services. Visit our website at www.peachtreemortgageservices.net to check out our low home mortgage rates.
Monday, June 6, 2011
DeKalb Unveils Plans for New Schools, Renovations
From the Atlanta Journal-Constitution (Jaime Sarrio)
DeKalb school officials want to build eight new schools and make renovations and additions to several others with money collected from the next penny sales tax program, which if approved would run from 2013-2017. DeKalb must ask voters to extend the tax along with Atlanta, Decatur, and Fulton school districts because of overlapping boundaries under state law. A detailed project list and a survey is available at www.dekalb.k12.ga.us.
Posted by Peachtree Mortgage Services, Inc. Low home mortgage rates. Visit our website at www.peachtreemortgageservices.net.
DeKalb school officials want to build eight new schools and make renovations and additions to several others with money collected from the next penny sales tax program, which if approved would run from 2013-2017. DeKalb must ask voters to extend the tax along with Atlanta, Decatur, and Fulton school districts because of overlapping boundaries under state law. A detailed project list and a survey is available at www.dekalb.k12.ga.us.
Posted by Peachtree Mortgage Services, Inc. Low home mortgage rates. Visit our website at www.peachtreemortgageservices.net.
Friday, June 3, 2011
Forsyth County Golf Course Residents Vow to Continue the Fight
From the Atlanta Journal-Constitution (Jeffry Scott)
A resolute group of homeowners in the Lanier Golf Club community say no matter what the Forsyth County Commission decides, they’re not quitting their four-year fight to keep the 172-acre property from being rezoned for residential development.
“I moved here eight or nine years ago to live on the golf course and if the commission doesn't want to fight it in court, we will,” said homeowner Jim Quinn.
Quinn is one of a group of residents who have offered to pay $5,000 of the county’s legal fees if it appeals a judge’s ruling last month giving the commission a deadline to rezone the property.
“But they turned us down,” said Quinn.
After the May 12 ruling that Forsyth County had 45 days to “rezone the property to a constitutional zoning classification,” the commission said it will bring up rezoning proposals at two public hearings before casting its deciding vote June 16.
According to the proposed rezoning, the front tract of the property, all now zoned agricultural, will be a master planned district (MPD). The back tract of the property will be zoned R-3, for single family residential. District 5 Commissioner Jim Boff, who lives in the community but not on the course, said he has always been in favor of keeping the golf course.
“The people who bought homes here paid a premium and have paid higher taxes all these years to keep it that way,” said Boff.
The course has been tied up in litigation since 2007, when the course owners sued the county after the commission rejected their request to rezone it so they could sell the land to a developer. The sale was contingent on the rezoning.
Course owners Jack Manton and George Bagley Jr. have offered a conceptual plan for the development. But after four years of legal haggling and the crash of the real estate market, county attorney Ken Jarrard said at the moment there is no “bona fide purchaser” of the property if it is rezoned.
At a commission work session District 4 Commissioner Patrick Bell said the higher density development was better for the county.
"You couldn't ask for a better use of land -- low impact, low trip generation and high taxes," said Bell.
Quinn said residents of the community have already spent about $150,000 in legal fees fighting the rezoning. One reasons the county commission wants to settle the litigation is the cost, said Boff, who estimates Forsyth has spent about $120,000 fighting the rezoning so far.
District 3 Commissioner Todd Levent said the commission rejected the offer to pay part of the legal expenses because the community group did not want to pay all the expenses if the case goes to trial, which could cost $15,000 or more. That strategy will backfire, said Quinn.
“If the county does vote to have this ridiculous zoning, the neighborhood will sue and therefore they will not be saving anything in legal expenses,” he said.
Posted by Peachtree Mortgage Services, Inc. Low home mortgage rates, low fees, great service! Call us today at 770.481.0052.
A resolute group of homeowners in the Lanier Golf Club community say no matter what the Forsyth County Commission decides, they’re not quitting their four-year fight to keep the 172-acre property from being rezoned for residential development.
“I moved here eight or nine years ago to live on the golf course and if the commission doesn't want to fight it in court, we will,” said homeowner Jim Quinn.
Quinn is one of a group of residents who have offered to pay $5,000 of the county’s legal fees if it appeals a judge’s ruling last month giving the commission a deadline to rezone the property.
“But they turned us down,” said Quinn.
After the May 12 ruling that Forsyth County had 45 days to “rezone the property to a constitutional zoning classification,” the commission said it will bring up rezoning proposals at two public hearings before casting its deciding vote June 16.
According to the proposed rezoning, the front tract of the property, all now zoned agricultural, will be a master planned district (MPD). The back tract of the property will be zoned R-3, for single family residential. District 5 Commissioner Jim Boff, who lives in the community but not on the course, said he has always been in favor of keeping the golf course.
“The people who bought homes here paid a premium and have paid higher taxes all these years to keep it that way,” said Boff.
The course has been tied up in litigation since 2007, when the course owners sued the county after the commission rejected their request to rezone it so they could sell the land to a developer. The sale was contingent on the rezoning.
Course owners Jack Manton and George Bagley Jr. have offered a conceptual plan for the development. But after four years of legal haggling and the crash of the real estate market, county attorney Ken Jarrard said at the moment there is no “bona fide purchaser” of the property if it is rezoned.
At a commission work session District 4 Commissioner Patrick Bell said the higher density development was better for the county.
"You couldn't ask for a better use of land -- low impact, low trip generation and high taxes," said Bell.
Quinn said residents of the community have already spent about $150,000 in legal fees fighting the rezoning. One reasons the county commission wants to settle the litigation is the cost, said Boff, who estimates Forsyth has spent about $120,000 fighting the rezoning so far.
District 3 Commissioner Todd Levent said the commission rejected the offer to pay part of the legal expenses because the community group did not want to pay all the expenses if the case goes to trial, which could cost $15,000 or more. That strategy will backfire, said Quinn.
“If the county does vote to have this ridiculous zoning, the neighborhood will sue and therefore they will not be saving anything in legal expenses,” he said.
Posted by Peachtree Mortgage Services, Inc. Low home mortgage rates, low fees, great service! Call us today at 770.481.0052.
Thursday, June 2, 2011
Johnson Ferry Road Plan Aims for Cohesive Corridor
From the Atlanta Journal-Constitution (Janel Davis)
As the more urban areas of Cobb County grow, the quest for a better quality of life has leaders trying to guide development in a way that satisfies both residents and businesses.
Cobb commissioners set the stage for the future of the Johnson Ferry Road corridor last week when they approved the first stage of their latest urban design undertaking.
“This is not going to be an immediate transformation because there is no money,” said Jill Flamm, president of the East Cobb Civic Association. “What you will start to see is a more unified ... Johnson Ferry corridor. The plan is a starting block, but without the first step you have nothing.”
The 3.4 mile corridor lies between Roswell Road and the Chattahoochee River, and serves as Cobb’s main north-south thoroughfare in the more affluent, eastern part of the county, carrying between 20,000 and 49,000 vehicles each day.
The corridor is lined with a mix of 13 commercial shopping centers, a range of retail outlets and subdivisions. But the area lacks connectivity and consistency, with bad sidewalk conditions and varying lighting designs and architecture. The differences create a chaotic street environment, according to a review of the area included in the design plan.
“You've got a situation where there was a lot of unrestricted zoning in the area over the past few years,” said Commissioner Bob Ott, who represents the area. “With that you can’t come in and impose zoning on property that has no restrictions, so the only way is to establish a guide going forward.”
The design plan includes a collection of improvements, detailing pedestrian bridges, sidewalk lengths and widening of the road in some areas.
Business owner Jeff South is excited about the plan and its possibilities, but he's nervous about the impact on small businesses.
“I own two properties in the corridor, and if they start street widening part of the property for those could be taken away,” he said. South owns Intrigue Salon and the adjacent building that houses Suburban Tap restaurant along Johnson Ferry Road.
“I am hopeful for an area that will grow with the times,” he said.
The roadway widening included in the plan is also troublesome for area resident Larry Savage, who is concerned about residential neighborhoods possibly losing part of existing landscaped perimeters that separate the homes from the road.
“If this were actually developed per the plan, I don’t see any way they could do this without taking away some of those perimeters,” he said. "I’m not saying it’s wrong, I just don’t think it has been communicated very well.”
County staff began working on the plan with residents, business owners and developers in 2009. Four public meetings were held.
Like the Powers Ferry Road plan completed before it, county staff’s next step will be to draft design standards based on the Johnson Ferry plan. The plan also will be added to the county’s comprehensive plan.
Posted by Peachtree Mortgage Services. Call us about our current low home mortgage rates at 770.481.0052.
As the more urban areas of Cobb County grow, the quest for a better quality of life has leaders trying to guide development in a way that satisfies both residents and businesses.
Cobb commissioners set the stage for the future of the Johnson Ferry Road corridor last week when they approved the first stage of their latest urban design undertaking.
“This is not going to be an immediate transformation because there is no money,” said Jill Flamm, president of the East Cobb Civic Association. “What you will start to see is a more unified ... Johnson Ferry corridor. The plan is a starting block, but without the first step you have nothing.”
The 3.4 mile corridor lies between Roswell Road and the Chattahoochee River, and serves as Cobb’s main north-south thoroughfare in the more affluent, eastern part of the county, carrying between 20,000 and 49,000 vehicles each day.
The corridor is lined with a mix of 13 commercial shopping centers, a range of retail outlets and subdivisions. But the area lacks connectivity and consistency, with bad sidewalk conditions and varying lighting designs and architecture. The differences create a chaotic street environment, according to a review of the area included in the design plan.
“You've got a situation where there was a lot of unrestricted zoning in the area over the past few years,” said Commissioner Bob Ott, who represents the area. “With that you can’t come in and impose zoning on property that has no restrictions, so the only way is to establish a guide going forward.”
The design plan includes a collection of improvements, detailing pedestrian bridges, sidewalk lengths and widening of the road in some areas.
Business owner Jeff South is excited about the plan and its possibilities, but he's nervous about the impact on small businesses.
“I own two properties in the corridor, and if they start street widening part of the property for those could be taken away,” he said. South owns Intrigue Salon and the adjacent building that houses Suburban Tap restaurant along Johnson Ferry Road.
“I am hopeful for an area that will grow with the times,” he said.
The roadway widening included in the plan is also troublesome for area resident Larry Savage, who is concerned about residential neighborhoods possibly losing part of existing landscaped perimeters that separate the homes from the road.
“If this were actually developed per the plan, I don’t see any way they could do this without taking away some of those perimeters,” he said. "I’m not saying it’s wrong, I just don’t think it has been communicated very well.”
County staff began working on the plan with residents, business owners and developers in 2009. Four public meetings were held.
Like the Powers Ferry Road plan completed before it, county staff’s next step will be to draft design standards based on the Johnson Ferry plan. The plan also will be added to the county’s comprehensive plan.
Posted by Peachtree Mortgage Services. Call us about our current low home mortgage rates at 770.481.0052.
Wednesday, June 1, 2011
Atlanta Home Prices at 1999 Levels
From the Atlanta Journal-Constitution (Rachel Tobin)
Home prices in metro Atlanta fell in March to the lowest level since late 1999, weighed down by the effect of foreclosures and a backlog of unsold properties, according to a widely watched index released Tuesday.
The region’s decline mirrors a stubbornly deteriorating national housing picture despite the slow economic recovery, the latest Standard & Poor’s/Case-Shiller Index said.
“This month’s report is marked by confirmation of a double-dip in home prices across much of the nation,” said David Blitzer, chairman of S&P’s index committee. “Home prices continue on their downward spiral with no relief in sight.”
Prices staged a mild rebound in most markets a year ago but have reversed course since federal tax credits expired. Sales volume also is down from a year ago.
Nationally, prices were 33 percent off their 2006 peaks in March, according to the 20-city index. Metro Atlanta’s decline from the peak is not as severe, at 28 percent, but the area’s price appreciation also was not as steep during the boom years.
But in the latest report Atlanta joined only four cities with price indexes below 2000 levels. The others were Detroit, Cleveland and Las Vegas.
For Dunwoody homeowner Billy Crenshaw, that confirms what he already knows: he’ll be taking a loss on his condo.
“We paid $275,000 for it in 2005. In 2001, when it was built, it sold for $299,000. We’re putting it on market for $225,000, but we expect to get about $200,000 for it,” he said.
All told, with $15,000 in improvements, he expects to a lose a third of his investment. But he must sell now because he and his wife are ready to move to a retirement community in Texas.
“It’s not our choice right now to do this at the bottom of the market, we just have to make a move. It tightens up everything,” he said of his spending.
In the S&P/Case-Shiller Index, compiled from a measure of repeat sales, a score of 100 represents prices at the start of 2000. The index fell from February to March in 18 of 20 cities tracked.
Metro Atlanta’s March index fell to 98.36, from 100.23 in February and 103.73 in March 2010. Atlanta’s index peaked at 136.47 in July 2007.
The trend acts as a brake on the economic recovery, said Rajeev Dhawan, director of the Economic Forecasting Center at the Georgia State’s Robinson College of Business.
“These numbers are not good for the confidence of a standard average middle class person, as a big part of their wealth is tied up in their homes,” he said. “To see the value of their home dropping affects their mood and ultimately their spending.”
He said it’s also bad news for small business owners, who often use homes as collateral for bank loans.
Debby Braun, an agent with Keller Williams Realty-First Atlanta in Sandy Springs, East Cobb, and Dunwoody, tries to get buyers and sellers off the fence with the thought they may take a loss on the house they sell, but will gain value on the house they buy.
“There are a lot of stalled sales from people who would either move up or move down,” she said. “They just can’t get over that real loss, in some cases, and in others it’s a perceived loss.”
Walter Molony, a spokesman for the National Association of Realtors, expects home prices to remain flat the rest of the year as waves of foreclosures continue.
“What we are finding in our data is a large downward skew because there so many foreclosures pulling down market. We didn’t have as many foreclosures in 2009,” he said.
Four out of 10 sales nationwide last year were distressed, he said, with prices discounted 20 percent or more.
“That mix of sales is not representative of the United States,” he said. “The typical U.S. housing stock is in much better shape than the homes being sold.”
Agents note that even in a down market real estate values can be strong in certain areas.
Real estate agent Peggy Hibbert, of Atlanta Fine Homes Sotheby’s International Realty, sells from Morningside to Decatur -- sought-after intown areas with good schools.
“I’m seeing houses sell. I’m seeing buyers feeling more comfortable that they are getting a good value. And I’m seeing people that are ready to make changes in their life, but had been waiting, move forward,” she said.
Posted by Peachtree Mortgage Services, Inc. Buy now while home prices and home mortgage rates are low! Call us today at 770.481.0052, or visit our website at www.peachtreemortgageservices.net.
Home prices in metro Atlanta fell in March to the lowest level since late 1999, weighed down by the effect of foreclosures and a backlog of unsold properties, according to a widely watched index released Tuesday.
The region’s decline mirrors a stubbornly deteriorating national housing picture despite the slow economic recovery, the latest Standard & Poor’s/Case-Shiller Index said.
“This month’s report is marked by confirmation of a double-dip in home prices across much of the nation,” said David Blitzer, chairman of S&P’s index committee. “Home prices continue on their downward spiral with no relief in sight.”
Prices staged a mild rebound in most markets a year ago but have reversed course since federal tax credits expired. Sales volume also is down from a year ago.
Nationally, prices were 33 percent off their 2006 peaks in March, according to the 20-city index. Metro Atlanta’s decline from the peak is not as severe, at 28 percent, but the area’s price appreciation also was not as steep during the boom years.
But in the latest report Atlanta joined only four cities with price indexes below 2000 levels. The others were Detroit, Cleveland and Las Vegas.
For Dunwoody homeowner Billy Crenshaw, that confirms what he already knows: he’ll be taking a loss on his condo.
“We paid $275,000 for it in 2005. In 2001, when it was built, it sold for $299,000. We’re putting it on market for $225,000, but we expect to get about $200,000 for it,” he said.
All told, with $15,000 in improvements, he expects to a lose a third of his investment. But he must sell now because he and his wife are ready to move to a retirement community in Texas.
“It’s not our choice right now to do this at the bottom of the market, we just have to make a move. It tightens up everything,” he said of his spending.
In the S&P/Case-Shiller Index, compiled from a measure of repeat sales, a score of 100 represents prices at the start of 2000. The index fell from February to March in 18 of 20 cities tracked.
Metro Atlanta’s March index fell to 98.36, from 100.23 in February and 103.73 in March 2010. Atlanta’s index peaked at 136.47 in July 2007.
The trend acts as a brake on the economic recovery, said Rajeev Dhawan, director of the Economic Forecasting Center at the Georgia State’s Robinson College of Business.
“These numbers are not good for the confidence of a standard average middle class person, as a big part of their wealth is tied up in their homes,” he said. “To see the value of their home dropping affects their mood and ultimately their spending.”
He said it’s also bad news for small business owners, who often use homes as collateral for bank loans.
Debby Braun, an agent with Keller Williams Realty-First Atlanta in Sandy Springs, East Cobb, and Dunwoody, tries to get buyers and sellers off the fence with the thought they may take a loss on the house they sell, but will gain value on the house they buy.
“There are a lot of stalled sales from people who would either move up or move down,” she said. “They just can’t get over that real loss, in some cases, and in others it’s a perceived loss.”
Walter Molony, a spokesman for the National Association of Realtors, expects home prices to remain flat the rest of the year as waves of foreclosures continue.
“What we are finding in our data is a large downward skew because there so many foreclosures pulling down market. We didn’t have as many foreclosures in 2009,” he said.
Four out of 10 sales nationwide last year were distressed, he said, with prices discounted 20 percent or more.
“That mix of sales is not representative of the United States,” he said. “The typical U.S. housing stock is in much better shape than the homes being sold.”
Agents note that even in a down market real estate values can be strong in certain areas.
Real estate agent Peggy Hibbert, of Atlanta Fine Homes Sotheby’s International Realty, sells from Morningside to Decatur -- sought-after intown areas with good schools.
“I’m seeing houses sell. I’m seeing buyers feeling more comfortable that they are getting a good value. And I’m seeing people that are ready to make changes in their life, but had been waiting, move forward,” she said.
Posted by Peachtree Mortgage Services, Inc. Buy now while home prices and home mortgage rates are low! Call us today at 770.481.0052, or visit our website at www.peachtreemortgageservices.net.
Subscribe to:
Posts (Atom)
Posts
