Atlanta Real Estate – First Quarter 2010

January 2010

January 2010 stared a little slower than the experts anticipated. As fact would have it in January 2010 there were 2604 total closings, a decline of 8.9% in the number of properties sold compared to January 2009. The decrease came from the Single Family Detached properties which were down 11.5% while Single Family Attached properties (Condos and Townhomes) were actually up 9.8%.

Now let’s look at the good news… Single Family Detached properties increased in average sale price by 5.4% compared to January 2009. During the month of January 2010 there were approximately 1,500 more homes under contract at the end of the month verses at the beginning of the month. These two variables represent positive growth for the Atlanta Real Estate market however I think we are still in a position for a slow steady recovery.

February 2010

February 2010 shows that there were 2,763 Single Family Detached properties closed compared to 2,411 in February 2009, an increase of 12.8%. For Single Family Attached properties there were 432 properties closed which represents an increase of 20.7% compared to February 2009. The average sale prices also seem to be increasing for Single Family Detached properties while the Condo/Townhome market is still struggling. The average sale price for detached properties was $184,688 an increase of 5.5% versus February 2009 and attached properties was $145,211 or a decrease of 5% over the same time period.

In Gwinnett County there is currently a short supply of homes in the under $160,000 price point. Looking at the statistics there is approximately a 3.7 months’ supply of homes in this price range which means that this price point is turning back to a seller market. This is not the case with the more expensive homes. With homes priced in the $200,000 to $500,000 range there is 7.24 months supply currently on the market and this remains a buyer’s market.

March 2010

The final statistics for March 2010 show some encouraging news for the Atlanta Real Estate Market. There were 3,793 Single Family Detached closings in March, an increase of 5.2% vs. March of 2009. For Single Family Attached properties there were 711 properties closed which represents an increase of 18.9% vs. March of 2009. Now for some more good news. The average price for Single Family Detached properties rose by 9.4% vs. March 2009 to $197,433. The average price for a Single Family Attached property remained constant at $151,550 vs March 2009 however it was up by $6,339 over February of 2010.

First Quarter 2010 Observations

During the first quarter of 2010 there were 10,303 properties closed in the Atlanta Real Estate Market. With interest rates remaining at historical low levels, there is no reason for this recovery not to continue.

Comparing building permits issued in the first quarter of 2010, new construction is beginning to rebound. While not as robust as in the real estate hay day of 2004, the over 1900 building permits issued during the first quarter of 2010 represent an approximate 50% increase vs. the first quarter of 2009.

As is the case in most real estate markets throughout the United States, there remains a large volume of foreclosure and short sale properties in the Atlanta Market. These properties represent some excellent bargains for investors, first time buyers and conventional purchasers. The economy may not be as strong as we would like to see but it has helped to generate these steals of a deal.

Feel free to let me know what you think!