The Beacham Insider Volume 11, Issue 2

the BEACHAM INSIDER VOL. 11, ISSUE 2 | SUMMER 2018 One Buckhead Plaza | 3060 Peachtree Road, Suite 100 | Atlanta, GA 30305 | 404.261.6300 TRENDGRAPHIX FACTS STRATEGIES TO SELL YOUR HOME PLAN YOUR WEEKEND COMPANY NEWS page 2 page 2 page 3 page 3 BEACHAM #1 IN HOME SALES $1M+ COOKIE CUTTER DOESN'T CUT IT WA Z E & O P E N H O U S E S A SENSE OF EXCELLENCE ATLANTA HOME SALES START YEAR SLUGGISH BUT BEACHAM SURGES TO NEW RECORDS Home sales in the five core Atlanta counties where the average sales price was between $450,000 and $750,000 in top performing public school districts were stronger than usual to begin the spring market. Meanwhile, old intown stalwarts such as Buckhead and Morningside where average sales prices hover around $1 million stalled. While $450,000 to $750,000 isn’t normally associated with “starter homes,” the current issue of REALTOR® Magazine notes that many Millennials are skipping a starter home and already in the “first time move-up” category whether by choice or market conditions. of closings in Atlanta in 2018 is up just 1% compared to the record sales year that was 2017. Take out attached (condos and townhomes) sales, and the single family home market is down from last year. Condos are appreciating in price faster than single family homes for the first time perhaps ever. Buyers are flocking to attached properties because they are more affordable in general than single family and maintenance costs are shared with other homeowners. However, the condo market gets very thin when the price is more than $500,000-$600,000. (continued on page 2) TRENDS & TAKEAWAYS 7% TAKEAWAY: Home prices are still very affordable despite recent gains. 81% 18 15% 78% WHAT'S NOT • Fulton County property tax re-assessment notices combined with new federal limits on tax deductions for property and state taxes (see page 3) • Rising mortgage interest rates • Mortgage credit availability, particularly from traditional banks • Unrenovated property priced more than $1 million • Non-pedestrian friendly neighborhoods ERCENT n Wom n a ed Ow YTD increase in sales of Atlanta homes priced $1 million to $2 million in five core counties compared to 2017. Sales of homes priced $2 million or more were down .025% TAKEAWAY: Smaller, newer/ renovated luxury homes on small lots are the darling of post-Great Recession era GenXers and Millennials. #BROKERWITHBEACHAM 0 P Number of months in the last 56 years of National Association of Realtors record-keeping that the average home sales price in America declined TAKEAWAY: Stop worrying about the next bubble. 2008-09 was a once-in-a-lifetime event. Some Millennial buyers are just as picky as some Baby Boomers are complacent in their current homes. These two factors have combined to create a low inventory, suddenly slow sales growth environment for the market as a whole. The number • Condos and townhomes. Without an 11% increase in single family attached sales this spring, overall Atlanta home sales would be down from 2017. • Non-renovated property priced below $350,000 • Anything new or already renovated regardless of price • Atlanta Westside, Ashford Park, Cabbagetown/Old Fourth Ward, Decatur, East Cobb, High Point, Milton, and Smyrna (see page 4) • Anything around Chastain Park Appreciation in the Dow Jones Industrial Average over the last 12 years TAKEAWAY: The stock market is overvalued; real estate has more upside especially because of Millennial demand. Some Millennial buyers are just as picky as some Baby Boomers are complacent in their current homes. These two factors have combined to create a low inventory, suddenly slow sales growth environment for the market as a whole. WHAT'S HOT Appreciation in the average Atlanta home sales price over the last 12 years BUSINE If your home is currently listed for sale, this newsletter is not intended as a solicitation of your business. 67.5% versus 64.2% Decline in mortgage credit availability since 2006 TAKEAWAY: Nowhere to go but up. Traditional banks now fund less than half of all mortgage loan originations. Home ownership rate in Atlanta vs. the U.S. TAKEAWAY: Atlanta's excellent economy and relatively affordable housing for a large metro area help the city outpace the nation. MORE MARKET UPDATES INSIDE! BEACHAM INSIDER | SUMMER 2018 Realtors, We’ve described the Atlanta housing market in a recent issue as amoeba-like for its propensity to avoid attempts to neatly encapsulate it. Now, the market almost seems like a stress ball being squeezed and the pressure points are areas of town that offer value to the growing pool of Millennial home buyers.