The Atlanta Journal and Constitution recently wrote an article outlining the positive trends in Metro Atlanta’s housing market. Good news for those looking to invest in their homes and neighborhoods.
Arielle Kass from the AJC reported that metro Atlanta home prices have climbed back to the highest point in 18 months, as inventory drops and more buyers hit the market.
Atlanta’s Case-Shiller index score has not been higher since August 2011, when the effect of foreclosures and a weak economy sent prices into a trough that bottomed out in early 2012. Since then the index has slowly improved.
The rebound means metro Atlanta’s housing market will become more normal soon, said James Marks, the Atlanta managing broker for RedFin, with fewer people owing more than their home is worth. That will produce more to sell, and also keep boosting the number of buyers, he said.
Of late, prices have been increasing slowly month-to-month — up 1.1 percent from December to January and not at all from January to February. February prices were equivalent to those in 1999, according to the Case-Shiller index. At the bottom of the trough last year, prices had fallen to mid-1996 levels.
Some of the improvement of recent months stems from a foreclosure crisis that seems to be waning, said David Blitzer, managing director and chairman of the index committee for S&P Dow Jones Indices, which publishes the report. Foreclosure sales pull down average prices. “The damage done by the housing collapse was very substantial,” Blitzer said. Blitzer said he expects metro Atlanta’s large year-over-year increases to shrink because of better year-ago
“We’re gradually returning to a normal market,” Blitzer said. “Some months will go up a bit and some months will go down a bit. There will be hot neighborhoods and cold neighborhoods.”
That’s already the case, said Julie Sadlier, a Realtor with RE/ MAX Metro Atlanta Cityside. In Atlanta’s Virginia Highland and Morningside neighborhoods, she said, prices are back to 2007 levels. Newly listed homes are getting offers before the week is out, and people are sometimes bidding above the asking price.
Marks, with RedFin, is seeing the same thing as the number of houses on the market stays low. He does not think such large year-over-year increases are sustainable. “It’s a challenge for buyers,” he said. “When you do find what you want, there are eight other people who want it, too. Then you’re paying top dollar.”