( continued from cover story )
Even in the high-end market , buyers prized value and homes in tip-top condition and with functional floor plans . Those home buyers willing to renovate were scarce .
Housing affordability continued to be a hot topic in the news , and home prices rose at a robust pace this summer – 7 % for single-family detached and a whopping 10 % for condos and townhomes . However , historical data suggests the cost of buying a home may be LESS than it was a decade ago ( see the page 1 sidebar ). Some well-paid consumer advisors have warned potential home buyers to rent instead of buy , describing the market as “ overinflated .” The increase in home prices is short-lived . In reality , the average home sales price increase in the Atlanta MLS is just 1.8 % per year over for the past 11 years . Certainly not an “ overinflated ” market .
What does the future hold for Atlanta real estate ? If affordable new home construction ramps up , the local real estate market would benefit because new construction keeps resale prices in check . New construction also provides the new home supply the area so desperately needs . All segments of the Atlanta real estate market would also benefit from more home buyers who are willing to renovate . Demand for housing continues to outpace supply by a wide margin , but demand is more heavily concentrated on “ move-in ready ” homes at the expense of great investment opportunities .
See page 4 for a more detailed summer housing market update .
WHAT OTHER PEOPLE ARE SAYING ABOUT THE HOUSING MARKET
We believe there is room for continued growth in the new home market in the coming years . Household formations have been increasing and in many regions the aging housing stock may not satisfy the lifestyles of today ’ s buyers . In addition , existing home values have increased , providing potential move-up and empty nester customers with more equity that they can put toward a new home purchase . We believe these two groups , along with the growing number of Millennials starting to buy homes , are all sources of potential new demand in the coming years .” – Robert I . Toll , executive chairman , Toll Brothers
( largest luxury homebuilder in the U . S .), 8 / 21
Homeownership has bottomed out , but is likely to go more or less sideways for the foreseeable future . Easing credit standards and a strong job market will support homeownership , but higher mortgage rates and the change in tax law weigh on it . – Economist Mark Zandi of Moody ’ s Analytics , WSJ 7 / 27
Since the word ‘ bubble ’ is on the minds of many consumers , it is worth laying out why today ’ s conditions are fundamentally different compared to a decade ago . Back then , lending standards were non-existent , with subprime loans everywhere . By contrast , the lending standards today are still stringent , as evidenced by the higher than normal credit scores of those who are able to obtain a mortgage . That is why mortgage default and foreclosure rates are at historic lows . On the supply side , there was overbuilding with 2.1 million housing starts during the bubble years . Today , we are just scratching 1.3 million . Though no one can know the future , the likelihood of a nationwide home price collapse is near nil for the foreseeable future . – Lawrence Yun , Chief Economist for the National Association of REALTORS , Forbes 8 / 2
BEACHAM GIVES BACK TO CANCER INSTITUTE
ATLANTA — A familiar name - Winship Cancer Institute at Emory University - is our recipient charity for the third quarter of 2018 .
Team Beacham at the 2017 Winship 5k
the last five years , Beacham and its agents have donated nearly $ 75,000 to Winship .
Beacham ’ s charitable giving program , Beacham Gives Back , adopts a new charity each quarter . Since Beacham & Company was founded in 2006 , the firm has given or committed nearly $ 500k to Atlanta charities and non-profit institutions .
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CHECK OUT OUR BLOG FOR COOL STUFF !
Go to beacham . com / blog
The primary fundraiser for Winship is their annual Win the Fight 5K Run / Walk on the campus of Emory University . This year ’ s race will be held Oct . 14 and marks the sixth consecutive year that Beacham has participated . Over
$ 21K GIVEN TO SHEPHERD CENTER IN AUGUST
Need help managing your company ' s employee relocation ? Beacham can save companies money on employee transfers and offers excellent service from an agent team that is the top-producing in the city .
Beacham & Company relocation coordinator Sharon Leone recently attended a relocation and referral forum conducted by Leading Real Estate Companies of the World ( LeadingRE ) in Nashville . The meeting focused on referral networking , sharing best practices and other content dedicated to relocation coordinators and directors . Beacham continues to enjoy record relocation and referral business thanks to our affiliation with LeadingRE and expanding efforts in the employee relocation arena .
Pictured from left to right in The Gulch area of Nashville are Andrea Bowles ( Blanchard and Calhoun Real Estate Co . in Augusta , GA ), Sharon Leone ( Beacham & Company , REALTORS ®), Debbie Hagood ( Blanchard and Calhoun ), and David Horn ( Bellator Real Estate and Development , Mobile , AL ).
BEACHAM INSIDER | EARLY FALL 2018 page 2