Robert Boatright
Coldwell Banker Lake Oconee Realty
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NEW-HOME SALES RISE FASTEST IN 47 YEARS
Southern Exposure
Real Estate Outlook: Increase in Housing Starts
 
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Saturday, April 24, 2010
 
NEW-HOME SALES RISE FASTEST IN 47 YEARS

By Chavon Sutton, staff reporter April 23, 2010: 11:48 AM ET 

NEW YORK (CNNMoney.com) -- New home sales improved in March at the fastest single-month rate in 47 years, according to a government report released Friday, as buyers snatched up properties ahead of the tax credit that's set to expire.

New-home sales rose 26.9% to a seasonally adjusted annual rate of 411,000 last month, compared to an upwardly revised annual rate of 324,000 in February, the Census Bureau said. The gain snapped a four-month streak of declines.

A consensus of economists surveyed by Briefing.com expected March sales to rise to an annual rate of 330,000. The March sales were the strongest since last July, and the percentage gain was the biggest on a month-over-month basis since a 31% gain in March 1963.

New-home sales spiked in every region of the United States. The South saw the biggest jump in new home sales, up 43.5%, while the Northeast region saw sales climb 35.7%. The West and Midwest regions both saw single-digit percentage growth, with the West up 6% and the Midwest up 4%.

The Census Bureau data followed a report from the National Association of Realtors on Thursday that showed existing home sales soared nearly 7% in March, as new homebuyers raced to buy up properties before a tax credit expires on April 30.

"It's obvious that homebuyers are rushing in to take advantage of the tax credit that's set to expire," said Robert Dye, senior economist for PNC Financial Services.

In November, the government extended and expanded an $8,000 tax credit, which also allows some repeat buyers to qualify for a $6,500 credit. Buyers have until April 30 to qualify. 

Fewer homes to buy

Dye expects to see continued strength in April's data before "tailing off" through the summer as the group of buyers who rushed in are "all spent out."

The Census Bureau estimated that 228,000 new homes hit the market in March. At the current sales rate, it would take 6.7 months to sell through that inventory, down sharply from an estimated 9.2 months of inventory in February.

Although new-home sales in March exceeded analyst expectations, sales are still trending near record lows, and prices are still under pressure due to oversupply.

"It's a very good sign to see [the March inventory] number down," said Dye. "But this needs to tighten up more to see upward pressure on prices."

The average price of a new home was $258,600, according to the Census Bureau. That was virtually flat compared to a year earlier, and 12% below average prices in 2008.

A precarious jobs market continues to threaten the housing market. Dye expects the April unemployment rate to dip to a still-high 9.6% from March's 9.7% when data are announced May 7.

"Firming house prices and an improving jobs market will make recovery felt on Main Street as well as Wall Street," said Dye. "We're headed in the right direction." 


Tuesday, February 23, 2010
 
Southern Exposure

Golf Digest

 

By Peter Finch

Photos by J.D. Cuban

March 2010

Google Maps will tell you the 90-mile drive to Greensboro, Ga., from the Atlanta airport should take an hour and 36 minutes. Perhaps this is so, if you keep to the speed limit. But nobody goes the speed limit on I-20 east of Atlanta. Even in the right lane, you can be doing 70 in a 55-mile-per-hour zone and other drivers will get right up against your rear bumper. "This is NASCAR country," a local explained.

Yet once you pull off the Interstate into Greensboro, everything seems to downshift. Which, of course, is a big part of the appeal. Harried city slickers have been seeking refuge in this sleepy, pine tree-lined territory for decades, with much of their activity focused on 19,000-acre Lake Oconee and the resort communities that have sprung up around it.

Reynolds Plantation is the toniest of these communities, with mansions lining many of its fairways, and a Ritz-Carlton Lodge that typically asks $299 a night and up.

Not long ago, only property owners and Ritz-Carlton guests could enjoy Reynolds' golf courses and other amenities. But there's a new way to experience it all for considerably less. The trick is to stay at Reynolds Landing, a golf community formerly known as Port Armor. Set less than a mile from the entrance to Reynolds Plantation, the Landing was bought by Reynolds' parent company in 2005 and became a full-fledged member of the Reynolds family, with complete access privileges, in 2009.

The Inn at Reynolds Landing has seven small but nice rooms. For $235 per room, double-occupancy, you can stay here and get unlimited golf for two on the Bob Cupp-designed Landing course right outside your window.

When you're ready to partake of the many activities available on the "other side of the road" at Reynolds Plantation, like fishing, boating, Charlie King's acclaimed golf academy or the four other courses, just drive on over. (Note: You'll have to pay green fees at these courses, as you would if staying at the Ritz-Carlton.)

Based on my unscientific poll, locals seem to like the Great Waters course best. Designed by Jack Nicklaus and opened in 1992, it has 10 holes that hug or otherwise overlook Lake Oconee. Keep an eye out for Steelers QB Ben Roethlisberger, who has a home on the course. Closed for renovation since Jan. 1, 2009, Great Waters reopens to members in March and guests in April.

The Oconee course, a Rees Jones design, features some pleasing elevation changes, and the back nine, especially, makes the most of its proximity to the lake. Oconee fans were stunned last summer when a fire burned their clubhouse to the ground, but luckily no one was hurt and, except for the big hole where the building used to be, the course is operating as if nothing ever happened.

The Tom Fazio-designed National course has three high-quality nines. Only a few of its holes skirt the lake, but you won't lack for great scenery. As at all of the Reynolds courses, most of the houses overlooking its fairways are discreetly tucked into the woods, hidden behind flowering dogwood trees and among tall pines.

The most scenic moments at the Landing course come early in the round, with holes 2 through 5 offering expansive views of the shimmering lake. The consensus among accomplished golfers seems to be that the Landing is the toughest of all the Reynolds courses, especially from the back tees (7,048 yards) and with its greens cut to tournament speed. From the 6,409-yard members' tees, I found it no more challenging than most, with the exception of its brutal, uphill 464-yard par-4 10th hole.

The first course built at Reynolds, a Cupp design called Plantation, is considered the easiest. It's the shortest layout on the property -- the regular tees are just more than 6,200 yards -- and there are only 20 bunkers, fewer than half of what you'll find on the other courses.

Hungry? Georgia's Bistro on the ground floor of the Ritz-Carlton Lodge offers the area's finest dining. Here the menu includes the likes of "day boat" scallops overnighted from Boston and barbecued Greensboro quail and duck breast, with entrees starting at about $22. Linger a little after dinner on Fridays and Saturdays and there'll be live jazz in the lobby lounge. Or you can head outside, where starting at 8 every night there's a campfire, where marshmallow toasting is encouraged.

The greater Greensboro area isn't exactly teeming with other high-end restaurants, but there are some good, moderately priced options if you know where to look. These include the folksy Silver Moon, two miles down Route 44, where the favorites include fish and chips ($12) and a full rack of ribs ($18). There isn't any Silver Moon sign. The post outside reads simply Bar & Grill. Another local favorite is Richland Creek, just to the north of Reynolds Plantation, with good live music and a busy bar scene that's popular with Reynolds employees.

A few people encouraged me to drive 20 minutes west to the town of Madison for additional restaurants and music. Madison is charming, with rows of beautifully preserved pre-Civil War homes, antique stores and museums. On a warm Saturday afternoon, I found an outside table at the Amici Italian Café, where I lazily read the local papers and watched tourists shop their way around the leafy town square. I had reached a state of total relaxation.

Then I got back on I-20, pointed the car toward Atlanta, and gunned it.

 

 


Tuesday, February 23, 2010
 
Real Estate Outlook: Increase in Housing Starts

 

by Kenneth R. Harney

When you get reports of increases in both new housing starts and existing home and condo sales in a single week, that's got to say something positive about where real estate is headed.

Last week the US Commerce Department announced that new home starts, which have been lackluster for most of the housing down cycle -- rose in January to their highest level in half a year. Total starts nationwide were up nearly three percent for the month, and rose in three out of four regions covered by the Commerce report. In the Northeast, new starts bounced upward by 10 percent.

In the West, they were up by 9 percent, in the South by one percent. Only the Midwestern region saw a decline -- of 3.2 percent. Meanwhile, the latest quarterly report on existing home and condo sales found total sales up by a stunning 14 percent in the final three months of last year compared with the third quarter.

Transactions were up in 48 states plus the District of Columbia for the quarter -- and they jumped by double digit percentages in 32 states. Even prices were on the upswing: Of the 151 major housing markets tracked by the National Association of Realtors' survey, median prices were higher in 67 -- and up by double digits in 16 metro areas.

Lawrence Yun, chief economist for the National Association of Realtors, attributed the rise in sales and prices to the two popular federal housing tax credits now available to first-time and repeat purchasers, plus low mortgage rates. On a regional basis, the biggest sales gains came in the Western states, where they were up 16 percent for the quarter and are 18 percent higher than the year before.

In the Midwest, sales were up by nearly 15 percent, in the South 14 percent and in the Northeast by 11 percent. In a separate study, the national housing affordability index closed out 2009 just a fraction below its all time record high, meaning new and existing houses are now more affordable for a broader group of households than at just about any time in the past twenty years.

The index, which is jointly published by Wells Fargo and the National Association of Home Builders, found that fully 71 percent of American families can afford to buy the median priced home with a median household income of $64,000. An important part of that affordability equation, of course, is the mortgage market, and rates remain close to multi-decade lows.

Last week's average 30 year fixed rate was 4.9 percent, according to the Mortgage Bankers Association, while 15 year rates averaged 4.3 percent.

Published: February 23, 2010



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