from 2002. This is the largest year-to-year increase since 1997-1998. What
makes this increase more impressive is that we started out with a negative
first quarter. However, with interest rates dropping to 40 year lows in late
spring, June-October realized double digit year-to-year increases.
December increased 2.4%, but after lagged closings are
reported, the increase will be similar to the cumulative percentage of 7.5%.
Condos and townhomes were up 11.4%, while single family detached was up
1.3%. For the entire year, condos and townhomes were up 10.3% and single
family detached was up 7.2%.
The average sale price for all single family closings was
$231,803 in December and $227,065 for the entire year. Condos and townhomes
increased 3.2% and single family detached increased 3.1%, which combined for
a modest 3.1% increase from 2002.
The 3.2% increase for condos and townhomes was the smallest
percentage increase for the past eight years. The smallest increase prior to
this mark was 2002’s 8.2% increase, so 2003 definitely saw some cooling for
condo and townhome appreciation.
There were 4,505 expired single family detached and 944
expired condo and townhomes listings in December. Both of these marks were
records, surpassing December 2002’s previous marks. For the year, 47,419
single family listings expired, well ahead of 2002’s 40,343. However, it was
the smallest percentage increase since 1999 and a reflection of a moderating
inventory over the second half of 2003.
Days-on-market continued to moderate in December, as all
single family had a DOM of 80.5 versus the same year ago period of 81.3. For
the year, DOM was 78.5 versus 2002’s 74.7. However, much of this increase
was from our very weak first quarter when DOM was averaging 84.
Inventory levels starting out for 2004 have single family
detached at 29,323 and condos and townhomes at 5,722. The combined inventory
level of 35,000 listings is 4,000 more than 01/01/03, 9,000 more than
1/01/02, 15,000 more than 1/01/01, and 20,000 more than 1/01/00. As you can
see, even with record closing levels, we still have more than doubled our
inventory in just four years.
We have very low interest rates and an improving economy
heading into 2004, so combined with this being an election year, we should
experience a good year for residential real estate in Metro Atlanta.
Thank you,
Steve Palm
Smart Numbers
December 2003
