What about the other 99%?

     “Forclosures up 75% in 2007.”  If you’re like many in the metro Atlanta area, these are the headlines that bombard you on a daily basis.  The message that doesn’t hit the news is the one that states that there are still 99 percent of homes NOT in forclosure.   Despite the above average rise in forclosures, with 30 percent of all homes being owned free and clear, the total number of houses in forclosure nationally is still less than 1 percent.

     If I’ve said it once, I’ve said it a thousand times…”the Real Estate market is a local market”.  So, let me tell you why it’s great to live in Altanta.  While a few cities, like Detroit, have seen a rise in forclosures due to industry/job loss, most see a rise due to a “softening” of the market after a period of unrealistic appreciation, or investor-led appreciation.  Some cases include several California and Florida cities with an average 5 year appreciation of over 100 percent.  No market can sustain this kind of appreciation.  Additionally, with the recent popularity in 100% financing, it’s no wonder so many people wound up owing more on their house than they could sell it for in their current market.  Atlanta, on the other hand, has mostly seen modest appreciation of between 5-10 percent. The local markets where we have the largest number of forclosures have mainly seen appreciation that was investor-led.  However, not all of Atlanta’s appreciation is investor-led.  Atlanta is still considered affordable, which brings new businesses and residents.  Atlanta is growing and will continue to do so.

     While it’s hard to predict what is in store for our economy with any certainty, Atlanta’s Real Estate market remains solid.  Our Days on Market may have increased, but there are still qualified buyers out there and houses are selling every day.