Thursday, May 23, 2013

Atlanta Home Prices Rise- What's the NEW MEDIAN PRICE in YOUR Neighborhood??

The Atlanta Real Estate Market is back! My listings selling in days-close to or greater than asking price! I am making offers for buyers which are often competing with other offers. There is an urgency in the market now, as prices are climbing, buyers want to buy NOW while the rates are still unbelievable and before prices get too high. You have no idea how happy I am to report this! But the market still has its challenges. The number one challenge today is the critical shortage of inventory available. In March 2008 there were 38,130 available property listings in FMLS. In March 2013 there were only 10,446 active listings– a gigantic, gargantuan 72.6% drop in available homes to sell! As a result of this inventory shortage, prices are going UP. There is not enough supply to meet current demand.

The following report is for single family detached houses. Our statistics are gathered from FMLS and consider all listing periods for the most accurate information.

1st Quarter 2013 Sales Volume DROPS by 8.4%
I was surprised to learn that sales volume dropped! There are a couple of reasons the numbers dropped year to date over last year. Over the past few years, the market has been flooded with homes in the “investor” range of homes below $100,000. These homes were mostly distressed sales (short sales and foreclosures) and were primarily in outlying counties in Metro Atlanta. As this inventory was gobbled up by investors, it affected our sales volume and median sale price. There was a 46.5% drop in sales volume in this “investor” price category– which of course, affected the overall sales volume. The other factor at play is the lack of inventory. We are down in sales a little because there aren’t as many homes to sell. But you will see later in this report, many price categories rose in sales volume and price, indicating a much healthier and robust market than we’ve seen in a long, long time.

Median Sale Price Rises … Again!
The median sale price of homes in Atlanta shot up to $170,500 compared to $120,000 in 1st Quarter of 2012. While this median price may seem artificially low to you, remember this median price takes into account all of the metro Atlanta surrounding counties.  Read on, you will see the median price in your area is MUCH higher.

Distressed Properties as a Percentage of Total Sales Decreasing
Distressed properties still made up 36.9% of total sales in the 1st quarter, but only 13.4% of these were foreclosures. These numbers are skewed from the picture I see inside the perimeter. For example, Buckhead only had 1.2% of total sales as foreclosures and 7.2% of sales as short sales. So if you’re looking to buy a foreclosure in Buckhead, good luck.

Days on Market Decline while Sellers get Closer to Asking Price
The median number of days it took to sell a house in 1st quarter this year was 77 compared to a year ago at 104. That’s an entire mortgage payment of carrying cost, which really adds to a Seller’s bottom line. Sellers were also getting closer to their asking price– 94% of their original list price (compared to 83.4% of the original list price 2 years ago)–can I get an AMEN?

25.3% of All Sales in 1st Quarter 2013 were ABOVE Asking Price– Sellers Say HELL YEAH!
By now, you’ve heard of the buying frenzy abounding in the market. This frenzy has manifested into a quarter of all sellers getting their list price or above. This, of course, is a best case scenario for sellers and is one of the main reasons to sell your house now, if you are considering a move. Smart sellers are pricing their homes aggressively which is more likely to create a bidding war, bidding the price above list price and giving all the power to set the terms to the seller. I advise my sellers who have multiple offers not to take a financing contingency which lowers their risk of having a deal fall through due to a low appraisal. Appraisers have not caught up to the sharp rise in prices, and a low appraisal remains an issue in some transactions which can make a deal fall apart.
30% of Listings Failed to Sell
If you’re reading this, and your house was for sale and didn’t sell, you weren’t alone. This statistic proves that houses still have to look good, be in good condition and priced correctly in order to sell.
Luxury Home Sales up 21.6%
In first quarter this year compared to same period last year, sales of homes priced over $1 million were up 21.6%. Only 9.6% of luxury home sales over $1 million were distressed (down from 12.2% in 2012). The price ranges of $750,000 and above are still in a Buyer’s Market, so now is the perfect time to sell your home in a Seller’s Market if the value is below $750,000 and make a move up, capitalizing on the Buyer’s Market conditions in the luxury home segment.
Neighborhood    Foreclosure %     Short Sale%     Total % Distressed      Median Sale Price
Buckhead                    1.2%                     7.2%                       8.4%                        $620,000
Midtown                      2.1%                     6.3%                      8.4%                        $429,000
Dunwoody                   1.7%                     14%                       15.7%                      $360,000
Brookhaven                  1.4%                    13%                       14.4%                      $340,625
Emory/Decatur             6.5%                  16.2%                      22.7%                      $236,500
High Point                     4.1%                  8.2%                       12.3%                       $559,000
If you are thinking of selling your home, please contact me so that I can show you how the market shift has affected your home’s value.
-Jackson Bass, Keller Williams Realty Buckhead


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