Category: Home

Home-buying demand took another step towards recovery, gaining strength for the third week in a row, according to Redfin’s latest weekly report. After plummeting as much as 34% in March, home-buying is now down only 15% from pre-coronavirus pandemic levels on a seasonally-adjusted basis for the seven days ended on Sunday, April 26.

Will the housing recovery survive re-starting the economy?
So far, the reality is a more modest increase in new listings and pending sales. In the seven days ended April 24, almost 53,000 new homes hit the market compared to just over 48,000 for the seven days ended April 13—the date new listings hit the lowest level over the past two months. More new listings has led to more sales, with pending sales up from fewer than 31,000 in the seven days ended April 13 to more than 32,500 for the seven days ended April 24. Despite the increase in new listings, during the same period, there were fewer than 700,000 homes for sale in Redfin markets across the U.S., which is the lowest inventory level Redfin has seen anytime in the past five years.

Some of the new inventory hitting the market may be coming from buy-and-hold investors. Since the beginning of the pandemic, Redfin has heard stories of Airbnb landlords with sudden unexpected vacancy putting their homes up for sale. This week, Redfin started to hear more long-term rentals hitting the market. Marshall Carey, a Redfin agent in Washington D.C., said several clients decided to list because the college students who normally lease their units have headed home early. Across the country in Tacoma, Washington, Redfin agent Amber Allin has clients who are selling several long-term rental properties to free up cash for investments outside of real estate.

Overall prices are up just a touch, affordable homes are still selling like hotcakes
Even though some investors may be headed for the exits, prices have held steady. For the seven days ended April 24 the median listing price was $308,000, up 1% compared to the same period the prior year. Octavia Valencia, a Redfin agent in Atlanta says, “Buyers and sellers are in a deadlock. Buyers are asking ‘is now the right time,’ and making more conservative offers, but sellers are not willing to come down on price.” Graham Rogers, a Redfin agent in South Carolina added, “In the end, buyers are paying up to hit the seller’s bottom-line number.” 

Affordable, single-family homes is the one segment of the market where sellers are still firmly in control. Agents across the country are reporting that these homes often generate bidding wars with prices sometimes escalating tens of thousands of dollars above the asking price.

At higher price points, homes have to be well-priced and move-in ready. Rogers added, “Unless they’re looking for a fixer, buyers want everything to be done. People aren’t looking to spend an extra ten to fifteen thousand dollars to fix the place up, and now you don’t know when you can get contractors into your home. It’s tough to get bids. It’s tough to get a timeline.”

Rates are low, but deals are taking longer and some buyers are struggling with lending requirements
Mortgage rates ticked down this week to about 3.25%. That’s almost 0.5% lower than they were at the beginning of April and approaching the all-time lows seen back in February. Fannie Mae forecast that rates will continue to fall and could dip below 3% for the first time ever in 2021.

Lower rates are making monthly payments more affordable; the 0.5% decline in rate reduces the monthly payment on a $300,000 home by $65 per month. But it is taking more patience to bring a deal together. Time to close a transaction once the buyer and seller have agreed on price increased to almost 31 days for the seven days ended April 18. That’s up from 27 days in the last week of February before the pandemic started and the longest closing time we’ve seen since July of 2017. 

Lenders are still overwhelmed by the boom in refinance applications driven by the low rates, and now appraisals are taking longer due to coronavirus-related work restrictions. Carlos Barrientos, a Redfin agent in San Francisco, reports that appraisers have also gotten more conservative. “Appraisers will look at three similar homes and take the lowest of the three rather than taking an average. Even if one home has a great view or something special, they aren’t giving out any extra credit.” When this happens, it kicks off a whole new negotiation between the buyer and seller over how to cover the difference because lenders will only lend up to the appraised value. Barrientos added, “On top of appraisals, some buyers are struggling with lending requirements. They have 10% down payment, but suddenly the bank requires 20%. Now they have to wait.”

 

Georgia Gov. Brian Kemp’s announcement that some businesses closed because of COVID-19 would be allowed to begin reopening on Friday, April 24, with appropriate precautions, was welcomed as a timely first step for those financially impacted by the pause in Georgia’s economy. The broader public health state of emergency Kemp declared statewide through May 13 will continue until June 12, he announced on Thursday (April 30).

As expected, some of the finer points of his order are being overlooked. This is not a return to business-as-usual for Georgia firms. There are 20 requirements they must meet, including screening workers’ health, continuing telecommuting and staggering shifts when possible, and keeping 6 feet between worksites.

In legislative terms, this is a “may” not a “shall”: The businesses on this list are not required to reopen, and indeed some have already said they don’t think they can do so safely. That is their prerogative. But at least it’s theirs now.

In Iowa, Gov. Kim Reynolds began talks with state government department heads that focused on how and when to reopen Iowa’s economy. Just as Kemp is attempting to do, Reynolds must balance legitimate economic concerns with equally legitimate health and safety concerns. This means businesses should not be evaluated solely by how essential they are, but also by their ability to protect the health of their employees and customers.

Kemp always insisted the strictest measures on Georgians had to last only as long as necessary and no longer. The data indicate that Georgia has flattened the curve, meaning new cases are developing at a slow enough pace its healthcare providers and resources can handle them. The vast majority of residents in the state are unable to telecommute, and certainly not for weeks and months on end. His order frees Georgians to reclaim their livelihoods and resume putting food on the table by returning to their jobs

Will there be new cases as restrictions are lifted? Unfortunately, there will be. But that would have been true whenever these restrictions are lifted, unless we choose to wait for the entire population to be vaccinated. Estimates put the development, testing and deployment of a vaccine for the coronavirus at more than one year away.

So, when is the right time to reopen Iowa? It is too early to tell in the Hawkeye State. Unfortunately, spikes of the virus are still occurring in a handful of communities. Reopening too soon could render the last five weeks in vain.

Iowans need to remain patient until the curve is in fact flattened. Meanwhile, leaders will have to answer difficult questions, such as how unemployment benefits will be handled for high-risk employees fearful of returning to work. Once the spread has slowed and medical providers are confident they are prepared to handle what comes next though, Iowa must be ready to move on. Studying the approach Georgia is taking will be helpful.

As economies restart around the country, not everybody will rush out; most will use good judgment and begin by returning to patronize the businesses they trust. Americans are a self-governing people. That means exercising some self-restraint and demonstrating what we have learned about social distancing over the past month-plus.

Personal responsibility remains paramount. We are all still required to be smart, vigilant and considerate toward others. We still have to be sensible as we move ahead together. This is an opportunity for Georgians, and eventually Iowans, to show they are up to that challenge.

A version of this commentary appeared in The Des Moines Register on April 26, 2020.

Elemental Spirits Co., located at the prominent corner of N. Highland and North avenues, in Poncey-Highland, opened just two weeks before coronavirus closed the city. Lucky for owner Cory Atkinson, liquor stores were deemed “essential” businesses and allowed to stay open, which meant there was an opportunity to connect with the neighborhood going into lockdown mode for the foreseeable future.

“It’s been very interesting,” Atkinson said ruefully. “We had some good momentum going those first couple of weeks, then things just got crazy.”

Atkinson said his first priority was keeping both his employees and customers safe, so he instituted social distancing at the store by allowing only a handful of customers in at a time to pick up the orders they’d made via email or Instagram message.

Thanks to social media and foot traffic, Elemental Spirits is continuing to see steady growth. Atkinson said the next challenge would be readjusting once normalcy returns, and what the “new normal” will look like for small businesses.

Atkinson, who had a successful career in e-commerce, dreamed of opening Elemental Spirts for more than a year. During his daily walks with wife, Malory, they would pass the vacant storefront that was once part of Manuel’s Tavern and question why it had stood empty for so long.

“I tried to get a meeting with Selig [the owners of the building], but they wouldn’t take my calls,” Atkinson said. “My property broker looked at a number of spaces, but the Manuel’s Tavern space was still in the back of my mind. I challenged my brokers to get a foot in the door with Selig. They did and here we are.”

The 2,000 square foot shop is definitely not your average package or liquor store, most of which Atkinson said he finds depressing. “I personally hated the liquor store experience, but I had been to great ones in New York, San Francisco, Paris, and Tokyo and saw the possibilities of opening a boutique bottle shop,” he said. “I wanted to create a different shopping experience entirely – more curated like a high-end wine shop with browsable wide aisles, light and bright. When quarantine ends, we want customers to come in and explore, talk to the staff, and discover new things.”

Elemental offers small-batch craft spirits, natural and low-intervention wines, local craft beer, vintage barware, and more Atkinson said he’s been in conversation with Manuel’s Tavern and other local restaurants about holding tastings and educational events. He eventually wants to offer “tasting tours” to vineyards and distilleries both here and abroad.

In the meantime, Atkinson said he’s looking forward to hosting a delayed grand opening for Elemental Sprits and to have customers back in the shop browsing and talking with the staff.

“We’re getting great feedback and have plenty of repeat business now, with customers wanting us to curate a six pack of wine, recommend a great tequila, and suggest wine pairings,” Atkinson said. “We just can’t to get our doors open and have those customers in the shop.”

More information about Elemental Sprits can be found at elementalspirits.co or on Instagram @elementalspirits.co.

The post That’s The Spirit! Poncey-Highland’s Elemental Spirits Co. opened just weeks before COVID-19 outbreak appeared first on Atlanta INtown Paper.

As the owner of a “non-essential” small business, it can be hard not to feel anxious, unsettled, bored and well, non-essential. It’s said I’m a hero just for staying home although I can’t imagine Marvel Comics drawing up a guy in sweatpants and Birkenstocks and calling him Quarantine Man. Each day I hunker down in my assigned corner of the house and brainstorm ways to get through this, both financially and mentally. But the occasional pandemic humor can give me a lift. Like when Margo asked her grandma if she was around for the Spanish Flu in 1918 and then followed up with “are you sure??”

A lot is being asked of both the Wi-Fi and the wife at home so if they occasionally crash, I try to be understanding. The Wi-Fi is straining to keep all the Google Classroom apps, Zoom conferences and Tik-Tok videos humming along while the wife strains to work a full slate, help with schoolwork and make dinners. We’ve been experimenting with grocery delivery. Ordered a clove of garlic and got a pound so if the virus doesn’t get me the heartburn might.

I do help where I can, cleaning mostly. I’m unquestionably the best broom handler in the family. But I’m not going to lie, the household mojo can go haywire when your 4^th grader is learning about the Golden Ratio and the Fibonacci sequence, at home, on a Chromebook, with spotty Wi-Fi and an English Major dad.

Admirably, Kristen has been keeping up with her online workouts each morning. Elliott has even joined her for some of them. I almost feel bad but I may have to start charging them for basement gym memberships. These bills aren’t going to pay themselves, ya know? To clear my head and get some exercise of my own I’ve been taking long, hard-thinking walks. Whenever I see someone coming towards me, I veer enough to leave a gracious buffer between us because these days everyone is both a victim and a suspect. Since we’re all in this together I smile and offer a small acknowledgement as if to say it’s not you, it’s me. Unless, of course, it’s you.

Lockdowns call for movies so one night I was lobbying for the family to watch “Groundhog Day” with Bill Murray. Margo shot it down after I described it, thankfully. Why I wanted to watch a movie about a man who is losing his mind because every day is EXACTLY THE SAME is beyond me. Pandemics have a way of messing up your psyche. Heck, I cringe a little just watching “Treehouse Masters” because Pete keeps hugging everyone.

Elliott and I have passed countless hours playing basketball in the driveway. Otherwise he’s watching a Youtuber goofball named Flight who offers commentary on the NBA and NBA2k video game. His catchphrases include “Check out Curry, man. So Inspirational.” And his shtick is he will be doing the same moves “by June.” Elliott finds these straight-faced proclamations hysterical because Flight is comically bad at basketball. I’ve been shown so many Flight videos that I feel like he is sheltering in place with us. At least we don’t have to feed him, I guess? Marks on our kitchen wall show that Elliott has grown a full inch since the quarantine began so his goal is to dunk on the 9ft hoop setting by June, naturally.

Margo and I were on the front end of the sidewalk chalk art revolution and she has become a prolific painter. She has taken me under her wing as an apprentice of sorts. I get to sand down objects, lay out tarps, tape edges, hang canvasses and she almost always saves all the cleaning up for me. At night we work on jigsaw puzzles or giggle watching “Friends” reruns. It is far from the truly heroic efforts of many but perhaps in some ways, I am still essential after all.

Tim Sullivan grew up in a large family in the Northeast and now lives with his small family in Oakhurst. He can be reached at tim@sullivanfinerugs.com.

 

 

The post TimmyDaddy: Notes from a pandemic appeared first on Atlanta INtown Paper.

The coronavirus pandemic is now a global phenomenon with a third of the world’s population now living under some sort of lockdown or quarantine. People can no longer work, meet,…

A foreclosure can be a nerve-wracking prospect for investors. Apart from potentially losing your investment property, it would also have a significant negative impact on your credit score. Having missed…

One of the things that makes real estate very appealing is the diversity of investments. Just take a look at all of the different real estate investment strategies. That being…

If you have a rental property and you want to make it more desirable to tenants, you have to do a few tweaks on the interior and exterior of the…

Stock Prices 2020 | What Drives Stock Prices Up?

Daily Stock Prices Stock market volatility is by no means over, as we enter the end of the imposed economic shutdown. This week’s corporate earnings reports weren’t as bad as many anticipated. And don’t feel bad if your portfolio sunk recently. Warren Buffet also took a bath and he has all the stock loss evasion…

The Georgia Department of Public Health reports that the number of confirmed coronavirus infections in the state has increased to 28,332 on Saturday, while the death toll stands at 1,174.

U.S. Navy’s Blue Angels and the U.S. Air Force’s Thunderbirds performed a Downtown fly over this afternoon to honor COVID-19 frontline healthcare workers. The aerial display brought city residents to their balconies, rooftops, and to Piedmont Park, where large crowds gathered for the event. Social media was abuzz with concerns about the lack of social distancing and masks at the park and on the Atlanta BeltLine trails, while #PIedmontPark was trending on Twitter after videos were posted of large, unmasked crowds in the park and on the sidewalks.

The Atlanta Police Department currently has five officers and one civilian employee out sick with COVID-19, according to a weekly APD update. Eight other officers who previously tested positive for the disease recovered and are back at work, according to the report. APD said that property crime and violent crime continue to trend downward during the pandemic. However, domestic violence reports have increased. For March and April, APD received 334 domestic violence cases, up from 227 during the same months in 2019.

The post Coronavirus Update – May 2: Cases top 28k; Thunderbirds, Blue Angels fly over; APD reports six with virus appeared first on Atlanta INtown Paper.