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Atlanta, Georgia was one of the big real estate stories of 2015 and is #5 of the top 10 markets to watch according to Realtor.com. 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.  Let’s look at this growth by area (Figure 1). For the purposes of this article, we are talking about single family detached in these areas.

Figure 1

Figure 1: Atlanta Metro FMLS Areas Read More→

The best statement about real estate is “Don’t wait to buy real estate. Buy real estate and wait.” by T. Harv Eker. Understanding 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.  

Real estate is a supply driven market. When supply is less than 6 months, (currently 3.7 months), it is a seller’s market, a market condition that started in 2012. With fewer listings on the market, median prices rise, and sellers get a higher percentage of their asking price.

The number of sales, or, demand has increased this year after 2 flat years while the supply remained low. All these are indications of an improving market. Distressed properties are a negligible portion of overall sales, further reducing their negative affect on market prices. Those changes caused improvements on measurements that were already strong. The medians of sales price, sales price to list price(S/L) ratio, and days on market (DOM) were greatly improved. Read More→

Real Estate Has a Sense of Humor

Posted on January 1, 2013 by

Deborah Harris - Auctioneer DaysWith over 30 years of Atlanta real Estate under my belt, one begins to think you’ve heard or seen it all.  Not true!   As an analytical person that usually utilizes this column to the explain Atlanta market statistics, I decided the end of the year needed a little levity.  Those of you that know me, would state that I have a healthy sense of humor anyway.  Therefore, this column is devoted to the more humorous true stories I have experienced in real estate.

Auctions and Land:

  1. In 1983, I went to Mendenhall Auction School in North Carolina, exactly 20 years after my Dad had graduated from the same auction school.  He fronted the money for the school and the expenses for me to attend, on the condition, that we deduct it from future auction commissions. Well, in the eighties, auction and real estate were mostly male occupations. Therefore, 90% of a class of 100 was men.  The first day of school, the schoolmaster, Mr. Mendenhall, announced that, “We have a very special student here.  She is the second generation to attend auction school, and, her father is the President of the National Auctioneers Association.”  With that, everyone wanted to meet me, and, a group invited me to play poker with them.  Well, I inherited my math and card playing abilities from Dad, and, I am sure this group had no idea who they were tangling with. The following Monday after my graduation from school, I was in my Dad’s office, when I started counting of hundreds of dollars to him.  “Here’s the tuition money.  Here’s the expense money.  And, I am keeping the rest”, I exclaimed.  “Where did you get all that money, girl?” my father questioned.  “I won it playing poker with the rednecks that wanted to learn to sell cows and tobacco,” I proudly said.  With that, he slammed his fist on his desk and stated, “Way to go, Girl!” Read More→

Georgia has become one of the top five states for film production thanks to our Georgia Legislature.   This dramatic increase in filming in Georgia is due to the tax credits afforded to production companies spending at least $500,000 on qualified production and post-production making them eligible for a 20% tax credit.   Furthermore, if the production company includes a Georgia promotional logo in the feature film, television series, music videos, or video game, can receive an additional 10% tax credit.  Commercial and music videos spending $500,000 or more are also eligible for a 20% tax credit.

While movies can be full of make believe, the film and television industry in Georgia provides more than 25,000 real jobs for real people. Some of those jobs are directly involved in production. Other film-related jobs include hair and makeup stylists, caterers doctors, truck drivers, electricians, painters, construction workers, accountants, security guards and many more.

Last year, the direct economic benefits of film production in Georgia came to nearly $2.5 billion. In fiscal year 2011, works, Hollywood studios, production companies and independent producers invested more than $689.3 million in Georgia. The production industry has positively impacted thousands of businesses, from hotels, restaurants, grocery stores and rental car companies to hardware stores, lumber yards, garden nurseries, heavy equipment rentals and office supply companies.  Read More→

As a veteran real estate agent in the Atlanta Market for over 30 years (Yes, I started in real estate when I was 12), the current market is the darnedest thing I have ever seen. First and foremost, listing inventory is down by 36% from May 2011, sending home values up 2.35% from March 2012 for the first time, and, above the national average of 1.3% according to the Case-Shiller Report of June 2012. These new numbers indicate a firming of the market in a positive direction.  Is this a signal that the metro Atlanta real estate market will continue to show signs of improvement for sellers? With an extended period of low inventory since last year, Buyer activity is strong. In 2012, Trendgraphix reports closed sales up 15% compared to 2011. At the same time, the pace of pre-foreclosures (notices of default) and foreclosures has slowed. For the past three months, RealValuator reports that market sales (resales, new homes) have outpaced bank-owned sales.

Recently, mortgage rates have dipped back to historic lows. The Fed has extended “Operation Twist” which is a program intended to keep 30-year rates low. But, mortgage rates are impacted by more factors than just interest rates. There are major legislative issues and other economic factors that could cause mortgage rates to rise. For example, the proposed legislation for QRM (Qualified Residential Mortgages) will require mortgage companies to hold back 5% in capital reserves for every loan. That is expected to be funded by higher mortgage rates. Right now, there is an incredible window of opportunity to buy the home of your dreams and set a future mortgage rate that we will not likely see again in our lifetimes. Read More→

If you are one of those investors that have been waiting for the bottom, you’ve missed it!  Foreclosures are seeing multiple offers with “up bidding” because these are the properties that are perfect for investors wanting high cap rates from rentals. Monthly sales were considerably stronger in January through May compared to both of the last two years and June sales will likely be equal or higher once lagged closings are processed.  The usual seasonal low points in January were higher in both 2011 and 2012, possibly indicating a firmer base for continued sales growth following distortions caused by government purchase incentive programs in 2009/10.  While sales have increased during 2012, the number of Active Listings in Atlanta are at a 12 year low. Read More→

Over the past five years, the real estate market took some now obvious twists and turns. In recent months, many local markets have made a noticeable shift into seller’s market conditions.  Fear of loss is new ingredient in the buying process, especially in popular markets, and, markets under $200,000, that have seen drastic shortages of acceptable homes for sale.  No longer are buyers looking at ALL of the available inventory before deciding to make an offer. In fact, many investors are making “blind” offers on properties that they have never seen before. Most investors participate in the under $200,000 market, of which over 70% of all sales in Atlanta are below $200,000  and this activity has caused medial sales prices to fall by 9.2% in 1Q 2012 (See Chart 1).  As many federal agencies give preference to owner occupants and non-profits, many days all available inventories for investors are SOLD OUT! Most properties under $100,000 are enjoying multiple offers, and, acceptable offers are usually well above list price. 

Chart 1
Chart 1

Read More→

The good news for the Atlanta Real estate Market is that 2012 year to date sales rose over 17.1% in 2011 and 23.3 % over 2010. Sales gains in 1Q and 2Q 2011 were even more significant since they were being compared to 2 periods in 2010 which were boosted by government tax incentive purchases, making the 1Q 2012 increase above those gains even more significant (Chart 1).

Chart 1
Chart 1

A lot of this has to do with the drastic increase in the quantity of sales since 1 Q 2011 and especially since 3rd quarter 2011. And, while the number sold increased, 42% of the sales were under $100,000 and 70% of the sales were under $200,000 (Chart 2). Read More→

Deborah HarrisMore and more I am hearing positive predictions for the housing market for the second half of 2011, as well as certainly for 2012 and beyond. I had the pleasure of hearing local economist Roger Tutterow recently, and he echoed some of the positive positions I have read and heard elsewhere. He noted that economic expansion truly resumed in the 4th quarter of 2010, and noted that consumer confidence always lags economic upturns. He noted that the risk of a double dip recession was a low 15%, and that with inflation coming back into the picture rates will be increasing by late this year or certainly next year. Of particular interest to us, he noted that homes in Atlanta are now fairly valued, the bottom has already occurred, and we will see a return to normal in 2013 or 2014. This matches the Case-Shiller forecasts for a return to a sellers market in that timeframe, and a likely housing shortage by 2015. Read More→