Posts Tagged declining housing inventory 2012
In compiling statistics for Buckhead’s most elite zip code, 30327, it is harder to elaborate on each house sold since the volume is so much higher. I have a few comments here and then charts below with more information about real estate trends in Buckhead during 2011.
- First and foremost as I’ve mentioned before, inventory continues to decrease in Buckhead.
- Even though prices are still soft, but not declining further, it looks like we are headed into a much more stable market as inventory levels are under 12 months.
- The trend is decreasing for foreclosures and we’re seeing less and less of them.
- The other interesting thing to note is that where the average price point is for homes that are for sale is almost double where the average price point for what is selling; that tells us something too.
The product on the market is priced higher than where the buyers are.
With mortgage rates under 4%, around 3.75% right now, people can trade up in their homes if their current house will sell. The problem is that if they sell their current houses at where the market demands they are losing equity and don’t have the 20% to put down on the next house and most Jumbo mortgages are still requiring 20% down.
The exception to that scenario is for doctors. I’ve sold quite a few properties to doctors this year and they can still get 95% loans with certain conditions. So if you’re reading this and you are a doctor, it is the perfect time to buy!
For the Atlanta real estate market to turn into a sellers market we’d have to get inventory levels to about 6 months. However, at various price levels I’m receiving emails daily asking if I have anything coming on the market that isn’t on yet. These inquiries tell me that there’s pent up demand and good homes that are priced to the current market will sell pretty quickly.
I’m glad to pull specific neighborhoods, streets, price points, etc. for you to look at homes that are listed for sale in the Buckhead market (or anywhere in Atlanta!) if you’re interested.
I know most of us don’t like what our houses are worth today and if you’re still wondering, I can run a Case Shiller index for you, pull neighborhood comps etc. It’s usually not as bleak as Zillow suggests!