4th Quarter Atlanta Real Estate Stats

7/29/2019 4th Quarter Atlanta Real Estate Stats

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Presentable Market Data Chuck Carr

Office: 770-698-8797

Cell: 678-591-6030

Email: [email protected]

www.ChartMasterServices.com
mailto:[email protected]:[email protected]


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Understanding three views of the current market allowsBuyers to maximize their ability to evaluate properties,receiving the highest value in their home search and

Sellersto position their property to maximize money intheir pocket while minimizing time on market:

Macro View: National MarketNational Media Coverage

Metro View: Atlanta MarketQuarterly Metro Market Report

Micro View: Your CommunityComparative Market Analysis

Current Market Overview

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New Abbreviated Presentation Design

Abbreviated mainline flow:

- Market Share- number one and growing

- Sales - up

- Distressed - still a large part of sales, but may be slowly declining

- Active listings - down and still declining (partly seasonal)

- Effect of lower-actives/higher-sales - reduced supply in 2012 (now consistently into a Seller's Market)

- Effect of Seller's Market on:Median Sales Price

Median % S/L

Median DOM

Price Reductions

- Continuing consequences of wrong pricing decisions (price reductions):Median % S/L

Median DOM

"Game Board"

Failed ListingsPutting it All Together ("Bubble Chart")

- Distressed vs. Non-Distressed Supply

- Summary

- Supplemental Analysis Section

32 mainline charts in a total package of 79


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Single Family Detached Residences

4Q 2012 Quarterly Metro Market ReportProvided By ChartMaster Services, LLC exclusively for Keller Williams Realty

111

66

113

112

223

221

222

62

63

13

14

121

51

114

64

61

65

41

42

75

74

73

72

91

191

81

82

83131

71

132

52

21

24

2322

31 32 53

Metro Area FMLS Areas

Included (41)

Cherokee County:111 113

112 114

E. Cobb:81 82 83

W. Cobb:71 73 75

72 74

DeKalb:24 42 52 121

41 51 53

Douglas:91

Forsyth:221 222 223 224

Fulton OTP:13 14 131 33

Fulton ITP:31 21 132

32 22 23

Gwinnett:61 62 63

63 65 65

Paulding:191

33

224

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Previous Listing Period Effect(4Q 2012 Atlanta Data 41 FMLS areas)

Other FMLS

Data Sources(No history data for

listings off market for

more than 30 days)

Median Original listPrice $158,500

Median Sales

Price/Original List

Price Percent94.9%

Median Days on

Market54 Days

Percent of Sales

which required a

Price Reduction

35.5%

ChartMaster

Data(More realistic by

including listing

history data back as

far as 2.5 years)

$179,900

92.3%

78 Days

49.2%

ChartMaster

Difference from

FMLS

+$21,400(+13.5%)

-2.6%

(+$4,677)

+24 Days

(+44.4%)

+13.7%

Conclusion: Other data sources understate time on market

and likelihood of requiring a price reduction, while overstating

the portion of the original list price (% s/l) that sellers received


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Keller Williams Realty

became the NUMBER 1

real estate company in the

Atlanta Metro area in unit

sales during 2010,

increasing that lead

through Full Year 2012

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Full Year 2012 Sales rose

above those of 2011 by

+10.6%

2012 sales are also

+28.5% above those of

the same period in 2010

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Monthly sales were

considerably stronger in

January through August

compared to both of thelast two years

Sales were also stronger

than in the last two years

during Sept.-Nov. and

should rise somewhat inDecember after lagged

closings are processed

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Single Family Detached Residences4Q ONLY


Sales in 4Q 2012 were

higher than last year in all

price ranges except the


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Short Sales andForeclosure Sales addtogether to make upDistressed Sales, shownhere as a percent of totalsales

The percentage of 4Q2012 distressed saletransactions was -2.6percentage points lowerthan in 4Q 2011 anddown by -15.5 pointsfrom 1Q 2012

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Shown by price rangeillustrates the degree towhich distressed sales arepresent in all price

groupings

More than 2 of every 3sales in the


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As the number of sales has

gradually increased, the

number of Active listings

has declined steadily since

2Q 2008, down by -73.4%

from nearly 40,000 to

10,528 at the end of

December, 2012

Lower supply of available

listings increases

competition among buyers

for a smaller number ofproperties


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Increasing sales combinedwith decreasing inventory

of listings reduced the

months of supply to 4.2

months in December,

2012, reflecting the

change from a BuyersMarket to a Sellers

Market condition during

2012

Most of the following

market measurements

show the improvement

following this market shift


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The contract negotiations

advantage turned in favor of the

seller when supply fell

consistently below 6 months

during 2012, resulting in an

increase in the median sales

price as sellers were more able

to maintain sales prices closerto their original listing price

As seen here, since the supply

finally fell below 6 months in

1Q 2012, the median sales price

has risen significantly since

then, compared to the last 2years


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As 4Q 2012 sales were

more flat, the median

sales price rose by

+26.3% bringing 3

straight quarters with

median sales prices

higher than in the same

period last year

The Full Year 2012

median was +8.1%

above that of 2011

An increase in thepercentage of sales in

price ranges above

$200K resulted in a

higher median price

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Median sales prices declined

significantly between 1Q 2011

and 1Q 2012, reversing the

downtrend after 2Q 2012

As the inventory of listings has

remained below 6 months, sellers

have been able to maintain higher

sales prices and more properties

are selling in the higher price

ranges

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When supply falls below six

months, the psychological

advantage favors the seller and

a Sellers Market results

When supply of properties fell

below 6 months in 2012, Sellers

were able to negotiate selling

prices that were closer to the

Original Listing Price than were

possible in the Buyers

Market conditions prior to this

year


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Single Family Detached ResidencesPREVIOUS LISTING PERIODS INCLUDED


Another seller benefit ofdeclining supply has been

increasing S/L ratios

during the last 5 quarters

rising to a new high of

92.7% in 4Q 2012, +6.6

percentage points abovethat of 4Q 2011

S/L price ratios providean indication of buyerprice resistance andseller willingness tonegotiate, with higherratios showing astronger seller position

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4Q ONLY


4Q 2012 S/L percentages

by price range show that

not only was the overall

ratio higher compared to

last year, but also all price

ranges participated with

much higher percentages

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Higher sales activity in

4Q 2012 lowered the

median of Days-On-Market (DOM) by

-27.1% compared to the

same period of the

previous year

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4Q ONLY


All of these 7 price

segments had a median

DOM lower in 4Q 2012

than in 4Q 2011

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The pricing and contract

negotiation advantage clearly

turned in favor of the seller

when supply fell consistently

below 6 months during 2012,

resulting in the lowest

incidence of price reductionswe have seen in recent years

As shown here, when supply

finally fell consistently below 6

months during 2012, the

incidence of price reductions

also fell consistently comparedto prior years


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The percentage of sales inwhich the Seller was requiredto reduce the listing price inorder to attract a Buyer,remained well above 60%

during the previous 3 years,reaching a high of 70% oftransactions during 4Q 2010and 1Q 2011 and remainingin a range between 62%-70%until 2Q 2012

During 2012 the incidencehas fallen in each quarter to a

low point in 4Q 2012 of 49%,down by -15 percentagepoints compared to last year

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4Q ONLY


All price ranges had alower incidence of price

reductions during 4Q2012

The reduction wasgreatest in the


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Price reductions severelyreduce the portion of theOriginal Listing Price thata Seller realizes in a sale

The 4Q 2012 percentage

point difference of -14.9would amount to a netreduction of -$25,500from the original listprice at the median salesprice, compared to aSeller without a pricereduction

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4Q ONLY


When a price reductionwas required,substantially lower S/Lratios occurred in allprice ranges in 4Q 2012,but there were largedifferences in degreeamong the various priceranges

For example, the ratio fora price-reduced propertydropped a whopping-28.1 percentage points,below that of a non-pricereduced property, in the


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4Q 2012 Quarterly Metro Market Report

Provided By ChartMaster Services, LLC exclusively for Keller Williams Realty

When a price reduction is

required, more marketingtime is needed to attract abuyer

A Seller required to take aprice reduction in 4Q 2012needed a median of 168 daysto sell, compared to only 27

days for a Seller who pricedcorrectly with the marketadifference of +4.7 months, or+6.2 times, longer to sell

The results are highercarrying costs, greaterinconvenience due to keeping

the house in showingcondition and delays infinding and moving to a newhome

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4Q ONLY



Higher-priced propertiesnormally take longer to sell,but when a price reductionwas necessary in 4Q 2012,the differences were muchgreater in all price ranges

Sellers across these priceranges needed +6.2 timeslonger to sell when a pricereduction was required

Conversely, Sellers pricingtheir property correctly for

the current market, were ableto sell in a very reasonabletime period a median of 27days across all price ranges

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4Q ONLY



Total Closed Listings(100%)

92.7 S/L*

79 DOM*

Price Reduced(49.2% of Total)

83.5% S/L*

168 DOM*

Previously Listed(24.6% of Total)

77.1% S/L*

296 DOM*

Not Previously Listed

(24.6% of Total)

88.1% S/L*

96 DOM*

No Price Reduction(50.8% of Total)

98.4% S/L*

27 DOM*

Previously Listed

(3.6% of Total)

97.8% S/L*

154 DOM*

Not Previously Listed

(47.2%Of Total)

98.5% S/L*

27 DOM*

Right Price/Right AgentRight Price/Wrong AgentRight Agent/Wrong PriceWrong Price/Wrong Agent

What is the REAL STORY?Many times listed properties will have

expired or been withdrawn one or more

times prior to the listing period in which

they sold. Including the original listing

prices and cumulative days on market from

those previous listing periods, results in a

more realistic set of measurements.

* Medians: Half areabove and half are

below

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FMLS SF Detached residences data. Data believed to be accurate, but not warranted. Analysis includes previous listing period data where applicable.

2012 ChartMaster Services, LLC. For exclusive use of participating Keller Williams Realty offices.

The Real Story


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Failed listings (Expired+Withdrawn) are shown here asa percentage of totalfinalized(Expired+Withdrawn+Closed)listings

The failure rate of listingsreached a recent peak inJanuary, 2010 at 67% offinalized listings, offeringfirm evidence of the strongBuyer price resistance that waspresent in the market, sincelistings usually fail due tooverpricing

Although -13.0 percentagepoints lower than last year,35.5% of listings failed to sellduring 4Q 2012, more than 1/3of all finalized listings

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4Q ONLY



We have seen that out of

every 100 finalized listings in4Q 2012, 36 failed to sell and

64 sold

Of the 64 sold listings, 31

(49.2%) required a price

reduction when including

original listing prices forprevious listing periods, in

order to sell

Therefore, if 36 failed to sell

due to overpricing and

another 31 required a price

reduction in order to sell, 67out of every 100 listings were

at least initially overpriced in

4Q 2012, resulting in either

no sale, or a sale at a much-

reduced price after a much-

longer listing period

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FMLS SF Detached residences data. Data believed to be accurate, but not warranted. Analysis includes previous listing period data where applicable.

2012 ChartMaster Services, LLC. For exclusive use of participating Keller Williams Realty offices.


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Although the overall supply

of properties in December,2012 was at 3.5 months,

when Distressed properties

are separated out, the picture

changes somewhat for non-

distressed properties, rising to

an 4.6 month level overall,

still in the Sellers Market

condition

On the other hand, distressed

properties are well into the

Sellers market condition

with overall supply at 1.7

months and at much less than

6 months in all price ranges,

while Non-Distressed

properties remain in a

Buyers Market condition

in price ranges above $500K

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Full Year 2012 Sales: +10.6 higherthan in 2011 Monthly sales increased in nearly each month this year compared to the same period in each of the last two years

Distressed sales were lower at 39.4% of 4Q 2012 sales , but were 69.0% of sales in the


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4Q ONLY



Another market shift is occurring. During 4Q 2012 we saw confirmation of a change from a market

driven down by Distressed Property sales, to one driven up by reduced supply. This caused afundamental change in the psychology of the market from a Buyers Market to a Sellers Marketenvironment.

The results are that many of our usual market measurements have turned in the direction of marketrecovery. Significant positive changes occurred in the median sales price (+23.6%), median S/OLPpercentage (+6.6 percentage points), median DOM (-27.1%), incidence of price reductions (-15percentage points) and percentage of failed listings (-13.0 percentage points) during this quarter.

However, even as these improvements were taking place, the percentage of distressed property salesremained high (39.4%) and the number of Active listings continued to fall. These conditions shouldalso be considered by sellers when setting listing prices. Continued distressed property salesmaintain a dampening effect on seller flexibility by their use as comparables in property priceevaluations.

With our uncertain economy, short term housing market improvements should still be viewedcautiously. A sharp increase in the number of Active listings or distressed property inventory, or adecrease in sales, could expose the fragile nature of this improvement. But for now at least, Sellersshould find less pressure during contract negotiations and Buyers will see a more competitivemarket with fewer sellers willing to accept low-price offers.

Summary

FMLS data for single family detached residences. Data is believed to be accurate, but is not warranted. 2012 Chartmaster

Services, LLC. All rights reserved. This page may not be reproduced without the written permission of [email protected].


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Overall Market Observations The 4Q 2012 market has shifted toward recovery. Sellers Market supply levels have overcome the effects

of Distressed Properties on many of our measures of market condition.

Indicators of an improving market were in evidence, such as a higher median sales price (+26.3%), increasedsales (+10.6% YTD), a new high point for the median S/L ratio (92.7%), many fewer failed listings (-13.0points), lower median DOM (78, -27.1%), fewer price reductions (-15.1 points) and much lower (-43%)supply of active listings.

A deterrent to full market recovery continues, however, with a significant distressed properties percentage ofboth Sales (39.4%) and currently Active listings (18.8%) that can cause buyers to seek those lower-pricedalternatives when distressed properties appear to be a better value. This caused 49% of sellers to take listingprice reductions in order to sell and 35.5% of all 4Q 2012 listings fail to sell during their listing period.

The low (1.7 months) inventory of distressed properties has likely increased competition among buyers,forcing prices higher, S/L ratios higher, DOM lower and fewer listings failing to sell.

It is difficult to know whether or not this will attract more people to list properties now which could alter thesupply/demand relationship at a time when seasonal factors usually cause lower demand. If so, that could

result in another reversal of many of these positive 4Q 2012 market characteristics. Another dampening factor could result if financial institutions release more distressed properties to the

market.

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The Story of the Detached Residence Market 4Q 2012




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Importance to Non- Distressed Property Sellers

Potential sellers who have been reluctant to list due to the slow market may now try to take advantage of thecurrent supply/demand shift to list their property while they have an advantage.

The downward pressure from Distressed properties on selling prices for all properties has been somewhatoffset by lower inventory, so this could be a better time to sell than in recent periods.

The reduced inventory of distressed properties has increased buyer competition for those properties making iteven more important for sellers to consider their effect in properly pricing non-distressed properties.

Setting realistic initial listing prices that are in line with buyer expectations (in the market) can result in salesat or above the original listing price in very few days on market

Importance to Buyers The supply/demand relationship has, at least temporarily, shifted to the sellers advantage. If that continues,

fast action and realistic offers will be necessary for buyers to capitalize on still-low prices for availableproperties.

For buyers who are interested only in distressed properties, the supply has dropped to a point where

competition among buyers for that supply has jumped, making realistic offers is a must for desirable houses Quick action and serious offers are required when high-value properties are found (47.2 % of 4Q sales), since

low median DOM and high S/L ratios usually result, often with multiple offer situations.

The good news is that prices are still historically low and interest rates are too, so the if the right property isfound, this is a very good time to be in the market

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Success Strategies for Sellers Do not ignore the impact of distressed properties competing for buyers in sellers price range and location,

when setting initial listing price, since they are still affecting comps Maximize selling price and minimize market time by choosing an initial listing price that represents a high

value compared to competing listings

Re-evaluate market trends continuously to re-assess pricing choiceavoid chasing the market or missing aturn

Consequences of Wrong Seller Choices Sell only after a much longer time on market - Median DOM at least +6.2 times longer in 4Q 2012. Sale at a much lower portion of original listing pricemedian of at least -14.9 percentage points lower.

Failure to sell35.5% of listings failed to sell in 4Q 2012.

Multiple listing periods24.6% of sellers required multiple listing periods, selling at a median of -21.4percentage points lower after a median of +12.9 times longer (+9.1 months).

Risks for Buyers Low-ball offers on high-value properties will likely result in missing out on a great opportunity.

Making offers too high on properties listed multiple times could result in paying too much.

Low inventory condition limits buyers advantage in contract negotiations.

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FMLS data for single family detached residences. Data is believed to be accurate, but is not warranted. 2012 Chartmaster Services, LLC. All rights

reserved. This page may not be reproduced without the written permission of [email protected].


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$ Sales Price

X_______%

$ Listed Price $ Listed Price

$ Sales Price

X_______ %Median L/SP%

___Quarter

Required ____Days Required ____DaysMedian DOM

___Quarter

Desired Seller Price Suggested Market Price

Summary

Even though the Suggested Price is $__________________Lower than the Desired Price, the

Faster SaleNets the Seller$____________________More and Saves__________Months in Time

The Case for Getting it Right the First Time

330,000 300,000

87.5 97.2

30,000

291,600

166 32

+$2,850

288,750

-4.5

(Used S/L %s for

this price range)

(Used DOMs for

this price range)

(Illustration using$300K-$499K pricereduction numbers)

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4Q ONLY



The Keller Williamsculture of cooperationand our profit sharingmodel contribute to cross-

promotion of our listingsamong company agentsand offices resulting ingreater listings exposurefor our customers

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4Q ONLY



When a price reductionwas required,substantially lower S/Lratios occurred in allprice ranges in 4Q 2012,but there were largedifferences in degree

among the various priceranges

For example, the ratio fora price-reduced propertydropped a whopping-28.1 percentage points,below that of a non-price

reduced property, in the


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4Q ONLY



Higher-priced propertiesnormally take longer to sell,but when a price reductionwas necessary in 4Q 2012,the differences were muchgreater in all price ranges

Sellers across these priceranges needed +6.2 timeslonger to sell when a pricereduction was required

Conversely, Sellers pricingtheir property correctly for

the current market, were ableto sell in a very reasonabletime period a median of 27days across all price ranges

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The Case for Getting it Right The First Time


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The Case for Getting it Right The First Time(Middle Tier)

Seller Desired List Price Suggested Market Price

$330,000 (Click and Enter Prices in Each Box) $300,000

87.5% Likely % Sale/List Price 97.2% Likely % Sale/List Price

$288,750 Likely Sales Price $291,600 Likely Sales Price

166 Likely Days on Market 32 Likely Days on Market

Benefits Summary

Even though the List Price Difference is: -$30,000 Lower

The Likely Sales Price Difference is: $2,850 More In Your Pocket

The likely Time on Market is: -134 Fewer Days

Months of Difference in Time on Market is: -4.5 Fewer Months


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$ Sales Price

X_______%

$ Listed Price $ Listed Price

$ Sales Price

X_______ %Median L/SP%

___Quarter

Required ____Days Required ____DaysMedian DOM

___Quarter

Desired Seller Price Suggested Market Price

Summary

Even though the Suggested Price is $__________________Lower than the Desired Price, the

Faster SaleNets the Seller$____________________More and Saves__________Months in Time

The Case for Getting it Right the First Time

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Monthly sales history

shows the pattern of sales

downturn from 2007

illustrating a bottom

occurring in January of

2010

Since then the usual

seasonal low points in

January were higher in both

2011 and 2012 and a

sustained upward trend hasdeveloped

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Government purchase

incentive programs effect


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4Q 2012 sales were slightlylower compared to the sameperiod last year, but should besomewhat above this whenlagged sales are processed

Sales gains in 3Q and 4Q 2011were exaggerated due tocomparison with the sameperiods in 2010 which wereunusually low aftergovernment purchaseincentives expiration

Increases in 1Q, 2Q and 3Q2012 were all the moresignificant since they arecompared to periods ofincrease during 2011

Quarterly increases have beenlower in each consecutivequarter during 2012

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Si l F il D t h d R id


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Sales were lower in the


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While sales haveincreased during 2012,the number of Activelistings fell again,continuing the declining

trend through this period

The number of Distressedproperty listings has nowbegun to decline also,helping to reduce pricingpressure on Non-Distressed sellers

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As the total number of allActive listings hasdeclined, Distressed

property listings representa declining percentage ofthose listings

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Foreclosure sales as a

percent of total salesdeclined again in 4Q2012 compared to 4Q2011, to 12.3%

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The overall percentage offoreclosures was lower in4Q 2012 than in the same

period in 2011, decliningin all price ranges

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The 4Q 2012 short salepercentage of closings at27.1% was +2.1percentage points higherthan in 4Q 2011,

continuing the overalluptrend in these types oftransactions

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Short Sale transactions asa percentage of total salesincreased slightly during4Q 2012

However, the increasecame from price rangesbelow $200K, withdecreases occurring in allother price ranges

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The median sales price is

derived by taking the point at

which half of the transactions

were at prices above and half

below that price

Therefore, when there aremore sales taking place at the

low price end of the market,

the median must fall lower

since more sales occur in

those lower price ranges

The 61.1% of sales whichoccurred in 4Q 2012 at prices


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Single Family Detached ResidencesPrevious Listing Periods Included

FULL YEAR



Historically, as sales shiftedmore toward lower priceranges after 2007, themedian sales prices wereforced down

The median sales price isthe price at which half ofsales are at higher pricesand half are at lower prices

As larger portions of annualsales took place at lowerprices (


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Monthly median salesprices reached a low pointin January, 2012

The steep decline in mediansales prices coincided with

increases in the percentageof distressed properties sold

A strong, steady increaseduring 2012 has resultedfrom a much lower supplyof listings and an increasein the portion of sales at

prices above $200K

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New Constructionproperties posted their 2ndconsecutive quarterlymedian sales price

increase, the first suchincreases since 2Q 2011,while resale propertiesalso increased +26.5%

The median sales pricefor Resale properties hasnow increased for 3consecutive quarters

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Si i i


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An encouraging sign forsellers in this market isthat the median salesprice for Non-Distressedproperties has increasedsharply since 4Q 2011

Although seasonalityusually causes the mediansales price to increaseduring the second quartereach year, we are nowseeing that increase carryon through 4Q 2012

indicating that a moresustained increase isresulting from the SellersMarket supply condition

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Si l F il D h d R id


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Median Sales Pricesshown monthly, by year,illustrates the degree towhich prices arechanging now comparedto other recent years

The December, 2012median sales price wasabove those ofDecember, 2009-11

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Median S/L ratios shownmonthly since January,2008 reveals that thebottom for this measure

came during early 2009,with an overall uptrend inprocess since then

The % S/L uptrend hasincreased in strength asproperty supply has

declined

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Median S/L ratios tended tobe much lower fordistressed property salesthan for non-distressedproperties during late 2008and early 2009, but sellersadjusted to buyer price

resistance during the lasthalf of 2009 and into thefirst half of 2010

Beginning in 2011distressed property S/Lratios grew until becomingequal or above that of non-distressed properties assupply of distressedproperties dwindled

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4Q ONLY



The median of DOMsegmented by Sales Priceand New vs. Resale,

shows a -27% overalldecrease in time-on-market spread over all butone segment


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Sellers contributed to

buyers closing costs in

nearly 3 of every 4transactions during the

last 2 years, reducing the

real S/L ratio

Sellers should anticipate

this payment when

estimating net proceeds

of sale

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When sellers

contributions to buyer

closing costs areincluded, the real median

S/L ratio dropped by -1.0-

1.3 percentage points

during 2012 to an overall

90.0% of Original List

Price compared to the

91.1% usually shown

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Even after taking a pricereduction, Sellers realizeda lesser portion of theirnew list price than thoseSellers who were not

required to reduce theirprice

Had these price-reducedproperties been correctlypriced originally, theycould likely have sold inmuch less time at a higher

price

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4Q ONLY



Even after taking a pricereduction, Sellers usuallyrealized an equal, orlesser, portion of theirnew, reduced list pricethan those Sellers notrequired to reduce theirprice

Pricing correctly with thecurrent market results in abetter net selling price, in

less time on market

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Correctly pricing with thecurrent market can resultin multiple offers andsales prices at or abovethe Original Listing Price

In 4Q 2012, more than 1out of every 5 (22.6%)sales transactions resultedin selling prices that wereequal to or higher thanthe original listing price

2,065 properties sold at

100%, or more, of theirOriginal Listing priceduring 4Q 2012

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Sellers pricing correctlyfor the market not onlyreceive a high portion oftheir Original ListingPrice, they also sell atgreatly reduced time onmarket resulting insubstantial savingsthrough lower carryingcosts

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Atlanta MarketOnly 33%of the 4Q 2012 Atlanta housing inventory was initially priced in the market

Pricevs.

Competition

Out of

The MarketHomes that Dont Sell

Poor

Below

Above

Great

36%

In the MarketHouses that Sell in a median

of 27 days

36%33%

31%

Condition vs. Competition

ChasedThe

Market

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The number of months of

supply vary widely among

market segments defined by

price range and New vs. Resale

properties

Overall the supply was -43%lower in December, 2012 than

in the same month in 2011

resulting from a lower

inventory of properties in all

price ranges, coupled with

higher sales

Inventory in the


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Viewing overall supply

against the industry

benchmark for a balanced

market shows that current

levels in price ranges above

$500K remain in a Buyers

Market condition, while

those below $500K enjoy asellers market

Very low supply in the high

volume price ranges below

$200K resulted in a very low

overall supply of 3.5 months

in December, 2012

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A comparison of supply by

price range between

December, 2012 and

December, 2011 shows the

extent to which the

Supply/Demand environmenthas changed

Significant reductions

occurred in all price ranges

with the supply across all

price ranges, dropping by

43% compared to December,2011

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The number of propertieslisted for sale compared to the

number of properties which

sold each month, illustrates the

relationship existing between

Supply (listings) and Demand

(sales)

Using a 3-month average of

4Q 2012 sales yields a 3.5

month supply, meaning that at

the current sales rate, it would

take less than 4 months to sell

the current inventory of

listings if no new listings came

on the market

A supply of more than 6-7

months is considered to be a

Buyers market

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Previous Listing Periods IncludedFULL YEAR



Conventional Uninsuredand Cash purchaseswere 61.0% of all

purchases throughDecember, 2012, withcash being the most-often used method offinancing

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Two of every three cashpurchases were ofdistressed properties in

2012

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Single Family Detached ResidencesP i Li i P i d I l d d


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4Q 2012 sales of luxuryhomes priced above$1.0M was +50% higher

than that of 4Q 2011with a combined 119sales

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4Q 2012 Median DOM forsales in the $1.0M-$1.49Mprice range were about the

same as in 4Q 2011, whilethe median for the $1.5M+range was -46.6% lowercompared to 4Q last year

The small number of salesin these price ranges makes

percentage changes morevolatile

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Single Family Detached ResidencesP i Li ti P i d I l d d


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Median S/L price ratio for the$1.0-$1.49M price range was+7.7 percentage points higherat 85.4% and those in the$1.5M+ range were higheralso by +4.3 points

The median S/L ratio for allsales was 92.7% in 4Q 2012

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Single Family Detached ResidencesP i Li ti P i d I l d d


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Price reductions also tendto be more common asproperty prices increase

Improved in 4Q 2012, theincidence of price

reductions was down -1.3percentage points in the$1.0-$1.49M range, whilethe $1.5M+ range droppedby -17.9 percentage points

The percentage of price

reductions for sales acrossall price ranges in 4Q 2012was 49.2%

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The difficulty of sellingluxury homes priced above$1.0M in this market isunderscored by thepercentage of sales thatrequired more than onelisting period, compared tothe overall sales percentage of24.6% that were listedmultiple times during 4Q2012, roughly half the rate inthese price ranges

The results of initialoverpricing are usually

longer DOM, lower S/L %,more Price reductions andmultiple listing periods,ending in much lower sellingprices

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Although to a much lesserdegree in both of theseprice ranges, Distressedproperty sales are presentin all price ranges in thismarket

During 2012, the distressedpercentages of sales werefairly constant below 12%in both years

Prices of non-distressedproperties may be affected

in these price ranges aswell, when buyers agents,

lenders and appraisers usethem as comps

4th Quarter Atlanta Real Estate Stats

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Transcript of 4th Quarter Atlanta Real Estate Stats