My real estate office recently released the second quarter statistics for the Atlanta residential real estate market. The good news is that inventory continues to decline, however so does home sales which are down 15 percent for the second quarter of 2008.
According to the stats, 60 percent of all homes sold in the metro Atlanta area during the second quarter were priced under $ 200,000. The actual median average was $ 162,000. The stats also say that while 31 percent of all home sales were foreclosures, in the under $ 200,000 category that number rose to a staggering 43.2 percent. With foreclosures bringing down overall pricing, homes are now selling at pre-2003 prices.
Here’s the good news for sellers – if you get your home priced correctly right out of the gate, our statistics show that you will receive 96.1 percent of your list price and sell your home in 25 days. However, if your home is not priced correctly and needs at least one reduction, that number drops to 73.8 percent of the original list price and the days on market jump to 252. Unfortunately, in the second quarter, 9 of 10 homes required a price reduction.
As I stated above, inventory in the Atlanta market continues to decline, from 11.3 months of inventory in the first quarter to 10.7 months the second. Six month is considered a balanced market, so as you can see we are still, very much, in a buyer’s market.
It is extremely important for both buyers and sellers to know the market statistics, which are not provided by many real estate companies. The numbers above tells buyers that good homes at good prices will still sell fast and that there needs to be a sense of urgency. Meantime, it tells sellers that if they do not price their home correctly right from the start, be prepared for a long haul on the market.