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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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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Homebuyers, Now May Be Best Time Ever

Atlanta Business Chronicle recently published the article below on the state of the Atlanta real estate market provided by David Boehmig, the President and Founder of Atlanta Fine Homes Sotheby’s International Realty. 

David Boehmig, President and Founder of Atlanta Fine Homes Sotheby's International Realty

Home sales, along with job growth and improving consumer confidence, are three of the most important keys in our economy’s ability to show a steady, sustained recovery. This past week, it was reported that the Atlanta residential housing market was dealt another blow and that home values continue to plummet. In terms of average sales price at the lower price point of the housing market, this is true. However, there are plenty of nuggets of encouraging news that don’t seem to be making it to the light of day. In reality, I believe we are forming the foundation of a steady period of recovery that we may look back on and realize was the bottom of the Atlanta housing market.

Here are some facts: Across all price points in the six-county metropolitan area (defined as Fulton, Cobb, DeKalb, Gwinnett, Cherokee and Forsyth counties) through the first 10 months of this year, as compared to the first 10 months of 2010, the inventory of available homes (single-family residences and condominiums) for sale in the city’s largest MLS, First MLS, is down by 23.7 percent. Falling inventory is one of the components that make up a value environment of increasing prices as less housing inventory on the market means there is more competition for homes. Over the past year, the number of months of inventory of available homes for sale, determined by the number of homes that sell during the period, has dropped from an 11- to 12-month supply, to seven or eight months. In other words, based on the current level of sales activity, it would take seven to eight months to absorb all of the homes currently on the market. As the month’s supply of homes on the market approaches six months, we will then begin to shift from the buyer’s market that we are currently in to more of a balanced market between buyers and sellers. Another component indicative of recovery is the number of homes being sold. So far this year, over 4,400 more homes have sold and closed than in the same period last year. If these trends continue, basic economics teaches that the laws of supply and demand will kick in, and prices will begin to rise.

What is more interesting, however, is what is happening in our market below the surface of these “overall” statistics. When I drill down and examine the market by price ranges, a pattern begins to emerge. The pattern is that, in general, across the metro Atlanta area, the higher the price range of house, the stronger the signal of recovery emerges. For example, as compared to the recent overall value reports, when you look at only those homes priced over $250,000, instead of values dropping by the overall 9 percent, the average prices actually rose over the last 10 months by 2.5 percent. That’s quite a swing. In reality, for many homes in our market area, the average sales prices are steadily increasing. Just as it is difficult to base local housing values on national statistics, it is not accurate to use overall market statistics for Atlanta to determine what is happening with values in a particular community.

So, what does all this mean? One, if you cull out the lower-priced houses in our Atlanta housing market, you come up with not only lower inventory levels and higher numbers of homes sold, but also modest increases in average sales prices. Secondly, and most importantly, a few months from now when buyers feel that sinking feeling in the pit of their stomach and look in the rearview mirror, they just might realize they missed one of the best opportunities to buy residential real estate they may ever have.

Click here to see the article from the Atlanta Business Chronicle.

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Atlanta top city to buy a home versus renting

Home prices and mortgage rates have fallen so far that the monthly cost of owning a home is more affordable than at any point in the past 15 years and is less expensive than renting in a growing number of cities.

The Wall Street Journal’s third-quarter survey of housing-market conditions in 28 of the nation’s largest metropolitan areas found that home values declined in all but five markets compared with the second quarter, according to data from Zillow Inc. Meanwhile, rent levels have risen briskly across the country and mortgage rates, hovering around 4%, are the lowest in six decades.

As a result, monthly mortgage payments on the median priced home—including taxes and insurance—are lower than the average rent levels in 12 metro areas, according to data compiled for The Wall Street Journal by Marcus & Millichap, a real-estate brokerage that tracked 27 metro areas. It remains less expensive to rent than to buy in 15 cities.

In Atlanta, which had the most favorable values for owning versus renting, the monthly payment on the average home was $539 assuming a 20% down payment during the third quarter. By contrast, the average asking rent stood at $840, according to the Marcus & Millichap data.

Other cities where owning is now cheaper than renting include Detroit, Minneapolis, Orlando, Las Vegas, Miami, St. Louis, Chicago and Phoenix.

Home ownership is also looking more affordable because after several years of declines, apartment rents will rise by around 4% this year, says Mr. Nadji. He says rents are poised “to pick up even more momentum across the country next year.”

Mortgage rates are a big reason why affordability continues to improve. In 1991, a $1,700 mortgage payment allowed a borrower to take out a $200,000 mortgage. Today, it gets that homeowner a $350,000 loan, a 77% increase in borrowing power, says Dan Green, a loan officer with Waterstone Mortgage, in Cincinnati.

Please click here to read the entire article from the Wall Street Journal about the current housing market.

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