December 2006 Metro Atlanta Real

Lots of Negative metro Atlanta Real Estate
Numbers but it’s Not All Bad News.
Great News for Home Buyers!

By Steve Palm
Smart Numbers

There were 4,924 closings for all single family in February. This is a decline of 9.5% over February 2006 and the 6th consecutive period decline.

Single family detached closed 4,181 units in February, or a decline of 9.9% from the same year ago period. This is the 7th consecutive monthly decline, but none of the percentage decreases have been double digit. We have slowed, but not drastically.

Condos and townhomes had 743 closings in February, or a decline of 7.1%. After reporting a double-digit percentage increase in January, the trend has reversed again in February. This is also the 4th decline for condos and townhomes over the past six periods.

The average sale price for condos and townhomes was unchanged in February from the same year ago period. The average was $192,811 versus $192, 763 for February 2006.

The average sale price for single family detached was $254,659 or an increase of 2.6% over February 2006. With continued demand and increasing inventories, I do not expect any significant appreciation of home prices this spring. Price increases for single family detached of 5.2% in January and 2.6% in February will be on the “high” side for the first half of 2007.

Inventories of homes for sale is at all-time highs for Atlanta. When inventories are at records high and demand is “flat” or down, then many indicators and other factors are at all-time highs too.

The months supply for single family detached was at 8.4 at the end of February. This is a record and all indications are that this will continue to rise over the next few months.

The single family detached 12 month moving average for months-supply was at an all-time high at the end of February. The 12-month average was 7.6 and the previous high was in August 2003.

There were 6,161 expired single family detached listings for the first two periods in 2007. This is an increase of almost 1,900 expired listings over the same two periods for 2006 and almost 50% of the entire total of expired listings for 2000.

The number of withdrawn listings keeps surging too, as there were 4,315 withdrawn listing for all single family for the first periods in 2007. This is a large increase over the 2,736 withdrawn listings for the same two periods in 2006.

Days on market was at 90.5 for single family detached in February. This is the first time DOM has been above 90 for single family detached since February 1998.

I have gone over a lot of negative trends in this recap, but there are some positives too. Atlanta’s housing market has slowed, but not dropped significantly like some other metro housing markets.

Right now is one of the best times to buy a home, as we have interest rates on the decline again, low unemployment, and affordable homes.

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