METRO ATLANTA VALUES PEAKED IN JULY 2007
CURRENT VALUES DOWN 27.93%
It can be very confusing these days with lots of real estate news on television, in the local papers and posted online. So how do you determine what your home is really worth or a home you are considering purchasing?
The traditional metrics that track the real estate market include things like “average sale price” or the “median price” which is the price in the middle of the group. These are good reflections of what is being sold but often poor reflections of the values for homes. In 2011, SmartNumbers reports that almost 50% of properties sold are under $100,000. The normal distribution of homes in this price range is around 10-15%. This abnormal distribution skews the average prices and median prices much lower.
Another method of estimating values is the Case-Shiller Index which uses repeat sales. That is a more accurate measure of home values. The latest Case-Shiller Index reflects that home values are down 27.93% from their peak of July 2007.
Another index that we like is the FNC Residential Property Index. This index uses a combination of market data and appraisal data used in loan originations. The index also shows that July 2007 was the peak for Metro Atlanta. RPI shows that Metro Atlanta home values have dropped 33.88% from the peak. Both these indexes report on Metro Atlanta.
But we all know that real estate is local. Values and trends in local markets will vary. So in trying determine the value of your particular home you must have access to very detailed local (city, neighborhood) information and insight which can help you determine the most accurate values so you can make the best real estate decisions.
Despite the numbers, homes are selling. When you take the time to become informed, take time to plan...success can be yours in spite of the "numbers."