New Hamilton Mill Library Update

Residents of Hamilton Mill and the surrounding area have been looking forward to the opening of a new 20,000 sq-ft library at at the intersection of SR 124 and Pine Rd since it was announced a year ago. This $5 million project took an important step towards it's expected fall 2009 completion with the recent selection of Precision Planning, Inc. as the projects design and construction administrator. This project will be funded by Gwinnett's 1% Special Purpose Local Option Sales Tax (SPLOST). When finished, this new library will house 75,000 books along with areas for reading and quite study areas. This will continue to make the Hamilton Mill area one of the most desirable in Gwinnett County. To search for a home in Hamilton Mill visit www.hamilton-mill-homes.com

Dunwoody May Become a City

On Feb. 12 the Georgia Senate voted to allow the residents of Dunwoody to decide whether to incorporate the 40,000 residents of Dekalb County into their own city. Approval from the House and the Governor will be required before the voters will be able to make it official.

Gwinnett Homestead Exemption - Extension

The deadline to file for a homestead exemption for 2007 has been extended to March 1,2007. You must have owned and occupied the property by Jan 1,2007. Visit www.gwinnett-tax.com for more info.

2007 PMI Tax Deduction

Today the multi-faceted tax bill (H.R. 6111) that includes, among a host of other provisions, a very narrow new income tax deduction for some mortgage insurance (MI) premiums. It is not known when or if the IRS will provide additional guidance for this provision, as it will be in effect for only one year and will be available only to a limited number of homebuyers.

These are the key features of the provision:

• The deduction applies only to MI policies issued in 2007 for homes purchased in 2007.
• The deduction does not apply to premium payments for policies issued before 2007.
  
• The deduction applies to private MI, and to FHA, VA and Rural Housing premiums, as well. The MI premium amount will be treated as mortgage interest.
  
• The new deduction is available only to individuals or families with less than $100,000 adjusted gross income (AGI) on a joint or single tax return ($50,000 for married filing separately returns).
  
• The provision phases out by 10% for each $1000 of AGI over $100,000 ($50,000 for married filing separate). Thus, there is no MI deduction for individuals or families with AGI above $110,000 ($55,000 for married filing separately).
  
• Individuals who claim the deduction are not permitted to prepay premiums that are otherwise due after 2007. The provision expires for any premium payment that is paid or that accrues after December 31, 2007.
  
• If a mortgage (other than a VA, FHA or RHA mortgage) is prepaid during 2007, the unamortized premium balance on that mortgage is not deductible. (The unamortized premium balance is the amount of premium that would have been paid in a particular year if the payments had extended throughout that year.)
  
• The homeowner will receive a statement from either the lender or the MI provider stating the proper amount of the MI deduction. That information will also be provided to the IRS.
  
• The MI deduction will not be available if an existing mortgage is refinanced in 2007 for an amount larger than the amount being refinanced.

Housing Market Status - Toll Brothers CEO

Today on CNBC the CEO of national home builder Toll Brothers reported that some markets "seem to be dancing on the bottom to slightly above". While his comments were directed at national trends he also pointed to the current combination of lower interest rates, a strong stock market, and low unemployment typically pull housing out of a slowdown.

While the Atlanta market has not suffered from the drop in home prices that have been experienced in areas with intense speculative buying, we are definitely in a buyers market in the majority of areas and price points. For first time home buyers and investors the current combination if increased inventory and low interest rates make this an ideal time to buy. While interest rates are not expected to move up much in the next few months I believe that once any hint of an official housing bottom is recorded that the media will widely report this empowering many sellers with the belief that they don't need to forfeit as much to get a transaction done.

For current home owners selling and moving up to a higher price point the "buyers market" effects on their more expensive home should still leave them in a strong net position. As always my buyer and seller clients find themselves extremely will informed about current market values and trends enabling them to make prudent decisions in any market condition.

October Pending Home Sales Report

The pending home sales report for contracts signed in Oct. came in 13.2 percent lower than the same time last year and 1.7% lower than last month. Nov. and Dec. are expected to continue trending slightly lower as is expected during the holiday season. While the Atlanta market is not truely experiencing the dramatic downturn that the media is focused on, buyers can us this to their advantage and get contracts in place for closings in Jan. Once the media picks up on any sign of a positive turn sellers will believe they are back in the drivers seat and will not be as open to negotiation. Email me today to get started.

Gwinnett County I-85 SR-316 Interchange Project

One of the many projects that will lead to further expansion into Gwinnett is the expansion of the 85 and 316 Interchange that will add 13 bridges and 17 miles of HOV lanes. The GDOT reports that 80% of the work will be completed without lane closures. Anyone who has taken 316 to I-85 recently knows that with 316 reduced to one lane and traffic jams have become normal. I have found that taking Old Norcross to Breckinridge then getting on I-85 at Pleasant Hill when coming from Lawrenceville is the best route during peak hours. Once completed in Dec 31, 2008 this project will provide increase capacity allowing commuters to move further down 316 increasing housing demand and prices in their path.