Our February 2011 Intown Atlanta Market Survey measures market activity and changes for the market as a whole from February 1, 2008 to January 31, 2011.
The Average Sales Price for the 12 months ending January 31, 2011 was $303,588 a .8% increase from last month’s number and down 16% from last January’s number of $360,851. On January 31, 2009 the Average Sales Price was $409,158, almost 34% higher than today’s average
Average Number of Days on the Market was 82 days over the last 12 months. It was only 80 days in 2009-10. In 2008-09, the Average Number of Days on the Market was 77 days. Thus over one year average was up 3% and the two year change was an increase of 7%.
The Number of Units Sold during last 12 months was 1,491, while in the 12 months ending January 31, 2010, 1,492 units sold. In 2008-09 1,889 sold. The one year change was down by only one unit and over two years the number of sales was down 21%.
Annual Sales Volume for the last 12 months of 2010-11 was $452,649,643 compared to $480,088,004 in ’09-‘10 and $657,406,948 in 2008-09. The one year change was a negative 6% and the two year change was negative 31%
The first month of 2011’s data is in and 2011 sure looks a lot like 2010. Home prices in the Intown Atlanta market, on average, continue a double digit year over year decline. The Number of Days on the Market has drifted upward a bit and is still at a “reasonable” level. The number of transactions remained flat over the last two years and well below historic levels. Sales Volume declined slightly in the last 12 months and is only about 2/3’s of what it was a couple of years ago. We will have a better handle on the year’s outlook for the Intown residential market in a few months once the spring selling season arrives. One question is what effect will the upward trend in mortgage interest rates have on the market? Having purchased a home in 1983 when the fixed rate mortgages were around 18%, I tend to think any interest rate under 10% is a good deal! Another question is what effect the proposed phase-out of Fannie Mae and Freddie Mac may have on the marketplace and will the proposed stricter underwriting and equity requirements drive buyers into the market before they take effect. The changes may make it more difficult to buy a house and may mean that transaction levels may never return to their “historic” levels. We will know more about the scope of these changes and their effect in the coming months.
Our next report will examine the Intown South market