Monday, May 19, 2014

New Median Home Prices Up 17.9% Inside Perimeter!

The first quarter results are in and there are a few surprises in the Atlanta Housing Market.  I am reporting  these results for single family detached homes inside I-285 north of I-20.  The trends of the intown market heavily influence the outlying suburban market and the intown market results are a good indicator of what’s coming in the Metro Atlanta market.

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.

Intown Atlanta Median Sale Price Up 17.9% Compared to 1st Quarter of 2013
The new median sale price is $315,000.   That may seem low, but compared to the Metro Atlanta current median price of $198,000 I would give our Intown price a HOLLA!  The lack of inventory is driving prices up, up and… hopefully not away.  The new median price in Buckhead is $653,000.  (I love you Buckhead).

Sales Units Decrease in 1st Quarter
Wait, what??  Actual number of homes sold was down by 3% by comparison to the first quarter of 2013 even though the median price increased sharply.  One of the main factors affecting this is the number of property sales priced below $200,000 has dropped significantly.  These sales were what fueled the market and kept it alive during the downturn.  I think this also points to lack of good inventory.  You might think that since there is such an inventory shortage, everything would sell.  You would be wrong… keep reading. 

Distressed Property Sales Continue to Decline
When I speak of distressed properties, I’m not referring to 1970s shag carpeting and formica countertops (ewww!)  Distressed properties combine short sales and foreclosures.  Only 5.1% of total sales were foreclosures (compared to 6.6% in 1st Quarter 2013) and 7.6% were short sales for a total of 12.8% of all sales being distressed property sales.  Remember back in 2010 when more than half of all sales were distressed? (It was distressing).  An interesting perspective on this is 22.6% of properities priced under $200,000 were foreclosures (almost 1 in 4) while only .5% (not 5%, but POINT 5%) of sales priced between $500,000-749,000 were foreclosures.

New Construction Becomes More of a Factor
New construction is BACK.  Buyers love new homes and generally prefer them.  For sellers looking to resell, more and more, they are competing with new construction, depending on the location and pricing.  New home sales were up a whopping 70% for the first quarter.  In the $750,000-999,000 price bracket, new home sales were up 143%!  If you live in Brookhaven and  have a home in this price range, your competition is new construction.

 Sellers Sell for Close to Asking Price
Sellers got a median 94.3% of their original asking priceTranslation: a house listed for $500,000 sells for $471,500.  To dissect this a little, sellers who priced their property to sell and were able to sell without having to reduce the price (53.9% of all sales) sold for 98.3% of their list price in just 21 days on the market (the $500,000 house sells for $491,500).  For those who started out with a list price that was too high and had to reduce the price in order to sell (46.1% of all sales), they sold for a median 87.9% of their original price in 139 days (the $500,000 house sells for $439,500).  The sellers who priced their homes correctly only had to make their beds for 21 days compared to the overpriced sellers who had to make their beds 139 days.  Remember earlier I said that you would think every listing would sell with such an inventory shortage??  Even with low inventory levels, 40% of listings did not sell.  20.5% of those that DID sell, sold for at or higher than asking price!   So, there is a feeding frenzy over beautiful homes that are priced competitively but buyers turn their respective noses up to not-so-pretty homes, especially those that are overpriced. 

On a personal note, I am thrilled to announce that I have received my CLMHS (Certified Luxury Home Marketing Specialist) certification from the Institute for Luxury Home Marketing in order to better serve my clients. 

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.

Business is booming!  Let me know how I can help you. 
Jackson Bass, ABR, CLHMS, Associate Broker

1 comment:

  1. You are such a great writer! I love reading your stats.