Monday, August 18, 2014

How is Atlanta's Real Estate Market- HOT or NOT? 2nd Quarter 2014 Market Results

2nd Quarter Sales Down, but Median Price is UP
We saw a slight decrease in sales through the first half of the year compared to the first half of 2013 (down 1.2% from same quarter 2013 and 7.9% below 2nd Quarter 2012).  Seemingly at odds, the median sale price continued to rise in the 2nd Quarter to reach a NEW 4 YEAR HIGH!   The reason for the sales volume decline is due to the huge drop (34.5%) in homes priced under $100K.   Short sales and foreclosures (distressed properties) also dropped making up only 14.1% of total sales and in areas like Buckhead, only made up .4% (point four percent– not even a whole percent).  The result is a new 4 year high median sale price of $227,000.  If we back out the 14.1% distressed sales, the new non-distressed median sale price was $246,000 for the 2nd Quarter.   In June, the median price hit $235,000 for the month– coming close to the previous market high of $239,000 which occurred in June 2007 before the crash (as I lovingly refer to it as BC). 

New High Median Sales Price to List Price Percentage
How much are sellers having to discount off their asking price to sell?  The answer is (drumroll please…) 3.7%.  This of course varies by price range and location, but by comparison, in Brookhaven, sellers only negotiated 2.5% off the list price to sell.  In Buckhead, on the other hand, sellers negotiated a price 5.9% off their list price in order to sell due to the fact that the median sale price in Buckhead is so much higher- and the higher priced homes tend to have a lower list to sell price ratio.

More Than a Quarter of All Sales were OVER (or at) Asking Price!
Yes, 25.4% of all sales in the 2nd Quarter were 100% or higher than the list price.  What I am finding is that when the home sells at list price or greater, it is usually in the first seven days of the listing and usually has more than one offer simultaneously.   The type of listing that tends to get 100%  or more of their list price are beautiful homes in beautiful neighborhoods that are correctly priced and there aren’t many or any competing listings. 

Luxury Home Sales Increased in the 2nd Quarter
Homes priced over $1 million were 7.8% higher compared to the 2nd Quarter 2013.  Still, we are finding that in the price range of $750,000-999,000, there is 7 months of inventory indicating a Buyer’s Market and in the price ranges over $1 million, there is 13.3 months of inventory indicating a strong Buyer’s Market.  It is still a Seller’s Market in all other price ranges.

28% of ALL Listings FAILED to Sell
It’s very exciting to talk about seller’s getting so close to asking price and prices going up, up, up, but that’s not the whole story.  More than a quarter of all the listings did not sell, due to overpricing and/or condition issues.  Some sellers get the idea that now that the market is back on track they can just ask any price they want and the house will sell, but this is not true!  Properties still need to be marketed correctly, presented correctly (staging, repairs, etc.) and priced correctly in order to sell for maximum price with minimum days on the market.   Sellers who did market, present and price correctly got a median 98.6% of asking price in 15 days on the market vs. those who had to reduce their price sold for 90.5% of their original asking price in a tortuous 137 days on the market.  (I say tortuous because I cannot imagine making my bed and turning on all the lights and keeping the kitchen clean to impress buyers for 4.5 months).  Unfortunately 28% of the sellers were not able to sell (maybe they didn’t keep lights on and beds made??).

Inside 285  Market Recap
Median sale price in Buckhead rose 18.2% to $765,000 (62 days on market).  Median sale price intown (Midtown, Ansley, Va-Hi, Morningside) rose 20% to $552,000 (31 days on market).  Median sale price in Brookhaven rose 5.4% to $390,000 (30 days on market).  Median sale price in Sandy Springs (inside 285 including High Point) declined 3.6% to $675,000 (73 days on market).

It is my pleasure to bring this information to you.  I am at your service!   Please contact me for a more indepth view of what is happening in your back yard! 

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