Greater Metro Atlanta Real Estate Update for May 2013

Real estate is heavily impacted by the laws of supply & demand plus a few other factors like mortgage rates and the economy. The “for sale” inventory across most markets remains very low. Desirable properties priced at market values are selling very quickly – often with multiple offers.

• For the Greater Metro Atlanta area, inventory levels are down 36.4% from 2012 and 56.4% from 2011.
• The available “months of supply” is 3.7 months based upon closed sales and 2.9 months based on pending sales. Six months of supply is considered a normal market.
• The fallout rates of pending versus closings are higher than normal. Closed units are down for the past four months compared to the same month last year.
• The pace of short sales and foreclosures coming on the market has slowed considerably. In 2010, over 60% of sales were distressed properties but that is now down to 37%. Resales are the larger mix of sales.
• New Homes are making a slow but sure comeback. There are some wonderful new home communities coming online with the latest innovations in smart building that may be great options for buyers. Click here to view new home communities.
• The Case-Shiller Index reports that Metro Atlanta home values have increased 13.41% in the last 12 months. But values remain down 29% from the peak of July 2007. Click here for the latest Case-Shiller report.
• Home values will continue to rise in 2013 – especially in the lower price points driven by the very low levels of inventory and strong buyer demand.
• Appraisals can be a problem. In areas, where prices are rising the appraiser may not be considering the latest comps or may not be able to use some comps that were done as private transactions. We can help provide information to the appraiser in the formats they require. This gives us the best chance to get the highest appraised value for loan approvals.
• Mortgage rates remain incredibly low – but this will change significantly in a few years. The Fed continues their program of buying $85 billion per month in mortgage-backed securities. The simple fact is that mortgage rates are being held down artificially and the mortgage system must be restructured to be able to operate normally. That means higher rates and higher costs for financing are coming in the future.

This is an unprecedented opportunity to buy the home of your dreams while prices and financing are low. But these conditions will not last as the real estate market continues to recover

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.

Click here to view Dacula neighborhoods and MLS listings in each, and visit my new website www.hankbailey.prudentialgeorgia.com to create an advanced MLS search including foreclosures, short sales, new construction, and by schools! 

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