Sales are off in the upper price ranges of Alpharetta, an upscale northern suburb of Atlanta, but overall home values are holding their own, say local Realtors.

"Alpharetta is Atlanta's most sought after area," say Realtors Jim and Ellen Crawford. "Just a short drive from the city of Atlanta and Buckhead, Alpharetta is know for the fine quality of life it offers, fine schools, shopping, and upscale homes."

Explain the Crawfords, "It's definitely a buyer's market in the Alpharetta area of North Fulton county. Sales are off in the upper price ranges, and inventory and the days on market to sell has increased dramatically on homes priced over 500K. However, home values are still holding especially in new home construction. There is a shortage of product in new homes, and softening of pricing on resale.

The Crawfords advise, "Sellers have started to reflect price changes on their properties, and the relocation market is off. Sales of existing inventory, and sales vary by price range and location. However, the lower rates are keeping some momentum in the market in moderate price ranges, and on brick homes, keeping listing prices firm. In this market, we are finding some flexibility in the seller's terms more so in the higher priced homes, and in moderate ranges the sellers are paying some buyer closing costs, repairs, etc. Under 250K, it is business as usual."

Says Realtor Carolyn Waters, "Alpharetta is mostly made up of subdivisions with a small town feel. Alpharetta has a "main street", court house, historical section, and great antique shopping with a great blend of old and new. The schools are excellent."

About the market, Waters says, "What a strange year we have had. When it is traditionally busy, we were slow, and when it was usually slow, we were busy. Sometimes real estate follows not rhyme or reason, although usually it is dictated by the economy and interest rates. What we are seeing currently is a high inventory of homes, but sellers are letting their listings expire or are withdrawing them until after the holiday season. Homes are still moving in the under $250,000 category, but slowly. There are a few buyers out their looking, but this is and has always been a pretty slow time. Sales price to list price is still pretty good - about 95 - 97 percent in most cases. From $250,000 - $350,000 we are seeing list prices dropping $10,000 - $40,000 before they sell. From $350,000 on up we are seeing very little movement, a reduction in list prices, and a greater difference between list and sales price. There are some great deals out there over $350,000 for a qualified buyer.

"The closing of the year brought with it a rising unemployment rate - a record 6 percent, the highest in nine years," say Realtors Janet and Stuart Brenner.

"This, paired with sluggish holiday sales," continue the Brenners, "is indicative of a slow economic recovery. In keeping with such, housing sales are slowing down, despite a dramatic drop in interest rates, which continue to hover at 40-50 year lows. Look for interest rates to hold steady or move slightly lower during the New Year's first quarter, as financial analysts release predictions for a slow economic recovery, which will serve as a catalyst for lowering the interest rates again. However, the interest rates should begin to climb as the New Year progresses, bringing with the rise a glimpse of economic recovery.

Advise the Brenners, "Despite the projected recovery, home sales in the Metro Atlanta area will most likely remain flat during the first two quarters of 2003, picking up momentum as the year goes on. The real estate market continues to favor the buyer and will remain this way for months, with interest rates remaining below 7 percent on 30-year fixed rate mortgages throughout the first two to three quarters of 2003."

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Published: January 21, 2003

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