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SEM News, thinkMortgage™

April 2017 Cal-Culator

SEM News, thinkMortgage™: May 11th, 2017

Atlanta Residential Real Estate Marks Improvement for 4th Straight Month 

For the fourth consecutive month, Atlanta’s residential real estate index showed improvement thanks to soaring sales, improved inventory and the most lucrative return on investment for sellers in a decade. As a result, Cal-Culator, Atlanta’s residential real estate index, now stands at 8.3, a 0.1-increase from last month’s index.

Atlanta Home Sales

It’s a rarity to see such a strong verb like “soar” used in a sentence when referring to residential real estate. However, the Atlanta Journal-Constitution was confident enough to use it in a recent article!

“Home sales soared and prices jumped last month in metro Atlanta with the market kicking into a higher gear in the run-up to the spring selling season,” reported AJC Business Reporter Michael Kanell. “The number of sales was up 41 percent in March from the month before, with the median price of a home sold hitting $250,000, according to the monthly report from the Atlanta Realtors Association.”

Atlanta Inventory

One of the most prominent issues plaguing the residential real estate market – the lack of inventory – has finally taken a turn for the better. Atlanta area housing inventory totaled 15,838 units in March, an increase of 15.1 percent from March 2016. New listings totaled 5,656, up 6.8% percent from March 2016 and up 40.6 percent from the previous month. However, month’s supply over a 12-month period remained the same at 3.3 months, according to the Atlanta Realtors’ March Market Brief.

“We saw a big jump in the number of properties under contract in March over the prior two months, and we feel we are poised for a very strong Spring market despite the shortage of inventory in many local areas,” said 2017 Atlanta Realtors President Bill Rawlings.

Sellers’ Return on Investment

The housing industry is undeniably on the rebound and for many homeowners, it’s certainly paying off. Homeowners who sold their property in the year’s first quarter received an average price gain of $44,000, reflecting nearly 25 percent return on the purchase price. This reflects the highest ROI since the third quarter of 2007. Other data from ATTOM Data Solutions revealed the average seller had their property for 7.97 years, down slightly from a record-high average of eight years in the fourth quarter of 2016, but still a cause for concern due to the significant inventory shortage.

“The first quarter of 2017 was the most profitable time to be a home seller in nearly a decade, and yet homeowners are continuing to stay put in their homes longer before selling,” said Daren Blomquist, senior vice president with ATTOM Data Solutions. “This counterintuitive combination is in part the result of the low inventory of move-up homes available for current homeowners, while also perpetuating the scarcity of starter homes available for first-time homebuyers. There are some early signs this inventory logjam may be loosening up in some markets … Sky-high potential price gains may be finally prompting more homeowners to sell.”

Will this record streak ever end? It doesn’t seem likely at the current pace. Check back next month to see how the Atlanta residential real estate index performed in spring.

 

 

 

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