Coldwell Banker NRT Development Advisors recently released its Q2 2010 Development Advisor*, a quarterly view of metro-Atlanta’s real estate market (including absorption, current inventory, sales price, distressed sales, consumer sentiment and more). Highlights about the 15-county metro area from the Q2 2010 report include:
- SINGLE FAMILY: Consumer demand has declined precipitously with the recent expiration of the Federal tax credit. May and June are typically the best months for pending home sales in anticipation of closing prior to school starting in August. In May, 2010, pending home sales dropped 46% from April, 2010, however June, 2010 was up by 6% over May volume. Although it is a positive sign to see an increase in pending home sales, this number is still down 15% over June, 2009. There is also a sense of caution among builders in buying vacant developed lots. Opportunities for resets can, however, be found with accurate analysis and due diligence for proper positioning within a niche market.
- MULTI-FAMILY: Preliminary numbers point to positive signs in the multi-family market as well. Pending home sales for both new and resale in June,2010 were up over 200% over June, 2009 and were also up 80% over May, 2010 volume. It is important to note that more than half of the June, pending home sales were of distressed homes (foreclosed, short-sale, lender-owned, and corporate owned). New construction home data are not complete because not every home is listed. However later in the 3rd quarter, deed-based transactions will provide a much more accurate picture of the multi-family new construction market.
To view the full Q2 2010 Development Advisor, click here. Past reports can be downloaded here.
*Information for the quarterly review is complied largely from the company’s proprietary Universal Data Base, a system that pulls data for the entire metropolitan Atlanta market from both FMLS and GAMLS, deleting any duplication. The report includes submarket profiles for Cherokee, Clayton, Cobb, Coweta, DeKalb, Douglas, Fayette, Forsyth, Fulton (North and South), Gwinnett, Hall, Henry, Newton, Paulding and Rockdale counties. Multi-family home sub-market profiles are also included for Buckhead, Intown, Downtown and other urbanizing areas.
Categories: Housing stats in Atlanta · Market data · NRT Development Advisors
By: Brad Horner
Welcome to the 2009 Annual Review edition of The Development Advisor, our quarterly report of the metropolitan Atlanta residential market. This report utilizes data based on transactions that closed in 4Q09 and compares it to that of 4Q08 as well as 1Q09, 2Q09 and 3Q09. We have compiled much of our information from our proprietary Universal Data Base, a system that pulls data for the entire metropolitan Atlanta market from both FMLS and GAMLS, deleting any duplication.
As we begin a new decade and look back over the past few years, many of us are relieved that one of the most challenging times in Atlanta real estate may be behind us. Overall, the results in the fourth quarter continued the improvement over the low points established in 4Q08 and 1Q09, signaling further signs of a slow recovery.
Similar to the third quarter of 2009, we continued to see mixed messages indicating a possible long awaited turn in the market. Absorption levels increased for new condo/ townhomes, but decreased for new single family and both types of resale. Average sales prices for new and resale condo/townhomes increased while prices for new and resale single family decreased. Even though sales prices are down overall compared to 4Q08, we have seen a light at the end of the tunnel with resale single family up 0.9%
The most significant news lies in the fact that current inventory levels continued their year long decline in 4Q09, with a 25% decline in all active listings compared to 4Q08. With building permits at historic lows and very little new construction condominium/townhome inventory being delivered in the foreseeable future, there was a 41.5% decline compared to 4Q08.
The extension of the tax credit and the expanded tax credit for current homeowners, combined with historically low interest rates and the second highest affordability index have created the perfect time to take advantage of homeownership. However, the pressures of high unemployment, difficulty in obtaining a mortgage, foreclosures and short sales continued to play a significant role in the uncertainty of the overall market’s improvement.
We hope you will find this edition of The Development Advisor informative and useful. Today’s market is unlike any we have experienced in the past, making it even more important to work with a sales and marketing partner that has a thorough and complete understanding of today’s challenges. We welcome any questions that you may have regarding this report and the future of the Atlanta residential real estate market.
Categories: Housing stats in Atlanta · NRT Development Advisors · Real Estate · Sales and Marketing · Uncategorized
Tagged: Bank Owned, First-time homebuyer, National Association of Realtors, Sales and Marketing, Value a home
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