WHY IT MATTERS
Home sales and values are important even to people who aren’t likely to sell or buy anytime soon. The state of the housing market contributes to the so-called “wealth effect” that helps drive the broader economy by making people more confident about purchases of all types.
Homes sold
The number of homes sold in metro Atlanta picked up in December vs. the prior year after some sluggishness in the fall, largely due to low supply. December figures are preliminary.
Month…..Total sales…..Year-over-year percent change
May…..4,600…..up 5.5 percent
June…..4,351…..up 7 percent
July…..4,623…..up 9.5 percent
August…..4,268…..down 1.2 percent
September…..3,594…..down 0.9 percent
October…..3,613…..down 5.3 percent
November…..3,103…..down 9 percent
December…..3,394…..up 1.9 percent
Source: Atlanta Board of Realtors
Sales prices
The median sales price of metro Atlanta homes is up substantially over the previous year, but the increase is starting to ease.
Month…..Median price…..Year-over-year percent change
May…..$200,000…..39.9 percent
June…..$215,000…..46.3 percent
July…..$217,000…..47.1 percent
August…..$205,675…..38.5 percent
September…..$189,000…..35 percent
October…..$189,704…..35.5 percent
November…..$181,000…..20.7 percent
December…..$196,000…..21 percent
Source: Atlanta Board of Realtors
After months of slow sales caused by a shortage of houses on the market, single-family home purchases are starting to pick up in metro Atlanta as prices continue to rise.
The number of homes for sale locally is still near historic lows, and far below what would be considered normal. But, with fewer people buying through the fall, inventory has increased slightly.
Metro Atlanta sales rose 1.9 percent in December from the same month in 2012, according to the Atlanta Board of Realtors. At the same time, the median price of homes sold in an 11-county region increased 21 percent year-over-year, to $196,000.
Todd Emerson, president of the Atlanta Board of Realtors, said he expects the trend to continue.
“It’s good for us,” he said. “It means we’re returning back to a normal market.”
Typically, the number of homes sold increases in the spring and summer months. Last year, after years of lackluster sales and bargain-basement prices, the housing market returned in a frenzy of rising prices, multiple offers and homes that sold within days of being listed.
With even more transactions expected this year, 2014 is expected to be as brisk, Emerson said. Because buyers are expected to be particularly active, inventory is expected to stay below normal for all of 2014. Emerson said savvy sellers may start listing their homes earlier than normal — ahead of the typical spring season — to "get ahead of the flurry."
If they do, he said, they may miss some of the price increases that are expected in the spring. But fewer choices on the market gives them a better chance of bidding wars that will lead to them selling their homes for the asking price or higher.
On average, sellers are now getting 98 percent of what they ask for, said Collin Ellingson, managing broker of Coldwell Banker Midtown.
Ellingson said he did not see a slowdown in sales due to the holidays, a positive sign for the spring season. Too few houses on the market continues to drive demand and bolster prices, he said.
“It’s a good message for sellers out there now, who might be waiting, that this is a fabulous time to list a home because there’s so little competition in the market,” he said.
Emerson expects prices to continue their double-digit increases until the spring. Ellingson said he thinks by the end of the year, price increases will have moderated to the low single digits.
John Hunt, a senior analyst with real estate analysis firm Smart Numbers, said inventory rose in October, November and December. Prices continue to rise, but the increase is moderating.
“We’re poised to have a good spring, as long as we don’t get crazy with prices,” he said. “We’re still making up for six years in the cellar.”
New construction is helping with some of the shortfall, and Ellingson said the increase in new homes is helping to fill some gaps. The 13,000 homes that were built in the region in 2013 is a 38 percent increase from 2012, Hunt said. He expects new construction to increase an additional 15 percent this year.
“The issue about supply and demand is you have to have something to sell,” Hunt said. “You eliminate some of that strain on the supply side, and this will be the closest thing we’ve seen to a normal spring.”
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