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Tuesday, February 18, 2014

Atlanta Home Sales Increase Again as Prices Continue to Rise Through 2013


Happy Days are here again!! I’ve been telling you over the past year and a half or so that we are pulling out of the housing recession in Atlanta, and I have the numbers to prove that we have made our way out of the darkness and into the light!  The focus of this report is ITP (inside the Perimeter), but don’t forget I LOVE Dunwoody, Sandy Springs and Smyrna! 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.

 

Home Sales Have Increased EVERY QUARTER since 1st Quarter 2012

Sales in the last quarter were up 4.6% over 4th Quarter 2012.  That’s particularly awesome when you take a look back to 4th Quarter 2012 which had a 20.4% increase over 4th Quarter 2011 sales.  All price ranges in the 4th Quarter 2013 above $300,000 were higher with the biggest gain occurring in the $500-749,000 range.   Sales of properties under $100,000 fell by 17.7% in 4th Quarter 2013 compared to same period 2012.  This is significant to note that the under $100K price point was keeping the market afloat to a great degree in 2010 and 2011, yet are now less of an influence in the market.

 

New Home Sales Coming on Strong

Building is back in Atlanta and is really coming on strong.  For sellers of resales, this is something to watch as they will be competing in some cases with new homes.   New home sales were up 27% in 4th Quarter 2013 vs 4th Quarter 2012!  In the price range over $1million, new home sales were up 91% (not a typo) in 4th Quarter and up 62% in price range of $500K-749K.  This indicates the value of land ITP is so great, many of the new homes being built are in the luxury price range.

 

Distressed Property Sales No Longer a Significant Factor

Short Sales and Foreclosures= Distressed Sales.  Distressed Sales made up 12.8% of total sales ITP in the 4th Quarter 2013.  Most of these sales (40.5% of the total) occurred in the lower price points under $100K.  When you consider that only 3.7% of sales priced at $300-499K were distressed sales, you realize that these sales are no longer depressing market values, but as a buyer, you are not likely to find a short sale or foreclosure to buy in today’s market.

 

Median Sale Price Rises to $315,000

In the 4th Quarter, the Median Sale Price was $315,000 compared to $275,000 in the 4th Quarter 2012 and $209,000 in the 4th Quarter 2011.  Factors that have fuelled this price climb are the decline of foreclosures and the lack of inventory.  Low inventory levels remain a factor as of today, but we are anticipating a larger Spring inventory than we’ve had in the past few years as more and more homeowners are out of the “underwater” experience and are in a position to sell.

Seller’s Continue to Sell Close to the List Price
Overall, Sellers got a median 94.9% of their original list price in 55 days on the market.  Compare this to 2 years ago when Sellers only got 82.8% of the original list price.  Sellers are not having to reduce the price in order to sell as much as they did in recent years.  For those Sellers who “priced it right” (51.23% of total sales), they sold for 97.9% of their asking price in just 17 days on the market.  For those Sellers who did have to reduce the price in order to sell, they got 96.3% of their newly reduced price, indicating that overpricing cost them a 1.6% penalty and longer days on the market.
The flipside of this fact is that not all Sellers priced it right.  43% of all LISTINGS in 4th Quarter 2013 were unable to sell.  I guess that means they are not Sellers after all, they were just  “Listers”.    This is likely due to overpricing and/or condition problems and in some cases, improper marketing and poor market exposure.

18.7% of ITP Sales Sold for Asking Price or MORE
It is still a SELLER’S MARKET (in all price ranges below $1million).  These days, when a great house comes along that is priced reasonably , there is a good chance of multiple offers driving up the purchase price.

 
2013 was My Best Year Ever!
My sincerest thank you to all of my clients and friends who referred business to me last year, making 2013 my best year in my 19 year career!  Thank you!  Thank you!   If you are thinking of buying or selling real estate (or know someone who is), I’m your man!  I love selling real estate and I love helping my clients with information and guidance to help them make their best decisions!  Please contact me if you are thinking of selling your house (or buying a new one). 

Jackson Bass, Associate Broker, ABR, Keller Williams Realty Buckhead

 

 




 

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