What effect do REO sales and listings have in the subject's neighborhood?

 

Over the past year, 18.2% of the sales and 12.9% of the active listings were REO properties (See 1004MC Addendum).  The preponderance of REO properties caused owners of non-REO listings to remove them from the market or reduce the price to compete with the REO listings.  This is evidenced by the median sales price over the past 90 days to be the same for Non-REO and REO properties equaling $132,500.  The same can be said for the Non-REO and REO listings equaling approximately $150,000 for both over the last 90 days.  Sales values have had a low of $59,000, and a high of $265,000, and a predominate value of $144,900.  List prices have ranged between $54,900 and $280,000, and a predominate price of $150,000 (Source:  FMLS).

 

Have home values in the subject's specific neighborhood been declining from prior years? (Reference MLS or other statistics).

 

The subject's location and demographics in the area is not predicated on any large corporate manufacturing facility or business entity for its survival.  The current troublesome economic times is the only driving force affecting the current economic base and real estate values.

 

Describe typical buyers in the subject's neighborhood (Owner's, Investor's, etc).

 

No response

 

Is there an excess of available housing inventory in the subject's neighborhood?

 

There is an excess of available housing inventory in the subject's neighborhood.  There is 12.2 months supply currently available, which is up from 10 months supply six months ago (Source:  FNMA 1004MC).  Normal supply is about 5-6 months (Source:  Realtor Magazine).

 

Is there a high vacancy rate (over 10%) in the subject's neighborhood?

 

Is there an excess of "spec home" construction in the area?

 

Is the neighborhood in transition to land uses other than the subject's use?

 

The highest and best use of the subject site is its current use.  Because of zoning and the existing use, no alternate use is likely.

 

What is the unemployment rate for the area? Has it been increasing?

 

According to the United States Department of Labor (Bureau of Labor Statistics) website, the April 2009 unemployment rate for Atlanta, Sandy Springs, and Marietta Metropolitan Statistical Area is at 9.0%  The preliminary findings for May is at 9.6%.  In April of 2008 the unemployment rate was 5.0%.  In April of 2007 it was 4.0%.  This indicates a trend of an increasing percentage of unemployment in the area (See attachments).  

 

Modified:  8/15/2009