Berkshire Hathaway HomeServices Georgia Properties Real Estate Advisor – September 2019

Berkshire Hathaway HomeServices

Georgia Properties

Real Estate Advisor – September 2019

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 the specific details for 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 leads to better real estate decisions!

Below is the summary for Greater Metro Atlanta and North Georgia through August 2019.

The entry-level market has strong demand and very low inventory. There are many multiple offers and values are rising faster than other segments. 85% of all transactions are in the $100K-$500K price range. The mid-market ($500,000 to $1 mil) is showing normal market conditions with 6 months of inventory. The luxury market ($1 mil ) remains a buyer’s market in most areas with sellers having to be more aggressive to attract buyers.

August results show a 1.3% decline in closings compared to last year. New Listings were up 3.5% and pending contracts were up 9% relative to last August. Listed Inventory is up 7.9% - mostly in the segments above $500,000.

Mortgage rates are forecasted to stay historically low through the fourth quarter which is great news for everyone. Metro Atlanta continues to be very affordable relative to other metropolitan areas around the country.

Click here for a detailed report on the U.S. Market, Greater Metro Atlanta Market, Brokerage Rankings and Future Trends.

Our next MEGA Open House Events are Sunday, September 15, 2019 and September 29, 2019 from 2pm – 5pm. There will be hundreds of beautiful open houses available and one lucky sweepstakes winner will win a cool Amazon Alexa Package. MEGA Open House Events are a very effective component of our Advanced Property Marketing to expose our listings to the most buyers. We run a massive advertising campaign using Zillow ads, Facebook, Instagram, Google and WAZE ads, events posted to Nextdoor, Google and Facebook, our metro-wide digital billboard network plus our local neighborhood marketing.

If you know anyone interested in listing their home, contact us so we can get them scheduled for a MEGA Open House Event!

Visit Prosperity Home Mortgage to meet one of our Mortgage Consultants. Ask about the Prosperity Buyer Advantage and our 7-Day Close program.

We are moving into the height of hurricane season. It is always good to be prepared.

Click here for a Hurricane Preparedness Checklist.

Weather forecasters are also calling for a colder winter and more potential snow events. Now is the time to get ready just in case. Remember, Snow Jam 2014? Thousands of people got stuck in the snowstorm and were not prepared. We want you to be ready!

According to recent Gallup poll report, Real Estate continues to be American’s number one choice for the best long-term investment. A recent Gallup poll showed that real estate continues to be the #1 investment choice in the United States. That is especially the case now with financing costs at record lows and the stock market testing record highs. If you are interested in real estate as an investment, we are ready to help. Contact us today to get started!

We would be honored to assist you or someone you know with their real estate needs. We are experts in the local market and have access to proprietary information sources that are not available to the public. Better information leads to better decisions!

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 seventeen years 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 www.LakeSidneyLanierHomes.com or 770-844-8484 or email us at Arthur.Prescott@BHHSGeorgia.com.

Berkshire Hathaway HomeServices Georgia Properties Metro Atlanta Real Estate Advisor - September 2014

Berkshire Hathaway HomeServices
Georgia Properties
Real Estate Advisor - September 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!

Closings for Metro Atlanta in August were down 16.1% compared to last month and down 8.6% compared to the previous year.

The Metro Atlanta market is currently running 1% behind 2013 in closed transactions.

The average sales price was $260,000 in August versus $271,000 in July. The average closed sale price for the year was $250,000 which was up 42% from the bottom of 2011.

Listed inventory was up .5% from last month and up 21.3% compared to last year. Inventory is up 52% 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 last month. Six months is considered normal.

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. Others are moving toward homes that accommodate their health and lifestyles as they move into their senior years. First Time Buyers have slowed due to increasing prices, student loan debt and challenges with employment.

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. 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. Click here to view new home communities.

Metro Atlanta Ranked #3 Most Popular Destination

Atlanta was the No. 3 most popular destination for U.S. families moving to a new city in summer 2014, according to a new survey by United Van Lines. The city was particularly popular for people moving for new jobs, or due to corporate transfers. The survey also shows Atlanta was the No. 3 city families are moving from. The Summer Long-Distance Moving Trends Study says the most popular metro areas for U.S. families were:

Top Metro Areas To Move To:

1. Chicago

2. Washington D.C.

3. Atlanta

4. Boston

5. Los Angeles

6. Dallas

7. Phoenix

8. New York

9. Minneapolis

10. San Diego

Top Metro Areas To Move From:

1. Washington, D.C.

2. Dallas

3. Atlanta

4. Houston

5. Phoenix

6. Chicago

7. Seattle

8. Los Angeles

9. Denver

10. San Jose, California

If you or someone you know are considering moving, contact us to learn about our Advanced Property Marketing System – the most effective approach to selling your home for the highest value.


Georgia Rated The Best Place For Business

Georgia is the best place in the country for doing business, according to Area Development Magazine’s fifth annual survey of site consultants. Georgia unseats Texas to take the title.

1.GEORGIA
2.TEXAS
3.SOUTH CAROLINA
4.ALABAMA
5.TENNESSEE
6.LOUISIANA
7.INDIANA
8.NORTH CAROLINA
9.OHIO
10.MISSISSIPPI

It’s difficult to beat Texas on any list of economic development power states these days, but Georgia did exactly that in the Area Development survey of site consultants, nudging Texas down into the No. 2 spot after it finished No. 1 a year ago. Georgia’s accomplishment was especially impressive because of the breadth of its strong performances over most of the 18 categories voted on by the consultants, including top-three finishes in 12 of them.

The Area Development honor follows other recent recognition of Georgia’s rise in the ranks, which included its choice by a CNBC study as the No. 1 place for business in America. Such rankings “are a testament to the commitment from Georgia businesses, communities, economic development partners, and the people of Georgia,” Gov. Nathan Deal said in a statement, indicating his confidence that “more businesses will consider expanding or relocating here.”

Contact us to learn how our award-winning Corporate Relocation team and our Exclusive Referral Networks are positioned to attract more corporate buyers for our listings.

Berkshire Hathaway HomeServices Honored – Again!

Berkshire Hathaway HomeServices Georgia Properties was recognized as one of the 2014 Atlanta's Best Places To Work at an exclusive event hosted by the Atlanta Business Chronicle. The company was the only large real estate brokerage to receive this prestigious honor.

BHHS Georgia Properties received a Consumer’s Choice Award for residential real estate based on feedback from local consumers.

BHHS Georgia Properties has been consistently ranked the No. 1 real estate company by Trendgraphix, RealValuator and SmartNumbers for 5 years in a row.

President & CEO, Dan Forsman was named the 2014 Most Admired CEO in Residential Real Estate by the Atlanta Business Chronicle.

Berkshire Hathaway HomeServices was named “2014 Real Estate Agency Brand of the Year” in the 26th annual Harris Poll EquiTrend® study of consumers across the nation.

Our New Homes Services team was the winner of over a dozen OBIE Awards for new homes marketing & sales.

Our Marketing Team was recognized with a National Print Industry Award for our beautiful property marketing materials.

Our award-winning Corporate Relocation team continues to receive numerous honors as the leading organization handling relocating corporate employees moving to and from Metro Atlanta.

We are honored to receive such recognition and work hard every day to deliver exceptional service and value to our clients.

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 www.LakeSidneyLanierHomes.com or 678-513-2014 or email us at Arthur.Prescott@BHHSGeorgia.com.

The Latest Case-Shiller Index Report For Metro Atlanta Homes!

This report was published courtesy of Prudential Georgia Realty from the AtlRealEstateScoop Blog and gives a tremendous overview of the latest trends in the Metro Atlanta home market.  While all real estate is local, we believe that the Atlanta market trends are similar in many ways to the trends that we see in Lake Lanier real estate.

The latest Case-Shiller Index was published on Tuesday, January 29th 2013. As always, the index reports on data 60 days in arrears. Therefore, the index reports Metro Atlanta home values for November 2012. So what does the latest index show and what does that mean for home values in Metro Atlanta? Things are improving in our market however two important considerations must be taken into account. First, the Case-Shiller index of home values is very different from average sale prices or median homes prices. The Case-Shiller Index reports on repeat properties sold and other factors, which are generally better indicators of home values. Second, this index reflects the average home values for all of Metro Atlanta. Remember, real estate is local and every market is different. There are some local communities that have held their values reasonably well and others that may continue to decline. In fact, some homes entering the market are getting multiple offers and closed prices above list price. As your local Prudential Georgia Realty agent, we can help you understand the specific metrics in your local market. However, the Case-Shiller Index is a good general indication on what is happening in our market.

Now for the news…. Nationally average home prices declined by .1% in the November Index when compared to the previous month of September for the 20-City Composite report. The September index for Atlanta shows a .08% (non-seasonally adjusted) increase in home values from September 2012, which is the 7th month of positive results out of the last 8 months.  That represents a 15.02% increase in home prices over that same 8 month period.  While these numbers are positive, we must bear in mind that home prices had dropped 23.19% over the prior 8-month period.For all of 2012, homes values in Atlanta are up 9.48% but remain down 29.89% from the peak of July 2007.  The current Case-Shiller index reflects values similar to home values in the spring of 1999. The November index for Atlanta is 95.68.  Atlanta is slightly above the national average for the past 12 months with a 7.6% increase in home value versus 5.5% for the 20-city composite index.  New York and Chicago show the worst performance over the past year.

The Metro Atlanta real estate market continues to show signs of improvement for sellers. Listing inventory is down 40.5% from January of 2012 and down 57.3% from January of 2011.  That represents a 4.7 month supply of inventory based upon the latest closed sales trend.  Six months supply is considered normal. We have seen an extended period of low inventory since last year.  Buyer activity remains strong led by baby boomers, first time buyers and investors.  At the same time, the pace of pre-foreclosures (notices of default) and foreclosures has slowed.   RealValuator reports that short sales and foreclosures were over 60% of the transactions sold in 2010, 47% in 2011 and 37% in 2012.  Market sales (resales, new homes) are outpacing bank-owned sales. We can show you the specific conditions in your market so you can make the best real estate decisions.

Click on the link below to open the Excel spreadsheet that shows the details of the latest index:

Case-Shiller-Index-Atlanta-November-2012-Index-Reported-January-2013

We have now seen a series of positive results from the Case-Shiller Index but the last few months show the trend slowing or leveling off.  Over the next few months, we may start to see results that are flat or slightly negative.  We are moving back to a more normal seasonal pattern where the spring and summer months are the heaviest selling months. View the graph of the monthly Case-Shiller results from 2010, 2011 and 2012:

If you look back further at home values (see chart below), you can see that we had a bubble in homes values. As with many cyclical markets, we have over-corrected with values that are below the normal trend line. Over time, we expect this pattern to normalize and values will return to this predictable track. That makes now a great time to buy or invest in real estate for Metro Atlanta!

If you look at the average annual Case-Shiller index for each year, here is how homes purchased in recent years would compare to the current index:

Homes Bought in 2000 – Loss of 7.32%
Homes Bought in 2001 – Loss of 12.22%
Homes Bought in 2002 – Loss of 15.49%
Homes Bought in 2003 – Loss of 18.15%
Homes Bought in 2004 – Loss of 20.93%
Homes Bought in 2005 – Loss of 24.73%
Homes Bought in 2006 – Loss of 28.16%
Homes Bought in 2007 – Loss of 28.63%
Homes Bought in 2008 – Loss of 21.99%
Homes Bought in 2009 – Loss of 11.74%
Homes Bought in 2010 – Loss of 9.54%
Homes Bought in 2011 – Loss of 2.72%

Yes, we are slowly climbing our way out of this unprecedented housing crisis – but we are not quite there yet. So where will home values go from here? The key factors that will impact our home values include the following:

Demand from Buyers: SmartNumbers reports that we finished 2012 with over 75,000 homes sold – a 7% increase from 2011.  We are moving back toward a more more normal expectation of 80,000 to 85,000 homes sold per year.

Mortgage Rates/ Credit Availability: Average mortgage rates in the past 50 years were 8%. We expect to see historically low mortgage rates continue now that the Fed is still purchasing $85 billion of bonds and mortgage-backed securities each month.  But this stimulus to keep rates artificially low will not last forever. Freddie Mac and the Mortgage Bankers Association predict mortgage rates to rise to over 4% in 2013. In 3-5 years, we expect to see rates in the 6-8% range again.

Supply/ Inventory Levels: Most of our markets are showing inventory levels down well over 30% from the prior year levels. We see investors very active under $200,000 which will continue to shrink that inventory. New homes will continue to grow but not fast enough to have a significant impact on inventory levels. As values begin to rise, we expect “sideline sellers” to get back into the market. Overall, the “for sale” inventory will remain low compared to normal levels.

Competition from Short Sales/ Foreclosures: In 2011, RealValuator reports that short sales and foreclosures were over 60% of the transactions sold. In 2011, that dropped to 47% and in 37% in 2012.  We are now seeing resales and new homes outpace the sales of bank-owned properties.

It is clear that the housing market for the Greater Metro Atlanta area is improving.  Right now, we still have low prices and incredible mortgage rates.  You and your agent should be carefully watching the leading indicators.  There are some great opportunities to buy or invest.  But the low inventory may cause prices to start rising at an abnormally high rate.  In 5 or 10 years, many will look back and regret not buying their dream home when they had the chance! Check back for our next posts with the latest facts and insight that can make you money!

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 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 APrescott@PrudentialGeorgia.com.