How's the Market Doing?
That is probably the number 1 question I get asked. I wanted to provide some information to let people know what is really going on in the market. The first thing to understand is there are three different markets.
Understanding three views of the current market allows Buyers to maximize their ability to evaluate properties, receiving the highest value in their home search and Sellers to position their property to maximize money in their pocket while minimizing time on market:
Macro View: National Market
National Media Coverage
Metro View: Atlanta Market
Quarterly FMLS Market Report
Micro View: Your Community
Comparative Market Analysis
The Macro Market is what the media covers and is all the doom and gloom. Just because certain areas in the West or Northeast United States are not doing well, does not mean the market is down everywhere.
The Micro Market pertains to a certain neighborhood, community, or complex. You would need to consult a real estate professional to learn exactly how the particular market is doing by having them run a Comparitive Market Analysis. Once again, just because one neighborhood is not doing well, does not mean another neighborhood down the street is not also.
What I want to focus on here is the Metro Market. Basically Atlanta and the surrounding Metro Area. Here is a summary of the Atlanta metro market after the second quarter of 2008.
Sales: -28.1% from Year To Date June, 2007
Downward percentage trend has lessened
Foreclosures = 20.7% of sales
May be some improvement in sales in the less than $200K price range
Sales Prices: Median -7.6% from Year To Date June, 2007
1Q 08 down -8%, 2Q 08 down -3.9%
Percent Sold/List price: Median 93.2%, -3.2 percentage points from YTD June 2007
Historically low ratio
less than $200K price range impacted by foreclosures
Some signs of improvement since January, 2008
Days on Market: 32% higher YTD June, 2008, 27% higher in 1Q 2008, 39% higher in 2Q 2008
The Median DOM was lower in 2Q 2008 than in 1Q 2008 – likely due to spring market effect
Seller-Paid Closing Costs: Stable at 76% of transactions
Price Reductions: Historically high – YTD June at 49%, 1Q - 16 percentage points higher than last year, 2Q - 14 points higher,
Larger than usual drop in % S/L ratio when price reduction is taken (-9.2 percentage points in 1Q, 8.3 points in 2Q)
Less than $200K price range impact of price reduction greater (-12.7 percentage points) than for other price ranges
DOM effect – 2.3 times longer in 1Q, 3 times longer in 2Q, 2.7 times longer YTD
Failed Listings: 63.8% of listings in 2Q 2008
Overpriced Listings: 81% of listings in 2Q 2008
Supply: Still increasing, at 13.0 months supply
88% higher than in January, 2007
Some signs of moderating in recent quarter
Hopefully you have found this information to be helpful. Check back to see other metro market reports here in the near future.
We would like to help you buy or sell a home.
Our Home Team, LLC
Keller Williams Realty
2345 Peachtree Road
Atlanta, GA 30305
(404) 285-6264 (Cell)
(404) 806-0637 (Fax)
(404) 604-3800 (Office)
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The above information is believed to be accurate, but is not warranted.
Equal Housing Opportunity.