V O L . 1 1 , I S S U E 3 | E A R LY FA L L 2 0 1 8
One Buckhead Plaza | 3060 Peachtree Road, Suite 100 | Atlanta, GA 30305 | 404.261.6300
WHAT OTHER PEOPLE ARE SAYING TECHNOLOGY NOT JUST BUZZ WORD PROPERTY TAXES BEACHAM BELLWETHERS
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ABOUT THE HOUSING MARKET
H O W R E A L E S TAT E I S C H A N G I N G
T H E L AT E S T 2 0 1 8 B I L L S
H O T M A R K E T U P D AT E
ATLANTA $1-2 MILLION MARKET SURGES WHILE OVERALL MARKET CONTINUES
TO BE STATIC; BEACHAM BUCKS THE TREND WITH RECORD SUMMER CLOSINGS
Sales of all single-family detached homes remained
unchanged this summer compared to a year ago.
Sales of attached homes (condos and townhomes),
which have buoyed the market for much of the year,
declined just 1%. Attached homes have remained
attractive to first-time home buyers and down-sizing
Baby Boomers seeking lower prices, low maintenance
COOKIE CUTTER DOESN'T CUT IT
>88 % OF CONSUMERS
prefer locally owned
independent real estate
brokerages vs. national
TO MARKETING WINS
Source: U.S. consumer segmentation study conducted on behalf of Leading Real Estate
Companies of the World® (LeadingRE) by McKee Wallwork + Co. and Decision Analyst.
Since last summer, closings for both attached
and detached homes have remained in line with
the previous year. The reason? A lack of move-in
inventory (homes that are not in need of renovation)
and an increase in mortgage rates.
Conversely, home buyers in the $1 million to $2
million range propelled sales to a new record this
summer, including a 50% increase in June alone.
(continued on page 2)
• The average sales price of condos
and townhomes continued to rise at a
torrid pace this summer. Multi-family
appreciation (condos and townhomes)
was nearly twice that of single family
residential as buyers seek value in
a low inventory, rapid appreciation
• Ansley Park, Ashford Park, south and
central Buckhead, Dunwoody and
Smyrna (see page 4)
• Getting photos taken of a home
you plan to list this fall now before
the leaves change
• Year-end employee relocation
to and from Atlanta
• Renting. Don’t listen to anybody who
tells you renting makes sense unless
it’s for the short term
• Interest rates. Expect continued
increases in the mortgage interest
rate as the economy shows no signs
PER THE NATIONAL ASSOCIATION
OF REALTORS (NAR)
Only 8% of sellers last year – an all-
time low – chose to sell their home
themselves, according to NAR’s 2017
Profile of Home Buyers and Sellers. That
figure has been falling since 2004, when
14% of homeowners sold their own
homes. Here's why:
All REALTOR-assisted home sales:
$250,000 (median selling price)
For sale by owner (FSBO) homes:
FSBO homes when buyer knew seller:
If your home is currently listed for sale, this newsletter is not intended as a solicitation of your business.
According to Showing Time, a national
online scheduling tool used by the real
estate industry to coordinate showings
of properties, Southern states had the
greatest increase in showing requests year-over-
year for four consecutive months.
TAKEAWAY: Even if home sales are down
from last summer, demand is stronger in
Atlanta than in most areas of the country.
Whole percentage point difference
between mortgage interest rates this
June vs. June 2007 at the peak of the
TAKEAWAY: When coupled with average home
price appreciation that is below the rate of
inflation, buying a home is still cheaper than it
was more than a decade ago.
The amount of home equity U.S.
homeowners will have by the end of
2018. Homeowners had $6 trillion in
home equity 10 years ago.
TAKEAWAY: Renting instead of owning a home
is a wealth destroyer and should be avoided if
at all possible.
Wom n a ed
TRENDS & TAKEAWAYS
Number of Atlanta homes owned by
institutional investors, nearly three
times the number of the next closest
U.S. city. The number of homes
purchased by major investors in 2017 was up
60% from the previous year.
TAKEAWAY: According to Jordan Kavana,
chief executive of Transcendent Investment
Management LLC, a south Florida firm that
acquires rental homes primarily with investor
money from China, “the American dream no
longer includes homeownership. You will earn
your equity in other ways, not your home.”
The problem with that statement is that
SOMEBODY is earning equity – why shouldn’t
it be an individual borrower instead of an
Number of years since new
construction homebuilding activity
was as low as it is in 2018.
TAKEAWAY: New construction
lending appears to be one of the safest
financial bets there is.
Atlanta’s overall home sales continued to be flat
this summer, while homes sales in the $1,000,000-
$2,000,000 price range increased significantly.
BEACHAM INSIDER | EARLY FALL 2018