Metro Atlanta Monthly Market Report - February 2008 Data

Has the turn started?

We have all heard recently, existing homes sales for February are up by nearly 3% nationally. We also realize that number is an average and some areas of the country are doing better than others. Such is the case for Atlanta .

For Metro Atlanta as a whole, pricing pressures and high inventory continue to trouble some home sellers out there. For all of Atlanta the number of transactions for all single-family (homes & condos) decreased by nearly 37% over February 2007.

The average sales price for single family homes in February was $239,232 which is a 5.4% decline from a year ago. Condos/Townhomes declined over 7% to $177,083.

Perspective

While this sounds terrible it is important to note that if you look at different areas of Atlanta and different price points you will find pockets where prices are holding steady. Of course, much depends on demand for a particular area and how much growth and new construction play a part.

He who hesitates…

Foreclosures are playing a significant part. Banks have realized that to move their unwanted inventory they have to price aggressively and they are doing just that. More often than not foreclosure listings are hitting the market 20% below market value and are receiving multiple offers within the first week. While they are selling for over list price they are still selling for below market value. This is a great opportunity for a home buyer that is looking for a deal and can act fast.

Outside of foreclosures we are seeing a lot of buyer activity but most of these buyers are waiting to list their homes or, if they don't have a home to sell, they are waiting to see what is going to happen with interest rates and home prices. We don't know for sure what the market will be like in 12 months but we do know what it is like right now. Interest rates are low and the deals are out there.

The Bottom Line

You can't time the housing market. If you plan on being in your home for more than a year then buying now makes the most sense as we are looking at the market bottom right now. Waiting until next year will give you the opportunity to look back at the deals you could have had.

Keep in mind that these numbers are for all of Metro Atlanta and could vary significantly from your city, area or community. To be sure you can always contact us to request specific information for you: info@thenorthgroup.com

Thank you,
The NORTH Group