Buckhead Real Estate Market Report - October 2010
As you might expect in October, there were a few treats and, unfortunately, plenty of tricks when it came to Buckhead real estate. Looking at the treats, closed sales increased by 16% over September’s activity. Also, inventory of available homes in several price ranges fell slightly in October. One of the most popular treats was that sales of homes under $1.5 Million required fewer dramatic markdowns to entice buyers in October.
Now for the tricks. Foreclosures continue to wreak havoc on the Buckhead market, making up almost 50% of pending sales in October. The media reported in the last week of the month that Atlanta’s foreclosure rate was up 20% from September. As long as there are plenty of foreclosures, and I expect there will be for another year or two, we will see increased downward pressure on all real estate prices.
Buckhead Real Estate Activity by Price Range
Under $500,000: The most active price range in October with 15 closed sales of which 7 were foreclosures. The average listing sold in 109 days and at an average of 89% of the original list price. There were 7 homes that went under contract during the month and 15 contracts that became pending sales. Of those 15, 67% were foreclosures. The neighborhoods with the most activity include North Buckhead, Chastain Park and Garden Hills. With 166 active listings at the end of the month, there is 9 months of available inventory. Six to eight months is considered a balanced market.
$500,000 to $750,000: There were 9 closings in October of which two were foreclosures. The good news is that those homes sold in an average of 56 days and with less than a 6% reduction in price. One home went under contract during the month, yet 12 existing contracts became pending, meaning the due diligence had been satisfied and they were scheduled to close. Of those 12, 33% were foreclosures. The neighborhoods with the most activity were Chastain Park, Garden Hills and the neighborhoods around Morris Brandon Elementary School. With 170 active listings on the market, there is currently a 14 month supply, signaling a strong buyers market.
$750,000 to $1 Million: There were 4 closed sales in October that took an average of 386 days to sell. Additionally, those homes sold at an average of 20% off the original list price. 2 more homes went under contract and 6 existing contracts became pending. Of those pending sales, 75% were foreclosures or short sales. Activity was spread throughout Buckhead and with 108 active listings remaining there is a 17 month supply of available homes indicating a strong buyers market.
$1 Million to $1.5 Million: The market for higher end homes continued to show weakness as only 3 sold in this category. They sold in an average of 81 days, which is positive, and at 86% of the original list price. There were 2 homes that went under contract and 6 contracts that became pending. Of those pending sales, 33% are foreclosures. Tuxedo Park and the Morris Brandon neighborhoods saw the most activity. With 99 active listings we currently have a 15 month supply of available homes.
$1.5 Million to $2 Million: Only two homes sold in October in this price range, taking an average of 128 days to sell and selling at an average of 79% of the original list price. There were no homes that went under contract and only one contract became pending. The Chastain Park and Haynes Manor neighborhoods split the activity. With 66 available homes, there is a 28 month supply, representing a very strong buyers market.
$2 Million to $3 Million: There were 5 homes that sold during October at an average price reduction of $575,000 off of the original list price. Those homes sold in an average of 301 days on the market. 1 home went under contract and there was 1 pending sale. Haynes Manor, Paces and the Mount Paran/Northside neighborhoods saw the majority of the activity in this price range. With 51 active listings, there is a 19-month supply of available homes.
Over $3 Million: The slowest price point in October, there was only 1 sale that took 522 days to sell at a 29% reduction in price. There was no other activity in this price range. With 63 available homes, there is more than a 3-year supply of inventory.
In the condominium market, 36 units sold in October with 22 of those being foreclosures or short-sales. 7 units went under contract during the month and 3 of those are foreclosures. There were 55 contracts that became pending during October with 37 of those being foreclosures. With 736 active listings, the condo market offers plenty for buyers to choose from and some exceptional deals are available.
The Buckhead townhouse market saw 4 sales during October with half of those being foreclosures. One unit went under contract and 5 townhome contracts became pending with two of those being foreclosures. With 156 available units, the townhouse market represents a solid buyers market.
If you have a home for sale, or are planning to sell, be sure to check out our Resources for Selling Your Home section. There you’ll find articles that can help you sell successfully in any market.
If you are planning on buying a home, check out our Resources for Homebuyers.
Hopefully next month’s activity won’t be as scary! As always, I’d rather tell you the truth about the market and help you develop a plan for success than to mislead you with overly optomistic reports that cannot be substantiated.
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