Lots of
Negative metro Atlanta Real Estate
Numbers but it’s Not All Bad News.
Great News for Home Buyers!
By Steve Palm
Smart Numbers
There were 4,924 closings for all single
family in February. This is a decline of 9.5% over February 2006 and the 6th
consecutive period decline.
Single family detached closed 4,181 units
in February, or a decline of 9.9% from the same year ago period. This is the
7th consecutive monthly decline, but none of the percentage decreases have
been double digit. We have slowed, but not drastically.
Condos and townhomes had 743 closings in
February, or a decline of 7.1%. After reporting a double-digit percentage
increase in January, the trend has reversed again in February. This is also
the 4th decline for condos and townhomes over the past six periods.
The average sale price for condos and
townhomes was unchanged in February from the same year ago period. The
average was $192,811 versus $192, 763 for February 2006.
The average sale price for single family
detached was $254,659 or an increase of 2.6% over February 2006. With
continued demand and increasing inventories, I do not expect any significant
appreciation of home prices this spring. Price increases for single family
detached of 5.2% in January and 2.6% in February will be on the “high” side
for the first half of 2007.
Inventories of homes for sale is at
all-time highs for Atlanta. When inventories are at records high and demand
is “flat” or down, then many indicators and other factors are at all-time
highs too.
The months supply for single family
detached was at 8.4 at the end of February. This is a record and all
indications are that this will continue to rise over the next few months.
The single family detached 12 month moving
average for months-supply was at an all-time high at the end of February.
The 12-month average was 7.6 and the previous high was in August 2003.
There were 6,161 expired single family
detached listings for the first two periods in 2007. This is an increase of
almost 1,900 expired listings over the same two periods for 2006 and almost
50% of the entire total of expired listings for 2000.
The number of withdrawn listings keeps
surging too, as there were 4,315 withdrawn listing for all single family for
the first periods in 2007. This is a large increase over the 2,736 withdrawn
listings for the same two periods in 2006.
Days on market was at 90.5 for single
family detached in February. This is the first time DOM has been above 90
for single family detached since February 1998.
I have gone over a lot of negative trends
in this recap, but there are some positives too. Atlanta’s housing market
has slowed, but not dropped significantly like some other metro housing
markets.
Right now is one of the best times to buy a
home, as we have interest rates on the decline again, low unemployment, and
affordable homes.
