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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

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Back-to-school season offers improved opportunities for home sellers & buyers

As we enter the back-to-school season here in Atlanta, some of the frenzy of the peak home buying and selling season will begin to wane. For the most part, all those families that wanted to move their households before the start of school are nestled into their new homes. But as the housing market activity moderates a bit, it’s likely to offer both sellers and buyers some added opportunities and advantages.

For buyers

You will face less competition for available homes and may even have more negotiating room. Here are some additional reasons why back-to-school is a great time to be a house hunter:

>>Homes that have languished on the market may have increasingly motivated sellers.

>>Prices tend to come down a bit in the Fall for homes that have been on the market for a while.

>>With fewer buyers in the market, inventory should re-balance somewhat.

>>Competition for purchases should not be as fierce as we’ve seen over the spring and summer.

For Sellers

Fall is also a great time for sellers to list their homes!  Inventory, thus competition tends to be lower and the buyers that are in the fall marketplace are generally more serious. Here are some additional reasons why selling in the Fall is optimal:

>>Companies that are helping employees relocate usually want the purchase done before the end of the year, thus we often see quick closings on these types of sales.

>>It’s a great time of year to photograph and video your home before all the lovely, colorful foliage goes into hibernation.

>>Shoot for a closing in December, which is historically the best month for closings in the off-season (September to May).

>>It’s reported that appraisals tend to be more favorable in the Fall and easier to find as compared to the busy summer market.

Also keep in mind the latest data from the Atlanta Board of Realtors revealed home sales in June moderated somewhat, yet the number of sales in the five-county metro area are higher than any other year in Atlanta’s history. Home shoppers continue to demand greater inventory, even as sales prices have risen. All-in-all, it’s a great time to be a home buyer and seller in Atlanta! I’d love help you take advantage of the unique opportunities the Fall brings, so give me a call. I look forward to speaking with you!

~Jess

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Sweet Spot: Atlanta housing market

Just like a sweet Georgia peach at its peak ripeness in the summertime, our current real estate market here in Atlanta is looking pretty sweet; whether you’re considering buying or selling. Now is an optimal time to make a move, especially if you want to close, move and have your family ready for the start of school in the fall. There are so many exciting developments happening here in Atlanta in job growth, our economy, and the revitalization of many of our neighborhoods. It’s no secret that the Atlanta market is heating up, so if you are planning to buy or sell a home this year, let’s get to work. Consider this your notice that the stars have aligned for you! Here’s why:

  1. The best listings are coming on the market now

    In my experience, most of the homes that are going to be put on the market are in the process of being listed now. So, if you are considering buying, it’s a great time to start your search. If you’re considering selling, you need to get your home on the market as soon as possible. Most buyers prefer to close in the summer – or at least before school starts in the fall so they can get their family settled. Don’t delay, it’s time now to call me to get to work for you!

  2. Mortgage rates are great!

    Rates right now have been hovering near their lowest point for the year – of course they can change at any moment. And, many of the mortgage experts are predicting rates will drift higher, especially as the Fed Policy continues to change throughout the year and they continue to raise their key interest rate.

  3. Home appreciation is favorable

    Home prices in Atlanta are rewarding homeowners as annual appreciation stands at an average of 5.5 percent for the last 12 months, as of the end of March, according to the latest S&P CoreLogic Case-Shiller Home Price Index. Also, we’ve struggled with available inventory in our area and it looks like inventory numbers are coming up a little too.

Life is busy, believe me, I understand. You’re trying to juggle life, family, career and consider a move. I’m here to guide you through the real estate process and make it as stress-free as possible. Give me a call and we can discuss your options and how I can take that burden from you and get to work on your behalf. I look forward to hearing from you and serving you soon!

Cheers,

Jess Cooke Scarborough

P.S. As a new service to help you become a savvier buyer and/or seller of luxury real estate here in Atlanta, I’ve launched my weekly blog. I hope you find this article helpful! If you have any questions, comments or ideas of subjects you’d like to see me cover here, just drop me a line. I look forward to hearing from you!