We really are fortunate in the Metro Atlanta area. We have a desirable growing city creating new jobs and opportunities. We have a great climate with four unique seasons. And, we have a historically undervalued real estate environment compared to many metropolitan areas. If you could bet on Atlanta, you’d have to consider it right now. The monthly statistics are out for our Atlanta real estate market, and I wanted to share the most important numbers with you as well as my opinion on what they mean.
3.5 Months’ Supply of Inventory – We are slightly down from last March’s 3.8 months’ supply of inventory. What this means is that the market is holding steady, and we are eating homes about as fast as they are served. This statistic is indicative of the months it would take to sell ALL of the existing inventory if no other homes hit the market. We generally suggest a 5-6 months’ supply of inventory represents a balanced market, neither favoring the buyer or the seller. To give you some perspective, I remember just ﬁve or six short years ago when we had over a 14 months’ supply of inventory. Wow!
Moral of the statistic: Sellers are needed, and buyers had best not sleep on that home they love.
53 Median Days on the Market – We are down 16% from last year’s median days on market of 63. Homes are just plain selling faster. The faster homes sell generally the closer to list price the seller receives. Currently sellers are receiving 96% of their list price on median average, which is better than last year’s 95.5%. Not to be outdone, The Peters Company’s listings are averaging 10 days on the market and selling at 99.79% of the original list price on average.
Moral of the statistic: List your home with The Peters Company. Just kidding. Not really, but the moral here is that homes are moving. A great property that’s well staged and marketed, which the vast majority of people want, is not going to last even two weeks much less two months.
4.5% Distressed Property Sales – Only 4.5% of the total sold homes were foreclosures or short sales. That’s down from last March’s 9%. If you’re waiting for a great bargain, it could be a long wait. As I’ve always said, the best time to buy a great piece of property is always, regardless of the market. Just because a property is a foreclosure or a short sale doesn’t mean it’s a great property to buy or a great deal. The “deal” right now, in many cases, is winning out and securing that great property in a multiple offer scenario, which is something we’re helping buyers do every week.
Moral of the statistic: The foreclosure/short sale bus has left the station.
$250,000 Median Sales Price – Up over 5% from this time last year, buyers are bidding the prices up. Although this isn’t a crazy increase, it remains to be seen how looming interest rate increases will start affecting affordability and then sales prices. If inventory levels remain low it’ll probably be enough to outrun the rate threat. A modest 5% increase year over year is healthy and positive sign for our future.
Moral of the statistic: This doesn’t feel like a bubble. We’re making gains in all the right areas, but nothing is really concerning at this point.
The Peters Company continues to break records thanks to our agent specialization model which puts the best talent on your side whether you are buying, selling or investing. We understand the market better than anyone, and we’ll help you take advantage of it. Even if you are casually considering a move, give us a call or visit us online. We can help you make decisions on areas to live in, the best schools to consider or even money generating renovations. We love this stuff, and we’d love to help in any way. 404-419-3619
Written by Andy Peters