By Bill Adams, MBA, CCIM, CRB, ALC
We are about two months into the new year and the market shows some signs of slowing. Whether this is a seasonal slowdown or a market correction, we will discover that as we get further into 2022.
For the overall market, the average sales price was $625,920, a 16% increase over the past 12 months. However, this average is about $1,000 less than January’s average sales price. The average days on the market was the same as last month’s average – 30 days – and is a 29% decrease over the past year. Over the last 12 months 2,430 units sold, a decrease of 7% from the prior year and 35 more than in last month’s survey.
One good market indicator is the number of days on the market. According to the National Association of Realtors, the number of days on the market is defined as the number of days from when a property is listed until it goes under contract with a buyer. It is also a measure of competitiveness in a real estate market. Fewer days on the market favor sellers and more days on the market favor buyers. In a “normal” market, where there is an equilibrium between buyers and sellers, the days on the market might be 40 to 60 days.
As mentioned above, the average days on the market for the Intown Atlanta market was 30 days. This month, 18 of the 39 markets surveyed had a “days on the market” figure of 20 days or less. Seven of those markets averaged under 15 days and two of the markets averaged just 12 days.
One would have thought that each of these markets would be characterized by an increase in average sales price and a decrease in the number of units sold due to the lack of inventory. However, only six markets met these criteria. Five of the markets had a year over year decrease in average sales price and eight of the markets had an increase in the number of units sold over the prior 12 months.
We all know from firsthand experience that the current real estate market has been overheated for the past several years. Properties that attract multiple offers and go under contract quickly for above asking price are commonplace. The data on days on the market is the manifestation of this crazy market.
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