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Metro Atlanta's
Real Estate Update for March 2003.
March was the
largest monthly year to year decline for single family residential in our
records database, which dates back to 1996. March 2003 closings were 4,119
versus 2002's 4,698. Not only was it down from March 2002, but also March
1999-2001. Single family detached was down 10.5%, while condos and townhomes
were down 26.2%.
I believe our
economy took a step back in March, while we went to war. However, it was
over quickly and we may see an April and May rebound. With rates at all-time
lows, the consumer may want to get that next home with a low mortgage,
before interest rates go back up.
The average
sale price for single family detached was $221,619 and for condos and
townhomes, $186,030. The Combined average price for all single family was
$218,119, which was almost $5,000 higher than last month and $2,300 higher
than the same year ago period. These are not large increases, but still
increases and they will become under increasing pressure if we continue to
have decreasing closings and increasing inventories.
The months
supply for all single family housing at the end of March was at 8.2. Single
family resales were also at 8.2, while condos and townhomes were at 12.2,
single family new construction was at 6.9, and condos and townhomes new
detached was at 9.0. The total combined of 8.2 is the highest I have on
record. Reviewing the inventory charts and recognizing the high inventory
levels, it is easy to see a high months supply of inventory after a few slow
months.
The high end
still has not shown any sign of improvement, as all inventory above $500,000
has a combined months supply of inventory of almost 19 months.
There were
552 expired condo and townhome listings in March. In the first quarter 2003
the total number of expired attached homes was 1,575. This amount is almost
as many that occurred in 1998 and 1999 combined. In 1999 there were only 120
expired listings for the first quarter.
Over 1,000
listings were found to be previously listed. When you add the previous
listed days on market to single family detached, the days on market increase
from 79.8 to 119. Last year at this same time it was at 97.7. The total days
on market for Condos and townhomes was 154 in March or almost 50% higher
from the same year ago period.
There is a
lot of negative information listed above, but the bottom line is that it is
a great time to buy a home. Interest rates are at 40 year lows, home
inventory is very high, so there is a lot of homes to choose from, and we
had a short war. I believe that by May we will start seeing improvement.
Thank you,
Steve Palm Smart Numbers |
April
2003
