Thursday, August 15, 2013

Atlanta's Median Home Price Rises 39.6% and other Delicious Goodies

Atlanta’s Median Sale Price Rose by 39.6% in the 2nd Quarter this year. Can I get a witness?? The market is WHITE HOT. I am on track to have the best year of my 19+ year career! Amen brother! What this means for the economy is great, what this means for you is that if you are thinking of selling your house, now is the best time in several years! If you are thinking of buying, you missed the bottom of the market, but it’s still a great time to buy. While interest rates rose sharply (about a full point), they are still well below 5% and in the long term, that’s a darn good interest rate, my friend. Prices are rising… fast. I have 2 properties currently under contract that are at higher sale prices than when they were purchased (2006 and 2007) at the market’s height, and I’m seeing many other examples of prices bouncing back to market highs.
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.

Median Sale Prices Rose for the 5th Straight Quarter
The new Atlanta Median Sale Price is $192,000. While that may seem pretty cheap to you and me, please note that it was $135,000 in 2012. Besides home prices increasing, this new median price is due to fewer homes selling in the below $100k range. The below $200k price range sales kept the market going when the going got really tough in 2010 and 2011.

LUXURY Home Sales Rose Sharply
2nd Quarter sales of luxury homes priced above $1 million were 46.9% (not a typo, I double–checked) higher than that of the 2nd Quarter last year. That said, the luxury home market is still a Buyer’s market with 11.9 months of inventory as of June 2013 (down from 16.9 months of inventory in June 2012). Every price category below $750,000 is in a Seller’s Market.

Median Days on the Market Reduced by 42.3%
I keep wanting to end all of these bullet points with an exclamation mark!! (See, I did it again). The truth is that this is exciting stuff! This is really a big deal for folks selling their houses. In the 2nd Quarter of 2011, it was taking 110 days to sell a house. In the 2nd Quarter of this year, it only took 45. That’s HUGE, people! If you’re trying to sell your house, you don’t want to have to keep making up the damn bed and leaving lights on and vacuuming every day for months on end! (Let’s not even discuss the kitchen). You want to sell fast– and painlessly as possible. And it’s now happening fast, and painless for so many Sellers.

Seller’s Maximize Sales Prices compared to their List Price
I ought to slap an exclamation mark at the end of that bullet point. This is sooo exciting!! Sellers got a median 95.8% of their asking price in the 2nd quarter this year. In 2011, they only got 84.8% of their asking price. This is great news for Sellers, indeed, but what about Buyers? My advice to Buyers these days is to expect to pay close to asking, and over asking price in some cases. I am going out on a limb right here and now to predict prices will continue to climb through 2016. So buyers, get it while you can.
Short Sales/ Schmort Sales
I’m glad to finally stop hearing about all the short sales.(!) They are fewer and fewer these days, which is fine by me. In fact, 24.2% of all sales in the 2nd Quarter were distressed sales (9.3% foreclosures and 15% short sales). This is significantly less than 2nd Quarter last year, when distressed sales made up a whopping 45.9% of the total sales in Atlanta. I’ve been telling you all along that all those distressed properties are mainly OTP, but let me tell you, only .6% of sales in Midtown (fmls area 23) were foreclosures for the entire 2nd Quarter. If you were one of the .6% of Buyers who got lucky with the bank last quarter, congrats, my hat is off to you!
27.8% of ALL SALES in 2nd Quarter Sold for Asking Price or MORE!!
I just had to give this one two exclamation marks. While this breaks down to 17.3% of these over-achiever Sellers were distressed sales, 10.5% of the non-distressed sales sold for at least their asking price. Word to the wise (Sellers): prices are escalating and homes are selling quickly, but you can still overprice your house. In fact, in spite of all this great news, 23% of Sellers were unable to sell in the 2nd quarter due to condition problems, overpricing or both. So as not to leave you on a downer, the flipside of that coin is that 77% of sellers DID sell in the 2nd Quarter of 2012. 62% of all the Sellers sold in a record 15 days for 98.9% of their asking price. Now that’s what I call closing on a high note!
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, ABR, Associate Broker
Keller Williams Realty of Buckhead
404-694 HOME (4663)



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