If you read the news, especially the Atlanta Real Estate section, you'll likely hear that real estate is UP, by some estimates as much as 20%. In Gwinnett county the new average sales price has risen to $179,900.
So in the words of my Grandma-ma "Is it real or memorex?"
First of all a percentage based increase is due to the abnormally high volume of institutional investors. Groups like Blackstone bought and paid more than appraised value for over 1,400 homes last year. In addition, smaller hedge funds and investors in general are fighting over the $50,000 properties and driving up the prices. Keep in mind a $5,000 increase on a $50K property is a 10% jump.
Secondly, the home buyers that might have bought and financed these homes are having to increase their price range and buy homes $150,000 and below instead of the traditional $100K range. Keep in mind that interest rates are low so this makes money more available for everyone.
Additionally, those buyers that would be buying the upper end of first home or second homes are ALSO having to increase their purchase range as well.
Finally, because of the economic downturn and the housing collapse many sellers who would want to sell can only do so through a short sale. Since many are very close to breaking even, they just sit in their homes. With the bank doing more short sales and people sitting in their homes longer, the available Atlanta Homes for sale just isn't enough to support the demand for very long.
With all that typed... Yes, it's a seller's market but it's not up 20% is the answer you were looking for.
What's Hot and What's Not?
Alpharetta is normally the premiere real estate town, however, the prices are high and the rentals are lower here so the investor influence isn't as great.
However, Lawrenceville Real Estate, Dacula Homes for sale and Suwanee and Buford Homes are going fast. These homes are more affordable, attractive to investors and home owners alike, especially with the strong overall school system.
A 15 year veteran of Atlanta Real Estate, Joshua Jarvis is the host of 4rd Marketing Podcast - A podcast designed to help small business owners (this means Real Estate Agents) grow their business by implementing the latest in real estate SEO, local seo, digital marketing techniques and strategies.
Jarvis Team Realty
1960 Satellite Blvd Suite 1100
Duluth GA 30097
direct : 678-999-1001
Atlanta New Homes