When I saw the article below in our brokerage newsletter it occurred to me that I haven’t written much about the condo market in our area. Condos are a great and affordable way to start your journey into urban Atlanta home ownership. In fact, as the article below reports, the increase in condo sales was double that of the increase in single-family homes. And I believe it would be higher if inventory wasn’t so tight. If you’d like to consider buying a condo or townhome on the Westside, give me a call and I’d love to talk about your situation and give you the rundown of what’s out there.
In the meantime, check out how the Atlanta housing market fared in 2016 and what we’re expecting for 2017:
2016 WAS THE YEAR OF THE ‘VALUE BUYER’;
BUILDERS EXPECTED TO BE BIG WINNERS IN ‘17
(Reprinted from Beacham Insider, March 2017 edition, with permission)
Last year (2016) was the best year for Atlanta residential real estate home sales and prices ever, beating the previous marks set for both in 2015. However, the pace of growth moderated as the year progressed with election hysteria, a slowing economy, and insufﬁcient inventory below $1 million putting pressure on market performance.
One clear trend emerged: home buyers sought out homes and areas where home prices still represent a value relative to traditionally celebrated neighborhoods. The number of home sales in the ﬁve county metro was up 6% from May to December but sales among The Beacham Bellwethers which track the areas of Atlanta with the highest average sales prices declined 2%. Average home sales prices grew at the same pace (3%) for both categories.
Single family detached and townhome construction sales gained steam in 2016 and many builders appeared to be riding high in the saddle as 2017 began. Builders who can deliver product at a price buyers can/will pay in locations they want will be the big winners in 2017 and in the foreseeable future.
The Atlanta housing market is starved for new condominium deliveries as evidenced by the increase in condo sales in 2016 – which was nearly double the increase for single family detached home sales on a percentage basis (+11% to +6%).
Seasonally adjusted housing inventory began increasing again late last fall but the increase is a “drop in the bucket” compared to the inventory needed to bring most of the market into a normal balance (six months of inventory supply). Currently, there is just a three months’ supply of housing inventory.
While there were more $3 million plus sales in Atlanta last year than any other year in the city’s history, the market conditions are not necessarily favorable. Inventory of ultra-luxury properties is at recent historic highs. For instance, the months’ supply of inventory in North Fulton for $3 million-plus homes is nearly eight years. In many areas of Buckhead, the months’ supply is more than three years. Until age demographics work back in seller’s favor, this part of the market is expected to heavily rely on price discounting.