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.

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

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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Berkshire Hathaway HomeServices Georgia Properties Atlanta Metro Area Real Estate News For January 2014!

Real Estate Advisor - January 2014
Introducing Our New Name…
BERKSHIRE HATHAWAY HomeServices

On December 10th, our company adopted the new Berkshire Hathaway HomeServices brand. We are excited to begin this new chapter for our company and this conversion will bring many advantages for our agents and our clients. This year, we also celebrate 50 years of serving the needs of our clients in the Greater Metro Atlanta area. During that time, we have operated as Crest Realty, Merrill Lynch Realty, Prudential Atlanta Realty and Prudential Georgia Realty. Though the name has changed, our commitment to deliver exceptional real estate services has not. In the last five years, our company has been consistently ranked as the #1 real estate company with more homes sold than any other brokerage. Here is some information about Berkshire Hathaway.

• According to the Forbes Global 2000 list, Berkshire Hathaway is the 8th largest public company in the world. The company is led by Chairman and CEO, Warren Buffett who is often referred to as “the Oracle of Omaha” for his keen insight on business matters.
• Berkshire Hathaway owns and operates approximately 55 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.
• Berkshire Hathaway has major stock positions in companies like Wells Fargo (8.7%), American Express (13.7%), IBM (6%) and Coca-Cola (8.9%).
• Berkshire Hathaway was named the No. 1 company in Barron’s annual ranking of the world’s 100 most respected companies.

Being part of such a large and successful organization gives us many advantages. Berkshire Hathaway HomeServices has the resources to bring a new level of quality and innovation to real estate. Look for a series of announcements in early 2014!

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.

Greater Metro Atlanta Real Estate Update

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!

Here are the latest results posted for November 2013:

• Once again, BHHS Georgia Properties was Number 1 in both homes sold and buyers represented. Our company continues to lead the market year-to-date for 2013.
• For the Greater Metro Atlanta area, listed inventory was up 21.4% from the lowest point in February 2013. Inventory was up 7.7% compared to 2012 levels and down 34% from 2011. The limited availability of quality properties with reasonable value has turned some local areas into a seller’s market.
• The available “months of supply” was 5.1 months based upon closed sales (6 months is considered normal). This is up 18% from last month.
• Closings for Metro Atlanta in November were down 18.6% compared to last month and down 14.4% compared to the previous year.
  Compared to November 2012, closings under $100,000 were down 53%. The exit of large investors has allowed the distribution of properties to return to normal.
• The pace of short sales and foreclosures coming on the market has slowed considerably. In 2010, over 60% of sales were distressed properties but in November we only saw 482 foreclosures and 448 bank-owned sales. Resales and New Homes are the larger mix of sales.
• New Homes are making a slow but sure comeback. New home closings are up 55% . 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 37% from the bottom of March 2012. But values remain down 16% from the peak of July 2007. Click here for the latest report.
• The trend for mortgage rates is higher. The Mortgage Bankers Association and Freddie Mac predict 30-year mortgage rates to be over 5% in 2014. This could significantly reduce buying power for those that wait.
• First time buyers and baby boomers remain the strongest market segments. Move-up buyers are showing some signs of improved activity but remain well below historical levels.

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.

Happy New Year!

As we all get ready to celebrate the New Year, there are many predictions about what is likely to happen in 2014. Here are our top 10 predictions for the local real estate market:

Number 10: New Homes will continue to grow and become an increasing mix of closed transactions. We estimate that New Homes will be 25% of all sales in 2014.
Number 9: Overall inventory will grow to more historically normal levels by spring.
Number 8: Short sales and foreclosures will slow and return to historically normal levels. 
Number 7: Baby boomers and First Time Buyers will be the largest buying segments for the Greater Metro Atlanta area.
Number 6: Mortgage rates will continue to rise to over 5% - which remains historically low. The average mortgage rate in the last 50 years was 8%.
Number 5: Home values will rise faster in areas with great schools and more desirable lifestyles.
Number 4: Apartment buildings will be a bubble with over-building leading to drop in rental rates. Single family rentals in desirable areas will remain strong.
Number 3: Most large investors will exit the Metro Atlanta market.
Number 2: Pent-up demand and fear of rising mortgage rates will bring more buyers into the market. Overall transactions will be 10-15 higher than 2013.
Number 1: Berkshire Hathaway HomeServices clients achieve the best results!

Happy New Year! 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 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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Prudential Georgia Realty Real Estate Advisor November 2013! Check The Real Estate Market Trends For Metro Atlanta!

Prudential Georgia Realty Real Estate Advisor

November 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!

Greater Metro Atlanta Real Estate Update

For the Greater Metro Atlanta area, listed inventory is up 27.7% from the lowest point in February 2013. But inventory remains down .4% compared to 2012 levels and down 36.7% from 2011. The limited availability of quality properties with reasonable value has turned many local areas into a seller’s market.
The available “months of supply” was 4.7 months based upon closed sales (6 months is considered normal). This is up 30% from last month.

Closings in September were down 20%. All price points showed a drop with the $1 mil+ price range showing the greatest drop at over 40%. Year-to-date closings were down 1% compared to the same period from 2012.

Closings under $100,000 are now 21% of all closings. Two years ago, over 50% of properties sold were in the price range. The exit of large investors has allowed the distribution of properties to return to normal.
The pace of short sales and foreclosures coming on the market has slowed considerably. In 2010, over 60% of sales were distressed properties but in September we only saw 139 foreclosures and 189 bank-owned sales. Resales and New Homes are the larger mix of sales.

New Homes are making a slow but sure comeback. New home closings are up 55% from last quarter. 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 35% from the bottom of March 2012. But values remain down 18.27% from the peak of July 2007. Click here for the latest report.
Click Here for a detailed set of slides that show the National Market, the Metro Atlanta Market, The New Homes Market and how our company is performing. There is a reason we are ranked #1 in Metro Atlanta.
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.

Introducing…
BERKSHIRE HATHAWAY HomeServices

On December 10th, our company will be adopting the new Berkshire Hathaway HomeServices brand. We are excited to begin this new chapter for our company and this conversion will bring many advantages for our agents and their clients. This year, we also celebrate 50 years of serving the needs of our clients in the Greater Metro Atlanta area. During that time, we have operated as Crest Realty, Merrill Lynch Realty, Prudential Atlanta Realty and Prudential Georgia Realty. Though the name has changed, our commitment to deliver exceptional real estate services has not. In the last five years, our company has been consistently ranked as the #1 real estate company with more homes sold than any other brokerage. 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 and 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.  Berkshire Hathaway has major stock positions in companies like Wells Fargo (8.7%), American Express (13.7%), IBM (6%) and Coca-Cola (8.9%).  Berkshire Hathaway was named the No. 1 company in Barron’s annual ranking of the world’s 100 most respected companies.

Being part of such a large and successful organization gives us many advantages. For example, our listing clients will benefit from an unprecedented level of exposure. Look for more details and exciting news as we move closer to our big announcement on December 10th.  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.

Fall Backwards – Time To Change Your Clocks

Yes, it is that time of year again. Daylight Saving Time ends so we turn our clocks back one hour at 2am Sunday morning, November 3rd. This change puts us back on Standard Time. The good news is that everyone can get an extra hour of sleep!

History of Day Saving Time: People often ask - what is Daylight Saving Time and why do we have it? Daylight Saving Time (or summer time as it is called in many countries) is a way of getting more light out of the day by advancing clocks by one hour during the summer. During Daylight Saving Time, the sun appears to rise one hour later in the morning, when people are usually asleep anyway, and sets one hour later in the evening, seeming to stretch the day longer. The reason many countries implement DST is to make better use of the daylight in the evenings. Some believe that it could be linked to reducing the amount of road accidents and injuries. The extra hour of daylight in the evening is said to give children more social time with friends and family and can even boost the tourism industry because it increases the amount of outdoor activities. DST is also considered a means to save energy due to less artificial light needed during the evening hours. Benjamin Franklin first suggested Daylight Saving Time in 1784. The United States, Canada and some other countries extended DST in 2007. The new start date is the second Sunday in March (previously the first Sunday in April) through to the first Sunday in November (previously the last Sunday in October). If you would like to set your clock to the correct time, please click this link.

Happy Halloween! 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 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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Real Estate Trends For The Metro Atlanta Housing Market! Catch Up On The Intown Real Estate Stats!

We have said it many times before, and we'll say it again.  While the Metro Atlanta real estate market is very different from the Lake Lanier real estate market, there are indeed some similarities.  Many home owners that own homes at Lake Lanier, also own primary homes in the Metro Atlanta area.  When it comes to decisions on buying and selling their homes, these home owners weigh the stats in both markets.  For many reasons the two markets are tied, and that is why we think it is always important to view the trends in Atlanta.  The following slide presentation, shows the latest stats for the Atlanta real estate market as well as the production results for Prudential Georgia Realty as they compare to other brokers in our market area. The slides are packed with valuable information produced by research gathered by Prudential Georgia Realty.  Take a look at the slides and contact us with questions or comments.  We look forward to hearing from you!

Metro Atlanta Real Estate Market Trends July 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 For July 2013! See The Latest Real Estate Trends!

This real estate update is courtesy of our broker, Prudential Georgia Realty, and its blog at atlscoop.com!

The latest Case-Shiller Index was published on Tuesday, July 30th 2013.  As always, the index reports on data 60 days in arrears. Therefore, the index reports Metro Atlanta home values for May 2013. So what does the latest index show and what does that mean for home values in Metro Atlanta?  Home values continue to improve 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. Your local Prudential Georgia Realty 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 increased by 2.4% compared to last month and increased 12.2% over the past year.  The April index for Metro Atlanta shows a 3.43% (non-seasonally adjusted) increase in home values from March 2013 and a 20.1% increase over the last year.  While these numbers are positive, we must bear in mind that home prices are still down 22.65% from the peak of July 2007.   The May index for Atlanta is 105.56.  Phoenix, San Francisco, Las Vegas and Atlanta were the four cities with the highest year-over-year price increases.  New York, Cleveland, Washington D.C., Charlotte, Dallas and Boston showed the smallest year-over-year improvements.

The Metro Atlanta real estate market continues to show signs of improvement for sellers. Listing inventory is up 18% from the bottom of February 2013.  But this is still down 19% from 2012 and down 48% from 2011.  That represents around 3.8 months 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 but are now down to under 30% in 2013.  Market sales (resales, new homes) are outpacing bank-owned sales. New Homes are starting to make a comeback with Smart Numbers reporting a 55% increase in closed sales from the last quarter.  In the next few years, new homes will become a more significant part of the inventory and closed 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 positive results from the Case-Shiller Index for the last seven months and 13 of the last 14 months.  Only October of 2012 was negative.  What a change from a few years ago!  As we see more summer results posted, we expect to see more positive results.  As we move into the fall, we mat get mixed results.  But the low inventory environment could break the normal pattern and drive prices higher.  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 closed 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 – Gain 2.26%
Homes Bought in 2001 – Loss of 3.17%
Homes Bought in 2002 – Loss of 6.76%
Homes Bought in 2003 – Loss of 9.70%
Homes Bought in 2004 – Loss of 12.77%
Homes Bought in 2005 – Loss of 16.95%
Homes Bought in 2006 – Loss of 20.74%
Homes Bought in 2007 – Loss of 21.26%
Homes Bought in 2008 – Loss of 13.93%
Homes Bought in 2009 – Loss of 2.62%
Homes Bought in 2010 – Loss of 0.20%
Homes Bought in 2011 – Gain of 7.32% 
Homes Bought in 2012 – Gain of 16.36%

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: Demand is strong as buyers take advantage while prices remain below replacement costs and mortgage financing is historically low.  Large investors are creating strong demand for rentable single family homes under $200,000.  We will be watching that for a potential bubble.  We continue to see significant pent-up demand for new household formation from first time buyers and a very active baby boomer market.  We expect to see the return of the 1st and 2nd move-up buyer over the next few years.  That will tell us that we have returned to a more normal demand cycle.

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 the 5% range in 2014. 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 significantly from the prior year levels.  New homes will continue to grow but not fast enough to have a significant impact on inventory levels in the short-term.  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 2010, RealValuator reports that short sales and foreclosures were over 60% of the transactions sold but have dropped to under 30% in 2013.  We are now seeing resales and new homes outpace the sales of 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 just under 50% 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!

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 April 2013! See The Latest Housing Trends, Sales, And Market Data For Atlanta!

Today, we are posting the lastest real estate news for the Metro Atlanta Market, which allows us to get a bigger picture view of how the housing market is performing in the metro area, and in areas where many Lake Lanier home owners have their primary residences.  This posting is provided to us courtesy of Prudential Georgia Realty and their atlrealestatescoop blog!

The latest Case-Shiller Index was published on Tuesday, April 30th 2013. As always, the index reports on data 60 days in arrears. Therefore, the index reports Metro Atlanta home values for February 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. Your local Prudential Georgia Realty agent can help you understand the specific metrics in your local market.

Now for the news…. Average home prices for the 20-City Index increased by .3% compared to last month and increased 9.3% over the past year. The January index for Atlanta shows a .03% (non-seasonally adjusted) increase in home values from January 2013 and a 16.5% increase over the last year. While these numbers are positive, we must bear in mind that home prices are still down 28.91% 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 97.01. Phoenix, San Francisco, Las Vegas and Atlanta were the four cities with the highest year-over-year price increases. New York, Boston and Chicago showed the smallest year-over-year improvements.

The Metro Atlanta real estate market continues to show signs of improvement for sellers. Listing inventory is down 36.4% from 2012 and down 56.4% from 2011. That represents around 3.7 months 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 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 get into the height of 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 closed 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 6.03%
Homes Bought in 2001 – Loss of 11.01%
Homes Bought in 2002 – Loss of 14.31%
Homes Bought in 2003 – Loss of 17.01%
Homes Bought in 2004 – Loss of 19.84%
Homes Bought in 2005 – Loss of 23.68%
Homes Bought in 2006 – Loss of 27.16%
Homes Bought in 2007 – Loss of 27.63%
Homes Bought in 2008 – Loss of 20.90%
Homes Bought in 2009 – Loss of 10.51%
Homes Bought in 2010 – Loss of 8.28%
Homes Bought in 2011 – Loss of 1.37%
Homes Bought in 2012 – Gain of 6.92%

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: Demand continues to be strong as buyers take advantage while prices remain below replacement costs and mortgage financing is historically low. We expect to see an 8-10% increase in units for 2013. Large investors are creating strong demand for rentable single family homes under $200,000. We will be watching that for a potential bubble. But we also see significant pent-up demand from normal household formation and a very active baby boomer market driving general demand. We expect to see the return to a more normal market 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. 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 2010, 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.

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Metro Atlanta Case-Shiller Index Reported For February 2013

Once again, Prudential Georgia Realty has published the following overview of the Case-Shiller Index for February 2013 for Metro Atlanta.  While Lake Lanier real estate has its unique characteristics, we feel that the following Metro Atlanta real estate report is important and shows many similar themes to the Lake Lanier real estate market.  The following report was published by Prudential Georgia Realty on their atlrealestatescoop blog.

The latest Case-Shiller Index was published on Tuesday, February 26th 2013. As always, the index reports on data 60 days in arrears. Therefore, the index reports Metro Atlanta home values for December 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, 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 .02% when compared to last month and increased 7.3% over the past year. The December index for Atlanta shows a .28% (non-seasonally adjusted) increase in home values from November 2012 and a 9.91% increase over the last year. While these numbers are positive, we must bear in mind that home prices are still down 29.69% 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 95.95. Atlanta and Detroit posted their largest year-over-year increases since the index started tracking results in 1991. New York, Chicago and Cleveland 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 37% from January of 2012 and down 57% from January of 2011. That represents around 4 months 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. 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 may start to see results that are flat or slightly positive as we move toward spring. 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!



This chart shows the end of the year (December) index for recent years. As you can see, we had a steady decline for 5 years but are showing a positive trend compared to last year.



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%

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 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 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. 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.

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