The October numbers are out for the Atlanta real estate market and while we are getting them to you a little late, you will like some of the news regardless of the national news we keep hearing. In fact, we are foregoing the reports this month on price points and days-on-market to make a few points we want everyone to know because we aren’t hearing it anywhere else.
Interest Rate Cuts Work
In metro Atlanta October single family closings are down year-to-year by about 30%, which isn’t a surprise as October traditionally has fewer closings and closings each month this year have been down.
One good item to report is that nearly 5,000 single family homes went under contract in October which will lead to very good numbers for November. This is undoubtedly a result of the ½ point drop in the interest rates the FED made in September, which leads me to good news item number two.
An Early Christmas Present
We predicted 2 rate drops before the end of the year and we should see the second one come true next week. The FED is meeting on December 11th and everything is pointing to another rate drop at least as big as the last. Not soon enough to make a big impact in 2007 but it will help provide us a great start to 2008. Much like home sellers who are waiting until after the holidays to put their home on the market, many buyers are doing the same right now but another rate cut will probably prompt them to do something much sooner than spring.
Georgia and Atlanta Prices Remain Stable
A recent study, the S&P/Case-Schiller Home Price Index released data showing that 15 of the 20 top metro areas in the country saw price declines. Tampa is down over 10% just this year. Atlanta was in the top 5 gainers, along with Dallas, Charlotte, Portland and Seattle. Why are we up? Because our price gains over years past have been from a strong local economy and job growth, which we still have and will continue to have in 2008. Metro Atlanta is ranked 10th in job growth among all metropolitan areas across the country.
In addition to this report, the government has published a report (the Federal House Price Index) by state of housing appreciation and Georgia ranks 27th with a 3.54% average increase in home prices over the past year. The Atlanta market specifically has seen a 1 year increase of 2.61% according to this report.
So, Where Are We Headed?
While foreclosures will continue to rise, along with inventory levels, so will job growth and our local economy. We are heading into an election year. Interest rates will continue to remain low. Development, while at a slower pace, will continue to move forward. We have seen our bottom and will be steadily heading up next year.
Bob Strader
The NORTH Group
“Guiding Buyers and Sellers Throughout North Atlanta”
Keller Williams Realty Community Partners
540 Lake Center Parkway, Suite 201
Cumming, GA 30040 | www.TheNorthGroup.com
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