Metro Atlanta’s home bidding wars return

Prices are low, but so is inventory — catching some buyers unaware.

Bidding wars are occurring with desirable homes that feature good public schools, nearby amenities and competitive prices. This home in Milton’s White Columns neighborhood is currently listed by Andrea Cueny for $559,000. Click on the image for more photos and information.

In an age of high foreclosures and rock-bottom home prices, bidding wars are breaking out for some metro Atlanta homes.

The hot competition is spurred by shrinking inventory and a run on homes with one or more desirable traits, such as good public schools, nearby amenities and competitive prices. Buyers also want homes in fully developed subdivisions and in locations that have maintained values, such as Buckhead, south Forsyth County and trendy intown neighborhoods.

Those seeking such homes have been caught unaware.

The competition for homes started in early winter as homes sales rose, and the bidding peaked in March, though multiple bids are still happening.

Source: Atlanta Journal Constitution

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Sellers’ Asking Prices Jumped in May

Source: Wall Street Journal

Median asking prices hit their highest level in 2½ years in May, the latest sign that sellers are feeling brighter about their prospects amid slimmer pickings of homes listed for sale.

Median asking prices rose to $194,400, up 1.9% from April and 3.2% from one year ago, according to data released Wednesday by Realtor.com. Meanwhile, home listings increased by 2% from April, a slower-than-normal seasonal jump, and they stood 20% below their levels of year ago.

Reduced competition for sellers is making it easy for them to push the envelope on price. Compare May’s report with that of one year ago, when median asking prices in May 2011 fell by 1.6% from April 2011.

Meanwhile, the median amount of time that homes listed for sale had been on the market fell to 83 days, down by 9.8% from one year ago.

Here’s a closer look at the report:

Inventory: The number of homes for sale fell in all but two of the 146 markets tracked by Realtor.com on an annual basis, with inventory rising by 5% in Philadelphia and by 19% in Shreveport, La.

Nearly half of all markets saw a 20% year-over-year drop in the number of homes listed for sale, led by Oakland, Calif. (down 56.6%); Fresno, Calif. (48.8%); Bakersfield, Calif. (48.6%); Phoenix (44.7%) and Seattle (42.7%).

On a monthly basis, around three quarters of markets say inventories rise in May.

Prices: On an annual basis, asking prices fell in 24 markets, led by Reading, Pa. (down 5.4%); Allentown, Pa. (5.3%); and Milwaukee, Wis. (5.2%). The largest year-over-year jumps in median asking prices were reported in Phoenix (up 32.6%), Santa Barbara, Calif. (30.1%), and Chattanooga, Tenn. (up 24.1%). Median prices can overstate big swings because they may instead reflect a change in the mix of sales.

Median list prices fell on a monthly basis in just 17 markets, led by Daytona Beach, Fla., and Asheville, N.C. (down 1.4%), and were unchanged in another 35. They rose from April’s levels by 19% in Santa Barbara, Calif., and by 10% in Oakland.

The Realtor.com figures include sale listings from more than 900 multiple-listing services across the country. They don’t cover all homes for sale, including those that are “for sale by owner” and newly constructed homes that aren’t always listed by the services.

Click here to use the Wall Street Journal interactive graphs in order to compare figures for metro areas throughout the US.

In Metro Atlanta

FMLS recently released the May 2012 active inventory data for Metro Atlanta.

Active inventory level for Residential Single Family Detached continues to drop with 22,142 active listings as of the end of May 2012 vs. 33,860 active Residential Single Family Detached listings as of the end of May 2011. This represents drop in active inventory for Residential Single Family Detached of 35%.

Active inventory level for Residential Single Family Attached continues to drop with 3,883 active listings as of the end of May 2012 vs. 6,477 active Residential Single Family Attached listings as of the end of May 2011. This represents drop in active inventory for Residential Single Family Attached of 40%.

There were 11,466 new listings entered for all property types in May 2012 vs. 12,895 new listings entered for all property types in YTD May 2011. Total new listings entered for all property types in YTD 2012 was 58,081 vs. 65,216 new listings entered for all property types in YTD 2011.

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Shortage of homes for sale creates fierce competition

With housing inventory at a low, would-be buyers are scrambling to bid on homes before they’re even listed, and real estate agents are vying to represent the few sellers that do exist.

The newest problem for the slowly improving housing market isn’t a shortage of serious buyers, it’s a shortage of good homes.

Only blocks from Atlanta/Midtown’s Piedmont Park, this renovated home located at 356 6th Street has beautiful hardwood floors and an exposed hardwood ceiling in this cozy living room. No longer on the market, it was offered at $415,000 by Andrea Cueny of Atlanta Fine Homes Sotheby’s International Realty. Click on the image to search for homes for sale in Atlanta’s intown neighborhoods.

Would-be buyers are packing open houses and scrambling to make offers on properties before they are even listed. Bidding wars are erupting. And real estate agents are vying fiercely to represent the few sellers that do exist.

Housing inventory has sunk to levels not seen since the bubble years. The number of American homes with a “for sale” sign hit 2.5 million in April, the lowest number for an April since 2006, according to the National Assn. of Realtors.

David Dennick, who lives in Echo Park and works as a television editor, has been searching for a home with his wife, Denise, for about two months. The couple have already bid on three properties. They are hoping to find a home for less than $525,000, which is $25,000 more than they originally had hoped to spend.

“It is much more competitive than we thought,” said Dennick, standing in the entrance of an Eagle Rock open house on a recent Sunday. “It is just frustrating because we thought we would really be able to buy a house; we are a middle-class family.”

The sharp drop in inventory along with rock-bottom interest rates have helped stabilize even some of the hardest-hit markets, including the Southland, Las Vegas, Phoenix and Miami. Some real estate professionals are concerned that the lack of inventory might turn off potential buyers, stifling the recent recovery.

Located in ideal Alpharetta swim/tennis neighborhood with award winning schools, this renovated home located at 4210 Breckenridge Court has beautiful hardwood floors and a dream kitchen. No longer on the market.Click here to search for homes for sale in Alpharetta. 

The much-predicted foreclosure wave that was expected to dump more homes onto the market has not materialized. Fewer borrowers are entering default, and banks are better managing the properties they do have on their books.

In addition, professional investors bankrolled by private equity firms and hedge funds are pouncing on bank-owned homes, often turning them into rentals.

A dearth of new construction also is constraining supply. In April — the most recent month for which figures are available — the number of completed new single-family homes available for sale stood at 46,000, the lowest level since the Census Bureau began keeping track in 1973. Some 70,000 were under construction, also near historic lows.

The inventory problem has been exacerbated by the plunge in home prices since the go-go years. Many people who bought at the top of the cycle are so deeply underwater, they can’t get the price they need to sell and are therefore not bothering to put their homes on the market.

Source: Los Angeles Times

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Luxury condos finally see significant sales uptick

Source: Atlanta Business Chronicle

Written by Anne Schwall. Atlanta Fine Homes Sotheby’s International Realty’s SkyRise Group Vice President

First quarter sales for the Atlanta housing market have confirmed what real estate agents having been praying over for the last four years: housing sales are up.

Better yet, they have continued to stay strong.

Brokerages are experiencing sales volumes they have not seen in five years. At Atlanta Fine Homes Sotheby’s International Realty, closed transactions during April topped $100 million, a record in sales volume since the founding of the company five years ago- a great sign the market is truly rebounding.

The most telling sign of a market recovery is that sales are up in all housing sectors, single family and condominium in both Buckhead and the submarkets just outside Buckhead, according to statistics from First Multiple Listing Service.

The luxury condominium market, which has felt the greatest residential pangs in this downturn, is finally seeing a significant uptick in sales. The Sovereign, within the 50-story Buckhead mixed-use tower 3344 Peachtree, closed seven luxury condominium transactions in the first quarter, with an average sales price of more than $1.6 million each.

These first quarter sales numbers match the sales numbers for all of 2011.

There is a wide spectrum of pricing in the luxury condominium market. Homes at the St Regis are at the top of the list, topping over $750 per square foot. Even at this ultra premium pricing, the St Regis closed two homes in the first quarter with an average sales price of more than $4 million.

Another project in the luxury segment is the Ritz Carlton Residences, which averages $360 per square foot. The Ritz sold 11 condos during the first quarter at an average sales price of $800,000.

All of these luxury properties are located in Buckhead and boast the most prestigious addresses on Peachtree Road or West Paces Ferry.

Stepping just outside of Buckhead, another property in the luxury market that also experienced first quarter sales success is the Aberdeen in Vinings, where four homes sold during the first quarter with an average sales price of $900,000.

These strong sales in the luxury market mirror the same robust sales at all price points for the condominium and townhome markets of both Fulton and Cobb County. Sales at all price points for residential attached homes are up 9 percent in both counties from first quarter 2011. As inventories continue to shrink and supply and demand get back in line over the next several months pricing, yes, might even begin to inch upward making a true rebound sustainable.

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Atlanta Fine Homes Sotheby’s International Realty April Pending Sales

Our CEO and Founder, Jenny Pruitt, sent out this company-wide video message regarding a milestone in April pending sales.  In this brief clip, she explains that Atlanta Fine Homes Sotheby’s International Realty had an extraordinary month with over $100 million in pending sales.

Find more great news concerning the state of the Atlanta real estate market in this video and this quarterly report.

Click here to start your metro Atlanta area home search on my website.

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State of the Atlanta real estate market – first quarter 2012

David Boehmig, Co-Founder and President of Atlanta Fine Homes Sotheby’s International Realty takes three minutes to describe the state of the Atlanta residential real estate market as first quarter 2012 closes.

Filmed at the Sovereign, a luxury condominium building located in Buckhead.

Significant Recovery in Condo Market in Atlanta – First Quarter 2012

$15 million in sales YTD 2012 have happened at the Sovereign, and the overall Atlanta condo market is seeing a recovery as well.  Units under contract have increase 34% over same quarter in 2011, and the average sales price of multi-family homes is up also.

Single Family market – Metro Atlanta

New sales activities have increased 16% on homes under contract Q1 2012 vs Q2 2011

Homes over $150k – have increased 12% quarter over quarter and homes listed at over $500k have increased by 6%

Buckhead

Pending home sales – highest month of pendings in April compared to the previous 15 months

Intown

Days on Market – has dropped from 96 days to 89 days

Alpharetta/North Atlanta

Pending sales – there were 600 last year Q1, and in Q1 2012, there are 700 homes that have sold

Consumers and buyers are seeing this as a great time to buy.  Altanta Fine Homes Sotheby’s International Realty is experiencing wonderful internal growth as well.  Now is the time to buy…begin your search for a new home in metro Atlanta here.

Interested in the luxury market of Atlanta mansions? Check out the top five most expensive homes sold through April 30, 2012 here. 

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Incredible week of home sales for Atlanta Fine Homes Sotheby’s International Realty

Our President, David Boehmig, sent out this video message on Friday afternoon, April 27, 2012.  In this brief clip, he explains the phenomenal week of home sales that Atlanta Fine Homes Sotheby’s International Realty had last week with over $35 million in sales.

We definitely feel like the Atlanta real estate market is picking up – my office is very busy with new listings, contracts, and sales.

ick here to start your metro Atlanta area home search on my website.

Click here to start your metro Atlanta area home search on my website.

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10 US Metros with Greatest Drop in For Sale Inventory

U.S. housing market trends tracked by Realtor.com show a trifecta of promise: a shrinking number of homes on the market, fresher inventory, and an increase in median list price.

In 146 metros tracked by Realtor.com, the number of for-sale listings was down 21 percent in March compared to a year ago. All but two markets — Philadelphia and Hartford, Conn. — saw listing inventory decline, and 78 markets registered declines of 20 percent or more.

Nationwide, the median number of days a home had been on the market was down nearly 20 percent, to 89 days, and median list price was up 5.6 percent, to $189,900.

1. Oakland, CA
2. Bakersfield, CA
3. Phoenix-Mesa, AZ
4. Fresno, CA
5. Miami, FL
6. Fort Lauderdale, FL
7. Seattle-Bellevue-Everett, WA
8. Atlanta, GA

9. Orlando, FL
10. Portland, OR and Vancouver, WA

Data collected and analyzed by Realtor.com through March 2012. Includes single-family homes, condos, townhomes and co-ops. Source: InmanNews

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Americans Predict Rents and Home Prices to Increase

Source: KCMBlog

We report on Fannie Mae’s Quarterly National Housing Survey every ninety days. Fannie Mae also does a monthly survey covering different aspects of the housing market.

Here are some record numbers we found interesting in Fannie Mae’s March report (emphasis added).

• Thirty-three percent of respondents expect home prices to increase over the next 12 months, the highest level over the past 12 months.

• The percentage of respondents who say it is a good time to buy rose to 73 percent, the highest level in over a year.

• Forty-eight percent of respondents think that home rental prices will go up, the highest number recorded to date.

• On average, respondents expect home rental prices to increase by 4.1 percent over the next 12 months, the highest number recorded to date.

Doug Duncan, chief economist of Fannie Mae, capped the report off by stating:

“Conditions are coming together to encourage people to want to buy homes. Americans’ rental price expectations for the next year continue to rise, reaching their record high level for our survey this month. With an increasing share of consumers expecting higher mortgage rates and home prices over the next 12 months, some may feel that renting is becoming more costly and that homeownership is a more compelling housing choice.”

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Real Estate Redux: AIG Is Planning a Return to U.S. Property Investing

Source: Wall Street Journal

American International Group Inc. is planning to jump back into U.S. property investing, reversing yearslong efforts to downsize its real-estate business in the wake of its near-collapse and government bailout in 2008.

AIG until recently had been dismantling what was once a $24 billion real-estate portfolio packed with trophy properties around the world to help pay back U.S. government loans and keep the company afloat. Its investing has been limited primarily to a few European deals with a single partner.

AIG once bought flashy assets, like Stowe Mountain Lodge in Vermont. Photo credit: Associated Press

But now AIG is beginning to make plans for fresh investments across the U.S. that will begin later this year.

A real-estate division of the New York-based company has reached out to developers of new apartment buildings in major metropolitan areas, said people familiar with the matter.

“We’ve done multifamily deals with them before, and we’re interested in working with them again,” said Hal Fetner, president and chief executive of New York developer Durst Fetner Residential LLC who has been contacted by AIG about new developments.

AIG hasn’t set specific targets on the size of its future investments in real estate, but people familiar with the insurer say that eventually it will amount to hundreds of millions of dollars annually.

The company once acquired flashy properties like a Vermont ski village, Shanghai office towers and a Tokyo shopping mall. This time, a humbled AIG has set its sights lower: The U.S. apartment market is where it is focusing now, said people familiar with the matter.

AIG was one of the financial groups that expressed interest in a $100 million development project in Montclair, N.J., a one-time Jaguar dealership that developer Pinnacle Cos. plans to convert into an apartment complex with retail, commercial and office space, said people familiar with the matter. It also has held discussions with brokers or developers in California and the Southeast U.S., the people said.

Some brokers said they first realized that AIG was paving the way to resume property investing when they found members of the real-estate team actively looking to partner with developers at a January multifamily housing conference in Boca Raton, Fla.

AIG’s return to real-estate investing is another sign that the insurer is regaining its footing after paying back most of its $182.3 billion federal bailout. The company is still 70%-owned by the U.S. government, which is now largely a passive shareholder and is expected to sell its holdings over time.

AIG started its real-estate investing business in 1987 and built it into one of the world’s largest property-investment platforms with $25 billion in assets at its peak a few years ago. Its real-estate team is led by Robert Gifford, a 55-year-old industry veteran who was hired in 2009, shortly before Robert Benmosche was appointed chief executive.

AIG’s real-estate assets are currently around $9.5 billion, or a little more than a third of its peak, and it maintains a staff of 150 people.

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