Hall County
Real Estate Newsletter
December 15, 2020 | Volume 12. Issue 22
[Sales Data: Nov 16 to 30, 2020]
Real Estate Spotlight
1.  Over the two week period in Hall County, from November 16 to 30, 2020, Realtors have participated in selling 162 single-family homes with an average sales price of $377,631 and a median sales price of $308,754.  
2.  Lake Lanier Water Level: 1,070.42 as of Monday, December 14, 2020. Lake Lanier is 0.58 Feet Below its full pool level.
3. Incredible Growth in Hall County’s Real Estate Economy!
Thru 11 Months in 2020 vs 2019:
17% More HOME SALES
16% Higher AVG SALES PRICE
14% Higher MEDIAN SALES PRICE
EVEN WHEN VALUES ARE SURGING,
ARE HOMES AFFORDABLE?


Housing inventory is at an all-time low. Realtor.com just reported that there are 39% fewer homes for sale today than there were last year. At the same time, buyer demand remains strong. In a recent newsletter, research analyst Ivy Zelman explained:
“Although the headwind of severe supply constraints in most markets has contributed to slight moderation in seasonally-adjusted and year-over-year new pending contract growth for two consecutive months (albeit still growing strongly), the underlying strength of buyer demand, particularly for this time of year, remains apparent.”
Whenever there’s a shortage in the supply of an item that’s in high demand, the price of that item increases. That’s exactly what’s happening in the real estate market right now. As a result, home values are surging.
This is great news if you’re planning to sell your house. On the other hand, as either a first-time or repeat buyer, this may instead seem like troubling news. Purchasers, however, should realize that the price of a house is not as important as the monthly cost. Here’s how it breaks down. There are several factors that influence the cost of a home. Two of the major ones are:
  1. The price of the home
  2. The mortgage rate at which a buyer can borrow the funds necessary to purchase the home
How do these factors impact affordability?
The National Association of Realtors (NAR) produces a Housing Affordability Index which takes these factors into account and determines an overall affordability score for housing. According to NAR, the index:
“…measures whether or not a typical family earns enough income to qualify for a mortgage loan on a typical home at the national and regional levels based on the most recent price and income data.”
Their methodology states:
“To interpret the indices, a value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home. An index above 100 signifies that family earning the median income has more than enough income to qualify for a mortgage loan on a median-priced home, assuming a 20 percent down payment.”
So, the higher the index, the more affordable it is to purchase a home. Here’s a graph of the index going back to 1990:
The blue bar above represents today’s affordability. We can see that homes are more affordable now than they were from:
  • 1990 to 2008
  • 2017 to 2018
Buying a home today is just a little less affordable than it was last year, but still very affordable compared to historical housing market trends. Note: During the housing crash from 2009 to 2015, distressed properties (foreclosures and short sales) dominated the market. Those properties were sold at large discounts not seen before in the housing market.
Why are homes still affordable today?
The number one factor impacting today’s homebuying affordability is record-low mortgage rates. There’s no doubt that prices are on the rise. However, mortgage rates have fallen dramatically. Last week, Freddie Mac announced that the average interest rate for a 30-year fixed-rate mortgage was 2.72%. Last year at this time, the average rate was 3.68%.
If you’re considering purchasing your first home or moving up to the one you’ve always hoped for, it’s important to understand how affordability plays into the overall cost of your home. With that in mind, buying while mortgage rates are as low as they are now may save you quite a bit of money over the life of your home loan.
Bottom Line
  • At this point, home purchase affordability is still in a historically good place. However, we need to watch price increases going forward. As Mark Fleming, Chief Economist at First American, noted in a recent post:
“Faster nominal house price appreciation can erode, or even eliminate, the boost in affordability from lower mortgage rates, especially if household income growth doesn’t keep up.”
  • “Borrowing $250,000 for a home years ago at 8% interest would have been the same principal and interest payment as borrowing $435,000 at 3% interest today” Brad Abernathy
SOURCES: KCMBlog, NAR, FreddieMac, First American, Abernathy Cochran Group
HOME SALES in Hall County
November 16 to 30 2020 Home Sales in Your Neighborhood


Featured Listing:


1574 Riverside Drive $635,000
Fantastic home in sought after Downtown Gainesville. Lots of room for family to spread out. Owner’s suite on main. Second bedroom suite on the main. Large porches and decks for entertaining! Second level has huge recreation room and family room. Terrace level with internal and external entrance is perfect for Teen Suite, In-Law Suite, or to be used for AirBNB Rentals. Includes Bedroom, Living Room, Bath Room, & Kitchen. Current Owner received $15,000 in rental income in 2020. Walkable to downtown, to local pool, Lake Lanier, schools, restaurants and ball games.
The Faces of Hall County Profile Davon Ivey
Meet Davon Ivey! Davon is the Head Barber at Randolph’s Barber Shop and was born and raised in Gainesville. He went to East Hall High School and graduated in 1993. His wife’s name is Monica, and he has four children. He has two older daughters, a son who plays football at Cherokee Bluff, and his youngest daughter is 11.
We want to thank Davon for spending time with us recently and telling us more about his life and love of Hall County. Here is a sneak peak of his interview:
Question: What inspired you or led you to your current career?
Answer: “It was just something that I picked up when I was young, my sister gave me a pair of clippers, and I just started cutting hair from there. I started cutting everyone’s hair from school, and it was just a God-given talent.”
Q: What is your favorite restaurant in Hall County?
A: “I love a good steak, so I go to Longhorn’s a lot.”
Q: How long have you lived or worked in Hall County?
A: “I have lived here my whole life; I did a couple of years at Gainesville College, but I’ve been at the shop since I graduated, so I’ve been here since about 1995.”
Mortgage Rates are Unbelievable!


Need a MORTGAGE OFFICER, an ELECTRICIAN, a PLUMBER, an INSURANCE AGENT, an ATTORNEY, a PEST CONTROL COMPANY, a POOL COMPANY, a DENTIST, a DOG WALKER, someone that is a TSHIRT MAKER, a custom CANOE BUILDER, or a RECLAIMED WOOD TABLE MAKER? If you need a GREAT CONNECTION, please call or email us anytime. We would love the opportunity to help you make a great connection!
 
 
If we can ever help you or someone that you know in real estate, please give us a call. We are grateful for your referrals. We strive to give our clients and friends
real value in everything that we do. Thank you for your time and support!
Brad Abernathy  770-540-1548 | Regina Cochran  678-414-0646
CJ Greene 770-540-5879 |  Robert Bell 770-654-0507
Ricky Lewallen 770-654-7922 |  Jane Fleming 770-519-2333
Abernathy Cochran Group | The Norton Agency 
770-718-5255 or 770-536-1250
 
The Abernathy Cochran Group is the leader in Hall County sales volume in 2019 
and for the previous 9 years, too. 10 years in a row!
You get MORE with our collaboration.
We hope you CHOOSE us to sell or buy your real estate.
THANK YOU!