The Market
{ Monday, April 30th, 2012 }
The Return of Bidding Wars
Bidding wars are back.
I’ve been involved in several multiple-offer situations this year, as have a number of my colleagues. It’s not uncommon right now. A quality house in a quality neighborhood – priced to sell – is going to garner immediate interest. It’s just the way it is. Unless you’re viewing the market through the prism that Case-Shiller puts out every month.
Just last week, Case-Shiller reported that Atlanta was at a 16 year low. Case-Shiller is designed for people that view Atlanta as a single real estate market, evidenced by the fact that it’s based on a 28 county analysis. It’s really odd, when you think about it. It’s like telling Ritz-Carlton that they function within the same hospitality market as Comfort Suites, or explaining to Mario Batali that the $30 plate of fennel pollen dusted sweetbreads that he’s plating up at Babbo are in the same dining “market” as an extra value meal at McDonald’s.
Of course, they are. But they’re really not.
If you offered me one million dollars to name 18 metro Atlanta counties, I probably couldn’t do it. 28 metro Atlanta counties? Not a chance. Why we still accord any value on a housing index based on a 28 county area masquerading as “Atlanta”, I’m still not sure.
All of that being said, I was thrilled to recently read an article in the Wall Street Journal about the return of the bidding war. You should really check it out, it’s a far more accurate depiction of the Atlanta market that I’ve been getting to know these past few months.
A little taste:
Competitive bidding in the current environment isn’t producing huge price increases or leaving sellers with hefty profits, as occurred during the housing boom. Still, the bidding wars caused by tight inventory provide the latest evidence that housing demand is starting to pick up after a six-year-long slump.
The Relevant Linkage
Maybe it’s time to start thinking about selling your home. Find out how much it’s worth.
Check out one of the counties that Case Shiller is referring to as “Atlanta”
{ Monday, April 16th, 2012 }
New Townhomes In Old Fourth Ward… Not Inman Park
A couple of weeks ago, I wrote about a new townhome development under construction on Highland Avenue, just off the Atlanta BeltLine’s Eastside Trail. My headline was succinct, and to-the-point: New Townhomes In Inman Park.
Not long after posting I found out that there was one small issue with the headline/post: I was wrong. I received the following post comment from a reader:
Of course, This story needs to be corrected. The west side of the betline is Old Fourth Ward- not Inman Park. The border is often confused, but it is important that folks realize this kind of activity is happening in Old Fourth Ward. Thanks.
My first reaction, predictably, was knee-jerk disagreement and indignation. As my wife will attest, I am a know-it-all. This commenter has his facts wrong, I thought. And what chutzpah, blighting my comment section with erroneous information. My second reaction- as my wife will also confirm- is to whip out my phone/iPad/computer and comfort myself with a cocktail of Google, Wikipedia and whatever else I can find to confirm what I think I already know.
It turns out that the commenter was 100% correct- the west side of the BeltLine is in the Old Fourth Ward, not Inman Park. BeltLine maps reveal this, as do Atlanta Public School maps (this development would be zoned for Old Fourth Ward’s Hope Hill Elementary, not the elementary school that serves Inman Park, Mary Lin Elementary). While the new development sits behind N. Highland Steel, a retail/apartment complex that’s most certainly within Inman Park, its close proximity to the neighborhood does not qualify it for being in the neighborhood. These two developments may be separated by less than a few hundred feet, but between those few hundred feet runs a border that clearly delineates two distinct neighborhoods.
As the commenter said, “it is important that folks realize this kind of activity is happening in Old Fourth Ward”- and I couldn’t agree more. Between this new development, the phenomenal new Old Fourth Ward Park, the Beltline’s Eastside Trail and the city’s “Year of Boulevard” initiative, there are some great things going on in the neighborhood. One of the goals of this site is to shine a bright line on positive news like this, and in crediting these new townhomes incorrectly to Inman Park I short changed the Old Fourth Ward of credit where credit was due.
Credibility matters. This site is nothing without credibility, nor is my business as a Realtor. Consider this post as a correction, an apology, and a pledge to getting it right the first time moving forward.
{ Thursday, March 22nd, 2012 }
New Townhomes In Inman Park
- In the foreground, the Atlanta BeltLine Northeast Trial. In the background, a 4.2 acre tract of land slated for 66 townhomes.
Editor’s Note: These townhomes are actually located in Old Fourth Ward, not Inman Park as previously reported. For more information, including a clarification and full correction, click here.
It appears that the long discussed new construction townhome project is underway in Inman Park:
A little over a year ago, Paul Donsky wrote a piece for East Atlanta Patch that detailed the project, tenatively known as Highland Park. In the article, some pretty significant details were revealed:
Minerva, an Atlanta development company, plans to build 66 townhouse units on a 4.8-acre tract along the BeltLine at Highland Avenue, where Inman Park meets the Old Fourth Ward.
Earlier this week, a reliable source revealed to me the identity of the builder involved in the project: none other than Atlanta mega-builder/developer John Wieland. No word yet if the 2,200 square foot, $300K+ townhomes that were discussed last January are still being pursued, or if market conditions have altered the project.
This community will be a signficiant addition to the Atlanta BeltLine’s Northeast Corridor. The construction of the BeltLine’s Eastside Trail is well underway, as is the first stage of demolition of the artist formerly known as City Hall East. Market momentum in the area is palpable. Inventory is low, especially if you’re looking for new construction in this price point. All good signs.
Is there enough momentum and market confidence to build, finance and sell 66 new construction townhomes?
Only time will tell.
{ Friday, February 10th, 2012 }
Atlanta Real Estate: 1 Market, Or 130 Markets?
I was just digging through the Atlanta Business Chronicle’s Residential Real Estate Summit Supplement (try saying that three times!) and I came across a really interesting chart. The graphic, developed by Atlanta-based RealValuator, breaks down 130 zip codes in Atlanta by average price and number of transactions. Some highlights worth sharing:
- The highest zip code by average sales price is 30327: $1,002,229.
- The lowest zip code by average sales price is 30314: $21,488.
- 7 zip codes have an average sales price above $500,000.
- 24 zip codes have an average sale price above $300,000.
- 42 zip codes have an average sale price below $100,000.
- 13 zip codes have an average sale price below $50,000.
While many still misconceive real estate markets with one broad brush, reality on “the street” shows us that there are hundreds of mini-markets. Housing type, school district, zip code, subdivision… these are the real factors that help determine value, not what a national housing economist tells us about an entire metropolitan area. It’s an absolutely crucial point for those who are actively buying and selling real estate to understand. Without it, we’re all just shooting from the hip. And that’s not much fun (especially when it’s your money involved!)
For those of you interested in a particular sub-market- what’s selling, what’s not selling, average sales prices, number of foreclosures, trends, etc.- I’ve got tons of tools (including a subscription to RealValuator) at my disposal. I’d be happy to sit down and chat with you and break things down…
{ Wednesday, January 11th, 2012 }
Check Mapquest
In most regions of the country, real estate is marketed via a multiple listing service (MLS). Listing agents enter pertinent information pertaining to the property into the system – everything from number of bedrooms to whether or not the property is on public sewer or septic system. It allows for some pretty significant detail to be shared. On the flip side, it has no filter for laziness.
For whatever reason, it bugs me when an agent puts down “check Mapquest” or just “Mapquest” in the “directions” section of a listing. I’m not sure why. I mean, clearly all know where to find Mapquest, and access to smartphones is increasing by the second (I’m pretty sure that one day I’m going to come home to find that my 20 month old daughter has an iPhone). And looking on Mapquest is for many not only a totally acceptable option, but the preferred option. If I didn’t have a GPS in my car, I might do it myself.
Perhaps I’m subconsciously judging them for referring to Mapquest and not Google Maps. Right or wrong, I put using Mapquest on par with AOL for email, Netscape for web browsing and Friendster for social networking. I know, I’m a digital snob.
At the end of the day, I suppose that my distaste stems from the perception of laziness that “check Mapquest” implies. We’re hired by our clients to do absolutely everything in our power to sell their property as fast as possible, for as much as possible. It might be that the overwhelming majority of the people looking at the listing know exactly where the property is… but it only takes one. Directions might provide context for exactly where the house is. Directions might help articulate how close the home is to a popular coffee shop, a beautiful dog park, or a high-falutin’ sub-division. Yes, it is entirely possible that something as banal as the description in the directions section might actually help sell a property faster, and for more money.
Or not.
Regardless, if it only takes two minutes to fill out… there’s no reason not to.
