Atlanta Area Statistics Are Important in Analyzing Real Estate Deals

Posted on August 1, 2016 by

Atlanta, Georgia is one of the strongest real estate markets in the US and has favored Sellers rather than Buyers since spring of 2013. According to Realtor.com, the median list price in Atlanta has gone from just over $200,000 in 2014 to over $300,000 in 2016 and is currently leveling off. A $100,000 median price gain in two years is nothing short of fantastic. See Figure 1.

Figure 1

Figure 1

For the purposes of this article, we are talking about single family detached in these areas. See Figure 2.

Figure 2

Figure 2

Figure 3 is a chart depicting the number SOLD. Sales are really rapid in Area 52 which includes Brookhaven, and, surprisingly Paulding is on fire (191). One must take into consideration the size of the area in looking at these numbers as well. Vinings (71) is a geographically small area with very expensive houses resulting in a tiny number sold. See Figure 4.

Figure 3

Figure 3

The percentage change in the number sold was up in almost all areas partially due to the increases in new construction particularly in lower price points where land costs are cheaper overall, Forsyth County had the greatest increases in the number sold, partially due to the reputation for good public schools.

Figure 4

Figure 4

Areas with the black dots still have more than 15% in distressed sales (foreclosures and short sales) which sold at lightening pace and are at lower price point areas of town. Most distressed sales are bringing more than list price and are being purchased by investors seeking rental properties. See Figure 5.

Figure 5

Figure 5

Now let’s look at the change in the number sold. See Figure 6. The straight red line represents the median. The median for these Atlanta areas is down to 6% from 8.8% the previous quarter. This really depicts how tight the market is. Buckhead (21), Midtown (23), Brookhaven (51) and Sandy Springs inside the perimeter (132) are pricey areas with little on the market. The closings in the East Cobb (81, where Walton High School is) market are narrow due to school systems being highly desirable.

Figure 6

Figure 6

Distressed sales are a combination of foreclosures and short sales South Dekalb (41, 42, 52, 53), South Fulton (31,32,33) and Douglas (91) counties are plagued with distress sales the most. Ironically, the homes in these areas are typically inexpensive houses with owners living paycheck to paycheck. See Figure 7.

Figure 7

Figure 7

Conversely The higher priced areas like Vinings (71) Buckhead (21), Midtown, (23), Sandy Springs, (132), and Dunwoody (121) hardly have any distressed properties available. See Figure 8.

Figure 8

Figure 8

Now let’s discuss Median Sales Price. To me, this is the most valuable chart of them all. If you are a flipper, doesn’t it make sense to buy and flip below the median sales price of an area. Of course in the northern in town areas like Midtown (23), Buckhead (21) , Sandy Springs (131,132) and Dunwoody (121), the median prices are quite high. In these same areas, builders are buying houses to knock down for $350,000 to $500,000 and more. See Figure 9.

Figure 9

Figure 9

How have median sales prices changed? See Figure 10. The median sales price increase in Metro Atlanta over last year was 6.3%. Buckhead (21) and Sandy Springs (131) have a median Price of over $845,000 making housing unattainable in these areas for most people. But, south Fulton County (31 and 32) saw the greatest percentage increase as it started with some of the lowest price points.

Figure 10

Figure 10

While a balanced market is 6 months of inventory, (almost every area of Atlanta is below that), the median time on market is 3.7 months selling in a median of 56 days. This is great news for rehabbers. In proper condition, priced right, real estate is moving at an unprecedented pace. See Figure 11.

Figure 11

Figure 11

While a balanced market is 6 months of inventory, (almost every area of Atlanta is below that), the median time on market is 2.9 months selling in a median of 27 days. If a property is shown 6 times and has had no offer, it is due to being overpriced. A property priced correctly for condition will sell in less than 30 days. This is great news for rehabbers. In proper condition, priced right, real estate is moving at an unprecedented pace.

While this statistical information was for single family detached, the attached condo –townhouse home prices in the metro area rose by double digits over the last couple of years, outpacing most of the nation and are finally above their 2007 high prices. Although home-prices and appreciation has leveled off to some degree, continued gains are expected in 2016. See Figure 12.

Figure 12

Figure 12

Let’s continue to enjoy this market while we can!

Deborah HarrisDeborah Harris is the hardest working Realtor in Atlanta and after 35 years, 1000 houses, 2000 lot sales, and 100’s of land and commercial deals, Deborah still loves real estate. She is a facilitator for various acquisitions, JV, site search, development. She has numerous awards (The Phoenix Award from the Atlanta Board of Realtors and Top Agent for Keller Williams International for April 2013), and dozens of designations. Deborah loves negotiating the deal, and is always striving to take her business to the next level.

Contact Deborah Harris

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