These are some very powerful statistics about Atlanta. The source is the Atlanta Chamber of Commerce. This is without a doubt one of the best places nationally to be right now in terms of jobs, real estate stability, and quality of life. The Metro Atlanta economy has been strong, despite a slow national period:

* Atlanta is 9th largest MSA in the nation with 5,138,200 population

* The metro adds aprox. 150,000 people per year

* Population growth is largest in nation with 20% growth from 2000-2006

* Income growth continues to be higher than the national average

* Metro home to 43 colleges / universities and 9 technical colleges

* Nearly 140,000 businesses operate in the area

* Job growth of 60,000 jobs in 2006 (no # yet for 2007)

* #4 best place in the nation to invest in Real Estate (CNN Money 2007)

* #1 in the Nation as top City for Young Professionals (Forbes 2007)

* #1 in the Nation as Best Place to LIve for Retirees (AARP 2007)

* #1 Busiest Airport in Nation for 3rd year in a row

* #1 Best Cities for Married with Kids (Kiplinger 2007)

* #3rd Top Cities with Most Fortune 500 Headquarters (Fortune 2007)

* #1 Least Costly large City for Business in U.S. (KPMG 2006)

* #4 in Top Ten North American Cities of the Future (FDI 2007)

* #3rd America’s 50 Hottest Cities (Expansion Management 2006)

If you’re like most first-time home buyers, you’ve probably listened to friends’, family’s and coworkers’ advice, many of whom are encouraging you to buy a home. However, you may still wonder if buying a home is the right thing to do. Relax. Having reservations is normal. The more you know about why you should buy a home, the less scary the entire process will appear to you. Here are eight good reasons why you should buy a home.

Pride of Ownership

Pride of ownership is the number one reason why people yearn to own their home. It means you can paint the walls any color you desire, turn up the volume on your CD player, attach permanent fixtures and decorate your home according to your own taste. Home ownership gives you and your family a sense of stability and security. It’s making an investment in your future.

Appreciation

Although real estate moves in cycles, sometimes up, sometimes down, over the years, real estate has consistently appreciated. The Office of Federal Housing Enterprise Oversight tracks the movements of single-family home values across the country. Its House Price Index breaks down the changes by region and metropolitan area. Many people view their home investment as a hedge against inflation.

Mortgage Interest Deductions

Home ownership is a superb tax shelter and our tax rates favor homeowners. As long as your mortgage balance is smaller than the price of your home, mortgage interest is fully deductible on your tax return. Interest is the largest component of your mortgage payment.

Property Tax Deductions

IRS Publication 530 contains tax information for first-time homebuyers. Real estate property taxes paid for a first home and a vacation home are fully deductible for income tax purposes. In California, the passage of Proposition 13 in 1978 established the amount of assessed value after property changes hands and limited property tax increases to 2% per year or the rate of inflation, whichever is less.

Capital Gain Exclusion

As long as you have lived in your home for two of the past five years, you can exclude up to $250,000 for an individual or $500,000 for a married couple of profit from capital gains. You do not have to buy a replacement home or move up. There is no age restriction, and the “over-55″ rule does not apply. You can exclude the above thresholds from taxes every 24 months, which means you could sell every two years and pocket your profit–subject to limitation–free from taxation.

Preferential Tax Treatment

If you receive more profit than the allowable exclusion upon sale of your home, that profit will be considered a capital asset as long as you owned your home for more than one year. Capital assets receive preferential tax treatment.

Mortgage Reduction Builds Equity

Each month, part of your monthly payment is applied to the principal balance of your loan, which reduces your obligation. The way amortization works, the principal portion of your principal and interest payment increases slightly every month. It is lowest on your first payment and highest on your last payment. On average, each $100,000 of a mortgage will reduce in balance the first year by about $500 in principal, bringing that balance at the end of your first 12 months to $99,500.

Equity Loans

Consumers who carry credit card balances cannot deduct the interest paid, which can cost as much as 18% to 22%. Equity loan interest is often much less and it is deductible. For many home owners, it makes sense to pay off this kind of debt with a home equity loan. Consumers can borrow against a home’s equity for a variety of reasons such as home improvement, college, medical or starting a new business. Some state laws restrict home equity loans.

The Federal Reserve cut the federal funds rate by a quarter-percentage point recently to the lowest level in nearly two years. The move is designed to stimulate the economy and prevent a credit crunch from hurting consumer and business lending. Real estate sales should benefit from this.

Banks typically base their prime interest rate on this federal funds rate plus 3 percent, bringing the prime down to 7.25 percent. Lowering the prime rate tends to lower overall borrowing costs and encourage consumer and business spending.
 
Lowering the prime helps everyone making payments on loans that have an interest rate tied to prime, including many ARMs tied to the one year T-bill, most home equity loans, many business loans, and even some credit cards. In addition, by leaving more money in consumers’ wallets, the central bank hopes to encourage local banks to lend more money.

So how will Georgia real estate owners fare in 2008? There are favorable factors on the horizon for this new year:

> The cost of borrowing is still remarkably low, with 30-year fixed-rate loans for owner-occupants hovering around 6 percent, making this a great time to lock in a long-term loan. Interest rates tend to move up and down in cycles, and this home loan rate is very near the historical lows of 2003. And let’s face it —- the cost of borrowing is one of the prime drivers of real estate sales.

> Georgia has largely dodged the real estate meltdown that has hit Michigan, California, Florida and New Mexico. In fact, the economy here is strong and growing. We are adding jobs daily. And that’s another driver in real estate sales.
Our part of the United States has experienced much more stable growth and less of the speculative frenzy that drove up home prices wildly in some parts of the country. Remember that all real estate is local, and what’s happening in New Mexico is not relevant to what’s happening in your neighborhood. Many of those negative reports miss this point completely.

> Home prices in Georgia have not slipped, and, in fact, are still rising, though modestly. The average home in Georgia is worth more today than it was a year ago. As hard as it is to believe, your real estate is still a good investment and is likely to be worth more in the future.

> People still need a place to live, and they almost always prefer to live indoors.
With an additional 2 million to 3 million new residents projected to arrive in the Atlanta area over the next 20 years, we will need a lot more housing units than are currently available. And that new housing will cost more, not less. I am not suggesting a housing boom during 2008, but I am saying that demand is going to increase, and we will need new housing to meet that demand.

> This current market won’t last. The southeastern United States (even Florida) continues to attract new jobs and new residents. People are moving here to fill jobs, and other people are moving here for a sunny retirement.
In a recent study, the Realtors’ chief economist Lawrence Yun stated that he believes the worst part of the credit crunch has worked its way through the economy, and projected existing home sales in the United States to trend up in 2008.

He projects existing home sales to reach a total of 5.67 million for 2007, making last year the fifth highest on record. He looks for a total of 5.70 million homes sold in 2008, compared with the 6.48 million units sold in 2006. His prediction for new-home sales is slightly gloomier, stating that a recovery for this part of the market is unlikely before 2009. The new-home market traditionally makes up around 16 percent of all home sales annually.

These things tend to go in cycles, and when the current new-home inventory finally dries up, and the glut of foreclosures gets absorbed, demand will force prices higher in the years ahead. How high remains to be seen.

I am willing to go on record as predicting that 2008 will be seen as the year of the real estate turnaround in the Atlanta metro area. Home demand will be strongest in the detached single-family “under $300,000″ range, and sales will begin to pick up in spring, then improve through the remainder of the year

The sleek and sophisticated architecture that marks the aesthetically appealing cityscape of Chicago is now defining Atlanta’s hottest new condo residences in Atlanta’s hottest new neighborhood. Skyline at Lindbergh is a towering statement of brilliant silver-blue and glass, designed and built by MCL Companies, which is Chicago’s most innovative residential developer, in partnership with George Morgan. From the dramatic two-story lobby that ushers you in, to your spectacular home and views above, this new landmark reaches new highs in modern design and living excellence.

 Skyline at Lindbergh is conveniently located right across the street from the ever-expanding new Lindbergh Plaza, boasting fabulous shopping including Home Depot, Target, Starbucks, Best Buy and other national retailers. Also nearby are great restaurants, exciting nightlife at Lotus Lounge, other great clubs and cabarets, parks, banks, grocery stores, a movie theatre, post office and more.

The residences at Skyline are priced as follows:

1 Bedroom from the $180s
1 Bedroom + Den from the $290s
2 Bedroom from the $300s
Penthouses and Townhomes are also available.

Residential sales at 1010 Midtown, part of the huge 12th & Midtown mixed-use project, officially begins Sept. 21.

The 443 units will cost from $200,000 to more than $1 million. The sales gallery will open at 12th Street and Crescent Avenue. The first homes will be completed in the fall of 2008.

The four-block 12th & Midtown project will be more than 3 million square feet of office, residential, hotel and retail space. The developers are Daniel Corp., Selig Enterprises, the Canyon-Johnson Urban Funds (which includes former pro basketball star Ervin “Magic” Johnson ) and MetLife Real Estate Investments.

Daniel hired Jason Winburn to be vice president of residential sales and marketing. Winburn used to manage Related Financial for the Related Group in Miami.

For the first time in 30 years, Atlanta residents and visitors can ride public transportation on Peachtree between Buckhead and downtown without having to transfer — and they won’t be riding a streetcar … yet.

MARTA recently began the “Peach” (Route 110), a new bus service that travels on Peachtree from Lenox Road all the way to downtown for a fare of $1.75.

The service runs seven days a week, and is scheduled every 30 minutes, from 6 a.m. to 1 a.m. “Peach” buses are painted peach and include a large peach emblem on the side.

MARTA has budgeted $400,000 a year for the new service, which is the product of three and a half years of lobbying by the Buckhead Coalition Inc., said former Atlanta Mayor Sam Massell, who is president of the Buckhead business group.

Previously, two separate bus routes served Peachtree, requiring customers to either transfer between buses or use the subway.

“For the first time in 30 years, we have connectivity between the three major Atlanta nodes, downtown, Midtown and Buckhead, both for visitors and residents,” Massell said.

Meanwhile, recommendations for a streetcar along Peachtree could be presented to Atlanta Mayor Shirley Franklin as early as March, when the Peachtree Corridor Task Force makes its recommendations on how to enhance the prominent street.

The task force was appointed by the mayor in November 2005.

With the introduction of high-end condominiums to the market come million-dollar showrooms intended to entice buyers with a taste of the good life.

At each of these sales centers, the goal is to give buyers the ambience, or feeling, salespeople say they’ll get when they’re living in the unit.

“The sales environment needs to be indicative of the type of product that it’s selling,” said David Tufts, president of The Marketing Directors LLC, which handles marketing for the new W Atlanta Downtown Hotel & Residences. “The higher end, the more that needs to be spoken to by the sales center.”

Toronto-based BurdiFilek Interior Design will design the W’s $2 million sales center, which will offer both virtual and real tours, and include an entire residential model. A mood video will set the tone for the W lifestyle.

For the Trump Towers, the sales center at Kenji Design Studios uses a dramatic stage-lighting effect to showcase the design; this is fitting because the building will be near the Woodruff Arts Center.

“We’ve emphasized the design of the sculptural form of the building,” said lead designer Jim Weinberg. “We were able to depict its large shard columns in the display center. They’re about 12 feet tall.”

The showroom for The Mansion on Peachtree overlooks the construction site from the 10th floor of Atlanta Financial Center’s North Tower. A flat-screen TV plays a virtual tour, showing potential buyers all the building’s views.

Paul Cullen, vice president of City Center Properties LLC, said in creating The Mansion’s showroom they were looking to create a sales/lifestyle center.

Just down Peachtree Road is SOVEREIGN, where condominiums start at more than $1 million.

Guests at their sales center in Tower Place also can view the nearby construction site. In addition, the showroom has original paintings from artist Todd Murphy, who is curator of the building’s fine art collection.

Spokesperson Gayle MacIntyre said the showroom tells visitors that SOVEREIGN is upscale and discreet.

Another showroom that emphasizes views is the 55-unit Aberdeen, which will be in Vinings Village.

Since Aberdeen primarily targets empty nesters, the developers stayed away from high-tech gadgetry in the sales center, said Geoff Anderson, president of Taz Anderson Realty Co.

“We felt that for our buyer, who is 55-plus, empty nester, probably owns more than one home, that wasn’t the way they bought a house.”

Meanwhile, the showroom for Mezzo is a spa-like atmosphere, with relaxing music playing.

“Immediately after you walk in, you feel the lifestyle and the ambience of the building,” said Leslie Williamson, executive vice president of marketing for Coldwell Banker The Condo Store.

The 20-story Mezzo will have 94 condos on Peachtree Road near the border of Buckhead and Midtown.

“This is a brand-new experience for Atlanta,” said Dale Henson, president of Dale Henson Associates Inc., when asked about the emergence of luxury condos in metro Atlanta and their showrooms. “So I’m not surprised to see those elaborate showrooms because the prices are going up. Some of them are starting in the $1 million to $2 million range. That calls for that sort of exposition of the properties.”

Tufts agreed.

“I think it’s an important sales tool to have these types of environments,” he said. “Building out full sales models pre-building completion is something that has been done before successfully. But the level to which it’s being done now and the types that are coming on line now are vastly different.”

Henson said these types of showrooms do influence buyers’ decisions.

“When they didn’t have a choice of this kind of property, they either bought or they didn’t buy. Now they have several to choose from. So the competition gets good at that level now that we have several that are $1 million and up.”

As impressive new construction begins to line the Midtown Mile. Those who would like to live in that environment, but feel they cannot afford a new luxury condo may be feeling left out. Peachtree Walk Condos offers a great value while being only one block from the new retail district of Midtown Mile. These “like-new” units often offer more space than their newer, more expensive, counterparts. With a large inventory of intown Atlanta condos, a savvy buyer can pick-up a great condo in a million dollar location for just fractions of the price of a newly developed condo.