Bird’s Eye View: Neighborhood Market Report

Here’s What’s Happening in Your Neck of the Woods!

Market Stats in our Neighborhood

All the national headlines have consistently indicated that the housing market showed strong and consistent improvement in 2013. And, in our primary market area, we saw the same positive market trends! The first half of 2013 saw extremely low inventory levels, at a time when buyer demand was strong. The result? For the first time in years, many sellers found their homes selling very quickly, often in multiple offers and sales prices at or near the asking price. The second half of the year seemed to slow a bit, to what may be considered more “normal” market activity.

 See the chart below for specific stats by neighborhood.

Neighborhood Market Report: January 2014
Neighborhood Unit Sales Median Price DOM MSI
Jan – Jun 2013 Jul – Dec 2013 Change Jan – Jun 2013 Jul – Dec 2013 Change Jan – Jun 2013 Jul – Dec 2013 Jan 2014
Ormewood Park 45 36 -20.0% $225,000 $233,750 3.9% 43 48 3.2
Grant Park 101 81 -19.8% $263,400 $252,500 -4.1% 45 34 4.2
East Atlanta 95 94 -1.1% $175,000 $216,350 23.6% 50 51 5.3

Unit sales in all neighborhood were down the last half of 2013. We believe this was due primarily to buyer hesitation during crazed market conditions, increasing interest rates and uncertainty about the government shut down last fall. The chart shows Median Home Prices were inconsistent by neighborhood. In general, Ormewood Park is likely the truest representation of a normal market, at a healthy 3.9% increase. Grant Park likely saw a decrease because prices rose so sharply in the first half of the year – a slight “correction” if you will. And, the large increase in prices in East Atlanta? We believe partially due to the fact that the market improvements were a little slower in East Atlanta. But, also there was a larger inventory of foreclosures in East Atlanta that were aggressively bought up by investors. That inventory is all but gone now. 

Looking at Days on Market, we see that it’s pretty consistent. And, has dropped significantly as the market has improved – during the worst days of the market, DOM averaged around 100 days in our local market. 

We can also see that the Months Supply Inventory is very low. Not surprising, as we keep hearing the cries of low inventory levels across Atlanta.  To put things in perspective, an MSI of 6 is considered a “balanced” market. When we have more than 6 months of inventory, it is a buyer’s market. When we have less than 6 months, it is a seller’s market. East Atlanta has more inventory than Ormewood Park and Grant Park, but is still a seller’s market.

The key take home message? Market conditions are good, for buyers and sellers. Interest rates are still historically low and prices have still not recovered to their levels seen before the downturn. Lenders are continuing to find creative ways to make loans available for qualified borrowers (read here: you need to have a job, some down payment and good credit). From a seller’s perspective, now may be a good time to sell, given low inventory levels and buyer demand. As prices continue to increase, more and more sellers are likely to enter the market.

If you are thinking of buying or selling a home in the next year or so, contact Wakamo & Associates for a complimentary consultation. It’s not too early to get started!

posted: Feb 11, 2014 | No Responses

Posted by:  Wakamo & Associates

Melissa Wakamo and her dynamic team of agents and support staff provide buyer and seller clients with exceptional service and proven results. Since the start of her real estate career in 2004, Melissa has proven to be a true advocate for her clients and has consistently performed in the top 1% of agents

“When I started my real estate career, I wanted to work in my local community and get to know my neighbors. Now, I realize how important that local expertise is to our clients. At Red Robin REALTORS®, all of our agents are specialists in working with buyers and sellers in Atlanta’s intown neighborhoods.”

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