February 2018 Market Update2/19/2018
Berkshire Hathaway HomeServices Georgia Properties
Real Estate Advisor – February 2018
We are providing this monthly real estate advisor to keep you informed about the latest trends and issues in the real estate market. Remember that real estate is local and every market is different. Contact us to find out the specific details for your local area. If you know someone else who might be interested in receiving this report or who may benefit from our expertise, please let us know. Better information leads to better real estate decisions!
Below is the summary for Greater Metro Atlanta through January 2018.
- For 2017, the Metro Atlanta real estate was the tale of three different markets. The entry-level market had strong demand and very low inventory. There were many multiple offers and values rose faster than other segments. The middle market showed normal signs of supply and demand. The luxury market was a buyer’s market with buyers negotiating better pricing and terms.
- For 2018, we see strong buyer demand with serious challenges for listed inventory in many price points and areas. Mortgage rates are rising slowly which will impact affordability. BUT Metro Atlanta continues to be very affordable relative to other metros.
- January pending contracts were up 38% from December and up 14.7% from the prior year. Closings were down 33% from December and down 1.3% from the prior year.
- The trailing 12 months pended sales units were up 4.8% versus the prior year. The trailing 12 months closed units were up 3.8%.
- The Average Sales Price for January was $283,000 – down 2.4% from December and up 7% from last year. 2017 achieved the highest annual ASP on record.
- Inventory for January was down 8.7% from December and down 11.9% from last year. This is the lowest level of inventory in 5 years.
- Overall Months of Supply for January was 4 months. Six months is considered normal. Luxury properties took longer with homes above $1 million averaging 18 months and properties over $2 million averaging 35 months to close. The luxury market remains a buyer’s market in most areas.
- The latest Case-Shiller Index for Atlanta (1/27/18) was statistically flat compared to the previous month. Metro Atlanta home values are up 69% from the bottom of March 2012. Increased home values are building equity and getting sellers back into the market.
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