The Metro Atlanta real estate market continues to show signs of improvement for sellers. In 2011, we reported that over 60% of sold transactions were short sales and foreclosures. And approximately 50% of closed sales were under $100,000 which would normally have been 10-15% of the market. But we have now seen a prolonged period of low “for sale” inventory. At the same time, the pace of pre-foreclosures (notices of default) and foreclosures has slowed. Here are some specific numbers from our sources:
- Listed inventory is down 36% from May of 2011.
- Properties sold under $100,000 now represent 22% of the market versus almost 50% in 2011. A normal price distribution is 10-15% of sales in the under $100,000 range.
- Pre-foreclosures and Foreclosures are down almost 50% from the 2011 run-rate.
- For three months in a row, normal market sales (resales, new homes) are now outpacing bank-owned sales!
- Desirable properties with market pricing are getting multiple offers and selling fast!
So what is causing these positive trends and how long will these conditions last? The combination of low inventory, strong demand and the slowdown in short sales & foreclosures is driving these latest market conditions. But real estate is local and our markets can be very different. Some areas will continue to see low inventory and values are expected to start rising. Other areas have looming “shadow inventory” and we will see more short sales and foreclosures coming late this year and into next year. We have the facts to help guide you if you want to know more about your area. Visit www.PetersenPartners.com for more information.