Clayton County Real Estate Market Overview: September 2007

The Numbers - Boring But Necessary

According to GaMLS statistics, the average sales price for all single family detached homes (houses) sold was down to $114,649 for the month of September, 2007 from $132,530 for the same time period in 2006. This is more than a 13% decline in the average sales price.

In September of 2007, 208 houses sold in Clayton County. This is down over 63% from 566 for the same period last year.

The average sales price of two bedroom houses was down only slightly, from $80,802 to $80,420, less than 1%. The number of two bedroom houses sold decreased about 38%, from 16 to 10.

The average sales price of three bedroom houses were down about 15%, from $109,932 to $93,649. The number of three bedroom houses sold decreased about 64%, from 315 to 113.

The average sales price of four bedroom houses was down a little more than 18%. from $161,288 to $131,741. The number of four bedroom houses sold decreased about 67%, from 195 to 65.

The average sales price of five or more bedroom houses was down a little less than 1%. from $196,505 to $194,867. The number of five or more bedroom houses sold decreased about 50%, from 40 to 20.

In September of 2006, houses in Clayton County sold for an average of about 97% of their list price after being on the market for about 97 days. In September of 2007 the average sales price was 95% of list price with 111 days of market exposure.

Condos & Townhomes

In September of 2007, the average sales price of condos/townhomes (condos) was down a little more than 1% as compared to September, 2006: from $108,873 to $107,659. The total number of condos sold decreased about 31%, from 93 to 27.

The sales price of two bedroom units were down less than 1% from $80,895 to $80,480. The number of two bedroom condos sold decreased about 62%, from 12 to 7.

Surprisingly the sale prices of three bedroom condos was up almost 6% from $113,214 to $120,243.. The number of three bedroom condos sold decreased about 75%, from 74 to 18.

The sales price of four or more bedrooms units were down about 8% from $110.946 to $91,234. The number of four or more bedroom condos sold decreased about 71%, from 7 to 2.

In September of 2006, Condos and Townhomes in Clayton County sold for about the full list price after being on the market for about 104 days. In September of 207 the average sales price was 99% of list price with 137 days of market exposure.

Market Influences

One of the most significant factors affecting sale prices is the high rate of foreclosures in Clayton County. The foreclosure of a property is not included in MLS statistics, but its subsequent sale, when handled by a real estate professional, usually is.

A foreclosed property usually sells for considerably less than its "market value". Lenders need to cash out quickly so that they can clear their books and reinvest the money. For this reason will usually take considerably less than market value for a property.

Buyers usually are not willing to pay full market value for a foreclosed property. They know the lenders motivation and are buying the property under much less than favorable terms.

It is this subsequent resell of many foreclosed properties which are contributing so greatly to declining sales prices. Foreclosures have a ripple effect. If you placed your property on the market today you would have to compete against a high number of foreclosures. Although buyers will pay more for a non-foreclosed property, the high number of foreclosures does have an adverse impact on every property.

Another factor affecting real estate sales prices is the news media. Clayton County is almost constantly being portrayed in a negative light. While Clayton County certainly has more than its share of problems, the constant negative media attention is contributing to the problems more than helping to correct them. If the news media was to focus on every single negative aspect of the absolute best community in the nation it would not take long to ruin the reputation of the community and have an adverse impact on each of its citizens.

The extended marketing time is the result of fewer buyers seeking homes in the County. This is primarily due to the current "credit crisis" eliminating many buyers, continued issues with the school system, and of course, negative perception by both the news media and real estate professionals.

Regardless of income levels, many homeowners are in the position where they owe as much or more on their home than it would sell for in today's marketplace. While the marketplace is not blameless the largest contributor to this problem is easy financing.

Many people, laymen and real estate professionals alike, have never experienced a recession. For their entire adult lives they have only experienced rapid appreciation in property values. Thus, it is no surprise that lenders began to offer and buyers began to demand 100% and greater financing (and refinancing) for their homes.

Sellers: You Want to Hold Out For Better Times.

At this point, if you do not absolutely need to sell your property you are better off holding out until the market recovers. Otherwise, expect to sell your home for less money than it would have sold for a year ago.

Too many new homes were being constructed in too short of a time frame. In order to keep the real estate ball rolling financing terms became much too easy. It had to come to an end at some point, and that point is now.

The good news is that the market should recover. It always has. Many developers have quit developing, many many builders have quit building, and many lenders have tightened up on their lending practices. Over time, available homes will be absorbed by the marketplace, and demand will be greater than the supply. It is at this point the boom should began again and continue until the next correction a decade or so down the road. Prices should increase dramatically and happy days will be here again!

If you must sell now, you should price your home as competitively as possible Price is the key! For information on pricing your home, request our free report Pricing Your Home for Maximum Benefit by sending an e-mail to dept145@bradfordrealtygroup.com.

Second to pricing is choosing the right real estate professional. If your real estate professional has a negative attitude about Clayton County they will have a negative attitude towards your house. If you want an agent who is positive about Clayton County and about your property, simply click here to contact me or call me at 770-961-5520. I love working in Clayton County!

Curb appeal is of utmost importance. If a potential buyer does not like what they see from the outside, they will never see the inside. You should also make sure your house presents itself well. You can get our free comprehensive report on how to dress your home for success by sending a blank e-mail to dept145@bradfordrealtygroup.com.

Buyers: Now Is The Time To Buy!!!

If you have ever considered buying a home, now is the time to do it! Prices are down and sellers need to sell! This kind of opportunity does not come around often... usually only once every decade or more. If you want to make your best deal on a home, you can probably make it now!

Buyers, how do you find the Clayton County home of your dreams? The best place is to start is by completing our Home Buyer's Wish List. This is a simple and easy to complete checklist we developed specifically for potential buyers interested in Clayton County / Henry County real estate. Get it now by e-mailing me at dept145@bradfordrealtygroup.com. It is absolutely free and there is no obligation whatsoever. Get it right now before you forget!

If you are interested in finding a real steal, consider buying a foreclosure. But, before you do, read our free special report: Buying Foreclosed Properties: Know the Risks which is available by sending an e-mail to dept145@bradfordrealtygroup.com.

Worried about financing? A number of lenders we work with have assured us that financing is available for most buyers. Don't let the news media fool you into believing you can not qualify for a loan! Call me at 770-961-5520 and let me see what my sources can do for you!