Overview of Metro Atlanta Real Estate Market Report - Q4 2012
The Metro Atlanta Real Estate Market Report showed another market shift is occurring. During 4Q 2012 we saw confirmation of a change from a market driven down by Distressed Property sales, to one driven up by reduced supply. This caused a fundamental change in the psychology of the market from a â€œBuyerâ€™s Marketâ€ to a â€œSellerâ€™s Marketâ€ environment. The results are that many of our usual market measurements have turned in the direction of market recovery. Significant positive changes occurred in most statistical categories.
However, even as these improvements were taking place, the percentage of distressed property sales remained high (39.4%) and the number of Active listings continued to fall. These conditions should also be considered by sellers when setting listing prices. Continued distressed property sales maintain a dampening effect on seller flexibility by their use as comparables in property price evaluations.
With our uncertain economy, short term housing market improvements should still be viewed cautiously. A sharp increase in the number of Active listings or distressed property inventory, or a decrease in sales, could expose the fragile nature of this improvement. But for now at least, Sellers should find less pressure during contract negotiations and Buyers will see a more competitive market with fewer sellers willing to accept low-price offers.
4Q Summary of Atlanta Real Estate Market
The 4Q 2012 market has shifted toward recovery. â€œSellerâ€™s Marketâ€ supply levels have overcome the effects of Distressed Properties on many of our measures of market condition.
Indicators of an improving market were in evidence, such as a higher median sales price (+26.3%), increased sales (+10.6% YTD), lower median DOM (78, -27.1%), and much lower (-43%) supply of active listings.
A deterrent to full market recovery continues, however, with a significant distressed properties percentage of both Sales (39.4%) and currently Active listings (18.8%) that can cause buyers to seek those lower-priced alternatives when distressed properties appear to be a better value.
The low (1.7 months) inventory of distressed properties has likely increased competition among buyers, forcing prices higher, S/L ratios higher, DOM lower and fewer listings failing to sell.
It is difficult to know whether or not this will attract more people to list properties now which could alter the supply/demand relationship at a time when seasonal factors usually cause lower demand. If so, that could result in another reversal of many of these positive 4Q 2012 market characteristics.
Another dampening factor could result if financial institutions release more distressed properties to the market.
Click to View Full Q4 Market Report
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Chad Schernikau â€“ Metro Atlanta RealtorÂ®
Selling a Metro Atlanta home involves many steps and having an experienced Metro Atlanta Real Estate Agent by your side makes the transaction much smoother.
It is my honor to represent you as a Metro Atlanta Real Estate Professional! I assist buyers and sellers in the Metro Atlanta Area with all aspects of the real estate process including the purchasing and selling of residential real estate.
As a Metro Atlanta Buyerâ€™s Agent, I have received special training to guide and educate you through the entire home buying process. From start to finish, I listen to your needs and desires regarding what you would like and I use this information to assist you in finding your perfect home.
As your Metro Atlanta listing agent I am well versed on the local Metro AtlantaReal Estate Market. Expect personalized service including a detailed consultation that competitively positions your home in todayâ€™s market. The consultation will include an in depth comparative market analysis, advice on staging, and a customized marketing plan. This is all tailored specifically to your home and area using the latest and most up-to-date marketing methods to get your home in front of as many buyers as possible.
Being a Metro Atlanta Real estate Agent not only involves finding your home or selling your home, but also being your guide, negotiator, advisor, and advocate. I make sure all your needs and goals are met.
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