2011 Year End Buckhead Home Sales Report
This morning I was looking back at my 2010 year-end report and reading over my thoughts on 2010 and predictions for 2011. I feel pretty good about what I wrote a year ago, but was dead wrong on the interest rate prediction that they would continue rising. In fact they went really low and are still really low today. You can get a 30 year fixed mortgage today for 3.8%, and I’m pretty sure that is a record low number. An article in the Atlanta Business Chronicle today said that these record low rates are not attracting many new buyers because those that could afford to buy or were in a place where they could refinance have already done so.
In 2011 we continued to see the foreclosures and short sales, and as a matter of fact, I just listed a short sale in the Brookhaven area on Tuesday. These are an excellent opportunity to purchase a home at a reduced cost, especially when you consider the extraordinary interest rates that people are locking into these days.
Below I have crunched the numbers and have a comparison of 2011 Buckhead Home Sales versus those in 2010. Across the board the numbers were better in 2011, specifically the average Buckhead home selling for 6% more than it did in 2010. In 2011, the most expensive home to sell closed for $6,500,000, and it was located on Habersham Road.
What will 2012 bring to the Buckhead real estate market? So far it's been great in January. Yesterday I had two full price cash offers rejected by a seller that had multiple offers on their house. Now that doesn't happen every day, but it used to... You can call me a broken record, but a well priced home in a good location that is presented well will sell quickly, and often close to if not over the list price. It is my goal in 2012 to ensure that my clients understand this concept and that my listings meet all of those criteria.
I hope you will call me if you or someone you know is interested in buying or selling a house in Atlanta, or anywhere for that matter. I have relationships with top REALTORS all over the country and would be happy to put you in touch with them if you are moving outside of Atlanta. If you want a more targeted market analysis for your neighborhood, please contact me and I would be happy to assist you.
Thanks and have a great 2012.
Buckhead Home Sales July-September 2011
Homes Sold in 3rd Qtr of 2011 - 164
Average List Price - $812,919
Average Sales Price - $742,811
Average Sales Price/List Price Ratio - 91.3%
Average Days on Market - 180 Days
These numbers are almost unchanged from the same time period in 2010.
The highest sales price for a Buckhead home during the 3rd Quarter of 2011 was $3,857,500, which was Atlanta Falcons Owner Arthur Blank's home on Tuxedo Road. The 2nd highest price was Kenny Rogers home on Valley Road that closed for $3,725,000. The average house had 4 bedrooms, 3.5 baths and measured in at 3,200 square feet.
Buckhead Home Sales January-June 2011
Homes Sold in 1st Half of 2011 - 367
Average List Price - $933,063
Average Sales Price - $842,163
Average Sales Price/List Price Ratio - 90.2%
Average Days on Market - 110 Days
During this period, Buckhead saw a higher number of sales as well as an average sale price increase of $128,000 compared to same period in 2010. In the 1st half of 2010 there were 311 sales at an average price of $713,606.
The highest sales price for a Buckhead home during the first half of 2011 was $5,500,000. The average house had 4 bedrooms, 3.5 baths and measured in at 3,500 square feet.
Buckhead Home Sales 2010 Year-End Report
Number of Homes Sold in 2010 - 590
Average List Price $863,355
Average Sales Price $780,162
Average Size of Homes Sold - 4 Bedrooms - 3.5 Bathrooms
Average Days on Market - 106
Average Sales Price/List Price Ratio - 90.3%
Trends I saw in 2010 and Ideas for 2011:
2010 was a wild year in Buckhead with lots of foreclosures and short sales taking place. Many of these homes sold for what most would consider less than "market value" which had a downward affect on home sale prices in Buckhead. Many people I speak with both personally and within the real estate industry refer to homes being listed and selling for prices lower and sometimes substantially lower than the price the homes were paid for years ago. In the situation where buyers are moving up, they may be willing to take a loss on the sale of their existing home because these circumstances have put pressure on the homes they are looking to purchase. In many cases this seller-turned-buyer may save on their new home 3 or 4 times the loss they took on the sale of their existing home, making this a nice investment strategy. It is not easy by any means to take a loss, but sometimes the grass is greener on the other side...in this case the "purchase" side.
Are homes selling? Yes they are. I always tell my clients, good homes in good locations, priced right and presented well will sell and usually they will sell quickly and close to the asking price. The important thing here is to make sure your price is right, and your home shows well. If your home isn't perfect, bring in a stager who can offer suggestions to make your home show better and even bring in their own furnishings to spruce up your home. If every home on your street is listed for sale, it might not be the best time to get in the game unless you can beat them in all of the above categories. If you have a product that isn't available in your market, then it just might be the perfect time to list.
For instance, look at the popular Buckhead neighborhood Springlake which is in the Morris Brandon Elementary School District. There are only 8 homes listed for sale between $200,000 and $1,000,000. There are no homes available between $400,000 and $600,000 which is typically a sweet spot for that neighborhood. I see an opportunity...
What will we see in 2011? I'm not sure. I would typically say that recent news of the NYSE hitting the 12,000 level again was good news and could even be putting some money back in peoples pockets, but I'm not sure I trust the system enough to comment on that. I do know that we will continue to see foreclosures and short sales playing a big part in the marketplace. Good homes in good locations, priced right and presented well will continue to sell. It's my assumption that we will continue to see interest rates rising. How far? Not sure. Hopefully not too far...
I heard a commercial on the radio yesterday regarding purchasing a new car and the dealer is going to put $5,000 in my pocket. Unless he is going to hand me $5,000, I don't see it that way. I may spend $5,000 less than the MSRP, but that's the market and probably a discount that most of us expect when buying something like a new car. When I say "presented well," that's not what I'm talking about. In 2011 I want to see responsible sales and lending practices that everyone can trust and feel good about. This is the "American Dream" we are talking about here and we need to get back to that. Buying homes that make good sense and that provide good shelter for you and your family.
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