Aaron and I are especially excited about this month’s newsletter.   Below you’ll find part 2 of this edition.  In it you’ll learn more about how we know the Atlanta real estate market HAS HIT BOTTOM!  We’ve also included Metro Atlanta’s 3rd Quarter Market Stats (exclusive ONLY to Keller Williams agents, provided by Chuck Carr with Chartmasters Inc).  We’re not trying to paint an unrealistic picture either.  You will see factual graphs and stats that prove Atlanta is at the bottom.

One more thing.  This newsletter is brimming with the most current Atlanta real estate data.  You will not find these numbers anywhere else.  If you know someone who is struggling with a real estate decision or needs honest real estate advice please forward this email to them and encourage them to call us.  Then, shoot us an email & tell us about them.

Have a great week & hope you enjoy this 2nd portion of our newsletter.  More to come later this week…(we add sections at a time)…

Kelly & Aaron Allen | The Kelly Sells Atlanta Team
#1 Sales Team of Keller Williams Premier Atlanta
www.KellySellsAtlanta.com

The MOST Current Metro Atlanta Statistics You Can Find Are Right Here

Here is what we’re seeing.  If you’d like to skip the hard data scroll to the bottom of this article where I’ve outlined what this means if you are a Buyer or Seller right now……

•  Sales are still down -23.5% compared to 2007, however, 9/08 sales were = to 9/07 sales.  (3,774 homes closed last month) This is the 1st time we’ve seen this in months.
•  The rate of decline in number of homes sold vs. the same quarter one year earlier began decling in the 3Q of 2006.  It continued to decline until 4Q of 2007.  4Q of 2007 and 1Q of 2008 this number leveled off and then began to go back up the 2Q of this year.  3Q we’ve seen that number continue to get better.  We’ve hit the bottom and now are going back up.
•  The under $200,000 market continues to get better which will eventually allow move-up buyers to sell their properties more easily, causing a ripple-effect through the market.
•  The % of sales that were foreclosures was double the # in 3Q 2007.  (the largest # of foreclosures are still in the under $200K market where 35.4% of sales were foreclosures)
•  The average sales price is down 13.8% (this is probably due to foreclosure sales in the lower price ranges)  
•  Sellers are getting, on average, 93% of their original list price (3.5% less than what they were getting this time last year)
•  It’s taking, on average, 85 days to sell a home right now compared to 69 days this time last year.
•  51% of Sellers have to reduce their price in order to get an offer.
•  If you get your price right the 1st time and don’t have to reduce you’ll net, on average, 96.6% of your asking price.  If you have to reduce your price you’ll get, on average, 87.9% of your original asking price.  How can you prevent this when the “right price” is a constantly moving target?  Price 3-5% BELOW market value in the beginning.
•  Sellers needing a price reduction need 2-3 times longer to sell their properties.
• 66.9% of listings in the 3Q failed to sell, likely due to Buyer price resistance since listings usually fail due to overpricing.
• Since July of this year we have seen a reduction in inventory, now at 12.3 months metro Atlanta wide.

If you are a BUYER-
1.  Consider looking at new homes.  Builders are offering more attractive pricing and Buyer incentives to work off their new home inventory.  Be careful though- Builders are also still going out of business.  We can help you determine which Builders have the least inventory and fewer lots that could potentially sit vacant.
2.  With that being said, resales are still a better value.  New home prices have fallen less than resales.  (3% versus 11.2%) 
3.  Ask Sellers to pay some or all of your closing costs.
4.  DON’T WAIT TO BUY.  It’s natural to fear making a mistake but you have to have faith that you’ll make a good decision.  Get off the bench thinking “maybe someday” and get in the game thinking “right now, today!”  Don’t back off and try to wait out the market.  It’s funny, a few years ago buyers should have been worried about paying too much but didn’t.  Now, it’s impossible to pay too much for a home but some Buyers are still worried that it will happen.  We, as your Realtors, will not let that happen.  Appraisers won’t allow that to happen either.

If you are a SELLER-
1.  The mix of sales in 2008 has shifted more toward lower-priced homes, which could be an indication that entry-level Buyer credit problems are declining.  If so, that could set the stage for recovery in the broader market   as move-up Buyers become more able to sell their homes
2.  The biggest concern for Sellers in 2008 has to be the still-high inventory of homes for sale at all price levels, including Foreclosures, causing pressure on Sellers to price properties more attractively in order to attract buyers.
3.  Market slowing will continue until the inventory returns to more normal rates- until then, greater care must be taken in pricing at, or below, the CURRENT competition.  You should pay special attention to comparing your list price and property condition to currently active listings, rather than the traditional focus on listings that sold several months ago.  Attractive pricing and above-average condition are essential to selling in this market.
4.  Consider selling now to move up into your dream home.  Sure, if you waited another year to sell you might get more but by selling now you’ll be able to take advantage of the amazing deals that are being offered NOW.  (ex- I just showed a house in Suwanee that’s a foreclosure.  It was listed for $100,000 less than what it sold for 3 years ago.  Those are the kinds of deals we can find for you.  You can more than make up for whatever loss you incur on the selling side.

Conclusion from 2 Atlanta real estate trends experts-
“The Atlanta real estate market is still in a strong Buyer’s market, but is starting to show some encouraging signs of moderation.  The selloff of foreclosed properties will likely need to be completed before sales and prices can increase again.  Those Sellers who priced their properties in line with the current market reality found success in selling their properties in a median of 96.7% of their original listing price, in a median of 38 days on market.  As more Sellers realize the necessity of pricing with or just below the current market, a return to steady growth in the Atlanta homes sales market will occur.”
- Chuck Carr, Chartmaster Services, LLC

“After reviewing all trends, the Atlanta market is indeed at a technical bottom. Also, oil has dropped significantly, the credit markets are improving and homes are more affordable than they have been in years. I would say, without a doubt, we will start to see an upswing in housing. However, rising unemployment, potential negative future taxation plans and an unstable international market may keep us down for a bit longer.”
- Steve Palm, Smart Numbers

Hope you’ve found this all informative & insightful.  We’re here to help if you or anyone you know is looking to Buy or Sell a home.  We want to be your trusted resource for Atlanta Real Estate, so visit our website to view ALL metro Atlanta Homes for Sale or email us and let us know how we can help you!

Warmly,

The Kelly Sells Atlanta Team

This entry was posted on Thursday, November 6th, 2008 at 10:36 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.