The
Atlanta real
estate market is still moving
forward, but we must actually assess what is taking place.
Many of us have noticed that some of the real estate news is
turning positive in many markets. Slight increases in Atlanta home
sales and prices seem to have everyone in a more cheerful mood, but
until we get at least 6 months of solid back to back
improvements...only then can we quote a trend that we have turned the
corner. I personally question recent increases in home sales.
Now the media wants a positive spin on everything, so the
news stories we hear are colored with 'rose color glasses.'
We must keep in mind that Atlanta homes
sales today are not the same as a few years ago, because they do not
generate the same amount of worth.
An
example is
that when a home owner sold a home years ago to downsize, or
trade up... there were full commissions and equity for the principals
on both sides of the deal, and that is no longer the case. Today we are
dealing with very high percentages of bank owned properties and short
sales. Many Bank owned REOs are only paying a flat fee on the
listing side. Short sales on the other hand are paying for
the most part whatever the bank wants. Also, unlike a private
party sale between a buyer and seller - a
bank property sale does not generate another sale.
One property is sold, and the story ends there. It
is quite different than a sale involving two or more parties -
in that instance several other deals are created.
If we are going to discuss our market and their health, more real estate professionals are going to have to understand the economics that drives them. Numbers of sales does not necessarily mean that things are back to normal. A recent sale here in the Atlanta real estate market shows that homes are selling quickly, but they are selling for 250K less than they were a few years ago. So it isn't good news if you are selling and taking a 150K hit in real equity. In short less money is being created for less parties, and that means there is less to go around and spread the real wealth. My idea of wealth creation is not paying off TARP money via a foreclosure or distressed sale.
RE/MAX Paramount Properties 678-595-5286 Direct
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Atlanta Real Estate & Atlanta Homes for Sale 
Sooner or later, the loss of the "move-up" market will get some understanding.
Sooner or later.
Sounds like it is still a good time to purchase in the Atlanta area. You need to get all of those first time buyers on contract. Thanks for the market information. Best wishes for continued success.
Just yesterday, my brother mentioned that he was considering a move to the Atlanta area. Peachtree City is the area I think he mentioned. Liked the idea of being in a community where you can go around on a gold cart.
We have had 6 months of up markets here. in Central Virginia
I like your a bank owned property sale does not generate another sale. The media doesn't get it...
Thanks for the update on the Atlanta market. I lived there for 3 years. Beautiful
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate It is scary isn't it? This does not even touch the scenario of 'auction homes' and bulk sales.
Roy Kelley (RE/MAX Realty Group) The problem in Atlanta for first time home buyers is the high unemployment. That side of town has been hit hard with the FORD plant closing.
Norma Brandsberg (Marks Realty Co. Inc., Lynchburg, VA, 540-586-9496) In some price ranges inventory has leveled off.
Paul Henderson, Realtor ® Lacey & Dupont Washington homes (RE/MAX Professionals & Four Seasons Inc.) No Paul they just don't get it.
Harry F. D'Elia III (Real Estate and Beyond, LLC) The beauty will not pay the bills. We need a shot of major adrenaline here.
JIm, couldn't have said it better myself. I love the ones that think new home sales have go up 11% when they were down 43% from their high. I would think that still means they are at record lows.
Jim,
While there clearly has been a stabilization of the housing market, if not an actual improvement, it is temporary.
I don't think a lot of people understand the gravity of the situation. This housing crisis still has another 2-3 years left in it. The storm has not yet passed.
The low end is improving from such low prices as the cash on returns are hard to beat. The middle is holding its own. The high end is crashing. Commercial is crashing. Industrial is falling.
Since most media sources are cutting costs to survive, it is reflected by their unprofessional reporting (you get what your pay for) which is full of errors, misinformation, lack of insight, etc. (Fake boobs, nose jobs and lip injections don't make better reporting, just better looking reporting). The news stories are so flawed, I think it is what killed Walter Cronkite!
Charles Stallions Real Estate 800-309-3414 Pensacola, Fl. Charles, in many markets even the markets that were not so hard hit, the average sales price is off by 25% in the last few years. Sales are off by 40-50% in most markets from their peak. The new home sale data increase was compared to November when all markets had collapsed. Anything would look positive form that perspective.
Mark MacKenzie Real Estate Planning Mark...I agree fully with your assessment.
Phil - You are so right. Even in Atlanta, many of the reporters I used to give interviews for are no longer employed. Press releases or pre-spun propaganda are published without questioning the sources.