Berkshire Hathaway HomeServices
Georgia Properties
Real Estate Advisor – January 2016
We are providing this monthly real estate advisor to keep you informed about the latest trends and issues in the real estate market. Remember that real estate is local and every market is different. Contact us to find out the specific details for your local area. If you know someone else who might be interested in receiving this report or who may benefit from our expertise, please let us know.Better information helps our clients make better real estate decisions!
The strong potential for rising mortgage rates is motivating many consumers to take action now. Therefore, we expect early 2016 to be more active than normal.
- Closings for 2015 were up 12.5% versus 2014. The December closings were up 3% compared to last month and down 12.8% compared to last year.
- The average sales price for 2015 was $266,000 compared to $249,000 in 2014. The December average sales price was $272,000 which was up 2.6% from last month and up 6.7% from last year.
- Listed inventory was up 3% in 2015 versus 2014. The inventory for December was down 8.2% from last month and down 3.5% from last year. Inventory is up 52% from the recent low mark of February 2013. But the limited availability of desirable properties is still driving multiple offers and very quick sales in select areas.
- Overall months of supply for 2015 was 4.2 months versus 4.5 months in 2014. The December months of supply was 4.6 which was down from 5.2 months in November and up from 4.2 months last December. Six months is considered normal. Luxury properties are taking longer with homes above $1 million averaging 19 months and properties over $2 million averaging 36 months.
- The latest Case-Shiller Index (12/29/15) reports that Metro Atlanta home values are up 53% from the recent bottom of March 2012. Increasing homes values are getting some sellers back into the market but also decreasing affordability for other buyers.
- Visit HomeServices Lending at http://georgia.homeserviceslending.com for the latest mortgage rates. The Mortgage Bankers Association predict rates over 5% in 12 months.
- New Homes are moving fast – but many builders cannot build them fast enough for the demand. Visit http://www.NewHomesServicesGA.com to view new home communities.
- Commercial real estate is also making a comeback in Metro Atlanta. Our Commercial Real Estate Division specializes in these areas and would be happy to help you.
Realtor.com predicts that Metro Atlanta will be the Number 5 Hottest Real Estate Market in 2016. Chief Economist, Jonathan Smoke predicts a 7.4% increase in existing home sales. Realtor.com also noted that surging demand can be attributed to growing household formation, a prosperous job market, and low unemployment rates as well as large populations of key demographics. Older Millennials (25 to 34 years old), younger Gen Xers (35 to 44 years old), and retirees (65 to 74 years old) will be driving home sales in 2016.
SmartNumbers reports that Baby Boomers continue to be the largest segment for new construction buyers in Metro Atlanta. First Time Buyers are #2 but lower than historical trends. The average age of a First Time Buyer is now late 20s/ early 30s. Rental rates have skyrocketed which makes home ownership very attractive. Gen Xers are the next largest segment driven by the normal trends of household formation with growing families and move-ups. The rising costs of new home construction and scarcity of larger land tracts are driving builders to move out further into the suburbs for new projects. Tear-downs, renovations and smaller new home projects are still popular in the interior markets.
Our mobile app now offers “search by school district” for all metro area public schools. This search option is also available on our websites. To search by school district, simply click the “search icon” and enter the name of your school in the search bar. Select any other attributes and click “search homes” to see the available properties in that school district. Our mobile app offers many advantages including search by DriveTime, Sold Properties from the MLS and more. Our app is fully integrated to our website so you can use any device, anytime and anywhere.
Interested in the latest home values? Check out our exclusive home value estimate tool that provides three value estimates from sources including Zillow, Local Public Records and RPR (Realtors® Property Resource). We also provide a new option to make your own value adjustments on any property. You can also print, save, share and get a reminder for the latest updates. This is the most comprehensive solution for home value estimates available. If you are interested in listing your property, we have additional information sources and local insight to help determine the most accurate value of your property.
We want to wish you a Happy 2016. We hope it is your best year ever!
We would be honored to assist you or someone you know with their real estate needs. We are experts in the local market and have access to proprietary information sources that are not available to the public. Better information leads to better decisions!
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