Atlanta Home Sales Are Increasing, Along with Prices

After a few challenging years, the real estate market is starting to rebound, with properties selling faster and prices rising.  This is a welcome change for sellers, and if this continues, it’s reasonable to be optimistic that the real estate market here is returning to normal.

Prices are rising substantially.  In April, the average sales price rose 36% over April 2012, according to the First Multiple Listing Service.  This creates a sense of urgency among buyers. Interest rates are still historically low and prices are still below 2007, which is further fueling the market’s rebound.

One of the reasons we’re seeing prices increase is because the number of homes for sale in the Atlanta area remains low – there were almost 33% more properties on the market in April 2012 than there were last month.  There is currently a four-month supply of homes available for sale, which means that if we continue to sell at the current pace, they will all be sold within four months.  It’s a simple matter of supply and demand.

The reduced amount of time that it is taking to sell homes is another positive sign.   In April of 2012, the average time on the market was 70 days.  This April, homes sold for an average of 61 days, which is good news for homeowners selling their property.

Homes that are priced properly are selling quickly.  In fact, over the past few months we have seen multiple offers on good quality homes for the first time in a few years, and that’s driving prices up as well.  Certainly the lack of inventory is contributing to this behavior.

We saw a wave of investors in 2012 who were buying foreclosures and short sales to rent out. Now we’re starting to see a second wave of investors buying homes, fixing them up and flipping them because they are receiving acceptable quick returns on the investment. The individual is competing with the investor for these homes.

We’re also seeing a rising interest in real estate as a career. Now that the market is gaining strength and prices are rising, entrepreneurs are increasing seeing the business opportunity. Our Coldwell Banker offices have started hosting monthly career seminars that explain what it takes to be a Realtor, and many of the classes have been full.

Things are looking up in the Atlanta real estate market!

Coldwell Banker Residential Brokerage is a leading residential real estate company with 13offices and nearly 750 sales associates serving the communities of Greater Atlanta. Worldwide, the Coldwell Banker network includes 3,100 offices with over 82,000 sales associates spanning more than 50 countries.  Every day, Coldwell Banker Residential Brokerage properties are exposed to 16 million buyers on more than 575 high-traffic websites. For more information or to view local properties, visit coldwellbankeratlanta.com. Coldwell Banker Residential Brokerage is a subsidiary of NRT LLC, the nation’s largest residential real estate brokerage company.

By Charlotte Sears, President of Coldwell Banker Residential Brokerage, Atlanta