New-Home Sales Tumble to 7-Year Low

New-homes sales tumbled in August to the lowest level in seven years, a stark sign that the credit crunch is aggravating an already painful housing slump. Sales of new homes dropped by 8.3 percent in August from July, the Commerce Department reported Thursday, driving down sales to a seasonally adjusted annual rate of 795,000 units. That was the lowest level since June 2000, when sales clocked in at a pace of 793,000.

The median sales price in August fell by 7.5 percent from a year earlier to $225,700. That was the biggest drop in percentage terms in nearly 37 years. The median price is the middle point at which half sell for more and half for less. The average sales price dropped by 8 percent in August from a year earlier to $292,000. That was the biggest decline in 17 years.

Sales fell in the South and the West in August compared with July. Sales, however, rose in the Northeast and Midwest.

By JEANNINE AVERSA, AP Economics Writer, September 27, 2007

Metro Atlanta attorney admits to role in $20M mortgage fraud ring

A Roswell, Ga., real estate attorney on Thursday pleaded guilty to conspiracy to commit bank, mail and wire fraud, bank loan application fraud, money laundering and wire fraud in a $20 million mortgage fraud scheme.

James F. Stovall III, 56, participated in scheme involving property flips orchestrated by one of his clients, "Reti Relocation Services Inc." From April 2000 to June 2001, Reti flipped some 50 properties in metro Atlanta in subdivisions such as Brookstone in Acworth; Windward and Seven Oaks in Alpharetta; and Towne Lake in Woodstock.

The fraudulent scheme involved the submission of false qualifying information and documents through the mails and the wire transfer of scheme proceeds. In the overall scheme, financial institutions and lenders were fraudulently induced to make loans totaling more than $20 million.
Stovall pleaded guilty to one count of conspiracy to commit bank, mail, and wire fraud, bank loan application fraud, and money laundering, and one count of wire fraud. He faces a maximum sentence of five years in prison and a fine of up to $250,000 on each count.

Atlanta Business Chronicle, September 21, 2007

**Be careful - mortgage fraud is very prevalent in metro Atlanta and is a SERIOUS crime. If you suspect something is fraudulent in your real estate transaction you must report it!

Money Magazine's 2007 Top Places to Live

Two metro Atlanta cities made Money Magazine's "Best Places To Live" this year...

#10 - Suwanee, GA
Population: 11,200
Median home price (2006): $293,868
Average property taxes (2006):$2,311
Pros: Green space, affordable housing
Cons: Traffic, I-85 interchange

Six years ago the residents of Suwanee voted to more than double their property taxes. The payoff: a boost from 28 acres of green space to more than 270, and a feeling of investment in their hometown. That's abundantly clear at the newly developed Town Center. Built on a heavily trafficked downtown corner, it meshes park space, retail and office properties and housing into one multiuse plaza - and residents have embraced it in a big way. Housing is reasonable, and schools are topnotch.Though the town has planned recent development deliberately, the area around Interstate 85, which runs through Suwanee's southeastern corner, lacks for aesthetics but not for congestion. Still, the rest of the city has a lot to offer.

#64 - Peachtree City, GA
Population: 36,700
Median home price (2006): $284,241
Average property taxes (2006): $2,688

Overnight real estate rates lower

Long-term mortgage interest rates dropped again Wednesday. The 30-year fixed-rate average fell to 5.95 percent, and the 15-year fixed rate sank to 5.61 percent. The 1-year adjustable, however, gained to 5.72 percent. Mortgage rate figures are according to Bankrate.com, which publishes nightly averages based on its survey of 4,000 banks in 50 states. Points on these mortgages range from zero to 3.5.

At 42 stories, this will be no 'mini' Mansion

The Mansion on Peachtree is a 42-story luxury hotel and condo project near Lenox Square mall. It will have 127 hotel rooms and up to 42 condos. Condo prices will start at about $2.6 million for nearly 3,000 square feet of space on a lower floor. But you'll need $12 million to buy a 10,500-square-foot penthouse. The developers are City Centre Properties and John Williams, who founded Post Properties, but left the company five years ago.

Developers say about half the condominiums already have been sold for the Mansion on Peachtree, which will tower over the Lenox Square mall end of Buckhead.

The Mansion will further strengthen Buckhead's position as home to the region's highest concentration of influence, high-end retail, tablecloth restaurants and entertainment. The building will face the revitalized streetscape of Peachtree Road once the road's renovation project moves north of the Buckhead MARTA station. The Mansion is within walking distance of the St. Regis Hotel and condominiums, another mixed-use building with multi-million dollar condos, and the planned $1.2 billion Buckhead Avenue, which is to become a Rodeo Drive type of district built atop the old Buckhead Village nightclub district.

The Mansion is scheduled to open next spring, and developers say the condos are about 50 percent sold.

AJC, 9/17/07

August foreclosure filings up 36% nationwide

Nationwide foreclosure filings jumped 36 percent from July to August, data provider RealtyTrac reported today, led by sharp increases in Sunbelt states where inflated home prices rather than economic problems like job losses are thought to be the driving factor.

Georgia averaged one foreclosure filing for every 271 households. This is the 4th highest rate in the nation.

"The jump in foreclosure filings this month might be the beginning of the next wave of increased foreclosure activity, as a large number of subprime adjustable-rate loans are beginning to reset now," James Saccacio, chief executive officer of RealtyTrac, said in a statement accompanying the release of the report.

Loews Hotels will open Midtown hotel in 2010

Loews Hotels will open its first luxury hotel in Atlanta at the 12th and Midtown mixed-use development near Colony Square. New York-based Loews said its Loews Atlanta Hotel at 1075 Peachtree Street will have 414 guest rooms, fitness center and spa services, a signature restaurant, lobby bar and more than 24,000 square feet of meeting space. The hotel will open in April 2010.

Loews said its Atlanta hotel will reflect a contemporary Southern sensibility, capturing the region's culture through artwork, artifacts and music by emerging and established Southern artists and composers. Dining options at the hotel will feature sophisticated Southern fusion menus.

The hotel will be the focal point of a $500 million contemporary urban mixed-use development with 750,000 square feet of class A office space, more than 60,000 square feet of flagship retail space and 60 luxury residences.

Atlanta Business Chronicle - September 14, 2007

The Avenue Ridgewalk Planned

Cousins Properties Inc. wants to put a The Avenue open-air retail development in Woodstock, Ga. According to a filing with the state's developments of regional impact database, Cousins (NYSE: CUZ) has requested a permit for the project -- The Avenue Ridgewalk. It describes the project as a 307,000-square-foot commercial development on about 39 acres at the southeast quadrant of Woodstock Avenue and Ridgewalk Pkwy. The development will also include seven out lots on about 12 acres. Completion is projected for fall 2009.

The Avenue Ridgewalk would be Cousins' sixth metro Atlanta Avenue development and the 10th the company has developed since 1998. In August, Cousins reported phase one of its The Avenue Forsyth project in Forsyth County, Ga., was more than half leased. The Avenue Forsyth is a 527,000-square-foot mixed-use development at the intersection of Georgia 400 and Georgia 141 (Peachtree Parkway). Construction of the first phase of the project, which will include 64,000 square feet of office space, started in January. Completion is expected in spring 2008.

Atlanta Business Chronicle - September 13, 2007

Residence Inn Midtown sold

Concord Hospitality Enterprises has sold a portfolio of 19 hotels, including one in Atlanta, to Moody National Cos. for $440 million. The portfolio includes the 78-room Residence Inn Midtown in Atlanta. Raleigh-Durham, N.C.-based Concord Hospitality also said it plans to build $500 million in new hotels as part of its goal to double its portfolio size to 100 owned and managed hotels by 2010.

Atlanta Business Chronicle September 13, 2007

Three developers have asked for rezoning for three mixed-use developments in Fulton County, including one in Buckhead.

Gables Residential Trust is planning a mixed-use project at Piedmont Road and Lindbergh Circle on land owned by Northmoor LLC and Lions Gables Realty Ltd. Partnership with multifamily residential units, rental shops, a grocery store and a fitness center. The plans call for a 9,600 square feet of space for the grocery and 17,700 square feet of retail space. If rezoned, the project will be finished by 2011.

Developer Crosstown Realty wants to build a mixed-use project with 395 residential units and 26,700 square feet of commercial space at 1035 to 1039 Grant St. The property is owned by Grant-Hill LLC. Pending rezoning, the project will be completed in September 2009.

Developer David Green has asked for rezoning for a mixed-use project called "Morningside Redevelopment" at 1845 Piedmont Road. He proposes building 360 apartments and 50,000 square feet of retail space on a parcel owned by Stanley Srochi. If rezoned, the project is slated for completion in 2010.

All three projects are under review as state developments of regional impact.

Atlanta Business Chronicle September 13, 2007