The Time Is Now – Third Quarter Real Estate Market Review

Posted on November 26, 2013 by

Last year at this time, we were all wondering what was going to happen to the market.

My prediction? I knew that things were looking up, and guess what? I have good news.

Here is the update for Atlanta’s 10 county area:

  • sales are up
  • number of participating counties is up
  • prices are moving up
  • AND, most importantly:

The bottom has come and gone in Atlanta.

The sellers’ market is changing. I am seeing more sellers asking premium prices for their properties. But that is not going to happen. The biggest reason is the people giving out the money are not willing to risk a 15% increase in prices in 3 months.

Where are YOU RIGHT NOW?

Consider this: Unless you are out working the field right now, you are missing out.  ALL housing price points are moving in Atlanta, and these are transactions are going on as you read this. If you are serious, YOU need to be:

IN THE GAME!

So how can YOU get in the game?

How can YOU make money? 

Call me. I can walk you through the numbers to see if you have a deal. I can help you to save your money and to make your money. 

Remember: I have worked for years in all kinds of markets. I predicted this market, and I know how to buy and sell in it.

To start you off, I have identified 47 areas where, if you find a seller wanting to sell for 70% of fair market value and the repairs are light, the chances of you turning a profit are high.

This data shouts: If you are not in the game now, you will have missed the greatest opportunity in Atlanta history to buy low and sell high.

Here is just a sample of the information that I want to share:

  1. The areas and zip codes mentioned below are areas that are currently being worked by investors. To make a profit you should look at areas that are surrounding it in the price point you can afford.
  2. If you are dissatisfied with the volume of deals you have coming across your table, you will want to move to another higher volume area.
  3. If you have a deal that shows up in the hotter areas, you will have no problem getting good solid comparables to know what the price should be. (This report deals only with the higher volume area for solds.)
  4. If you buy a house in the wrong zip code, your cash will be tied up for a minimum of 18 months.
  5. Be confident that if you buy a house at a fair price, you should be able to sell it for a profit in the next 6 months because the housing prices are going up.
  6. 5 months of inventory are currently on the market.
  7. One out of every 5 houses is over-priced for its condition and is not a good value. You must to screen as many houses as possible to find a motivated seller. Gwinnet and Hall counties are pricing their housing correctly and not pushing the market with one in every three houses selling. On the other hand, Fulton County doesn’t price their houses well at all, with one in ten being priced to sell in 30 days.
  8. The number of “trash houses” has gone down considerably showing that the banks are slowing their sales and keeping prices up. This is important is because the bank’s absorption of the toxic assets is dwindling meaning that the chances for another housing collapse are lower. 

Data 

I have done my research. I am excited to give you the following good news:

Averages for Atlanta:

  • Real Estate Owned sales: $111,996
  • Foreclosures: $141,985

Atlanta’s sales and inventory have decreased in the last 2 months:

  • Clayton County had 21% Bank Owned sales below 250,000.  
  • Cherokee County had 10% Bank Owned sales below 250,000.
  • Cobb County had 9% Bank Owned sales below 250,000.
  • DeKalb County had 7% Bank Owned sales below 250,000.
  • Douglas County had 17% Bank Owned sales below 250,000.
  • Forsyth County had 7% Bank Owned sales below 250,000.
  • Fulton County had 8% Bank Owned sales below 250,000.
  • Gwinnett County had 8% Bank Owned sales below 250,000.
  • Rockdale County had 14% Bank Owned sales below 250,000.

Here are the numbers:

  • Cherokee County foreclosed on 30% of the properties the banks sent notices to that were below $250,000.
  • Clayton County foreclosed on 22% of the properties the banks sent notices to. These are below $250,000, 53% below $100K. In other words, if the property is below $100K, it will sell at the courthouse steps. Phantom inventory is going down below $100K.
  • Cobb County foreclosed on 27% of the properties the banks sent notices to that were below $250,000, 73% below $100K. In other words, houses below $100K will sell at the courthouse steps. Phantom inventory is quickly going down below $100K!!!
  • DeKalb County foreclosed on 38% of the properties the banks sent notices to that were below $250,000. 53% below $100K. In other words, houses below $100K it will sell at the courthouse steps. Phantom inventory is going down below $100K.
  • Douglas County foreclosed on 28% of the properties the banks sent notices to that were below $250,000.
  • Forsyth County foreclosed on 25% of the properties the banks sent notices to that were below $250,000.
  • Fulton County foreclosed on 23% of the properties the banks sent notices to that were below $250,000. 54% below $100K. In other words, houses that are below $100K will sell at the courthouse steps. Phantom inventory is going down below 100K.
  • Gwinnett County Foreclosed on 26% of the properties the banks sent notices to that are below $250,000. 93% below $100K in other words, houses below $100K will sell at the courthouse steps. Phantom inventory is quickly going down below 100K!!!
  • Rockdale County foreclosed on 29% of the properties the banks sent notices to that were below $250,000.

This data is important because the banks are helping you. By holding properties back, they are artificially keeping prices up.

In the past quarter, Gwinnett is selling one third more houses (3825) than Fulton (1980) and Cobb (1312). Gwinnett has only 2 months of inventory on what is now a strong sellers’ market. Hall has 3 months of inventory, also a strong sellers’ market. Fulton County is second in sales with 9 months of inventory on the market. This makes it a strong buyers’ market.

There are even houses selling for under $50K in Cherokee county (14), Gwinnett county (29), Cobb (50) county, DeKalb (125) and Fulton (225)!

In fact, Cherokee county has the strongest marketing the price range of $100-$150K and $200-$250. What does this mean? It is a strong buy, fix, and sell area.

What price point should you work to wholesale?

34% of all sales are below $100K. The other 66% are between 101K and 250K. Clayton County (90%) DeKalb County (45%) and Douglas County (39%) have sales below $100K. This means that in these counties you are wasting your marketing money on houses above the $100K.

What you have all been waiting for: hot zip codes to focus your marketing dollars in! 

Cherokee: 30114, 30115, 30188

Clayton: 30238, 30236, 30274,

Cobb: 30127, 30008, 30144, 30064

DeKalb: 30058, 30032, 30083, 30034,

Fulton: 30318, 30331, 30349, 30344, 30315

Gwinnett: 30044, 30047, 30045, 30019, 30043, 30518, 30096,

If YOU have the ability use the internet and the confidence to make offers… YOU CAN make money anywhere within the 10 county area of Atlanta.

Join me and other successful investors at my Creative Deal Structuring Subgroup on the first Wednesday of each month. Let me coach you to learn the market and find your niche!

I am looking forward to meeting you and helping you on your way to meeting your real estate and life goals!

Russ HinerRuss Hiner is an active real estate investor, coach and mentor. Russ is currently the leader of the Atlanta REIA Creative Deal Structuring Group and co-leader of the Atlanta REIA Mastermind Group. Russ also teaches several Atlanta REIA Workshops throughout the year on a variety of real estate investing topics such as Negotiations, Wholesaling 101, Wholesaling 401, Real Estate 101, Property Management and more.

Contact Russ Hiner

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