Tuesday, August 21, 2012

Atlanta Home Sales Up in 2nd Quarter of 2012

Hey Y'all.  Good news!  Good news for Home Sellers!  Good news for Home Buyers!  Good news for Realtors!  Good news for the economy!  Good news for us all!  GOOD NEWS! 

For those of you who are really not all that analytical, I will give it to you in quick little bites- it's all good!  For those who love numbers and percentages, keep reading.

Atlanta home sales increased year to date June 2012 by +13.1% higher than 2011 (and +19% higher than in 2010).  The median sales price went up by +5.9% in the second quarter 2012 vs second quarter of 2011.  The number of days on the market it took to sell a home went down 27.3% to 80 days on the market.  The Median Sale price rose by +5.9%.   Sellers are getting closer to the asking price (and many sellers got multiple offers bidding the price OVER the asking price).  19.9% of all sales in the second quarter were at or above asking price.  Inventory of homes continues to shrink by -42% (that's not a typo) from June 2011 to 4.0 months of supply in June 2012. (A balanced market is considered 5-6 months of supply-meaning that with no new listings, it would take 5-6 months to sell all the inventory of homes).  Anything under 5 months of supply is considered a Seller's Market.  We have moved from an Extreme Buyer's market to a Seller's Market since last year.

Ready for more good news??  Have you heard of "shadow inventory"?  This term describes the next wave of foreclosures expected, due to folks who are seriously behind or not paying their mortgages, but have not been foreclosed on.  The good news is that investors are forming hedge funds which are buying up much of this inventory as it hits and before it hits the market.  This is great news.  It means investors are investing in real estate and it means that many of these distressed properties will never hit the market, allowing the market to self-correct more quickly.

Another good sign is that distressed sales (short sales and foreclosures) as a percentage of total sales went down by 6.5% in the second quarter of 2012 vs same period of 2011 and down 15.2% from the first quarter of 2012.  Distressed sales made up 44.7% of all sales in the second quarter of 2012 (that's still a LOT- but we're headed in the right direction). 

By comparison, in Buckhead, only 11.3% of sales were distressed- of those only 2.9% of sales were foreclosures.  So if you're a buyer looking for a foreclosure in Buckhead, good luck!  The median sale price in Buckhead is $570,000 (compared to $150,900 for Metro area). 

The good news for home Buyers is that even though inventory is low and prices are rising, there are still some great houses that are coming on the market.  Smart buyers are ready to pounce on new listings that are correctly priced and in good condition, so it pays to know what you want and where you want to be.  I have programs that will auto-alert buyers as soon as any new listing that meets their criteria hits the market.  Prices are still substantially lower than they were 5 years ago, and interest rates continue to be at historic lows. It's like shopping at a fantastic clearance sale, but the best bargains are going quickly.

How is the market doing in your neighborhood??  The market conditions vary greatly by neighborhood and by price range, so please contact me for more detailed information about your neighborhood and how those conditions will affect you.

Thank you for reading my blog, and thank you for your referrals!

1 comment:

  1. This was a good suggestion that you put up here...dude…..hope that it benefits all the ones who land up here. 

    REO Rockstar