Atlanta Real Estate Market Update
March 17, 2009
There is an Atlanta real estate market graph on my Facebook page.
Today I noticed a slight uptick in the median price for Atlanta homes.
Have we reached bottom in the Atlanta real estate market?
Each week we take a snapshot of the Atlanta real estate market.
I quit posting updates in November. The market was flat.
Today, I decided to update the reports — primarily to answer a question for someone.
- 30004 – Alpharetta
- 30005 – Alpharetta
- 30022 – Alpharetta
- 30097 – Duluth
- 30062 – Marietta
- 30066 – Marietta
- 30068 – Marietta
- 30075 – Roswell
| March | November | |
| Median Price | 284,800 | 289,500 |
| Days on Market | 167 | 134 |
| Houses for Sale | 1819 | 2163 |
Bottom line? It’s a great time to buy property if you don’t have to sell first.
Our Real-time Market Profile(TM) is the most up-to date Atlanta market information available. The Profile shows you not only Atlanta real estate pricing and market numbers, but also trends in those numbers.
How’s YOUR market? |
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MARIETTA Real Estate Market (30062) |
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MARIETTA Real Estate Market (30064) |
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MARIETTA Real Estate Market (30066) |
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MARIETTA Real Estate Market (30067) |
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MARIETTA Real Estate Market (30068) |
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ROSWELL Real Estate Market (30075) |
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ROSWELL Real Estate Market (30076) |
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ALPHARETTA Real Estate Market |
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CUMMING Real Estate Market |
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DULUTH Real Estate Market |
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SUWANEE Real Estate Market |
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CANTON Real Estate Market |
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| Copyright © 2008 Altos Research LLC. All Rights Reserved. | ||
Stay up to date with housing trends in your area!
President Obama’s Strategy for Economic Recovery
March 5, 2009
The President’s strategy for economic recovery is a stool with several legs, as he’s said, and one of them is solving the foreclosure crisis.
“We must stem the spread of foreclosures and falling home values for all Americans, and do everything we can to help responsible homeowners stay in their homes,” Obama said as he signed the American Recovery and Reinvestment Act into law.
We’re sure you have a lot of questions, like, Am I eligible for assistance? Might I be able to modify my loan? When do I apply? We’ve put together an example sheet that will show you what options might be available to you, depending on the circumstances of your mortgage, as well as answers to some common questions.
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Atlanta Real Estate Market Data
March 3, 2009
The following market report for real estate in Atlanta represents year-end data gathered from 36 areas in the First Multiple Listing Service (FMLS). The data reflects Single Family Detached Residences primarily with a few statistics representing the Condo/Townhouse market.
The areas include most of the following counties: Cherokee, Forsyth, East Cobb, N. Fulton, Gwinnett, Paulding, West Cobb, Inside Perimeter, Dekalb and Douglas.
- Median sales price for re-sales declined more than new construction prices.
- Median days on market 3 times longer when sellers overprice and have to reduce price to sell.
- Sellers who had to reduce prices averaged 87% of listing price vs. 96.5% of listing price with no price reduction.
- Median sales price in 4th Qtr 2008 lower than any period since 2003. Median price is $170,000.
- Gap in List Price to Sales Price in 4th Qtr 2008 vs. 2007 greatest under $200,000 (17.8%) and above $750,000 (9.4%).
- Percentage of transactions requiring price reduction in 2008 grew to 50%.
- Months supply of listing inventory slightly decreased monthly in 2008 since July. Inventory in July was 13 months; December declined to 10 months of inventory.
- Foreclosed property sales in 2008 represented 23.6% of total sales. In the <$100K price range, 42.8% of sales were foreclosures. This range is where most of the foreclosures are.
- Percentage of properties requiring price reductions in 2008 greatest in the $100K – $299K range (54.9%) and the $500K – $749K price range (51.3%).
- Condo/Townhouse sales in 2008 down 29% vs. 2007.
- Median number of days on market (DOM) for Condo/Townhouse increased every quarter of 2008 except the 4th Qtr where DOM decreased compared to 2007. Ninety-Four DOM average in 2008 – 20% down in the 4th Qtr.
- Condo/Townhouse Sales Price as % of List Price increased in the $750K+ price range.
- New Construction sales down 3.4%. Re-sales down 12.4%.
- National Association of Realtors reports 41% of sales across the country were first time home buyers.
- Residential 2008 Sales in 36 FMLS areas: 33,856 - down 22% from 2007. Condo/Townhome 2008 Sales is 7,056 — down 29% from 2007.
- Georgia Real Estate Commission reports 2008 vs. 2007 – Agent License Renewal down by 8,080. Firm Renewals down 1,460 2008 vs. 2007. New License issued in 2007 – 10,290. New Licenses issued in 2008 – 5,655.
The data was compiled by Chuck Carr of Chartmaster Services, LLC. It is believed to be accurate but not warranted.
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Opportunity of a Lifetime
February 26, 2009
Warren Buffet says, “A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful.”
While Mr. Buffet was writing about buying stocks, the same can be said for housing today. Housing issues have permeated the economy both locally and nationally. This week, one index that tracks housing prices, S&P/Case-Shiller Home Price Indices, indicated home values fell the most since 1968, declining 18.5% in December from the year before. Looked at from a different perspective, this means home prices have fallen to levels not seen in six to twelve years, depending on individual markets.
Following the Case-Schiller report was the report from the National Association of Realtors (NAR) recently. The NAR reported that home prices for the month of January fell by 14.8%. The bright spot though in contrast was that the number of homes sold in December increased.
Home buyers from coast-to-coast have been buying distressed properties at the rate of 45% of total sales. Recognizing that now is the time to buy, everyone – from those looking to purchase their first home to seasoned real estate investors – is buying homes today.
Bruce Norris, the head of an investment group in Southern California, expects to buy at least 100 homes this year as, “This is the buying opportunity of our lifetime.”
Fundamentals Point to Strength
The basic fundamentals of the housing market point to higher prices ahead. Almost half of the properties being sold today are existing homes that are either owned by banks or homes on which banks are accepting short sales, allowing them to be sold for less than what is owed. New homes or homes under construction are near all-time lows. The country’s demographics point to more potential buyers coming into the housing market than projected inventory in coming years. This all points to higher prices on the horizon as demand will be greater than supply. This is supported by the fact that the inventory of unsold homes fell 2.7% in January.
Why Buy Now?
Three very important reasons to buy now are:
- Interest rates are near all time lows;
- Home prices have declined to levels not seen in years; and
- Qualified first-time home buyers are now eligible for up to an $8,000 tax credit.
Lower Prices Don’t Always Equate to Lower Payments
One final point to consider. Even if you believe that home prices will continue to decline, it’s very difficult to believe that interest rates will remain at these low levels. Did you know that even if home prices were to decline 10% but also during that time, interest rates available for home loans were to increase by 1.00%, your monthly principal and interest payment would actually be higher? It’s true. So, if you or your clients are thinking of buying, get busy and get in the game. To quote Mr. Buffet again, “If you wait for the robins, spring will be over.”
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The Crisis of Credit Visualized – Part 2
February 25, 2009
Jonathan Jarvis continues to quickly supply the essence of the complex credit crisis to those unfamiliar and uninitiated in “The Crisis of Credit Visualized -- Part 2.
The Short and Simple Story of the Credit Crisis-Part 1
February 24, 2009
Jonathan Jarvis has given form to a complex situation like the credit crisis as part of his thesis work in the Media Design Program, a graduate studio at the Art Center College of Design in Pasadena, California.
Stimulus Bill Preserves Real Estate Mandates
February 14, 2009
Here’s our take on the Stimulus Bill and Treasury announcements made this week. We look at the Stimulis package AND the Treasury’s package holistically, in compliment with each other – mostly because that’s how the Obama team is looking at it. Your representatives, the NAR Board of Directors, asked us in November to do 4 things (with an unspoken but clearly understood mandate to PRESERVE what we already have):
- get loan limits raised for high cost areas
- make the $7,500 tax credit NOT a loan
- try to find ways to push interest rates down (which are higher
than they should be due to systemic risk right now) by 200 basis points - help provide solutions to the foreclosure/short sale problem.
So here’s what we have achieved:
- the loan limits will be raised to $727,000 in high cost areas
- the tax credit will be raised to $8,000 with NO payback [a true credit]
- interest rates have come down 125-150 basis points
- the bill has over $50 billion in it for foreclosure mitigation, with Geitners
Treasury plan signaling that the second half of TARP and TALF will be used
to mitigate foreclosures through a government guarantee, drive down
interest rates by buying another $200-300 billion of mortgage paper from
the GSES’s thereby freeing them up to do the same with new mortgages, - Fannie has just agreed to lift the cap of 4 investment properties eligible for
loans and raise it to 10.
In addition, we preserved what we have — which some tend to forget is always on the table when these negotiations start up again — an overall package worth more than $100 billion and for some a very attractive funding source for their pet projects).
- mortgage interest deductability
- real estate tax deductability
- the $250,000/$500,000 cap gains exclusion.
We did make a run at the $15,000 credit — and we would have loved to have gotten that or the Homebuilders $22,000 credit idea as well as their 5 year loss carryback deal, but they were considered too rich for this program. What it did do though is totally take the debate off of whether a tax credit should be reinstated at all (it expired last year) and whether it was a true credit or a repayable loan, and kept the conversation on how much it should be. It also kept the debate off of ‘what we are willing to give up to get a $15,000 tax credit’ and kept the debate again, on how much it should be.
It’s pretty hard to complain when they give you what you ask for and you lose something you never had.
While we study the Treasury specifics on their major role in providing the rest of the housing solution — there is much more to come and we are working diligently with the Administration to help ‘unclog the pipeline’ and get capital flowing into housing again.
Sincerely,
Charles McMillan, CIPS, GRI
2009 NAR President
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