Aided by the home buyer tax credit, the outlook for housing and the economy appears headed for a sustainable recovery, the National Association of Realtors said Friday.

Lawrence Yun, NAR chief economist, said the projections are enhanced by a tax credit expansion to more home buyers through the middle of 2010. “In fact, the credit is working better than first projected — it now looks like we’ll have 2.3 to 2.4 million first-time buyers this year,” Yun said.

A consumer study by the NAR shows that first-time buyers accounted for a record 47 percent share of home sales over the past year, up from 41 percent in the 2008 survey. The share has risen steadily since a cyclical low of 36 percent in 2006.

Existing-home sales are expected to total 5.01 million in 2009, a gain of 2 percent over last year, and then are forecast to rise 13.6 percent to 5.69 million in 2010. “A steady draw down of inventory will help home values to turn positive in 2010, but risks such as unemployment remain in the economy,” Yun said.

New-home sales are projected at 397,000 this year, recovering to 549,000 in 2010. Housing starts, including multifamily units, should total 564,000 units this year but grow to 752,000 in 2010.

The 30-year fixed-rate mortgage will probably average 5.3 percent in the fourth quarter, rising gradually to 5.8 percent by the end of next year, NAR reported, adding that its housing affordability index will set a record in 2009, averaging 30 percentage points higher than 2008. Affordability will decline from record highs next year but will remain at historically attractive levels for home buyers.

November 14, Atlanta Business Chronicle

Last week, after the Senate gave its final and fully supportive approval on the homebuyer tax credit extension, the House of Representatives voted overwhelmingly to pass the legislation, sending the tax credit to President Obama who’s final sign-off on Friday made it official.

The $8,000 first-time homebuyer tax credit, which was slated to expire Nov. 30, 2009, will be extended for contracts signed before May 1, 2010 that close before July 1, 2010. First-time buyers, who are in the process of closing now, no longer have to worry about qualifying for the $8,000 tax credit if they do end up closing after the Nov. 30 deadline. The new legislation also increases the income limit for couples with income up to $225,000, a nearly $55,000 increase above the current level.

Buyers who already own a home are also now eligible for a tax credit and the purchase of a home. The $6,500 maximum credit will be available to existing homeowners who have lived in their current residence for five of the prior eight years. The legislation does set forth several provision including, limiting eligibility for existing homeowners to homes worth $800,000 or less, as well as making both credits available only for primary residences, not second homes or investment properties. The legislation will take effect December 1, 2009 and is not retroactive.

The original first-time homebuyer tax credit jump-started the housing market, driving home sales to the highest level in more than two yeas. The National Association REALTORS® reported sales jumped 9.4 percent to a seasonally adjusted annual rate of 5.57 million units in September and are 9.2 percent higher than the 5.10 million-unit pace in September 2008.

Locally, Atlanta continues to benefit from steady population growth. For the second year in a row, Atlanta was the #1 one-way destination city in U-Haul’s annual reservation data. We believe that our attractive climate, combined with the airport and our consistent model of growth, will continue to attract real estate investment, both from domestic and international sources.

Click here to view the complete list of citites chosen.

In the NEWS for October:

*News From Madalyn & Nina
*Investment News You Can Use
*KW Ranks #2 in Best Places to Work
*News From Amanda & Kathlin
*Pumpkin Festival Photos
*Featured Listings
*Engagements, Babies & Referrals
*Upcoming Events & Special Offer

Please click here to view the full newsletter in a PDF format!

Don’t forget to set your clocks back 1 hour on Sunday, November 1st (Saturday night at Midnight) for Daylight Savings Time. Wishing everyone a safe and Happy Halloween!

The Suits Team put this house under contract in just 2 weeks. The $8,000 tax credit expires November 30th. Let us know if you are looking to buy or sell -404-419-3550!

Great house, lot & culdesac! Adorable painted brick ranch with 3 bedrooms and 1.5 baths. Renovated kitchen with stainless steel appliances, new cabinets and opens to dining room and huge spacious family room. Nice size bedrooms with good light and closet space. Updated baths. Beautiful hardwood floors, new interior neutral paint colors and new lighting throughout. Large lot with professionally installed landscaping, sprinkler system, great deck and patio. Fenced in private backyard. Walking distance to Brookhaen Village shopping & restaurants. Call The Suits Team at 404-419-3550 for more information.

The Suits Team hosted our 3rd Annual Pumpkin Festival on Sunday, October 4th! We had 100 pumpkins to give away, fresh (and yummy) Kettle Corn popping, candy and Halloween tattoos for the kids.

Everyone had a great time. They said it was like going to a pumpkin patch, but better, it was FREE! We enjoyed catching up with a lot of people and meeting new ones. Thanks to everyone who stopped by. We captured some great photos! Click here to view the entire slide show of photos captured by Chrysan McCoin.

Be on the lookout for information about the next event, our annual Wine Tasting in December. We look forward to seeing you! – The Suits Team

Presented by the Brookhaven Arts Alliance, this annual festival features fine art, children’s market and live music on Saturday, Oct. 17, from 10 a.m. to 6 p.m. and Sunday, Oct. 18, from noon to 6 p.m. The festival takes place along Apple Valley Road, behind the Brookhaven MARTA station. There will be 100 artists in the artists market selling jewelry, folk art, fiber, glass, prints, photography, pottery, sculpture, wood and paintings. Live music will include performances by the Berne and Dan Trio, Old Men in the Basement, The Right Now Blues Band and Terry Lee and The GT’s.

Click here for more information and a schedule of events!

The Atlanta Business Chronicle, named Keller Williams Realty – The Rawls Group, to its list of “Atlanta’s Best Places to Work.” The Rawls Group ranked No. 2 on the 2009 list of Atlanta’s best places to work for large companies and is the only top 10 real estate company.

Atlanta Business Chronicle, in partnership with Quantum Market Research Inc., recently surveyed the metro area’s businesses and organizations to find those that have discovered how to be among Atlanta’s Best Places to Work. More than 500 companies participated.

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