- 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.
We are providing this monthly real estate update 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 at firstname.lastname@example.org 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!