Metro Atlanta Real Estate Market Outlook -Update August 2015

As I reminisce about my six years in undergraduate school, I still to this day remember my Economics professor. Not only because he made quite the fashion statement with his stained white tees and worn out Wranglers…but, because he taught me everything I know about supply and demand. As a college kid, I figured the extent to which I would use this knowledge would go as far as that last question on my ECON 102 final exam. At that time, I was actually hoping that was the case. But, to my amazement, those two semesters of filing that notebook with endless charts and graphs, curves and arrows really did pay off in the end. Go figure. 

So, with that said…I present to you the most current Metro Atlanta Real Estate market statistics (according to the most current Case Shiller Index Report). I hope you like charts. 

Oh, and we’ll get back to supply and demand in just a bit.

1.  Homes Sold

•    25,000 Homes Sold In 2006. 60,000 Homes Sold In 2010. We are right at 90k as of 8/15. 

2.  Total Closings

•  July Closings Down 12.3% Compared To June Closings. July Closings Up 3.3% Compared To Last Year.
•  80% of Transactions in $100K-$500K Price Range

3.  Inventory

• Residential Detached Inventory Up 53% From Bottom Of Feb. 2013
• Residential Detached Inventory Up 2.7% From Last Month, Up 1.9% Compared To Last Year
•   Metro Atlanta “Months Of Inventory” Is 3.9 Months (6 months is considered a “normal” market). ASP Is $286,000 in July. ASP Was $285,000 Last Month. Statistically Flat From Last Month. Up 5.9% From Last July.

4.  Average Sales Price

•   Annual ASP Up 51% From Bottom Of 2011. Up about 15k from last year (around 6%).
•  Jan 2010 Through May 2015 (Reported July 28, 2015). Home Values Up 49% From Recent Bottom of March 2012.

5.  Home Values

• Peak For Values Was July 2007. Recent Bottom Was March 2012. Current Home Values Moving Back To Normal Trend Line.
• Home Values up 49% from recent bottom of March 2012. 

6.  Mortgage Rates

•   Mortgage rates are below U.S. average of 8%  (based on 36 year span). But, are increasing. Which, will affect home affordability.

So, back to this thing called "supply and demand". Well, when you have a large supply of something (such as home inventory, prices for that something often decline. Conversely, if supply (such as home inventory) is limited, prices for those houses often increase.

Now you got those facts straight....what the heck does supply and demand tell you about a real estate market? Well, I'm glad you asked. 

When there are more homes for sale out there (supply) than buyers (demand), it becomes a buyer's market. There are more people looking to sell houses than there are people looking to purchase houses. In this kind of market, sellers may have to accept a lower price than they want for their home. This market is ideal for buyers because they may be able to get a better deal. 

A seller's market is just the opposite. When there are more buyers (demand) than homes for sale (supply). People may have more money to spend on real estate, so sellers will often be presented with multiple offers (bidding wars) which will ultimately drive up the selling price. Therefore, buyers will have to spend more money. You can imagine that this is what sellers hope for because they will get more money for thier home. 

Now, the statement that you, as a Metro Atlanta home buyer or seller has been waiting for since you clicked on this blog article. As of today, what kind of market is it in Metro Atlanta? Well, after analyzing the information provided in the August 2015 Case Shiller Report, I can confidently say that it is a seller's market for homes $500k and below because the inventory is lower than the average (a 6 month's supply). But, as you can see, inventory is rising, so it could easily become a buyer's market as soon as you can say "let's just wait to see what happens before we list."

Want to find out what your home is valued for in today's market? Click here to receive a FREE home valuation report sent straight to your email!

Emily Benner
Real Estate Expert
PalmerHouse Properties
678.458.2284
emilysells@gmail.com
propertyvaluesbyaddress.com

HOW TO DETERMINE WHEN TO SELL YOUR HOME

WHAT THE HECK IS A SELLER’S MARKET?

There are no better words in the English dictionary that can make a home owner do their infamous happy dance than these four little words: “it’s a seller’s market”.

So….you ask….how do you know if it really is a seller’s market and what exactly does that mean?

I’m going to bring you back to ECON 101 for a moment. Remember when your professor spent two weeks explaining the concept of supply and demand? Well, I hope you took notes.

In a seller’s market, there are fewer homes for sale with more buyers out there looking to purchase. The factors that lead to more buyers in the market could be: sustained low interest rates, high employment rate, legislative changes which make it easier to purchase a property – events and conditions that make buyers think it would be a good time to invest in a home.

In my experience, there are some advantages to the sellers in this kind of market. Typically, home prices will rise, buyers will quickly make offers and sometimes, buyers will compete for a property. This can lead to a bidding war, ultimately driving the price of the home up above expectations

Now on to your next question. How do I, as a potential seller, know when it really is a seller’s market?

Click here and I will send you a personalized FREE Comparative Market Analysis (Home Valuation) of your home. We can start there. I will also send you updated monthly market information.

HOW TO RECOGNIZE A SELLER’S MARKET

It’s pretty simple actually. If houses are selling quickly for their actual value or above…then, it’s a seller’s market.

But, how do you know when to list and when it will be a seller’s market?

It’s all about projection. There are a group of people sitting in a padded room that study the local market day in and day out. Very patient people, indeed.

This is the forecast that they have come up with for the Metro Atlanta Market:

They project that Metro Atlanta home sales will rise over 10% in 2015.

This is my forecast: Rates are lower than ever and homebuyers are out looking. Despite the cold…..getting your home listed this winter, before everybody starts listing in Spring time, will give you an advantage.

Let’s do this. Click here and I will send you a personalized FREE Comparative Market Analysis (Home Valuation) of your home. We can start there. I will also send you updated monthly market information.

As I always say, “an informed homeowner makes a happy home seller.”

Here’s to being informed!

Emily Benner

REAL Estate Expert

PalmerHouse Properties

678.458.2284

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www.propertyvaluesbyaddress.com

Click here and I will send you a personalized FREE Comparative Market Analysis (Home Valuation) of your home. We can start there. I will also send you updated monthly market information.