Even if you have just a passing interest in real estate, you know that distressed properties (foreclosures and short sales) have had a dramatic impact on the Atlanta real estate market. At the beginning of the market downturn these homes were selling at much lower percentages of their original list prices than were non-distressed. Lenders were trying to recover as much of the mortgage amount as they could, but as the market capitulated that wasn’t always possible. Buyers expected that their half-price offers would be accepted, and often times, they were correct.
As the Atlanta real estate market has stabilized – and even started to start the climb updward – banks and government agencies have started to take advantage of buyer interest in distressed properties. This nifty chart, courtesy of ChartMasters, shows how sales price to list price ratios have increased to the point where it’s very hard to tell the difference between distressed and non-distressed properties.
Supply is down. Demand is up. There are still “”deals”” out there, but Atlanta home buyers should no longer expect to see their $300,000 offer on a foreclosure priced at $500,000 accepted. Just ain’t happening.
Source Data: Chartmaster Services, LLC for Keller Williams Realty. FMLS data.