Nine Cities and Both Composites Hit New Lows in February 2012

"Data through February 2012, released today (4-24-2012) by S&P Indices for its S&P/Case-Shiller1 Home Price Indices, the leading measure of U.S. home prices, showed annual declines of 3.6% and 3.5% for the 10- and 20-City Composites, respectively. This is an improvement over the annual rates posted for the month of January, -4.1% and -3.9%, respectively. In addition to the two Composites, 15 of the 20 Metropolitan Statistical Areas (MSAs) posted better annual returns in February compared to January; Atlanta, Chicago, Cleveland and Detroit fared worse in February and Washington DC’s rate remained unchanged. Nine MSAs and both Composites posted new cycle lows as of February 2012. Atlanta had the only double-digit negative annual at -17.3%. This was the fifth consecutive month of double-digit negative returns for Atlanta and the lowest annual return in its 20-year history. Five of the 20 MSAs saw positive annual returns – Denver, Detroit, Miami, Minneapolis and Phoenix. Phoenix, which is one of the cities that fared the worst during the crisis, has now posted two consecutive months of positive annual returns and five consecutive positive monthly returns. However, it is still down 54.2% from its peak. For full release, please download the pdf here."

Metro Atlanta is very segmented and fractured MSA.  This creates challenges and opportunities.  Case Shiller Index Reports for the market data closing out February 2012 show us that 50% of the closed sales in February were for homes under $100,000.  The normal distribution would be 10-15% range.  Home values declined 2.52% over January.  The last seven months show a combined 22.29% drop overall driven by short sales and foreclosures.  Atlanta had the largest decline of any major metro since last year. Atlanta had the only double-digit negative annual at -17.3%. Atlanta market peaked in July 2007 and then the nose dive started.

Why would we bother to tell you all of this because it sounds rather grim?  We see the opportunity EVERYWHERE… Inventory levels are down and the demand for housing in our city at this time is the strongest we have seen it since the peak.  We see the turn coming and are happy to discuss how you can seize the opportunity by buying or hang on a little longer to sell as inventories dwindle and sellers’ market returns.