Berkshire Hathaway HomeServices Georgia Properties Atlanta Real Estate Advisor - July 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 June were up 7.8% compared to last month and down 3.8% compared to the previous year.
• The Metro Atlanta market is currently running 2.02% behind 2013 in closed transactions and 9.6% 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.
• 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 8.8% 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 6% from last month and up 25.8% compared to last year.  Inventory is up 48% from the recent bottom on 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 4.3 months versus 4.2 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 slow but sure comeback.  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 15% from the peak of July 2007.   Click here for the latest report.
• 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.

Introducing DriveTime For Mobile!

We are pleased to introduce our new Drive Time and Walk Time services for our Mobile App.  This is the first of its kind for Metro Atlanta.  It is available immediately for iPad and will be available soon for Android tablets, Smartphones and all our websites. Contact us to learn more!

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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Atlanta Case-Shiller Index Reported February 2014! We Check The Atlanta Real Estate Market Trends!

This article is provided coutesy of Berkshire Hathaway HomeServices Georgia Properties and the atlscoop Blog!

The latest Case-Shiller Index was published on Tuesday, February 25th 2014. As always, the index reports on data 60 days in arrears. Therefore, the index reports Metro Atlanta home values for December 2013. So what does the latest index show and what does that mean for home values in Metro Atlanta? Home values have significantly improved and are now stabilizing.  To properly assess the Case-Shiller Index data, 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, which are generally better indicators of home values. Second, this index reflects average home values for all of Metro Atlanta. Remember, real estate is local and every market is different. Your local BHHS Georgia Properties agent can help you understand the specific metrics in your local market.

Now for the news…. Average home prices for the National 20-City Index decreased by .1% compared to last month and increased 13.4% over the same month a year ago.  For 2013, the National Case-Shiller Index was up 11.3%.  The November index for Metro Atlanta shows a .02% (non-seasonally adjusted) decrease in home values from November 2013 and an 18.13% increase over the same month last year. While these numbers remain very positive, we must bear in mind that home prices are still down 16.94% from the peak of July 2007. The October index for Atlanta is 113.35. This is the third month in a row that the index has reported a decrease.  This signals that home values are leveling off for many markets.  Las Vegas, San Diego, Los Angeles and San Francisco had the highest year-over-year price increases. These were closely followed by Atlanta and Phoenix.  New York, Cleveland and Washington D.C. showed the smallest year-over-year improvements.

The Metro Atlanta real estate market continues to show signs of moving back to a normal market. Listing inventory is up 13.8% from the bottom of February 2013. This is down 1.3% from last month and up 13.8% from the same month last year.   Closings were down 39% from last month and down 22% from the same month last year.  Months of inventory are now 6.6 month based upon the latest closed sales trend. Six months supply is considered normal. We saw an extended period of low inventory in 2013.  But the recent trend is rising and we appear headed for a more normal level of inventory for the spring.  Buyer activity remains strong led by baby boomers and first-time buyers. At the same time, the pace of pre-foreclosures (notices of default) and foreclosures has slowed dramatically. Resales and  new homes are outpacing bank-owned sales. New Homes are making a significant comeback.  Right now there is very low new homes inventory due to the high absorption and pre-sales are emerging again.  In the next few years, new homes will become a more significant part of the inventory and closed sales. Your local Berkshire Hathaway HomeServices Georgia Properties agent can show you the specific conditions in your market so you can make the best real estate decisions.

This month is the third negative result in a row for Metro Atlanta.  Previously, we saw positive results from the Case-Shiller Index for 11 months in a row.  What a change from a few years ago!  Metro Atlanta Home Values are up 37% from the most recent low point of February 2012 according to the Case-Shiller Index.  But remain down 16.94% from the peak of July 2007.  View the graph of the monthly Case-Shiller results from 2010, 2011, 2012 and 2013.

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 still makes now a great time to buy or invest in real estate for Metro Atlanta – BUT don’t wait too long!

This chart shows the “months supply” based upon price ranges. As you can see, the supply is very low in the lower price ranges. Investors have been very active in the price range but that slowed considerably. As you get to the luxury market, there is more supply available based on the slower rate of closed sales. Contact your local Berkshire Hathaway HomeServices Georgia Properties agent to see the latest trends in your specific area.

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 – Gain 9.80%
Homes Bought in 2001 – Gain of 3.98%
Homes Bought in 2002 – Gain of .12%
Homes Bought in 2003 – Loss of 3.03%
Homes Bought in 2004 – Loss of 6.33%
Homes Bought in 2005 – Loss of 10.83%
Homes Bought in 2006 – Loss of 14.89%
Homes Bought in 2007 – Loss of 15.44%
Homes Bought in 2008 – Loss of 7.58%
Homes Bought in 2009 – Gain of 4.56%
Homes Bought in 2010 – Gain of 7.17%
Homes Bought in 2011 – Gain of 15.24%
Homes Bought in 2012 – Gain of 24.95%

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: The long-term trend for buyer demand is strong as buyers take advantage while prices remain below replacement costs and mortgage financing is historically low. We continue to see significant pent-up demand for new household formation from first time buyers and a very active baby boomer market.  But the large investors have recently slowed their buying patterns for properties under $100,000. The last few months have seen a normal seasonal slowdown in transactions.  We will be watching the buyer demand trends closely to determine of we have any changes in the leading indicators.

Mortgage Rates/ Credit Availability: Average mortgage rates in the past 50 years were 8%. Rates remain historically low but the long-term trend is higher. Freddie Mac and the Mortgage Bankers Association predict mortgage rates to rise to over 5% in 2014. In 3-5 years, we expect to see rates in the 6-8% range again.

Supply/ Inventory Levels: The inventory has been rising over the past few months as we move toward a more normal level of supply.  New homes will become a more significant part of the overall inventory by the spring.  Values have been on the rise but are showing signs of leveling off.  We expect more “sideline sellers” get back into the market for the spring. The “for sale” inventory this spring should be historically normal once again.

Competition from Short Sales/ Foreclosures: In 2010, RealValuator reports that short sales and foreclosures were over 60% of the transactions sold but have dropped to under 20% in 2013. Resales and new homes are significantly outpacing short sales and bank-owned properties.

New Homes Make A Comeback: New Home starts are rising and will slowly but surely become a major factor for Metro Atlanta real estate. In 3-5 years, we expect New Homes to return to 40%-45% of the inventory and closed sales. For resale owners, your competition will shift from foreclosures & short sales to new homes.

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. But the trends for mortgage rates are upward and home prices are increasing. Many buyers and sellers need to act quickly before their buying power in impacted significantly. In 5 or 10 years, many will look back and regret not buying their dream home when they had the chance! The cost of waiting could be quite significant. Check back for our next posts with the latest facts and insight that can make you money!

Prudential Georgia Realty has changed our name to Berkshire Hathaway HomeServices Georgia Properties.  Berkshire Hathaway is the 8th largest public company and was ranked the No.1 most respected company in Barron’s ranking of the top 100 companies. Berkshire Hathaway has the resources to bring a new level of quality and innovation to real estate.  Look for more exciting announcements coming soon!  For more information, visit BHHSGeorgia.com.

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 Arthur.Prescott@BHHSGeorgia.com.

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Metro Atlanta Case-Shiller Index Reported January 2014! See The Latest Real Estate & Home Sales Trends For Atlanta!

This Metro Atlanta Case-Shiller Index Report For January 2014 is provided to us courtesy of Berkshire Hathaway HomeServices Georgia Properties.

The latest Case-Shiller Index was published on Tuesday, January 28th 2014. As always, the index reports on data 60 days in arrears. Therefore, the index reports Metro Atlanta home values for November 2013. So what does the latest index show and what does that mean for home values in Metro Atlanta? Home values have significantly improved and are now stabilizing. To properly assess the Case-Shiller Index data, 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, which are generally better indicators of home values. Second, this index reflects average home values for all of Metro Atlanta. Remember, real estate is local and every market is different. Your local BHHS Georgia Properties agent can help you understand the specific metrics in your local market.

Now for the news…. Average home prices for the National 20-City Index decreased by .1% compared to last month and increased 13.7% over the past year. The November index for Metro Atlanta shows a .31% (non-seasonally adjusted) decrease in home values from October 2013 and an 18.49 increase over the same month last year. While these numbers remain very positive, we must bear in mind that home prices are still down 16.93% from the peak of July 2007. The October index for Atlanta is 113.37. This is the first time in nine months that the index has reported a decrease. This signals that home values are leveling off for many markets. Las Vegas, San Diego, Los Angeles and San Francisco had the highest year-over-year price increases. These were closely followed by Atlanta and Phoenix. New York, Cleveland and Washington D.C. showed the smallest year-over-year improvements.

The Metro Atlanta real estate market continues to show signs of moving back to a normal market. Listing inventory is up 15% from the bottom of February 2013. This is up 11% from 2012 and down 37% from 2011. That represents around 4.6 months supply of inventory based upon the latest closed sales trend. Six months supply is considered normal. We saw an extended period of low inventory late last year and early in 2013. But the recent trend is rising and we appear headed for a more normal level of inventory for next spring. Buyer activity remains strong led by baby boomers and first-time buyers. At the same time, the pace of pre-foreclosures (notices of default) and foreclosures has slowed dramatically. Resales and new homes are outpacing bank-owned sales. New Homes are making a significant comeback. Right now there is very low new homes inventory due to the high absorption and pre-sales are emerging again. In the next few years, new homes will become a more significant part of the inventory and closed sales. Your local BHHS Georgia Properties agent can show you the specific conditions in your market so you can make the best real estate decisions.

This month is the second negative result in 12 months for Metro Atlanta. Previously, we saw positive results from the Case-Shiller Index for 11 months in a row. What a change from a few years ago! Metro Atlanta Home Values are up 37% from the most recent low point of February 2012 according to the Case-Shiller Index. But remain down 16.93% from the peak of July 2007. View the graph of the monthly Case-Shiller results from 2010, 2011, 2012 and 2013.





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 still makes now a great time to buy or invest in real estate for Metro Atlanta – BUT don’t wait too long!





This chart shows the “months supply” based upon price ranges. As you can see, the supply is very low in the lower price ranges. Investors have been very active in the price range but that slowed considerably. As you get to the luxury market, there is more supply available based on the slower rate of closed sales. Contact your local BHHS Georgia Properties agent to see the latest trends in your specific area.



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 – Gain 9.82%
Homes Bought in 2001 – Gain of 4.00%
Homes Bought in 2002 – Gain of .14%
Homes Bought in 2003 – Loss of 3.01%
Homes Bought in 2004 – Loss of 6.32%
Homes Bought in 2005 – Loss of 10.81%
Homes Bought in 2006 – Loss of 14.88%
Homes Bought in 2007 – Loss of 15.43%
Homes Bought in 2008 – Loss of 7.56%
Homes Bought in 2009 – Gain of 4.58%
Homes Bought in 2010 – Gain of 7.19%
Homes Bought in 2011 – Gain of 15.26%
Homes Bought in 2012 – Gain of 24.97%

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: The long-term trend for buyer demand is strong as buyers take advantage while prices remain below replacement costs and mortgage financing is historically low. We continue to see significant pent-up demand for new household formation from first time buyers and a very active baby boomer market. But the large investors have recently slowed their buying patterns for properties under $100,000. The last few months have seen a normal seasonal slowdown in transactions. We will be watching the buyer demand trends closely to determine of we have any changes in the leading indicators.

Mortgage Rates/ Credit Availability: Average mortgage rates in the past 50 years were 8%. Rates remain historically low but the long-term trend is higher. Freddie Mac and the Mortgage Bankers Association predict mortgage rates to rise to over 5% in 2014. In 3-5 years, we expect to see rates in the 6-8% range again.

Supply/ Inventory Levels: The inventory has been rising over the past few months as we move toward a more normal level of supply. New homes will become a more significant part of the overall inventory by the spring. Values have been on the rise but are showing signs of leveling off. We expect more “sideline sellers” get back into the market for the spring. The “for sale” inventory this spring should be historically normal once again.

Competition from Short Sales/ Foreclosures: In 2010, RealValuator reports that short sales and foreclosures were over 60% of the transactions sold but have dropped to under 20% in 2013. Resales and new homes are significantly outpacing short sales and bank-owned properties.

New Homes Make A Comeback: New Home starts are rising and will slowly but surely become a major factor for Metro Atlanta real estate. In 3-5 years, we expect New Homes to return to 40%-45% of the inventory and closed sales. For resale owners, your competition will shift from foreclosures & short sales to new homes.

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. But the trends for mortgage rates are upward and home prices are increasing. Many buyers and sellers need to act quickly before their buying power in impacted significantly. In 5 or 10 years, many will look back and regret not buying their dream home when they had the chance! The cost of waiting could be quite significant. Check back for our next posts with the latest facts and insight that can make you money!

Prudential Georgia Realty has changed our name to Berkshire Hathaway HomeServices Georgia Properties. Berkshire Hathaway is the 8th largest public company and was ranked the No.1 most respected company in Barron’s ranking of the top 100 companies. Berkshire Hathaway has the resources to bring a new level of quality and innovation to real estate. Look for more exciting announcements coming soon! For more information, visit BHHSGeorgia.com.




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 Arthur.Prescott@BHHSGeorgia.com.

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Exciting News In Real Estate Is Coming To Lake Lanier & Greater Metro Atlanta

Click picture to view full size image  1 | 2  pause slideshow

Exciting News Is Coming To Greater Metro Atlanta!

Prudential Georgia Realty is pleased to announce that we will be changing to the new Berkshire Hathaway HomeServices brand on December 10, 2013.  This year, we celebrate our 50th anniversary as an organization.  Many things have changed over the years but our commitment to delivering exceptional services to our clients has remained constant.  In the past 5 years, our company has been consistently ranked the No.1 real estate company in the Greater Metro Atlanta area.  As we begin this new chapter, we are proud to be among the elite entrusted to use the Berkshire Hathaway name.  Berkshire Hathaway is the 8th largest public company and was named the No. 1 company in Barron’s annual ranking of the world’s 100 most respected companies.  Berkshire Hathaway has the resources to bring a new level of quality to the real estate industry.  Look for some exciting announcements as we introduce this powerful new brand.  Contact us to learn how we can help you make smarter real estate decisions!     Berkshire Hathaway HomeServices Georgia Properties Coming December 10, 2013!

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.

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Metro Atlanta Real Estate Market Trends For September 2013! Let's Check The Home Sales Stats!

The real estate numbers for the Greater Atlanta Metro real estate market are out for September 2013! Today, we're checking the stats for home sales inventory and homes that are listed for sale. Our SlideShare presentation courtesy of Prudential Georgia Realty, tells the complete story of the Atlanta real estate market as seen through the September 2013 end of month. As anticipated, Prudential Georgia Realty's company numbers continue to outperform the competition. We continue to be an excellent source for listing and selling your Atlanta area real estate.

While the market for Lake Lanier homes is different in many ways from the Atlanta real estate market, as we have stressed before, it is important to view the Atlanta market as it is closely related to many Lake Lanier homeowners. Without a doubt, the second-home market for lake homes is heavily owned by residents of Atlanta. Therefore, we like to show the data and the trends for the market in Atlanta as well as the market here on Lake Lanier. The SlideShare presentation below includes 32 very important slides which will give you an insight into what the real estate trends are in the greater metro Atlanta area. As always, please feel free to contact us for more details on the market in your local area.

Metro Atlanta Real Estate Market Trends September 2013 from Arthur Prescott

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.

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Atlanta Real Estate Market Trends For August 2013! We Check The Stats On Homes For Sale, Inventory And Sales!

The real estate numbers for the Greater Atlanta Metro real estate market are out for August 2013! Today, we're checking the stats for home sales inventory and homes that are listed for sale. Our SlideShare presentation courtesy of Prudential Georgia Realty, tells the complete story of the Atlanta real estate market as seen through the August 2013 end of month. The year-over-year numbers, show a surprising change in the market with a slight softness as compared to 2012. Nevertheless, Prudential Georgia Realty's company numbers continue to outperform the competition. We continue to be an excellent source for listing and selling your Atlanta area real estate.

While the market for Lake Lanier homes is different in many ways from the Atlanta real estate market, as we have stressed before, it is important to view the Atlanta market as it is closely related to many Lake Lanier homeowners. Without a doubt, the second-home market for lake homes is heavily owned by residents of Atlanta. Therefore, we like to show the data and the trends for the market in Atlanta as well as the market here on Lake Lanier. The SlideShare presentation below includes 37 very important slides which will give you an insight into what the real estate trends are in the greater metro Atlanta area. As always, please feel free to contact us for more details on the market in your local area.

Atlanta Real Estate Market Trends For August 2013 from Arthur Prescott

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.

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Metro Atlanta Case-Shiller Index Reported March 2013

The following report has been re-posted courtesy of Prudential Georgia Realty's AtlScoop Blog.


The latest Case-Shiller Index was published on Tuesday, March 26th 2013. As always, the index reports on data 60 days in arrears. Therefore, the index reports Metro Atlanta home values for January 2013. 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, which are generally better indicators of home values. Second, this index reflects 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. Your local Prudential Georgia Realty agent 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 increased by .01% when compared to last month and increased 8.1% over the past year. The January index for Atlanta shows a 1% (non-seasonally adjusted) increase in home values from December 2012 and a 13.41% increase over the last year. While these numbers are positive, we must bear in mind that home prices are still down 29% from the peak of July 2007. The current Case-Shiller index reflects values similar to home values in the summer of 1999. The January index for Atlanta is 96.90. All 20 cities in the Case-Shiller Index showed positive year-over-year gains for Janaury. Detroit was the only city to show a deceleration and New York finally came into positive territory after 28 months of negative annual returns.


The Metro Atlanta real estate market continues to show signs of improvement for sellers. Listing inventory is down 38.7% from March of 2012 and down 57% from March of 2011. That represents around 3.4 months supply of inventory based upon the latest pending 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 but are now down to 37% in 2013. Market sales (resales, new homes) are outpacing bank-owned sales. Your local PGR agent can show you the specific conditions in your market so you can make the best real estate decisions.


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 expect to see more positive results as we move toward the spring market. 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, 2012 and 2013:





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 – BUT don’t wait too long!





This chart shows the “months supply” based upon price ranges. As you can see, the supply is very low in the lower price ranges. Some of this is due to heavy investor activity under $200,000. As you get to the luxury market, there is more supply available based on the rate of sales. Contact your local PGR agent to see the latest trends in your specific area.





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 7.05%

Homes Bought in 2001 – Loss of 11.98%

Homes Bought in 2002 – Loss of 15.25%

Homes Bought in 2003 – Loss of 17.92%

Homes Bought in 2004 – Loss of 20.71%

Homes Bought in 2005 – Loss of 24.52%

Homes Bought in 2006 – Loss of 27.96%

Homes Bought in 2007 – Loss of 28.42%

Homes Bought in 2008 – Loss of 21.77%

Homes Bought in 2009 – Loss of 11.49%

Homes Bought in 2010 – Loss of 9.28%

Homes Bought in 2011 – Loss of 2.45%

Homes Bought in 2012 – Gain of 6.82%


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 expect to see an 8-10% increase in units for 2013. We are moving back toward a 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 while 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 as the Fed is already signaling they may start to slow down this program. 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 201o, RealValuator reports that short sales and foreclosures were over 60% of the transactions sold but have dropped to 37% in 2013. 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.

Prudential Georgia Realty Real Estate Advisor For April 2013

Prudential Georgia Realty Real Estate Advisor
April 2013

We are providing this monthly real estate advisor report to keep you informed about the latest trends and issues in the real estate market. 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!



We hope that you and your loved ones are having a wonderful spring season! 2013 has brought some exciting new trends for real estate in the Greater Metro Atlanta area. If you are considering your options or know others who may benefit from this information, please contact us. We would be honored to help.

Real estate is heavily impacted by the laws of supply & demand plus a few other factors like mortgage rates and the economy. The “for sale” inventory across most markets remains very low. Desirable properties priced at market values are selling very quickly – often with multiple offers.
For the Greater Metro Atlanta area, inventory levels are down 38.7% from 2012 and 57.7% from 2011.
The available “months of supply” is 3.4 months based upon pending sales. Six months of supply is considered a normal market.
The pace of short sales and foreclosures coming on the market has slowed considerably. In 2010, over 60% of sales were distressed properties but that is now down to 37%. Resales are the larger mix of sales.
New Homes are making a slow but sure comeback. There are some wonderful new home communities coming online with the latest innovations in smart buildings 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 9.91% in the last 12 months. But values remain down 29.69% from the peak of July 2007. Click here for the latest Case-Shiller report.
Home values will continue to rise in 2013 – especially in the lower price points driven by the very low levels of inventory and strong buyer demand.
Mortgage rates remain incredibly low – but this will change significantly in a few years. Last week, the Fed reinforced their position of buying $85 billion per month in mortgage-backed securities. The simple fact is that mortgage rates are being held down artificially and the mortgage system must be restructured to be able to operate normally. That means higher rates and higher costs for financing are coming in the future.

This is an unprecedented opportunity to buy the home of your dreams while prices and financing are historically low. But these conditions will not last as the real estate market continues to recover.
Prudential Georgia Realty To Become
BERKSHIRE HATHAWAY HomeServices!



On March 19th, Prudential Georgia Realty was pleased to make two significant announcements:

First, we have decided to be an early adopter of the new BERKSHIRE HATHAWAY HomesServices® brand. As soon as it is available in our market, we will rebrand our company to the premiere real estate brand of the future. We expect the new brand to be available in the 3rd quarter of 2013 and will make a big splash in the Greater Metro Atlanta area. Click here for a preview of the visual identity of the new brand.

Second, our company has agreed to be acquired by HomeServices of America, Inc., A Berkshire Hathaway Affiliate. So we are now part of the Berkshire Hathaway family of companies. And our new brand will be the only entity that actually uses the name Berkshire Hathaway as a brand name other than the parent company. Click here for the press release.

Last month, our company celebrated our 50th anniversary. Many things have changed and evolved over the years but one thing has remained constant. We are committed to deliver exceptional real estate services that help our clients and customers achieve their goals. The results speak for themselves. In the last 4 years, all the major firms that track brokerage metrics ranked our company #1 in transactions, listing sales and buyer sales. On March 15th, the Atlanta Business Chronicle published their 2012 rankings for real estate companies. Once again, Prudential Georgia Realty was the #1 residential real estate company. That makes three years in a row that were ranked #1 in sales volume and homes sold! Click here to view the rankings.

We are very excited about becoming part of the Berkshire Hathaway family of companies and adopting the new BERKSHIRE HATHAWAY HomeServices® brand. The new brand identity is smart, distinctive and versatile for all markets and price ranges. For now, we will continue to operate as Prudential Georgia Realty. As more information becomes available, we will keep you informed. There is no action required for existing or future clients. When we officially launch the new brand, we will replace our yard signs and other branding. This will be accompanied by a significant media blitz and will create a great deal of energy and excitement in our market. That is good for all our clients!

If you or someone you know are considering making a real estate move, please contact us to learn more about our services. We would be honored to help.



Getting To Know Berkshire Hathaway
One Of The Most Respected Companies In The World!



Now that our company is part of the Berkshire Hathaway family of companies, we thought it might be helpful to get to know more about our new organization.
According to the Forbes Global 2000 list, Berkshire Hathaway is the 8th largest public company in the world. The company is led by Chairman & CEO, Warren Buffett who is often referred to as “the Oracle of Omaha” for his keen insight on business matters.
The Berkshire Hathaway approach is to acquire companies with great brands, great products and strong leadership, then grow and build value over long periods of time.
Berkshire Hathaway owns and operates approximately 100 companies and employs approximately 300,000 people. Company holdings include major brands like GEICO, Fruit of the Loom, Dairy Queen, Benjamin Moore, Helzberg Diamonds, NetJets, Heinz, MidAmerican Energy and Shaw Industries which is located in Dalton, Georgia.
In the last 48 years, Berkshire Hathaway has returned an average annual growth in book value of 19.7% to investors versus 9.4% for the S&P 500 (including dividends) for the same period. From 2000 to 2010, Berkshire Hathaway stock produced a total return of 76% versus a negative 11.3% for the S&P 500.
Berkshire Hathaway has major stock positions in companies like Wells Fargo (8.7%), American Express (13.7%) and IBM (6%). Berkshire Hathaway is the largest single stockholder of Coca-Cola with holdings estimated at 8.9%.
Barron’s Magazine and Fortune Magazine have ranked Berkshire Hathaway as one of the most respected companies in the world. A Harris Interactive poll cited Berkshire Hathaway as the “most admired” company in the world.
Berkshire Hathaway was recently ranked #4 in market capitalization for U.S. companies with $251 billion in market value by the Online Investor.



Being part of such a large and successful organization gives us many advantages. We are able to purchase solutions in larger scale that gives us a cost advantage. The ability to share “best practices” and resources across the enterprise will allow us to innovate at a faster pace.

We look forward to leveraging the Power of Berkshire Hathaway to deliver even more advantages for our clients and customers. Contact us to learn more.
The Atlanta Braves Opening Day – Monday, April 1st!



Major league baseball is just around the corner. Your Atlanta braves open on Monday, April 1st against the archrival Philadelphia Phillies. Tim Hudson is expected to be on the mound and country star Rodney Adkins will be singing the national anthem. The game is schedule for 7:10pm and tickets are available by clicking here.

The 2013 Atlanta Braves feature some new faces. Chipper Jones is retired and off-season trades moved Michael Bourn and Martin Prado. New faces include Justin Upton and his older brother B.J. Upton who have great gloves and big bats! Braves stars Brian McCann, Jason Heyward, Craig Kimbrell and Dan Uggla are back and ready for a run at the pennant. Note: Brian McCann may not be available for action until late April as he recovers from should surgery. Click here for the 2013 roster.

March Madness is also in full swing. This year the Final Four Championship Tournament is located here in Atlanta at the Georgia Dome on April 6th -8th. You can track all the teams athttp://www.ncaa.com/march-madness. There will be tournament brackets and lots more available on this website. You can also download an app for your favorite mobile device from the iTunes store or the Google Play store.

Interested in tickets? Click this website to see your options: http://www.ncaa.com/final-four#!tickets_hospitality. Ticket prices range from $185 to $4500 and include a variety of hospitality packages. Locals may also be able to buy tickets from fans of teams that get eliminated during the tournament.

Greater Metro Atlanta offers numerous options for major sporting events this spring. Here are a few others events coming up soon:
The Masters PGA tournament is held just down the road in Augusta on April 11th – 14th.
The Greater Gwinnett Championship event for the Champions Tour will be held at the TPC at Sugarloaf in Duluth on April 19th – 21st.

If You Know Someone Who Can Benefit From Our Real Estate Expertise,
We Would Love To Help. 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 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.