Summer Speeds by Taking Deals of a Lifetime with It
Summer of 2009 is coming to a close quickly and some of the best deals in a generation are leaving with it. Were you able to capitalize on those deals or are you still waiting for prices to drop? If you're waiting, here is a recap of what you missed and why you may reconsider your position of waiting...and oh yeah...it looks like prices aren't really dropping any more - at least for good properties and especially in the more sought after areas of Atlanta
The average price for a home has dropped 8% in North Fulton since the summer of 2008, but, prices are trending up, sales volume is trending up and inventory is trending down. We are still down in price from the summer of 2008 because pricing continued to decline until February of 2009 (they have been rising since). It seems as though market forces are correcting the market even without the inducements provided by the government and we are really expecting a surge of closings as the $8,000 tax credit expires at the end of November. Whether it gets extended or renewed is up for debate. I hope they renew rather than extend. I think it will induce more sales that way.
Nevertheless, deals are going fast. Unfortunately there are still far too many know-it-alls that think prices in Atlanta are going to be dropping another 15%-20%. I feel bad for these people because they fall into the "clueless" group and will miss the deals. Too bad, but, I suppose I can't convince everyone - nor should I try to, I suppose.
Here are some statistics that indicate real changes for the better in the market:
- Positive year over year closings (more this year than last, sales volume is up).
- Total price declines are continuing to decrease and would almost disappear by precluding condos and townhomes.
- Average prices are up $43,000 from the low in February 2009.
- December of 2006 was the last time inventories were as low as they are right now!
- Expired listings are down - again. That's nine straight months of decline.
Now, the decision is yours, but, if you ignore the very obvious changes happening in the market, you really could miss the best time to buy. Will there be more great deals? Of course there will be, but, there are really great deals in any market so that is not a reason to not get into the market. Furthermore, some areas have submarkets that resemble a seller's market, but, I'll spend some more time on that this coming week.
If you have any questions interpreting these or other statistics, please drop a comment below and I'll be happy to help :)