We hope that you and your loved ones are having a joyous holiday season. The New Year is upon us and 2013 will bring 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 is very low. Desirable properties that are good values are selling very quickly – often with multiple offers.
- SmartNumbers reports that current inventory is back to levels not seen since 1996. For the Greater Metro Atlanta area, inventory levels are down 38% from 2011 and 55% from 2010.
- The available “months of supply” is now under 4 months. Six months of supply is considered a normal market.
- The pace of short sales and foreclosures coming on the market has slowed considerably. Most banks have paused foreclosing on properties during the holiday season. We do expect them to move more aggressively in early 2013 but distressed properties have become a much smaller percentage of the available inventory.
- New Homes are making a slow but sure comeback. In November, there were 1000 new home starts. This annualized run-rate of 12,000 is more than double the previous year. But new homes cannot grow very fast due to constraints in desirable lots, rising material costs and labor shortages.
- The mix of properties selling is changing back toward a normal trend. A few years ago, over 55% of properties sold were under $125,000. The normal percentage of properties sold in this price range was around 15-20%. Last month, the mix of these properties has dropped to under 40%. We are not quite back to a normal market situation but moving in the right direction.
We are providing this information 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! Please visit us at www.PetersenPartners.com