After two months of surging sales, home resales fell by 100,000 units last month to 4.4 million homes nationwide.

October’s Existing Home Sales tally is slightly below the report’s 6-month rolling average, according to the National Association of REALTORS® — a time span which includes this year’s $8,000 federal home buyer tax credit’s tail end.

Housing statistics have been wildly inconsistent during that period.

For the future of Blue Ridge and Blairsville housing markets, though, it’s encouraging that first-time and investment property buyers were both outnumbered by “move-up” buyers; buyers that have sold their respective homes in favor of larger ones. It’s the move-up buyers that power housing.

In October, buyer profiles broke down as follows:

• First-time buyers : 32 percent of all buyers, unchanged from September
• Repeat home buyers : 49 percent of all buyers, down one tick from September
• Investors : 19 percent of all buyers, up one tick from September

As a point of comparison, first-timers represented 50 percent of all purchases in October 2009.

For North Georgia Mountain home buyers, October’s Existing Home Sales report is neither weak nor strong. It signals that, with mortgage rates low and home affordability high, housing may be reaching some form of balance. Because — although home sales are down — home supplies are down, too.

We can infer that buyers outnumber sellers, but probably not by much. In most areas, negotiation leverage is still up for grabs.

At the current pace of sales, the complete housing stock would be depleted in 10.6 months.

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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 Ellijay, Blue Ridge and Blairsville, GA. 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 right here in the North Georgia Mountains.

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.

More than 60 percent of U.S. homes are “over-assessed”, says an industry trade group. Homeowners in Blue Ridge, Blairsville, Ellijay and Hiawassee pay more in property taxes than they otherwise should have to.  You might be one of them.

Have you considered fighting your real estate tax bill?

In this 4-minute piece from The Today Show, you’ll learn:

• When to file your tax bill dispute for the best chances of winning
• How to pull your “property card” and check for tax bill-raising errors
• What to do if the taxing authority turns down your request

Most importantly, you’ll learn that don’t need to hire an attorney to fight your tax bill.  You just need to be prepared.  Do your research and make your case. It’s estimated that nearly half of all contesting homeowners are successful.

Legal Advice from J. Byron Wyndham and Associates 

I am often asked about the difference between buying property and living only in the mountains, and owning mountain property but living in a metropolitan area. Aside from the fresh air, bubbling streams, and beautiful mountain views, there are some other differences that people in the mountains take for granted, which visitors or part-time owners may not notice.

We have recently been enduring a terrible drought in Georgia. Virtually the whole state is under a watering ban that includes watering for yards, for washing cars, and for other personal purposes.

 However, the ban does not apply to most of the mountain area of north Georgia. Why??

Most visitors are unaware that residents of the mountain areas in Georgia obtain their water from wells. We rely on the water table to supply us with water. Even though there may not be a government-issued watering ban, in times of drought wells can also be affected.

People moving to this area often just turn on the spigot, see that water comes out, and then they think no more about it. But when you buy a house or cabin in this area, it becomes apparent that water is to be handled differently from areas that have municipal or county sources for water. Wells are often shared.

 When you buy real estate in the mountains, you need to ask about the water delivery method for the house or the lot.

You may purchase a lot that has its own well, which means that the owner does not have to pay for water but does have to pay for repairs in the well if the pump or water system fails. Many developments have a shared well system. The well system is often part of the Covenants for the development. As part of the Homeowners Association fees, the Community supplies the water for an annual fee to the home owner (or lot owner). If the well fails, the Homeowners Association moves to deal with it.

 If there is a catastrophe, there may be a special assessment but at least you will be sharing, and defraying, the costs with others.

There may also be a shared well agreement with one or more neighbors. A “water agreement” is signed so that your neighbor would supply you water from his/her well in return for you paying a monthly water fee to the well owner. If a problem occurs, the type of problem and where it is located are the issues that determine the significance of the problem and who is responsible to pay for the repairs. The owner of the well is usually responsible for the pumping process and pumping system, but each member of the water agreement is responsible for the pipes once the pipes leave the well and pumping station.

When you buy land or developed property in the North Georgia Mountains, find out about the water system.

It is better to bother your real estate agent or your seller with lots of questions before you buy than to discover a problem after you’ve moved in. You need to know the water system, and you need to know the total cost!

Byron Wyndham