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.
We are officially into the spring season, which means the start of the buying and selling season for residential real estate.
As such, I want to provide a national and local market update for all those looking at buying and selling opportunities this spring.
As you know the real estate market has been making headlines lately due to the slowing of new home sales, which fell 8.9% in October, falling four of the last five months.
In this post, I wanted to provide an overview of the national and local market as well as my point of view on the Atlanta market.
It may seem somewhat surprising that home sales are cooling given the strength of the economy, low unemployment, and growing household incomes. However, I believe there are some other factors that could be impacting the housing market.
Home Prices & mortgage rates
Median home sale prices in the US have increased 8% on a rolling 12-month basis, aided by the on-going low levels of inventory, which as of October was 3.1 months of supply nationally. Additionally, median household incomes have increased and stabilized back to pre-2008 levels, however, the growth has slowed and has not maintained the pace of the real estate market. Furthermore, rising mortgage interest rates, which are currently at a 5 year high, impacting buying power.
All this suggests that buyers are beginning to get a priced out of the market, anticipating a price correction or waiting to see if interest rates will pull back, which doesn’t seem likely.
Boomers looking to downsize are now competing with first time home buyers for smaller entry-level homes. Furthermore, buyers from Generation X are not buying the suburban houses that the boomers are leaving, choosing to live in more urban settings, further increasing buying competition. This competition along with the aforementioned low inventory continues to put pressure on pricing, keeping many buyers out of the market or cautious to overpaying.
Atlanta median home sale prices have increased 6% on a rolling 12-month basis and inventory levels remain low, at 3.1 months of supply, matching national averages. Atlanta seems to be lagging behind the rest of the country in a positive way.
In Atlanta, showings are up 15% from October 2017 but have been declining on a month by month basis in 2018. It appears that the Atlanta market has not reached the instability present in the rest of the country, but is still following the trajectory. Nevertheless, I view this slowdown as a positive for the real estate market, as it provides a rebalancing, making supply and demand more efficient as prices and supply adjust to the market.
All this said, there are still opportunities available if you know where to look, especially intown. Please reach out to me if you would like help tracking down and navigating some of these opportunities.
Without a doubt, if you’re from Atlanta you’re familiar with Buckhead, it’s one of Atlanta’s most fashionable neighborhoods, often being referred to as the “Beverly Hills of the East”.
It gets its nickname for a good reason, it’s home to some of Atlanta’s most luxurious homes and condos, best high-end restaurants like Aria and Chops, and premium shopping with Phipps Plaza, Lenox Square and The Shops at Buckhead.
But there’s more soul to Buckhead than meets the eye. Underneath all it’s glamour is the tech hub of Atlanta and the Southeast. In fact, according to Forbes, Atlanta is considered to be one of the top 5 up and coming tech mecca’s in the country with tech jobs growing close to 40% since 2010.
Lying at the center of all the tech growth is Atlanta Tech Village (ATV), located in the heart of Buckhead. Founded by David Cummings, The ATV, as it’s known, is considered the start-up hub of tech innovation in Atlanta attracting top start-ups and talent from around the country.
The tech and innovation attraction of Buckhead is one of the main reasons Buckhead is expected to exceed over 40% population growth in the next 20 years, with the largest demographic being people ages 25-34. This expected growth makes it ripe for real estate growth. According to the 2018 Buckhead Guidebook, there are over 22 new developments underway, of which 2,700 are new multifamily units. Additionally, 38 new development projects have been announced but not yet started, so developers continue to remain positive on growth within Buckhead. Even with all the development underway, according to mdjonline.com, there is still not enough inventory to meet the expected population growth.
So what does this mean for savvy real estate investors, new families and millennials looking to relocate? I believe there is a good buying opportunity in Buckhead right now. If you’re a person looking to be part of one of the top tech business communities in the country, love good food and plenty of premium shopping then Buckhead should definitely be considered.
In fact, there are some really interesting residential developments happening right now too, one of which, The Charles, a luxury condo development located next to The Shops at Buckhead and slated to be completed in 2019.
Here is a link to an overview of many of the Buckhead projects underway.
In the meantime, take a look at one of my latest listings a the Eclipse Buckhead Condominiums, a stunning 2 bed 2 bath right in the heart of Buckhead.
If you’re interested in seeing are learning more about properties in Buckhead please do not hesitate to contact me with questions.
Midtown Atlanta is one of the most bustling urban neighborhoods in Atlanta where business, culture, arts, and nature all come to together to make one of the most diverse and exciting neighborhoods that define Atlanta intown living.
Whether you’re new to the city or a native Atlantan, Midtown has something to offer everyone. It’s one of the most walkable neighborhoods in Atlanta and it’s often the first place I direct people to who are wanting an intown experience.
Midtown is a melting pot of culture; home to entrepreneurs, artists, students, and families you can always find lively people and events to interact with and attend.
Midtown hosts the most exciting festivals in Atlanta that bring the community together for unique experiences. Some of the most significant events include; Dogwood Arts Festival, Peachtree Roadrace finish line, Music Midtown, and Atlanta Pride.
Known as the “heart of the arts” in Atlanta, Midtown’s concentration of art and artists help make it one of the premier cultural centers in the south. According to the Midtown Alliance, there are 25 different arts and cultural venues, more than 30 permanent performing arts groups, and 22 various entertainment facilities in Midtown. It is home to the Atlanta Symphony, High Museum of Art and Alliance Theatre. Here is a link to a map of all the art and entertainment venues in Midtown.
If you are a foodie, Midtown has you covered. It’s home to some of Atlanta’s best restaurants, food trucks, and markets. Some of my favorite Midtown Restaurants are The Consulate, The Lawerence, and Bulla.
If you’re a food truck connoisseur you can find food trucks throughout Midtown almost any day of the week, and one of the largest Midtown food truck concentrations happens every Thursday at 12th & Piedmont. One of my favorite food trucks is Buena Gente Cuban Bakery for delicious Cuban baked goods and Cuban coffee. Here is a link to the calendar of food trucks and locations.
Aspiring chefs and foodies can find an excellent variety of locally grown fruits, vegetables, and meats every Saturday at the Piedmont Park farmers market. There’s also live music, crafts, and cooking demos, so it’s a fun way to spend a Saturday morning.
If you need a break from the urban hustle you can head over to Piedmont Park, centrally located in Midtown, the park has over 200 acres of green space with running and bike paths plus plenty of shady trees for afternoon picnics.
Additionally, located on the edge of Piedmont Park is the Atlanta Botanical Gardens, which has rotating garden artistry year round and a spectacular annual Christmas display.
If all of these urban benefits and attractions are appealing to you, there are opportunities to own and rent properties in Midtown’s thriving real estate market.
With new businesses and commercial developments rapidly entering the Midtown area, it’s no wonder that Midtown is a sought-after market. According to Curbed Atlanta, there are currently 40 commercial developments proposed or under construction within the Midtown radius. Some of the more notable ones include a 3 story Whole Foods market and the Colony Square redevelopment which will consist of a state of the art food hall and over 143,000 sq ft of entertainment, retail, restaurants and fitness concepts.
With all the new development there is a noticeable influx of people looking for residential properties. According to realtor.com residential property in Midtown has been a great investment, with median listing prices increasing over 33% in the past three years. Currently, Trulia.com shows median sales prices at $291,000 and median monthly rental rates of $2,750. Much of the steady increase in price can be attributed to the ongoing low supply, as of August there was a 2.6 month supply in Midtown (30309 area code) where a 6 month supply is considered a balanced market.
In my opinion, I don’t see supply increasing significantly, and I also expect people to continue to migrate to Midtown as business presence grows and more people, especially educated millennials, prefer to be closer to jobs and live in walkable urban environments. Therefore, I expect Midtown real estate to, at a minimum, to maintain it’s value if not continue on its upward trajectory.
If you are interested in a new home or condo in Midtown, please contact me, I can provide you with more information on the Midtown market as well as help you navigate the different pockets throughout Midtown. I currently have two excellent properties listed at one of Midtown’s best condo locations, Mayfair Tower, across the street for the new Colony square redevelopment and 1 block from Piedmont Park. You can view the listings in the with the links below.
199 14th Street NE, #1109, 1 bd 1 bth, list price $255,000
199 14th Street NE, #1905, 2 bd 2 bth, list price $359,900 [Great Investment Opportunity NOW leased @ $2200 per month through NOV 30 2019]