Are We In a Seller’s Market in Atlanta?

According to the Atlanta Board of Realtors, Sale figures declined while sale prices are higher.  This seems contradictory but the foreclosures are slightly more than ¼ of home sales in December 2012, compared to nearly half of all the sales in December a year ago.

They said that single family home sales dropped 12 percent in December 2012 compared to Dec. 2011.  Monthly tallies were also off 7.1 percent compared to November 2012. While median sales prices rose 39 percent in December 2012 compared in 2011, the median price is also up 9 percent over November.  In short, transactions are down while prices are up.

The year ended on a high note as far as prices are concerned, having increased significantly over last year and showing additional promise over November,” The Atlanta Board of Realtors president, Nancy See, said in the news release.

The monthly and year-over-year sales declines were not unexpected, given the start of winter.  In most counties, the market was driven by resales, with the number of new-home sales either flat or declining.

In my own personal experience, I am seeing more multiple-offer situations, houses going under contract in days before my clients can even submit an offer, and far less flexibility in negotiating prices.  I believe this is driven by the fact that the banks are holding their foreclosures, rather than releasing them to the market, reducing overall inventory (the number of homes on the market).  Buyer activity has increased as they sense the market turning.  With the removal of the downward pressure from foreclosures, prices have risen significantly and we are entering a seller’s market.

Home Expo Gallery is recommending to our clients to put any properties they are considering selling on the market as soon as possible to take advantage of this turn.  We are advising our buyers to be patient, continue to look for great deals but be prepared to lose them if the numbers do not work.  The banks may release their “shadow inventory” (foreclosures not released to the market) in summer, which may balance the market overall.

Call us and let us know your situation.  We will help you navigate this market turn, whichever side you are on.

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