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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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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Atlanta Real Estate Winter Market Update 2012

David Boehmig, President/Founder of Atlanta Fine Homes Sotheby’s International Realty, briefly describes the status of the Atlanta residential real estate market. Before we can look forward, we must always look back to see what 2011 meant for the residential real estate market and how that could impact 2012.

Some good news from David’s comments about the Atlanta real estate market:

Metro Atlanta Year End:
Inventory of homes for sale throughout metro Atlanta - decreased 27%
Homes closed and under contract in metro Atlanta -  increased 17%
Combined with low rates and market readiness, many are jumping back into the marketplace.

What does this mean for you?
If you are a seller, we have seen that the spring market has come early. January 2012 has been our best month ever in new sales and contracts written in four and a half years.

If you are a buyer, interest rates are still very low and there is a healthy selection on the market.

Condominium market in Atlanta
Inventory of condominiums for sale throughout metro Atlanta – decreased over 30% over prior year
Pending sales for condominiums – increased 19%
Closed sales for condominiums – increased 12%

Upper Tier (over $1 million) across Metro Atlanta
Both the number of homes sold and dollar volume sold during 2011 increased 7% over prior year
Inventory of homes for sale – decreased 21%
Days on market – decreased 15%
Sales price to list price ratio – increased 2.5%

In summary for the metro Atlanta real estate market:
Margins are getting smaller (less of a reduction in price)
More homes are selling
Homes are selling in a shorter period of time

Click here to see a current list of single family homes for sale in North Fulton/North Atlanta.

Click here to see all articles concerning the state of the Atlanta real estate market.

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Atlanta Real Estate Market Update November 2011

David Boehmig, President/Founder of Atlanta Fine Homes Sotheby’s International Realty, briefly describes the status of the Atlanta residential real estate market for the end of third quarter, 2011.

Click here to see this home in North Fulton for sale and access to full search capabilities for all homes for sale in the metro Atlanta area.

Some good news from David’s comments about the Atlanta real estate market:

Metro Atlanta – Third Quarter 2011
Inventory of homes for sale throughout metro Atlanta - decreased 22%
Homes sold and closed in metro Atlanta -  increased 25%
Click here to search for homes for sale in metro Atlanta.

Buckhead – Third Quarter 2011
All price ranges
Inventory of homes for sale in Buckhead –  decreased 30%
Homes sold and closed in Buckhead  - increased 14%
Click here to see a current list of all single family homes for sale in Buckhead.

Buckhead – Third Quarter 2011
Upper Tier – over $750,000
Inventory has fallen but average sales price has increased by 45%  in the last quarter compared to prior quarter in 2010
Click here to see a current list of single family homes in Buckhead offered at more than $750,ooo.

Intown – Third Quarter 2011
Inventory has fallen in the Intown Atlanta market but the number of homes sold has increased.
Click here to see a current list of homes for sale in Midtown/Ansley Park.

North Atlanta – Third Quarter 2011
Inventory of homes for sale throughout North Atlanta - decreased by 18%
Homes sold and closed in North Atlanta – increased by 19%
Click here to see a current list of single family homes for sale in North Fulton/North Atlanta.

Click here to see average home sale prices throughout metro Atlanta for Third Quarter 2011.

Click here to see comments on the housing market from David Boehmig in the Atlanta Intown Paper october 2011 edition.

Click here to see all articles concerning the state of the Atlanta real estate market.

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