"It's 95 Degrees, 0% Humidity with No Chance of Rain: All Across America Today"
Imagine if this was the forecast you heard each day in Atlanta....that you can expect the same weather as every other city across the country. Granted...we all know we need more rain to combat our drought, but our weather here is impacted by many variables, from the jet streams to the path of the latest hurricane. So, if you wouldn't believe a weather forecast that was the same for all cities, then why would you believe a real estate forecast that is the same for all cities? I speak with current clients and those who are considering buying or selling a home in Atlanta almost daily, and time and time again they express their concern about the market based on what the news media is telling them. But what I find is that their perception of what is happening in our Atlanta market is based on the national data and not our local Atlanta market. As a result, I thought I would use this week's HouseBlend article to update you about our specific market. Also look for more information information in the upcoming weeks to help you clearly understand what real estate trends we are seeing in the Atlanta area. We will accomplish this through the use of graphs, Atlanta-specific data, and analysis of this information in brief, easy to read bullet points. You will be an expert in no time! Even if you are not currently in the market to buy or sell your home we will help you to be able to discuss it at the Monday morning water cooler from an informed point of view. This week, let's start by providing you with a few facts. It's true that our market is down over where it was a year ago, however, we are not experiencing the 60% market drops that other parts of the nation are seeing. Our market is down about 14% over where it was last year. Last quarter, 56% of the homes that were on the market did not sell. Of the 44% that did sell, 34% had a price reduction, leaving 16% that sold without requiring a price reduction. For those that had a price reduction, the average days they were on the market before selling was 140 days. Of the 16% that did sell without a price reduction, they spent approximately 42 days on the market. So homes that are aggressively priced at their true market value and in top condition still are selling quickly. One of the best articles I have read lately is one that was written by Paul Kaihla of CNNmoney.com. He provided specific analysis of Ten Cities Ready to Bounce Back. Atlanta ranks #4 on this list. Here is an excerpt of this article: "...Business 2.0, working with Moody's Economy.com, has unearthed 10 major metropolitan areas that are bucking the national housing trend. By the beginning of next year, these markets should be coming back to life -- and in our exclusive rankings, we've projected the house-price appreciation these cities will enjoy during 2008 and 2009. The gains may seem modest -- they range from about 4 to 7 percent -- but remember, in the midst of the current housing meltdown, any gain at all constitutes a minor miracle.
Atlanta
Projected median sales prices for single-family homes:
Q1 2008: $177,750
Q4 2009: $187,640
Growth: 5.6 percent
Half a million dollars probably won't buy you a home in one of Atlanta's Martha Stewart-style neighborhoods. And that's a good thing, argues Dan Forsman, CEO of Prudential Atlanta. Forsman says the smart money here will move upmarket, in exactly the opposite direction of where it will go in New Orleans. A contrarian by nature, he sees the biggest arbitrage in properties priced at $750,000 in high-end communities northeast of the city -- suburbs like Druid Hills, Duluth, Johns Creek, and Suwanee. The construction cost of a home in those pockets is $260 a square foot; right now, you can pick one off for $180.
Boding well for the local economy, "Hotlanta" boasts one of the highest rates of job growth in so-called creative-class occupations in the country. Why? It's the top destination in America for young professionals, a transportation hub ( Atlanta's airport is the busiest in the world), and a place where most Fortune 500 companies maintain a regional presence. Projections by researchers at the U.S. Census Bureau and Virginia Tech place Atlanta at the center of a "megapolitan" cluster of urban sprawl that will develop over the next quarter-century, encompassing 7 million people.
This points to another niche real estate play: As buildable land around the city disappears, downtown neighborhoods on the brink of transformation are ripe for investment...."
To read the full article go to http://promo.realestate.yahoo.com/ten_cities_ready_to_bounce_back.html
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