As I ran my statistics for the month of November, I took at glimpse at the October Report....OUCH! The average sales price for single family detached homes in October was $218,956. The average sales price for the month of November....$196,833 - a drop of approximately 11.24%. Single family attached didn't seem to experience quite the same decline month-to-month (October to November, 2008). The average sold price for the attached homes in October 2008 was $164,495 vs. $160,453 in the month of November.
So let's take a look November 2008 vs. November 2007:
According to a recent article in the Atlanta Business Chronicle, Friday, January 2, 2009, homes sales in Atlanta was down 16.2 percent compared to the same time in 2007 (data was compiled from the Georgia Multiple Listing Service). Many predict the Atlanta market has not quite found "the bottom". However, my opinion is that every situation presents an opportunity. So with skepticism still front and center it will require extra effort on everyone's part (realtors, homeowners, buyers, the public in general) to see the glass half full instead of half empty.
Quoting Peter McWilliams, "Our thoughts create our reality -- where we put our focus is the direction we tend to go."
Other articles of interest:
Real Estate Outlook: What's in Store for 2009?
Some Deals Will Get Done, But Outlook is Bleak
Janice: Like you say...every situation presents an opportunity. And when you look at Atlanta numbers overall, it paints a less than pretty picture.
When I did my November Market report for Midtown Atlanta, we had the best performance of any market in Atlanta for sales compared to 2007. It certainly was nothing like before, but we faired better than any other area in Atlanta.
It's going to be sometime, if ever, that we will be where we were a year or so ago!
Hi Thom - Thanks for the comments. I agree! We will never see the market we once had. Those were fun times!!! However, I believe we will see a more realistic market...and Atlanta has everything going for it to bounce back and be one of the best real estate markets in the country. Good luck and all my best to you in 2009! Janice
Atlanta's pricing is rapidly approaching back to "where it should have been the whole time." What I mean by that is if you look at the long term price appreciation for Atlanta - it is a steady, gradually increasing line for 25+ years... This steady growth is based on natural population growth (birthrate + strong in-migration) and typical inflation. The problem is that prices starting deviating from the "long term" trend line around 2001/02 and persisted at unrealistic levels until the bubble burst in 2007. In the past 12-18 months prices have literally free-fallen, MUCH faster then they increased on the upside. What many don't realize is that we are back VERY close to where we would have been "naturally" if the bubble had never occurred. However, there are 2 key differences... ONE - 30yr Fixed Interest rates are now the lowest in Decades, and perhaps more importantly... TWO - there are almost NO new homes being built (that aren't sold first.) We are rapidly approaching the bottom in Atlanta, if it hasn't already past! That's why I just bought a new home in a strong, reliable, area of Atlanta with a 4.5% 30yr fixed interest rate... GOOD LUCK to all those "waiting for the bottom." By the time the media tells you "the worst is over and it's now okay to buy" the bottom will be long gone! Just think... how many people there are like that! The market will be flooded with them, all with the same strategy! (TOO LATE!) I prefer the wise investor creed: "Buy when everyone else is scared and be scared with everyone else is buying!" Nobody was afraid back in 2005 as they waited in line at Pulte, Centex and DR Horton communities and that is precisely when they should have been terrified! Now everyone is terrified and that's why I'm buying... But I am DEFINITELY SELLING the next time I see "VIP Lines" at new Community Grand Openings and unrealistic stupid 1-2% prices increases EVERY month. Good luck! Raj.