Highlights from the Feb 27 Case-Shiller Report illustrate the Metro Atlanta real estate as the tale of three different markets:
- Entry-level Market (<$300K) – a seller’s market – strong demand and very low inventory. There are many multiple offers and values rose faster than other segments.
- Middle Market ($300-700K) – shows normal signs of supply and demand.
- Luxury Market (>$700K) – a buyer’s market – buyers negotiating better pricing and terms.
Case Shiller sees strong buyer demand with serious challenges for listed inventory in many price points and areas. Mortgage rates are rising slowly which will impact affordability. However, Metro Atlanta continues to be very affordable relative to other metropolitan areas around the country.
Here are a statistics from that report:
- February pending contracts were up 10.7 from January and up 3.9% from the prior year. Closings were up 3.9% from January and down 4.3% from the prior year.
- Year-to-date pending sales (units) were up 7.6% vs prior year. Year-to-date closings were down 1% vs the prior year.
- The Average Sales Price for February was $287,000 – up 1.8% from January and up 8.3% from last year. 2017 achieved the highest annual ASP on record.
- Inventory for February was up 2% from January and down 8.5% from last year. This is the lowest level of inventory in 5 years.
- Overall Months of Supply for February was 3.7 months. Six months is considered normal. Luxury properties took longer with homes above $1 million averaging 15.2 months and properties over $2 million averaging 102 months to close. The luxury market remains a buyer’s market in most areas.
- The latest Case-Shiller Index for Atlanta (2/27/18) was up less than 1% compared to the previous month. Metro Atlanta home values are up 69% from the bottom of March 2012. Increased home values are building equity and getting sellers back into the market.
Our real estate team is led by Paula Van Sickle 678-923-3523. Please call her for more specific questions about what’s going on in the Atlanta Real Estate Market in 2018