The Pending Home Sales Index moved higher in March as home sales were spurred by low mortgage rates and an expiring tax credit.

A “pending home” is a property that is under contract to sell, but not yet closed.

March marks the second straight month in which the Pending Home Sales Index improved after a series of weak showings this past winter.

March showed a 5 percent increase over the month, but the Pending Home Sales Index is still off its October 2009′s peak.  October 2009 is a comparable period to March 2010 in that it marked the 1-month deadline before the home buyer tax credit’s initial expiration date. The credit was later extended to April 2010, of course.

That said, March’s surge in sales is being felt on the street.

Home buyers in Marietta no doubt noticed the change in activity. Around the country, anecdotally, multiple offer situations were more common last month and “right-priced” homes tended to go under contract quickly.

The increase in March’s Pending Home Sales is diminishing the nation’s home supply which, in turn, should cause prices to rise in most markets — including Towne Lake.

Today’s buyers should consider making an offer sooner rather than later.  Looking at the data, it appears the best time to have found a “deal” on a home may have been in February.

For the first time this year, Fannie Mae announced significant updates to its mortgage underwriting guidelines.

The changes include newer, harsher ARM qualification standards, the elimination of a once-popular loan product, and tighter rules for interest only mortgages. 

Fannie Mae made its official announcement April 30, 2010.  The changes will roll out to home buyers and homeowners in Woodstock and everywhere else over the next 12 weeks.

The first guideline change is tied to ARMs of 5 years or less. 

Mortgage applicants must now qualify based on a mortgage rate 2% higher than their note rate.  For example, if your mortgage rate is 5 percent, for qualification purposes, your rate would be 7 percent.

The elevated qualification payment will disqualify borrowers whose debt-to-income levels are borderline.

The second change is Fannie Mae’s elimination of the standard 7-year balloon mortgage.  Balloon mortgages were popular early last decade.  Lately, few borrowers have chosen them, though.  Mostly because rates have been relative high as compared to a comparable 7-year ARM.

And, lastly, Fannie Mae is changing its interest only mortgages guidelines.

Effective June 19, 2010, Fannie Mae interest only mortgages must meet the following criteria:

1. The home must be a 1-unit property
2. The home must be a primary residence, or vacation home
3. The borrower’s FICO must be 720 or higher
4. The mortgage must be a purchase, or rate-and-term refinance. No “cash out” allowed.

Furthermore, borrowers using interest only mortgages must show two full years of mortgage payments “in the bank” at the time of closing.

Earlier this year, Fannie Mae-sister Freddie Mac announced that as of September 2010, it will stop offering interest only loans altogether.

Between Fannie Mae, Freddie Mac, the FHA, and other government-supported entities, the U.S. government now backs 96.5% of the U.S. mortgage market.  So long as mortgage default rates are high, expect approvals for all borrower types to continue to toughen.

According to CNNMoney.com…

“Life in Cherokee County is pretty peachy. Close proximity to Atlanta, good schools, low taxes and an abundance of green space has driven the influx of families from other parts of the state. ”

Woodstock Real Estate: Woodstock’s Favorite Indie Bookstore

“I have this thing,” declares Karen Schwettman, co-owner of the Foxtale Book Shoppe in downtown Woodstock. “I have trouble staying inside the lines.” It was the morning of the book shop’s second anniversary, and I had handed her my notebook, asking her to record for posterity the greatest triumph of the last two years in business

Tucked away on a country  road where a lot of people might never think to look, there’s a tiny place called Sugar Pike Junction where everyone from millionaire land owners to day-laborers convene at a common table. Also noted for its breakfast biscuits and “fancy chicken salad,” Sugar Pike is revered by locals for having some of the best burgers around.

Woodstock Real Estate: Umm…. Yummy Gelato

Woodstock’s own Scream Puffs and Pasticceria and Gelateria, voted best ice cream shop in the Atlanta-metro by cityvoter.com , is poised to host their first ever “Happy Gelato Party” this Saturday, July 18. Made with milk instead of cream, gelato is a richly decadent dessert that is actually less fattening than traditional American ice cream.

Canton Real Estate: Canton Gets “Spooky”

“By a show of hands,” asks the Canton Ghost Tour’s guide Leisa Wilkie, “how many people here believe in ghosts?” Of the small group gathered at dusk outside of the Canton Fire Department, a couple of arms go up in the air. “How many believe there’s no such thing?” she asks. A couple more hands are raised. And then comes her final inquiry: “How many of you are not sure?”

Atlanta Commercial Real Estate-Beware Of Build Out

Certain commercial leases allow a tenant to build out space and be reimbursed by the landlord for such buildout. In the current economic climate, however, a landlord may be having financial difficulty or default on its mortgage and be unable to reimburse the tenant for the buildout.

A peaceful sense of calm leans in to meet you as you step up onto that front porch of the Magnolia Thomas Restaurant. Maybe it comes from the evening breezes that are just starting to lessen the sweltering of another Georgia summer day and swaying those rocking chairs in invitation to sit down and stay a while.
‘Context Based’ Real Estate Search Engine Comes To The Atlanta Real Estate Market

In their own words…. “Estately was created with the belief that home buyers need context when they’re looking for a home. At Estately you can learn about the surrounding area, the nearby shops, the character of the neighborhood and the style, size and price of a property.”

The beer garden beckons this Saturday afternoon as the Right Wing Tavern in downtown Woodstock invites you to sample some of its impressive Southern brews. Three selections each from the Abita Beer Company, Atlanta Brewing Company, Sweetwater Brewing Company, and the Terrapin Beer Company will all be represented at the event, which will be held from 1-4 p.m.

Woodstock Real Estate: Your City Of Woodstock Tax Dollars At Work

This morning, on my way to a Cherokee Association of REALTORS board of directors meeting, I passed these guys watering a hanging basket plant and couldn’t stop myself from posting this tweet:

“Just drove past 3 guys watering 1 plant. Your city of Woodstock tax dollars at work!”

My twitter account auto-posts to my Facebook account, so the same message appeared in both locations. Well, after my meeting I get a call from one of our Maxsell agents.

Woodstock Real Estate: Home Grown Music And Veggies

An air of festive abundance emanated from Fowler Street this past Saturday as locals gathered to stock up on fresh greens, preserves, locally-produced specialty cooking oils, and hand-cut flowers. Before I could even see the Woodstock Farmers Market, I could hear it.

Atlanta Real Estate: Avoid This Cost When You Refinance

Intangible tax can be a significant cost on your closing statement for a real estate transaction. You may be able to avoid this cost when you refinance your mortgage with your existing lender.

The Woodstock Coffeehouse has long been a gathering place for Cherokee County locals, whether meeting for a weekly Bible study or rocking out at Monday’s open-mic night.  The coffee itself is remarkable, and their food is highly superior to the coffeehouse fare that you would get at a franchised chain.

Atlanta Real Estate: How To Safeguard Your 1031 Exchange Funds

Did you know that your 1031 funds held by a 1031 exchange agent can be at risk to general creditors should tht exchange agent become insolvent?

In order to safeguard you exhange funds and, hopefully, avoid such issues you should ensure that:

I’ve always been a devoted fan of hidden places that don’t appear on any map, places that only the locals know are there, and I believe I’ve discovered just that kind of place in Two Brothers Barbecue in Ball Ground, Georgia.

Another Reason To Buy Atlanta Real Estate: The Georgia Aquarium

My family just made one of the most brilliant investments toward the enjoyment of our summer off of the couch-season passes to the world’s largest aquarium right here at our Georgia fingertips.

Last week on Agent Genius, I joined a thorough discussion on why NAR ruled to shut down an IDX solution because a web server could not tell the difference between Google and a scraper site. This happened when Paula Henry’s “website was reported for allowing the MLS data on my website to be indexed, which led the Indianapolis Metropolitan Board of REALTORS®, (MIBOR), to issue a cease and desist letter to my broker for both our sites, or they would cut our feed”

Atlanta Commercial Real Estate-Take The Advantage In The Negotiation

After multiple negotiation sessions the deal has been struck and all that is left is to draft a contract. Who should draft the contract, isn’t it easier and cheaper to let the other party’s lawyer draft the contract and just have your attorney review the draft.

Atlanta Real Estate Brokers: The Importance Of Confidentiality And Non-Compete Agreements

Does this situation sound familiar? Your employee leaves your real estate company and turns in his laptop. Your IT experts check the computer and determine the former employee made a copy of sensitive company information.

Atlanta Real Estate Agents- Socal Networkings Real Value Is Relationship Building

Please be careful when considering Facebook Pages as a marekting tool. I know it’s tempting to tap Facebook’s immense community to grow your bsuiness, but be careful in how you approach it. Social networks should be for ‘network’ing and not your marketing plan.

Just a stone’s throw from both the bustling city streets of Atlanta and the quiet serenity of the North Georgia mountains , there exists a city that seamlessly merges the charms and character of both extremes.