Sugarloaf Country Club Real Estate Report 2009

Provided by Mary Floyd, Prudential Georgia Realty

404.312.3837, mfloyd@prudentialgeorgia.com

This report is a summary of the real estate market for Sugarloaf Country Club in 2009.  Monthly reports for 2010 may be viewed at www.MaryFloyd.com – the leading real estate website for Sugarloaf Country Club.  Please contact me if you have questions or need assistance.  Please understand that certain additional details and insight are reserved for my clients.  As a 12-year resident and real estate specialist for Sugarloaf Country Club, I know the local real estate market and the changing market trends.     

In this report, I will provide an overview of the properties sold and insight about market values, market trends and considerations for property owners of Sugarloaf Country Club.  The facts are the facts – but there are many things that sellers in our community can do to have positive results in 2010.           

2009 was an unusual year for real estate in Sugarloaf Country Club.  The chart below is a summary of the 51 properties that sold.  Appendix 1 (last page) provides additional details.  As you can see, the majority of sales were short sales and bank-owned properties.  A short sale is a property where the bank agrees to accept less than the loan amount. I have also provided a summary of dollars per square foot.  Please be advised that the square footage numbers were provided by the tax records and may not be 100% accurate.  The numbers will also vary for homes with different attributes such as a pool, golf course view and other attributes.  However, this summary provides an interesting perspective and may be helpful in seeing how potential buyers might evaluate the different types of properties.  Square footage is now available in our multiple listing services plus other real estate websites like Zillow, Cyberhomes and more.     

Table 1 – Property Type Summary 

Is Sugarloaf Country Club unique with our bank-owned properties and short sales?  The answer is NO.  All luxury communities are facing increased numbers of short sales and foreclosures.  The River Club, St. Marlo, St. Ives and Country Club of the South have their fair share as well.  The chart below shows the number of pre-foreclosures and foreclosures in excess of $500,000 for 2009 in metro Atlanta.  Pre-foreclosures are properties that have been given a “notice of default” and scheduled for auction.  The “foreclosures” are properties that were actually foreclosed by the bank.  In 2009, there were over 600 luxury pre-foreclosures per month (above $500,000) across metro Atlanta.  Many of these pre-foreclosures are becoming short sales.  Short sales are generally less expensive for the banks to process (around 18% of the typical loan amount) versus foreclosures (around 30% of the typical loan amount). 

Table 2 – Metro Atlanta Luxury Pre-Foreclosure and Foreclosure Trends (>$500K)

Yes, Sugarloaf home values have been significantly impacted by short sales and foreclosures.  Table 3 shows the average gain or loss for sellers who previously purchased their homes and sold in 2009.  As you can see, most sellers who purchased homes after 2000 lost money when selling in 2009.  Sam Walton was once asked by a reporter about how he felt about losing so much money in the stock market that day?  Sam replied, “How could I have lost money today?  I did not sell any stock.”  Though Sugarloaf property values have been impacted in the last few years, they will recover in time.  If you do not need to sell, your value can recover over time.  Just keep your property in good condition and enjoy it.  We live in a wonderful community with a lifestyle that would be a dream for most Americans.  It will take a few years to work through our inventory of short sales and foreclosures.  Then, we should see a more favorable market for sellers.       

Each month, I track the new pre-foreclosures and foreclosures for Sugarloaf.  If you are interested, please contact me for the details.  I do not publish these reports since there are real people involved and I want to respect their privacy.  As you can imagine, there are often heart-wrenching stories behind many of these situations.  If you or someone you know needs help, please contact me.  I am a certified short sales specialist and can help you understand the fast-changing short sale rules and latest options for handling your situation.  And please do not be embarrassed!  Just look at these numbers and you can see that thousands of Atlanta homeowners are facing the same challenges.         

The facts are that in 2009 Sugarloaf sellers received an average of 76% of the price they paid for their properties.  Many agents track list-to-sale ratios, days on market and months of inventory.  I provide that as well.  However, list prices can be all over the place.  Some agents manipulate these numbers by relisting properties to reset the “list to sell price ratio” or restart the clock for “days on market”.  I believe one of the best metrics is the “prior sales price to current sales price ratio” which clearly shows if property owners are making money or not.    

Please Contact Me For Additional Details   

If you are interested in selling your property in 2010, there are some things you should consider.  The market for 2010 requires a different approach.  My Advanced Property Marketing System is specifically designed for the current market conditions.  The proof is in the results.  In 2009, my sellers achieved the highest average returns (95%) versus sellers represented by other agents in Sugarloaf (average of 76%).  I also provide additional details and insight for my clients.     

If you have additional questions, I would be happy to discuss this report in more detail.  Check out the 2010 monthly reports for Sugarloaf Country Club.        

 Information deemed reliable but not warranted.  If your property is currently listed with another agent, this is not intended as a solicitation.  Information provided courtesy of FMLS, Georgia MLS, Trendgraphix, SmartNumbers, Realist, Equity Depot, RealtyTrac, Data Intelligence Corporation and other sources.

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