Where’s The Bottom? Market Update

CNN Money shares with us that the US has seen it’s first overall price increase in over 3 years based on a 20 major city analysis! Atlanta’s average home prices report to have increased .03% from April ’09 to May ’09 after a 15% overall drop in prices since this time last year. While a fraction of a percent is not all that much to jump up and down about, it signifies a few things:

1) Stop waiting for the bottom to buy. You will never see bottom until you look back at HISTORICAL data, which means, you missed the boat – Wealth is built in these kind of markets – WE ARE HERE (at least for a moment).

2) Inventory levels are decreasing which is driving prices up – more buyers out there because of the Real Estate gods giving us tax credits and the slew of deals we’ve seen. Buyers, it has been a buyer’s market, but keep in mind, you are not the only one out there looking for the ‘deal’ of a life time. When you find something, use your gut and make a move. Now, experts say, and I agree, that this could be a temporary stabilization since many banks are calling off their foreclosures and hanging out in short sale land. There are still a slew of distressed homes that are not showing up in sales statistics as foreclosures continue to stay in ‘pending’ status.

One last word of advice for those in the market (or ON the market). There is no need to take the ‘sky is falling’ mentality. There is no such thing as a BAD market – because it depends on which side of the transaction you are embracing. Seller’s, think of yourself as soon to be buyers. Buyers…well, hopefully you won’t be selling for a while. Until next time, Make today count!

It seems the market is really picking up, in my opinion, as I hear the “celebration bell” ring in my office on a hourly basis from excited colleagues closing a deal or writing a contract. But what does this ‘picking up’ really mean for Atlanta?

As I compare Q1 2009 to last year’s Q1, it means buyers are getting deals with an obvious decrease in median sales price for average for single family homes of 20.12%. This includes all FMLS areas inside the perimeter north of I-20, Vinings, Dunwoody, Sandy Springs and Tucker. Dunwoody comes out the winner with a 0% decrease in median sales price where Midtown/In-town/Ansley and Vinings are jockeying for an overall decrease up to 35% in median sales price.