A Tale of Two Markets: Are We in a Buyer’s Market or a Seller’s Market? Or Both?

The past 3-4 years have clearly been a “buyer’s market” in most areas and price ranges across Gwinnett.  Buyers had the advantage of an over-supply of properties to select and their agents were able to negotiate favorable prices and terms.  But that is changing for 2013.  Many markets and price points are transitioning to a seller’s market.  This is primarily due to very low inventory and robust demand.  In general, homes under $500,000 are seeing more of a seller’s market and homes above $500,000 remain in more of a buyer’s market.  See the chart above which shows the months of inventory based upon the current trends for demand in those price points.  The attached chart reflects the 10-county area of Metro Atlanta.  Six months of supply is considered a normal market.  The “for sale” inventory of properties under $500,000 is below the normal levels of supply and properties in the higher price points remain plentiful relative to the buyer demand.  Of course, local markets can differ from the general trends.

One of the main drivers in the lower price points has been investors.  First time buyers and inventors have been very active in homes under $200,000.  The inventory in this segment is very low for desirable properties.  As you can see from the chart, the luxury market still has plenty of available inventory and buyers can still get more favorable pricing and terms.  But this is beginning to change as well.  History tells us that prices do not rise immediately as the supply becomes more scarce.  Prices under $200,000 are moving faster because the inventory has been very low for an extended period and demand is very strong.  Prices in the $300,000 to $500,000 segment have not risen as fast because the under-supply is a more recent trend.  Some areas of the luxury market will take longer to adjust.            

If you are a move-up buyer, you may be able to sell in a seller’s market and still buy in a buyer’s market.  That is the best of both worlds!  If you are a seller in the higher price points, you may not get the outcome you desire on the selling end.  BUT remember, that you still have a great opportunity on the buying end to purchase a great property while prices are lower and financing remains incredibly low.  If you wait too long, those prices and mortgage rates will be higher and may more than offset the higher selling price of your current home.                 

If you or someone you know would like to learn more about the trends in your local area, we would be happy to provide detailed statistics that can help make better decisions.  We have access to many resources including proprietary sources of information that are not available to the public.       

For more information on Dacula neighborhoods feel free to call Hank Bailey at (678) 252-9257, email to hankbailey@prudentialgeorgia.com or follow @PrudentialGARE on twitter.  Hank is the #1 AGENT for Prudential Georgia Realty I-85N in Metro Atlanta in 2012!

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