As we get into the fall season, I continue to see strength in the residential real estate market. With recent rate cuts and the latest data analysis over the past three months, I believe we will continue the positive momentum from the summer into the fall.
In this post, I will provide an update on both the national and Atlanta residential real estate markets.
Median US home sale prices were up 5.2% in August, on a rolling 12-month basis. The median home price in May was $252,500. This growth is slower than the growth measured at the same time last year. Nevertheless, we continue to see steady growth in the US residential real estate market and an ongoing positive outlook for sellers.
The average number of days homes have been on the market in August increased by 7.5% from the same time last year. This trend could be helpful for fall buyers looking for a little more leverage. Comparing this to August 2018 there was a slight decline in average days on the market.
Likewise, In August, we’ve seen an uptick in supply of 10.7% over the rolling 12 month period. This is most likely influencing the increase in the average number of days on the market as buyers now have more choices.
All of this indicates that we continue to trend toward a more balanced market. In fact, new construction increased by 12% in August. This is a good sign that the market is still healthy, as builders see ongoing demand.
Atlanta continues to outpace national growth. Median Atlanta home sale prices were up 7.6% in August, on a rolling 12-month basis. The median home price in August was $299,000, well above the national median price. Comparatively, in August 2018, the median home price was $278,000.
The average number of days homes have been on the market in August increased 5% from the same time last year. This is lower than national averages, indicating that Atlanta still has strong competition and continues to lean towards a seller’s market.
Nevertheless, monthly supply continues to increase as more new construction projects are completed, which is favorable for buyers. Supply has increased by 30% since August of last year. Despite this significant increase, Atlanta is still struggling to meet demand and therefore has not seen a significant shift to a full buyers market yet.
With low-interest rates, strong price growth, and new construction becoming available, I expect Atlanta to maintain both a strong selling and buying market through the fall and winter months.
Are you interested in buying or selling your home this fall, taking advantage of the Atlanta growth new inventory? If so, please do not hesitate to contact me.
Residential real estate sales can slow down during the fall as buyers start to pull back, which reduces competition. Likewise, sellers are oftentimes worn out from the hectic summer selling season and are less aggressive. If you’re selling in the fall, you can use the slowdown to your advantage.
By putting in some extra effort, you can use the slower season to help attract good buyers and get maximum value for your home. Continue reading
If you’ve made your way through Midtown Atlanta recently, you can’t help but notice that new construction is booming! With all the new residential real estate, shops, restaurants, and endless events, it’s an exciting time to live in or visit Midtown.
With that being said, there are a lot of hidden gems in Midtown for dining out, self care and entertainment. In this post, I’ll highlight some of these insider spots as well as point out some of the upcoming places to keep on your radar.
As we transition into summer, we’re seeing growing strength in the residential real estate market. Based on recent data and my observations and analysis over the last three months, I believe we’ll have a strong upcoming quarter and summer season. Continue reading
It’s no secret that curb appeal can improve home value. After all, often times the front of your home is the buyers first impression. It can serve as an effective way to get buyers to consider your home. In fact, according to the famous home improvement specialist, Bob Vila, good landscaping and exterior improvements can add up to an estimated 20% increase in the value of your home.
I often get asked about where the next “hot” neighborhood is in Atlanta and while I can’t predict the future, I can share with you how I assess up and coming neighborhoods to determine if they have strong investment potential.
When assessing Intown neighborhoods I have four criteria that I look for; grocery/dining, construction, architecture, assessability
Grocery and Dining
First I determine if any new and trendy local restaurants and coffee shops are opening up in the neighborhood. Then I look for chains such as specialty grocers like Whole Foods or a Starbucks. If I find higher-end dining and grocery then I know that these places will attract middle to upper-class households. Therefore I can speculate that eventually these businesses will begin attracting people to live in the vicinity. In fact, according to Zillow, between 1997 and 2013, homes closer to Starbucks coffee shops increased in value by 96%, compared to 65% for all U.S. homes. That’s 31% more than that of all U.S. homes!
When I drive around looking at real estate opportunities, I am always looking out for new residential or commercial developments taking place. If I see a more than normal amount of construction activity, it’s worth taking a trip to the city permit office for additional research. You can be sure that if developers are building then they believe that there’s a growth opportunity. However, you want to ensure you understand what’s being built, for example, trendy condos vs. low-income housing.
This is an interesting and often-overlooked assessment. If there is unique architecture in the area then that lends to trendy and unique renovations. Consider that some of the hottest real estate markets, like San Francisco, New York, and Boston all have amazing historical architecture. Historical residential architecture generally attracts higher-end buyers looking for unique home buying opportunities. Purchasing unique, historical architecture is like buying a piece of art, it’s exciting knowing that you have a one of a kind piece of history.
Lastly, I’ll evaluate the neighborhood’s proximity to major highways and public transportation. Ease of accessibility is becoming more and more important to buyers as they look to reduce commute and car time. According to US News, residential property values performed 42% better on average if they were located within a half-mile of public transportation. Additionally, Lawrence Yun, chief economist at the National Association of Realtors was quoted as saying “When consumers choose a home, they also choose a lifestyle. Shorter commutes and more walkable neighborhoods matter to a growing number of people, especially those living in congested metro areas.”
As a last step in my evaluation process, after I’ve checked off the above criteria, I start looking at value indicator metrics such as sales price trends and how long homes stay on the market before they’re sold.
Here are my top picks for neighborhoods that meet these criteria in Atlanta:
I consider Downtown a massive up and comer in Atlanta where you can find very good value for property Intown. Downtown has a lot of exciting developments happening and it meets all of my criteria listed above. You can learn more about downtown opportunities from the post I wrote about downtown last year.
Cabbagetown continues to sit on my radar as an up and comer, especially as they extend the Eastside trail to run directly into the neighborhood giving it premium accessibility to everything the beltline has to offer.
Kirkwood is another neighborhood that’s been on my radar. Its like it’s own little small town within the heart of Atlanta. It has a fun historic downtown area, unique Victorian style homes, and cozy craftsman style bungalows.
I invite you to use some of these criteria as you evaluate your next home or investment opportunity. As always, I can be of assistance in evaluating neighborhoods in Atlanta then please contact me here.