A new report on the Atlanta housing market shows a significant decline in home sales, year over year, along with a much greater decline in Atlanta home sales as compared to the national housing market. The number of August Atlanta home sales declined 7.1% from 2017 to 2018. The national decline in home sales was only 1.1% for the same period. The data shows varying results for different parts of the metro area:
- Cobb County sales declined 9%
- DeKalb County sales declined 8%
- Clayton sales declined 17%
- Gwinnett County reported a more than 10% sales decline
- On the other hand, Fulton County sales increased 14%
Atlanta home prices continue to increase, even while the number of sales decrease. One example of this is the Old Fourth Ward section of Atlanta. From 2017 to 2018, the number of home sales declined 19%. But at the same time, average prices in the Old Fourth Ward have risen by about 35%.
Atlanta’s housing challenge is an inventory shortage, especially at the lower end of the home price spectrum. ReMax reported that the supply of homes listed for sale in metro Atlanta was down 13% in August as compared to August 2017. Ultimately, buyers compete against each other for desirable homes and this forces prices up.
From my experience, it seems that homes priced under $300,000 have seen strong competition this year. One client found a home priced around $260,000 in an attractive Gwinnett neighborhood. My client’s offer was one of about 20 offers on this one house. Some Realtor friends have told me about making offers on Atlanta condos where the listing agent received 12 – 15 other offers.
It is very tough for buyers to compete in this market. I have several clients who have decided to put home ownership on hold until 2019. It takes patience and persistence to keep going.
For pointers on how a lender can help a buyer compete, see this prior Mortgage Blog post: https://wp.me/p1Gub-YJ. Buyers should talk with Realtors about other ways to make their offers more attractive. Effective ideas include:
- If cash is available, the buyer can offer to pay the purchase price regardless of the property’s appraised value.
- The buyer must have a flexible schedule to visit homes and make offers right when they hit the market.
- The buyer can consider writing a personal note to the seller explaining why the house is perfect. (I’ve seen this work before.)
Experienced Realtors can offer more effective tips for winning the contract. If you have a friend or coworker wanting to buy a home in Atlanta, ask if they want their lender to help them beyond financing a house by helping win the contract. Then refer them to me. We at Dunwoody Mortgage will do all in our power to help them win the contract and close on the purchase, and we will do it quickly too.
