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Is the Atlanta Real Estate Market Improving?

By
Real Estate Agent with Long & Foster 0225078705
The Atlanta real estate market is still moving forward, but we must actually assess what is taking place.  Many of us have noticed that some of the real estate news is turning positive in many markets.  Slight increases in Atlanta home sales and prices seem to have everyone in a more cheerful mood, but until we get at least 6 months of solid back to back improvements...only then can we quote a trend that we have turned the corner.  I personally question recent increases in home sales.  Now the media wants a positive spin on everything, so the news stories we hear are colored with 'rose color glasses.'  We must keep in mind that Atlanta homes sales today are not the same as a few years ago, because they do not generate the same amount of worth.  

An example is  that when a home owner sold a home years ago to downsize, or trade up... there were full commissions and equity for the principals on both sides of the deal, and that is no longer the case. Today we are dealing with very high percentages of bank owned properties and short sales.  Many Bank owned REOs are only paying a flat fee on the listing side.  Short sales on the other hand are paying for the most part whatever the bank wants.  Also, unlike a private party sale between a buyer and seller - a bank property sale does not generate another sale.  One property is sold, and the story ends there.  It is quite different than a sale involving two or more parties - in that instance several other deals are created.

If we are going to discuss our market and their health, more real estate professionals are going to have to understand the economics that drives them.  Numbers of sales does not necessarily mean that things are back to normal.  A recent sale here in the Atlanta real estate market shows that homes are selling quickly, but they are selling for 250K less than they were a few years ago.  So it isn't good news if you are selling and taking a 150K hit in real equity.  In short less money is being created for less parties, and that means there is less to go around and spread the real wealth.  My idea of wealth creation is not paying off TARP money via a foreclosure or distressed sale.
Posted by

James Crawford Broker Associate

Long & Foster Fredericksburg Virginia

678-595-5286 Direct

 

Fredericksburg VA Real Estate Agents, Spotsylvania County Homes for Sale, Spotsylvania County VA Homes, Stafford County VA Homes, and City of Fredericksburg VA – Luxury Homes, Lots, Land, and New Home Construction. Buying or Selling Call Me!  

 

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Comments (16)

Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Sooner or later, the loss of the "move-up" market will get some understanding. 

Sooner or later.

Jul 30, 2009 02:09 AM
Roy Kelley
Retired - Gaithersburg, MD

Sounds like it is still a good time to purchase in the Atlanta area. You need to get all of those first time buyers on contract. Thanks for the market information. Best wishes for continued success.

Just yesterday, my brother mentioned that he was considering a move to the Atlanta area. Peachtree City is the area I think he mentioned. Liked the idea of being in a community where you can go around on a gold cart.

Jul 30, 2009 02:17 AM
Norma Brandsberg
Marks Realty Co. Inc., Lynchburg, VA, 540-586-9496 - Forest, VA

We have had 6 months of up markets here. in Central Virginia

Jul 30, 2009 02:29 AM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

I like your a bank owned property sale does not generate another sale. The media doesn't get it...

Jul 30, 2009 02:35 AM
Harry F. D'Elia III
WEDO Real Estate and Beyond, LLC - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

Thanks for the update on the Atlanta market. I lived there for 3 years. Beautiful

Jul 30, 2009 03:08 AM
Jim Crawford
Long & Foster - Fredericksburg, VA
Jim Crawford Broker Associate Fredericksburg VA

Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate  It is scary isn't it?  This does not even touch the scenario of 'auction homes' and bulk sales.

Jul 30, 2009 03:21 AM
Jim Crawford
Long & Foster - Fredericksburg, VA
Jim Crawford Broker Associate Fredericksburg VA

Roy Kelley (RE/MAX Realty Group)  The problem in Atlanta for first time home buyers is the high unemployment.  That side of town has been hit hard with the FORD plant closing.

Jul 30, 2009 03:22 AM
Jim Crawford
Long & Foster - Fredericksburg, VA
Jim Crawford Broker Associate Fredericksburg VA

Norma Brandsberg (Marks Realty Co. Inc., Lynchburg, VA, 540-586-9496)  In some price ranges inventory has leveled off.

Jul 30, 2009 03:24 AM
Jim Crawford
Long & Foster - Fredericksburg, VA
Jim Crawford Broker Associate Fredericksburg VA
Jim Crawford
Long & Foster - Fredericksburg, VA
Jim Crawford Broker Associate Fredericksburg VA

Harry F. D'Elia III (Real Estate and Beyond, LLC)  The beauty will not pay the bills.  We need a shot of major adrenaline here.

Jul 30, 2009 03:25 AM
Charles Stallions
Charles Stallions Real Estate Services - Pensacola, FL
850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.

JIm, couldn't have said it better myself. I love the ones that think new home sales have go up 11% when they were down 43% from their high. I would think that still means they are at record lows.

Jul 30, 2009 01:35 PM
Mark MacKenzie
Phoenix, AZ

Jim,

While there clearly has been a stabilization of the housing market, if not an actual improvement, it is temporary.

I don't think a lot of people understand the gravity of the situation.  This housing crisis still has another 2-3 years left in it.  The storm has not yet passed.

Jul 30, 2009 02:12 PM
Anonymous
phil

The low end is improving from such low prices as the cash on returns are hard to beat.  The middle is holding its own. The high end is crashing. Commercial is crashing. Industrial is falling.

Since most media sources are cutting costs to survive,  it is reflected by their unprofessional reporting (you get what your pay for) which is full of errors, misinformation, lack of insight, etc. (Fake boobs, nose jobs and lip injections don't make better reporting, just better looking reporting). The news stories are so flawed, I think it is what killed Walter Cronkite! 

Jul 30, 2009 02:17 PM
#13
Jim Crawford
Long & Foster - Fredericksburg, VA
Jim Crawford Broker Associate Fredericksburg VA

Charles Stallions Real Estate 800-309-3414 Pensacola, Fl.   Charles, in many markets even the markets that were not so hard hit, the average sales price is off by 25% in the last few years.  Sales are off by 40-50% in most markets from their peak.  The new home sale data increase was compared to November when all markets had collapsed.  Anything would look positive form that perspective.

Jul 31, 2009 12:11 AM
Jim Crawford
Long & Foster - Fredericksburg, VA
Jim Crawford Broker Associate Fredericksburg VA

Mark MacKenzie Real Estate Planning  Mark...I agree fully with your assessment.

Jul 31, 2009 12:12 AM
Jim Crawford
Long & Foster - Fredericksburg, VA
Jim Crawford Broker Associate Fredericksburg VA

Phil - You are so right.  Even in Atlanta, many of the reporters I used to give interviews for are no longer employed.  Press releases or pre-spun propaganda are published without questioning the sources.

Jul 31, 2009 12:15 AM