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Thursday, October 18, 2012

5 Signs that the Atlanta Housing Market is Recovering!

 
 
 
The market is ACTIVE.  Buyers are BUYING!  Sellers are SELLING!  Woo-hoo!!  I am seeing multiple offers on many properties for sale these days in Atlanta.  We have turned around from an Extreme Buyer's Market to a Seller's Market in the last year in almost every price range.  We are in the golden sweet spot of the market right now.  Home prices are rising again, buyers have gained confidence in the market and investors are clamoring to gobble up deals while they still can as rent prices continue to skyrocket.
 
Here are 5 signs that I see pointing to what I'm calling "The Great Market Recovery of 2012". 
 
1.  Atlanta's Luxury Home Market gains great momentum.
FMLS (first multiple listing service) reports that there was a 27% increase in sales of homes over $1 million from the 3rd Quarter of 2011 to the 3rd Quarter of 2012.  121 homes sold in 3rd Qtr 2012 compared to 95 homes over $1 million in same period 2011.   In 3rd Quarter of 2012, Sellers averaged 95.18% of asking price in this price category compared to 84.79% of asking price in 3rd Quarter 2011.  In case you're not a numbers person: THIS IS GOOD.
 
2.  Case-Shiller Home Price Index Showed Atlanta increase in Home Prices by 2.6%
from June 2012 to July 2012.  This rise was one of the largest rises in the nation.  The median price has also shown an increase in the median home price, and most intown neighborhoods in Atlanta have seen steady, yet small price gains.
 
3.  Housing Starts and Building Permits Rise Sharply Nationwide
They're baaa-ack.  New homes, that is.  I'm seeing new construction everywhere.  US Department of Housing and Urban Development reports that building permits were up nationwide in September by 45% compared to September 2011.  They reported that housing starts were up by 34.8% this September over September 2011.
 
4.  Interest Rates are CRAZY-GOOD!
I feel a little like a broken record (or maybe a digitally scratched MP-3) to keep proclaiming how damn good interest rates are.  But I will say now in the words of Tony the Tiger, "They'rrrrre Great!".  (If you got the Tony the Tiger reference, you'll know what a broken record sounds like).  According to Michel Gonzales, of Southern Capital Mortgage Group,  “there are plenty of lenders eager to lend. Interest rates remain at historically low levels and it is predicted that  as our economy continues to improve, home loan rates will rise.” 
 
5.  Atlanta's Condo Market is Balancing Supply and Demand.
According to Anne Schwall who wrote an article for Atlanta Business Chronicle, "New construction high-rise towers that have dominated the Atlanta skyline such as Gallery, Luxe and Viewpoint are celebrating sold out status, and Twelve Centennial Park, Brookwood and Astoria are more than 75 percent sold. Dwindling supply can even be seen in the luxury sector where projects such as Sovereign that boasts an average sales price over 1.3 million is currently 50 percent sold."  Dwindling supply of condos along with rising rental prices and very low mortgage rates have created a balance of supply and demand.
 
I've been selling real estate in Atlanta for over 18 years and the "great recession" and "housing bust" has been challenging- I've never seen anything like it.  But we've persevered and we have survived.  In many ways, we've thrived. 
 
So the real estate "bubble" may have popped, but so many good things came from it.   For me, it has made me re-evaluate my priorities.  It has brought a new dimension of purpose for me to be able to help people with buying and selling their home in what has been a stressful time for everyone.  It has made me deeply appreciate my clients and every transaction, more than ever before!  It has caused my industry to dig deep and improve the level of service and professionalism that we bring to the table.  So during this season of Thanksgiving, I say Thank You for reading my blog, Thank You for your support, and Thank You for allowing me to be a source you trust with information to help you make your best decisions about real estate.

3 comments:

  1. This is amazing news! Although I'm looking into these apartments in sparks, I'll definitely keep Atlanta in my priority list.

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  2. It’s amazing post,That’s very helpful for everyone to remember about it,Thank for sharing this post….Alabama Land Surveyor

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  3. Your opinions are quite interesting, I enjoy reading what you write. Hope to hear more from you.Sharon Bush

    ReplyDelete