Beacham sellers time the market to their benefit as the firm experiences a blistering start to 2018 with a 53.5% increase in homes sold and a 33.6 % increase in dollar volume closed from 2017.
Get all the details in the latest issue:
Enjoy!
~Jess
Real Estate Market Update: Tale of Two Cities
Often people will ask me about the luxury real estate market here in Atlanta and why it’s so different than the rest of the market. We all see the headlines on the news that the housing market is tight and inventory is low and homes are under contract as soon as they hit the market. Yes, that all may be true for the market priced $750,000 and below. However, for those above $750,000 it’s a different market. It’s like a tale of two cities. And let that be the backdrop as we take a look at some encouraging news on the luxury market from the most recent Beacham Insider, a monthly newsletter published by the brokerage I work with, Beacham & Company Realtors®.
Although sales of Atlanta residential real estate (priced under $750,000) weakened in the first half of 2017, average home sales prices continued to push higher – both signs of a local housing market with very limited supply. However, in the luxury market (priced over $750,000), tight inventory is not an issue we’re seeing, in fact, the Beacham Insider revealed that:
>>Sales of homes priced $1 million or more increased 7.5% through May led by noteworthy jumps in Buckhead condo sales and Atlanta Intown (Morningside/Virginia Highlands) single family detached homes.
>>Luxury market sales increased 3.9% year-over-year. The $1 million and up market represented 1.85% of all sales in 2017 versus 1.78% in 2016.
>>The number of ultra-luxury home sales ($3 million+) was 13 versus 10 through the first five months of 2016.
>>As for inventory in the $750,000+ market, it stands at about 15 months, which is relatively normal.
Some notes on pricing:
As I read this data from the Beacham Insider, it confirms how important pricing is in the luxury market to making a sale or purchase happen that’s consistent with your goals. Here are some important points:
>>Luxury home sales up 7.5% but average sales price down for fourth consecutive year.
>>The disparity in inventory – with the under $750,000 market – shows in average sales prices;
>>The average price of homes sold for more than $1 million was $1,495,056, a decline of 1% from 2016 ($1,510,817).
>>The average sales price of ultra-luxury homes ($3 million+) dropped 12.3% from $4,827,500 to $4,235,684.
Encouraging words for future buyers and sellers in the luxury market:
>>Today, third time move-up or higher buyers make up 40% of the market and first-time move-up buyers represent 25% of all home buyers. Just 1 in 5 homes are currently purchased by first-time homebuyers.
>>The Atlanta economy will add 90,000 jobs in 2017 but the key is what percentage are high-paying jobs. Last year, 35% of jobs added in Atlanta were considered high-paying. High-paying jobs fuel the real estate market, according to Rajeev Dhawan, speaker at the MarketNsight presentation and Director of the Economic Forecasting Center at the J. Mack Robinson College of Business at Georgia State University.
So, there’s the latest on the luxury housing market for the first half of 2017. It’s really looking great! So, if you are considering a sale or purchase, your timing couldn’t be much better. Get in touch and I’d be happy to discuss your scenario.
~Jess
