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Wednesday, October 27, 2010

Atlanta Real Estate Market Statistics 3rd Quarter 2010

The Atlanta Metro sales statistics are in for the 3rd quarter of 2010. July- September sales fell behind those of last year. Homebuyer incentives from the government added to first half 2010 sales growth during the first 5 months of this year. The sales momentum these incentives created failed to carry on after the incentives expired.

The 3rd Quarter 2010 sales decreased by -19.3% compared to the 3rd Quarter 2009 and -23.5% below those sales of 3rd Quarter 2008. This decline follows increases in sales during the first two quarters of 2010.

In 5 out of 6 pricing categories, prices declined from 3rd quarter 2010 vs. 3rd quarter 2009. The only price range to increase is the price range of $500,000-749,000 which increased slightly with 461 homes sold in 3rd quarter 2010 vs. 447 homes sold in 3rd quarter 2009.

More than 65% of single family home sales year to date September 2010 took place using either FHA or Conventional Uninsured mortgages while just over 20% of single family homes were cash purchases. This is likely due to investors purchasing foreclosures and short sales.
Foreclosure sales as a percentage of total sales declined in 3rd quarter after increases during the first previous two quarters and represented 20% of the overall sales from the 3rd quarter. However, short sales increased during the 3rd quarter. The combination of short sales and foreclosures make up "distressed sales" and accounted for 37.5% of total single family sales in 3rd quarter and 35.3% of sales year to date.

Along with declining sales volume, median sales price also fell by -5.7% compared to 3rd quarter 2009. As the number of foreclosure sales increased, the sales prices of non-forclosure properties decreased. This is a result of non-foreclosure sales having to compete with distressed sales.

The median days on the market went down in 3rd quarter from 130 days on market in 3rd quarter 2009 to 103 days on market. The median price reduction a seller has had to take in order to sell was 13.4% in 3rd quarter (single family detatched homes), however, interestingly, one out of every 8 transactions resulted in selling prices that were higher than the asking price. A total of 964 homes sold for more than their asking price in the 3rd quarter 2010. This could mostly be accounted for low priced foreclosure sales and very well priced non-foreclosure homes.

For every 100 listings, 62 did not sell. Out of the 38 that did sell, 25 needed a price reduction in order to sell and ended up selling for 78.5% of the original asking price in 166 days on market. The other 13 homes (34% of the sold homes) sold in 27 days (median) for 96.9% of the asking price without a price reduction. This indicates that pricing correctly is critical for success and will maximize selling price and net to the seller and do it 80% faster!

In summary, sales were 1.7% lower through September 2010, -13.6% compared to 2008. Foreclosure sales decreased as a percentage while short sales increased making up overall distressed sales 37.5% of the total sales. (In the price range of single family detatched homes under $200K, distressed sales were 50.5% of total sales.) Sales price median slightly lower (-5.7% in 3rd quarter 2010 compared to 3rd quarter 2009). Days on market decreased by -20.8% (103 days on market). 61.5% of listings failed to sell. 87% of listings were overpriced in 3rd quarter 2010. The supply increased by 24% from September, 2009 at 10.5 months supply in September, 2010 (a supply of 6-7 months is considered a buyer's market).

It is still an extreme buyers market! Sellers have to be informed, realistic and motivated to sell. Buyers have the best opportunity in recent history to make great deals, especially at today's historically low rates. In move-up cases, it might make financial sense to sell your current house at the low of the market in order to take advantage of the low prices and fantastically low rates today. If you are considering buying or selling, contact me so I can help you understand how these stats will affect you and what the market is doing in your neighborhood.

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