Berkshire Hathaway HomeServices
Georgia Properties
Real Estate Advisor - August 2014
We are providing this monthly real estate advisor to keep you informed about the latest trends and issues in the real estate market. Remember that real estate is local and every market is different. Contact us to find out exactly what is happening in your local area. If you know someone else who might be interested in receiving this report or who may benefit from our expertise, please let us know. Better information helps our clients make better real estate decisions!
- Click here for a detailed market report for the Greater Metro Atlanta area. BHHS Georgia Properties was Number 1 in both homes sold and buyers represented. We have been ranked #1 for 5 years in a row!
- Closings for Metro Atlanta in July were down 14.4% compared to last month and down 15% compared to the previous year.
- The Metro Atlanta market is currently running 2.5% behind 2013 in closed transactions and 8.5% ahead in sales volume.
- It seems surprising to most that the market is down in units sales compared to last year. But there is more to that story…
- Last year, we had a significant number of closings from large investors buying single family properties to put into their rental programs. This year those large investors have slowed their purchases considerably. The under $100,000 segment is 2597 units or 33% lower than the number of closings in 2013.
- Equity Depot recently announced that “notices of default” for foreclosures had shrunk to a 12 year low in Metro Atlanta.
- The combination of fewer investor deals and fewer foreclosures reflect drastically smaller numbers in the $100,000 and below segment of the market. Remember, those were unusual patterns. If you factor out those transactions, the market is up 7.5% versus last year in units.
- The largest buying segment for Metro Atlanta is Baby Boomers/ Gen X. Thousands of these homeowners are moving to smarter living environments with less maintenance and others are moving toward homes that accommodate their health and lifestyles and they move into their senior years. First Time Buyers have slowed due to increasing prices, student loan debt and challenges with employment.
- Listed inventory was up 1.4% from last month and up 23.7% compared to last year. Inventory is up 50% from the recent bottom of February 2013. But the limited availability of highly desirable properties in select markets is still driving multiple offers and very quick sales. Other areas have more normal conditions. Remember, real estate is local and markets are different.
- The overall “months of supply” is 4.7 months versus 4.3 last month. Six months is considered a normal market.
- But you can see that the numbers are very different depending on the price point and area. Contact us to learn more about your specific area.
- New Homes are making a comeback. SmartNumbers reports that new homes are up 16%. The problem is that many builders cannot build them fast enough! Labor shortages are one of the most significant inhibitors.
- At the peak of 2006, we were building over 60,000 new homes per year. Then the numbers dropped to 5,000 during the recession. Today, we are on pace to build around 18,000 new homes in 2014 and we expect to get to the 20,000 unit run rate by 2015.
- New home prices are rising with strong demand and limited inventory. Presales are once again becoming the majority of sales. In this environment, you want to make sure you are protected with strong representation to help set up the right expectations and agreements with the builder. Contact us to learn more about best practices for buying new homes.
- There are some wonderful new home communities coming online with the latest innovations in smart building that may be great options for buyers. Click here to view new home communities.
- The Case-Shiller Index reports that Metro Atlanta home values have increased 40% from the bottom of March 2012. But values remain down 14% from the peak of July 2007.
- As the chart shows, our home values are back on a more normal trend line after over-inflating and then over-correcting. These are common market cycles that work themselves back to a normal trend over time.
- The long-term trend for mortgage rates is higher. The Mortgage Bankers Association and Freddie Mac predict 30-year mortgage rates to be over 5% in late 2014 and 2015. We still have exceptional mortgage rates. The average mortgage rates in the last 50 years was 8%. Act now before rates move higher!
This is an excellent opportunity to make your move while prices remain below replacement costs and financing costs are historically low. Contact us to get started.
Luxury Market Share Report For Metro Atlanta
The results are in for the first half of 2014 and there are some big changes in the luxury market for Metro Atlanta! Berkshire Hathaway HomeServices is making a major move with the introduction of the Luxury Collection program. The market increased 14.2% in units and 16% in volume. BHHS gained 36% in units and 37.7% in volume. Visit BHHSGeorgia.com for details.
If You Know Someone Who Can Benefit From This Information Or Our Real Estate Expertise, We Would Love To Help Them.
Lake Sidney Lanier Homes is the most comprehensive online source for information on Lake Lanier homes for sale and Lake Lanier area real estate. View the latest Lake Lanier home listings, foreclosures, lots, land, sales trends and real estate topics on Lake Lanier. Arthur Prescott is an Accredited Buyer's Representative and Certified Residential Specialist with Berkshire Hathaway HomeServices Georgia Properties. He has over a decade of Lake Lanier real estate experience. If you would like to schedule a free buyer or seller consultation, please feel free to contact us directly at 678-513-2014 or email us at Arthur.Prescott@BHHSGeorgia.com.
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