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