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

6 Best Home Improvements to Help Sell Your Home

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When it comes to selling your home, there are easy and inexpensive ways to make improvements that will help it sell fast!

According to experts, a homeowner should commit to spending around 1 to 2 percent of the home's value for home improvement costs. That means, for a $200,000 home, a seller would spend between $2,000 to $4,000 on pre-sale upgrades.

So, what are the most effective improvements to make pre-sale? Well, I'm glad you asked. 

1. KITCHEN

The most cost-effective kitchen improvement is to repaint or restain the cabinets. Also, adding new matching hardware to cabinets and drawers will add a huge amount of kitchen curb appeal. If you have the money, replace any unmatched appliances. 

2. BATHROOMS

Replacing those old, worn out toilet seats can be the first step to making the home more appealing and clean. Also, if the grout is cracking or dirty, replace that as well. If you can't afford new cabinets, painting them, as well as installing updated knobs will make the bathroom look 100 times better. Also, if you can afford to put in new flooring, please go with tile. Laminate and carpet in the bathroom will only lead to future issues. New shower heads and shelving for added storage are also added perks!

3. INTERIOR PAINT/DOORS

A new layer of neutral colored paint can transform a home. Also, it makes everything seem new and clean. New crown molding is great eye candy, especially if it is painted the same color as the walls, which will make the walls appear taller. Replacing the interior doors and doorknobs is a great way to improve the look of the home. Getting rid of the cheap plywood doors and going with something heavier and and solid will bring that wow factor. 

4. FLOORING

Installing new flooring, inexpensive carpet or economy hardwoods, will make any home look better. Also, it will give the buyers a load-off, knowing that they will not have to do it themselves. 

5. LIGHT FIXTURES AND CEILING FANS

Getting rid of those outdated brass fans and lighting fixtures, and replacing them with less expensive brushed nickel or bronze fixtures from Home Depot or Lowes (which I believe has a better selection). Track lighting or recessed lighting is also a good choice, especially in the kitchen. This is the first thing I did when I purchased my home and it updated it incredibly!

6. LANDSCAPING AND EXTERIOR 

The oustside curb appeal can mean everything. I've had clients who wouldn't even get out of the car when they disliked the outside look of a home. A few low-cost ideas are to pull out weeds, mow the lawn, and cut back overgrown trees or shrubs. Other home improvements include adding fresh mulch, planting a couple of rose bushes in your front flower garden, or lining the entryway with a colorful assortment of flowers in pots. And, as any Georgian can attest to, pressure washing any clay stains/mildew on the side of the home or driveway can make for better curb appeal as well.

According to Renovation's Cost vs Value study, these are the renovations that will give you the biggest bang for your buck - as well as projects that generate the lowest return.

Renovations that bring the greatest percentage return on investment:

• Entry door replacement: 96.6 percent
• Deck addition (wood): 87.4 percent
• Attic bedroom: 84.3 percent
• Garage door replacement: 83.7 percent
• Minor kitchen remodel: 82.7 percent

Renovations that yield the smallest return:

• Home office remodel: 48.9 percent
• Sunroom addition: 51.7 percent
• Bathroom addition: 60.1 percent
• Backup power generation: 67.5 percent
• Master suite addition: 67.5 percent

These are just some ideas I've learned that have worked over the years. If you are interested in inside staging for your home, please look forward to my post tomorrow that will give you DIY ideas on how to stage your home and sell it fast!

Emily Benner

REAL Estate Expert

PalmerHouse Properties

678.458.2284

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How to Get the Highest Possible Appraisal for Your Home.

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FREE Home Valuation for your current home

As most of you may know, before anyone can buy a house with a loan from a bank,  the lender needs an objective assessment of the property’s value — after all, the home is the bank’s collateral for the loan. Assessing the value is the job of the appraiser. From my experience as a Realtor, I have come across every kind of appraiser out there. The good, the bad and the UGLY!! Even though I wish I had not experienced the ridiculously low appraisals or the slacker of an appraiser....these encounters have given me the knowledge I need to inform home sellers and buyers about the process and the "secrets" of making that appraisal value go up, up and up!

As many know, individual banks and lenders used to hire their own appraisers that would be employed by their individual companies. Because of all the issues we had back in 2007 to 2009, referred to the "mortgage crisis", now all lenders are required to use an "Appraisal Management Company" (aka "AMC"). This company will hire individual appraisers and, as a bank orders an appraisal on a home, will assign that individual appraiser to that specific appraisal. Confused yet?! Ok, this is what happens in this situation. Ultimately, an appraisal is an opinion of the person conducting the appraisal. As you probably discovered while working in groups in school, some students over-achieve, while some just barely exist. This is exactly what happens in the appraisal world. Some appraisers go above and beyond and then some merely run some comparable property reports, take a few pics and call it a day. You, as a buyer, is ultimately paying this appraiser to do his job....and, you as the homeowner, is relying on this appraiser to appraise your prized property for what it's worth. So, I have put together a few secrets that will help you get your home appraised right!

How to Get Your Home Appraised for What it's Worth

1. GET AN INDEPENDENT APPRAISAL: I tell all my clients who are listing their homes with me to get an independent appraisal done prior to listing. Call around and do some research to determine a well-known appraiser for your specific neighborhood or area that is familiar with the area. This will provide you with the best possible appraisal out there. Also, this will give you the upper hand when it comes to determining a listing price, as well as give you some collateral a bit later in the process. An accurate appraisal report is like money when it comes to the actual appraisal, or an offer brought to you by a buyer's agent. Make sure your agent has this appraisal report accessible (and visible) to all buyer's agents when showing the home, as well as to the appraiser during the actual appraisal. It helps. Trust me. Most appraisals will run you $350 to $500. It's definitely worth the investment....BUT, if that's not something in your budget, PLEASE make sure your listing agent does their work.

2. GET A GOOD LISTING AGENT: Make sure your agent pulls recent comps within the last six months that sold.....within the same subdivision....or within a square mile. No ten mile away stuff. Goodness. Also, make sure your agent takes note of all upgrades and adjusts the price accordingly. Also, make sure your agent meets the appraiser at the property during the appraisal to point out all of the upgrades/renovations made to the home. Also, to provide the appraiser with the agent's comps that can be used as a reference when putting together the report.

3. DON'T ACCEPT A LOW APPRAISAL: If the appraiser happens to appraise your home/or the home you are looking to purchase lower than what you know it's worth, then you do have a few options. First of all, you can appeal the appraisal through the lender. Have your agent provide more accurate comps, as well as a list of upgrades, etc. In my experience, a second appraisal, paid by the buyer, may be necessary when it comes to a low appraisal. For some reason, appraisers don't like to change their appraisal value. Go figure.

So, the point I'm trying to get across here....is that, if you do your work in the beginning, you are more likely to get an appraisal to come in higher and closer to the actual value of your home. And in the long run, that makes everybody happy!

Click here if you would like a FREE Home Valuation for your current home, or one you are interested in purchasing. This will give you an idea of where you're at as far as value according to the current market. With your CMA, I will also email you some helpful information that will guide you in adding value to your home.   

Emily Benner

Real Estate Expert

PalmerHouse Properties

emilysells@gmail.com

678-458-2284

www.propertyvaluesbyaddress.com