The Real Estate market is moving at a pretty fast pace. It is evident the reason when you look at the numbers from the April Real Estate Report. The number one reason is lack of inventory.
In August 2011, there were 22,616 homes for sale. In March 2016 there is 12,794. That is a 44% reduction in total inventory. That is a huge number. Lack of inventory is driving the prices straight up. The increase in prices will level off and there will be a correction in the new construction market. New construction pricing has escalated and prices builders are charging for new lots and upgrades is to high. What I would like to see is a slow steady growth. Atlanta is projected to have a nice slow steady growth with an average of 3.3% over the next 4 years. The market just needs more inventory.
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Here is the best way to describe it. When metro Atlanta had the drought a few years ago, it took six months to drain the lakes. It took three years to fill them back up. Same with inventory. We don’t have a lot of inventory but we have buyers. In order to change this, we need to get more inventory to supply the current buyers and build up the inventory for future buyers. That is going to take a while.
April Real Estate Report Statistics – Detached Homes
- Active are down slightly (-2.6%) from March 2015
- Pending ratio is up 11.8 percent and closed homes are up 12.6%
- Distressed sale over the last three months are down 2.7% to 9.1% of the market
- Months supply of inventory are down 11.6% to 3.8 months – down .5 months compared to March 2015
- Median sales price is up 4.6% from 215,000 to $224,950
- Days on market dropped from 86 to 63 days
Six month trends show a decline in the amount of inventory. In October 2015 there were 14,965 homes for sale. In March 2016, there are 12,464. Pending sales have increased and the months supply of inventory has gone up from 3.2 months to 3.8 months since October 2015.
April Real Estate Report – Attached Homes
- Active homes is down 11.6% compared to March 2015
- Sold homes is up 20% compared to March 2015
- Total distressed property sales are down from 10.5% to 7.3% over the last three months
- The months supply of listings is very low at 2.3 months
- Median sales price over the last three months have risen from $171,000 to $181,000
- Median days on market has dropped 6.9$ to 40 days
Overall the market has a serious lack of inventory. If you want to sell it is a great time to. Make sure you know the market. Homes for sale in the $300-400,000 price points in Smyrna GA or in East Cobb are selling quicker compared to the same price point in Dallas, GA.
Buyers, you cannot wait – period. If you find a property that you like, you wait and you will lose it. You might pay more for it than you want, but that is where the market it is right now. The days of the great deals are over.
Detached Homes Market Report Attached Homes Market Report
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