Thursday, August 18, 2011

Home Sales Rise in Atlanta, New Median Price in Buckhead $700,000

2nd Quarter Home Sales Rise in Atlanta

The 2nd Quarter of 2011 results are in and some very interesting and positive trends have emerged.  In the 2nd Quarter, Metro Atlanta sold 10,447 single family detached homes which represents a 3% increase in sales volume through June this year compared to the first half of last year and up 8.8% over same time period of 2009.  This is significant because the first half of last year had government incentives which artificially boosted sales.  So far this year, we’ve topped those sales without government incentives. 

High End and Low End Properties are Selling!

Resales priced under $200,000 are the majority of the sales of the market, which brings the median price down, but surprisingly, homes priced between $750K-999K increased by 35% and sales of homes over $1million increased 65% last quarter!

Foreclosure & Short Sales Down –6%

While foreclosure sales were down -3.7%, short sales  increased, bringing the total to 40.9% of all sales were distressed sales (foreclosures + short sales) which was a 6% decline over the 1st quarter this year.  But take a closer look and you'll see the percentage of distressed sales drop drastically in Buckhead, Midtown, Brookhaven, High Point and Dunwoody.  Read on.. I’ll get to that in a minute.  It gets good.

Higher Priced Category Homes are Selling Faster

Days on the Market for homes under $299,000 rose last quarter, but decreased from 201 days on market to 154 days on market for homes that sold priced $500K-749K, and dropped from 355 days on market to 214 days on market in price category of $750K-999K, and also dropped from 369 to 240 days on market for homes priced in the $1million + category. 

1274 Homes in 2nd Quarter Sold for MORE Than List Price

One out of every 8 transactions in the 2nd Quarter of 2011 (12.1% of all sales) sold for higher than their asking price.   Bet ya didn’t see that coming.   Most of these sales were in the price category below $200,000 which represents a lot of the foreclosure and short sales.  But surprisingly, 8% of sales priced between $200K-499K sold for over asking price.  And very surprisingly, 4.9% of Million Dollar + homes sold for more than their list price.

Is it Becoming a Seller’s Market?

The market is considered balanced when there is 6-7 months of inventory– meaning that if no new listings hit the market, it would take 6-7 months to sell all inventory at the current rate of supply and demand.  Less than 6 months inventory is considered a Seller’s Market and more than 7 months of inventory is considered a Buyer’s Market. 

We have been in an Extreme Buyer’s Market for a long while, but for the first time in many months, in the price category below $200,000, there is 5.7 months of inventory, indicating a Seller’s Market for that price category.  The overall  supply of properties as of June, 2011 was at 7.1 months which has really changed the game in terms of available supply vs. demand. 

Median Price in Metro Atlanta Falls to $143,000, but is $700,000 in Buckhead
The news media is intent upon delivering grim news, especially when they talk about Atlanta median home price declines and huge foreclosure/short sale percentages of total sales.  But is that true where you live?  This is where the information takes on a whole new meaning.

As stated earlier, the total percentage of distressed properties is 40.9% of the metro Atlanta market.  But is that true for Brookhaven?  Buckhead?? 

Neighborhood    Foreclosure %   Short Sale %    Distressed % Total    Median Sale Price

Buckhead                      4.1 %               10.6%                       14.7 %                       $700,000
Midtown                        7.5%                10.5%                       18%                           $450,000
Dunwoody                     4.1%                10.7%                       14.8%                        $389,000
Brookhaven                   4.7%                14.7%                      19.4%                         $318,000
High Point                     2.0%                  8.2%                       10.2%                        $635,000

If a Buyer is looking for a “deal” in High Point, their chance of buying a foreclosure is pretty slim, only 2 % of the transactions in that area were foreclosures.  But they can still get a great “deal” because prices are much more affordable than they have been in years… and combined with the lowest interest rate in history, Buyers are taking advantage of historically phenomenal deals.

If you’ve considered moving to a better school district or upgrading to a new home, now may be the best time in history to do that.  Even if you’re “under water” in your current mortgage, there may be options that will help you reach your goals.  And there are definitely options if you or someone you know is behind on your mortgage and facing foreclosure– you may qualify for the HAFA short sale program.  Contact me so I can help.

My goal is to bring you valuable, accurate information so you can make your best and most informed decisions.  I want to be the realtor you recommend to your family and friends.  And I love to help.

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