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Atlanta Real Estate Market Trends For August 2013. View the latest real estate inventory, sales and market stats as presented courtesy of Prudential Georgia Realty
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Greater
Metro Atlanta
Market
125,000 Homes Sold In 2006. 60,000 Homes Sold in 2010. 2013 Closings Down Due To Low Inventory And Higher Fallout Rates.
0
20000
40000
60000
80000
100000
120000
140000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Metro Atlanta Homes Sold
-17.1%
2.2% 1.4%3.0%
8.1%
28.6%
-20%
-10%
0%
10%
20%
30%
40%
< $100K $100K-
$200K
$200K-
$500K
$500K-$1
mil
$1 mil - $2
Mil
$2 Mil +
Metro Atlanta Closings – July 2013 (Compared To Last Month)
Under $100k Slowing Due To Fewer Investors
-53.8%
12.6%
45.8%
60.3%
45.7%
125.0%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
140%
< $100K $100K-
$200K
$200K-
$500K
$500K-$1
mil
$1 mil - $2
Mil
$2 Mil +
Metro Atlanta Closings – July 2013 (Compared To Same Month Last Year)
Under $100k Slowing Due To Fewer Investors
883
1614
2050
412
719
90
500
1000
1500
2000
2500
< $100K $100K-
$200K
$200K-
$500K
$500K-$1
mil
$1 mil - $2
Mil
$2 Mil +
Metro Atlanta Closings – July 2013 (Number Of Transactions)
Under $100k Was Over 50% Of Transactions In 2010. Now Back to 15.5% - Reflecting Normal Distribution.
Listed Inventory July 2011 – July 2013
Residential Detached - Metro Atlanta
• Inventory Levels Down 13.1% from July 2012, 45.1% from July 2011
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15000
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35000
Inventory Up
21.8% From
February 2013
6.2
4.9 5.0
4.34.0 4.1
3.8
4.4
3.9 4.0 3.9
4.64.2
3.5 3.43.0
3.4 3.5
7.4
0
1
2
3
4
5
6
7
8
Jan
FebM
arA
prM
ayJu
nJu
lA
ugSep
tO
ctN
ovD
ecJa
nFeb
Mar
Apr
May
Jun
Jul
Metro Atlanta – Months Of Supply
(Based Upon Closed Sales)
6 Months Is Considered A Normal Market
0
5
10
15
20
25
30
35
< $100K $100K-
$200K
$200K-
$500K
$500K-
$750K
$750K-$1
Mil
$1 mil - $2
Mil
$2 Mil +
Metro Atlanta Months of Inventory (Based On Closed Sales)
It Is A Sellers Market Below $500K In Most Areas.
6 Months Supply Is Considered A Normal Market
Investors See The Opportunity To Buy Low, Lease & Sell High For Single Family Properties!
This Is Causing A Shortage Of Inventory Under $200,000.
Average Sales Price Up 41% In 2013
$184$201
$217$233 $240
$249$260
0
50
100
150
200
250
300
Jan Feb Mar Apr May Jun Jul
Metro Atlanta 2013 Average Sale Prices
Average Sales Price Increasing From Bottom Of 2011
$241$253
$261$268
$209
$189 $190$176 $183
$226
0
50
100
150
200
250
300
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Metro Atlanta Average Annual Sale Price Trend
Chart Shows Index Results January 2010 Through May 2013 (As Reported July 2013)
80
85
90
95
100
105
110
Jan
Apr
Jul
Oct
Jan
Apr
July
Oct
Jan
Apr
July
Oct
oJa
nA
pr
Case-Shiller Index For Metro Atlanta
0
20
40
60
80
100
120
1401995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Case-Shiller Home Values For Metro Atlanta
• Peak was July 2007. Current Home Values Remain Below The
Normal Trend Line. But Prices Are Slowly Correcting!
-0.3 -0.3
2.41.8
2.11.8
-1.0
-6.2
2.6
1.72.0 2.1
-7
-6
-5
-4
-3
-2
-1
0
1
2
3
4
2008 2009 2010 2011 2012 2013
U.S. GDP
Georgia GSP
Georgia Economy Outperforming
The National Economy In 2013 (Terry College of Business – University of Georgia)
• Georgia Lost 325,000 Jobs In The Great Recession.
• 2012 Restarted Positive Job Growth Trend!
-250,000
-50,000-25,000
68,400 63,30076,500
94,400
-300000
-250000
-200000
-150000
-100000
-50000
0
50000
100000
150000
2009 2010 2011 2012 2013 2014 2015
More Jobs In Georgia! (Data From Terry College of Business/ UGA& Georgia State Economic Forecasting Center)
Major Group Moves
And More Coming …
Rustbelt To Sunbelt
4,944,939
7,377,951
8,256,323
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040
ARC 20-Cty Population
Forecast Population Growth 20-County Forecast Area
Baby Boomers Are Coming To Be Close
To Their Children & Grandchildren.
Source :Census Bureau
Total Population
Rank of Share
Under 20 20-64 65+ 25-39 45-59
Dallas 6,144,489 3 9 25 1 24
Atlanta 5,271,550 5 6 27 2 19
Phoenix 4,179,427 4 24 15 3 26
Denver 2,466,591 11 5 24 4 12
Riverside 4,081,371 1 27 22 5 27
Houston 5,629,127 2 10 26 6 21
Portland 2,174,631 19 4 19 7 7
Seattle 3,309,347 22 1 20 8 3
Sacramento 2,091,120 12 13 14 9 20
Washington 5,306,125 14 3 23 10 11
Los Angeles 12,875,587 6 17 18 11 23
San Diego 2,974,859 8 14 16 12 25
San Francisco 4,203,898 26 2 10 13 4
Orlando 2,032,496 18 15 8 14 22
Minneapolis 3,208,212 10 7 21 15 6
Chicago 9,522,879 7 16 17 16 18
New York 18,815,988 21 12 6 17 15
Boston 4,482,857 23 8 9 18 10
Cincinnati 2,134,864 9 19 13 19 14
Baltimore 2,668,056 17 11 11 20 9
Detroit 4,467,592 13 18 12 21 5
Philadelphia 5,827,962 16 21 5 22 13
St. Louis 2,802,282 15 20 7 23 8
Miami 5,413,212 24 26 3 24 17
Tampa 2,723,949 25 25 1 25 16
Cleveland 2,096,471 20 23 4 26 2
Pittsburgh 2,355,712 27 22 2 27 1
Metro Atlanta Has The:
•#2 Population Age 25-39
•#5 Population Under 20
Atlanta is 56% Cheaper To Buy!
Metro Atlanta Is 56% Better To Buy Than Rent
• New Household Formation Dropped From 1.2 Mil (2006) To 400,000 (2008)
• Growing To 1.2 Million In 2013. Lots Of Pent-Up Demand.
• 4 Million Students Per Year Graduate From College For Next 10 Years!
0
200000
400000
600000
800000
1000000
1200000
1400000
1995-
2005
2006 2007 2008 2009 2010 2011 2012 2013 2015
U. S. Household Formation Trends Demand For 1st Time Buyers Will Be Strong!
Source: U.S. Census, JCHS Household Growth Projections, Goldman Sachs
Prices Improving and Mortgage Rates Rising. But Home Affordability Remains Historically Favorable.
207
187 187197 194
160 154146 141
116
0
50
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Q1
2012
Q2
2012
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2012
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2012
Q1
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Q2
2013
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Q1
2014
Q2
2014
National Housing Affordability Index (Combination of home prices and mortgage rates)
Average Rates Around 8%
4.9 4.9
3.9
4.9
4.4
3.8
4.7
5.0
4.4
4.8
3.5
4.6
4.4
4.2
3
3.5
4
4.5
5
5.5
Freddie Mac & Mortgage Bankers Association
30-Year Fixed Rate Forecast (June 2013)
2010 – 2014 Quarterly Averages
2010 2011 2012 2013 2014
Freddie Mac
MBA
Amount Of
Mortgage
3.5%
Mortgage
30-Year
Cost
5%
Mortgage
30-Year
Cost
8%
Mortgage
30-Year
Cost
$200,000 $898 $323,280 $1,073 $386,280 $1,467 $528,120
$300,000 $1,347 $484,920 $1,610 $579,600 $2,201 $792,360
$400,000 $1,796 $646,560 $2,147 $772,920 $2,935 $1,056,600
$500,000 $2,245 $808,200 $2,684 $966,240 $3,668 $1,320,480
$1 million $4,490 $1,616,400 $5,368 $1,932,480 $7,337 $2,641,320
Increasing Mortgage Rates Make A
Significant Difference In Home Affordability
Metro Atlanta
New Homes
Charts Provided By SmartNumbers and ViaSearch
Metro Atlanta Closings
Blue – Resale Red – New Homes
New Homes Closings Up 55% From Last Year. Resale Units In 2012 At Levels Not
Seen Since 2006. But Almost 50% Of Resale Units From Investors Under $200k.
Buyer Types For New Homes
First Time Buyers And Baby Boomers Remain Most Active Segments.
We Are Looking To See The 1st & 2nd Move-Up Buyers Return.
New Home Permits
New Home Starts Growing Steadily!
Metro Atlanta Inventory (Black Arrow Is Population Trend)
Population Trends Growing Faster Than Inventory
Prudential
Georgia
Realty
Ranked #1 In Homes Sold – 2009, 2010, 2011, 2012 and YTD 2013
1006
5035
817
5057
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PGR Market
July 2013 Closings Vs. July 2012 Closings
• PGR Closings Were Up 23% Compared To July 2012.
• The Market Was Down 1% Compared To July 2012.
PGR
Outperforms
The Market
By 24%!
5167
31296
4587
31775
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PGR Market
YTD 2013 Closings Vs. YTD 2012 Closings
(Data As of July 2013)
PGR
Outperforms
The Market
By 15.1%!
• PGR Closings Were Up 12.6% Compared To YTD 2012.
• The Market Was Down 2.5% Compared To YTD 2012.
Information Provided By Trendgraphix.
0
1000
2000
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4000
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6000
PGR HNR KW-AP CB MB SS AFH
YTD Transactions – July 2013
FMLS Counties + Southern Crescent
Information Provided By Trendgraphix.
0
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PGR KW-AP HNR CB MB SS AFH
YTD Listing Sales – July 2013
FMLS Counties + Southern Crescent
Information Provided By Trendgraphix.
Buyer Sales Units – July 2013
FMLS Counties + Southern Crescent
0
500
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PGR HNR KW-AP MB CB SS AFH
Information Provided By Trendgraphix. PGR Numbers Internal.
Current Listing Inventory – July 2013
FMLS Counties + Southern Crescent
0
500
1000
1500
2000
2500
3000
3500
PGR HNR KW-AP MB CB AFH SS