Location, location, location. Remember that any time real estate reports are provided. One size reporting does not fit in Atlanta; reports like Case-Shiller and even local MLS data is fine for national and regional audiences but meaningless at the micro market level. Median prices are up over the last year – but how much and why has to be explored. Each area is different; small areas within even the MLS area are different. Looking down to the high school-middle level is a good idea and being specific with the type of home considered is also advisable.
Atlanta is far to diverse to be considered as a single entity. How does activity in East Point correlate to activity in Cumming? Snellville data relate to Douglasville? And those distant points to Midtown and VA Highlands? North Fulton to South Fulton? The AJC touched on this and cautions readers to keep the data in context (CLICK HERE if they want to charge to read it). Case-Shiller say’s the Atlanta market is up 19% and MLS data shows it up 35%. Please.
- 20%+- of all sale were distressed but areas ranged to as low as 4%+- to almost 50%+-
- 3rd qtr year over year total sales were down 1%+- but that ranged from down 31%+- to up 90%+-
- Sept months of supply was 3.3 months, ranged from 2.1+- to 7+-
- Change in median price year over year for Atlanta shows an increase of 35%+- with ranges of -1%+- t0 +230%+-. That’s correct, two MLS areas saw over 100% increases, three saw 75%+- increases – thank you investors.
The impact of institutional investors cannot be overstated. Nor can the fact that many of these 50%+ median price increases are in the sub 100K almost exclusive investor areas. Pull that out and the picture changes.
Home buyers in Atlanta are getting smarter and more savvy everyday, the transparency allowed by the internet is a very good thing. Hopefully, home sellers understand that the 30 second head line is not to be taken literally; we saw many overplay their hand during 2013 and we expect to see overpriced homes hit the market as 2014 opens. Remove the influence of institutional investors on this data and an entirely different – and less robust – picture is painted. And don’t forget that those investors will be dumping inventory as soon as something better comes along.
Success for active and perspective home buyers and home sellers is founded upon preparation. Those educated about the market with a basic understanding of the process will find success; some quicker than others.
Please feel free to contact HMT with any appraisal questions or for a detailed look at the data for any market. CLICK HERE and HERE to see a sample reports by school and CLICK HERE to see one comparing price points in zip codes. Of course the Atlanta Real Estate Market Conditions page is available with data for over 100 area zips.
- See more at: http://hankmillerteam.com/2013/11/27/keep-reported-price-increases-in-atlanta-home-values-in-context/#sthash.ZyHkJ97M.dpuf
