A couple of weeks ago, I waxed poetic on whether or not Atlanta real estate had shifted into a seller’s market. I thought it might be interesting to dig a little deeper and provide a little historical perspective on the subject. Looking at Chartmasters’ four year perspective on the eight-county Atlanta market provides a pretty interesting glimpse at where we’re headed:
What are you looking at, and why am I sharing it?
Yellow Line aka Months of Supply– Turning to the formula that housing economists frequently use to analyize the market (inventory divided by sales), a pretty obvious trend emerges: there is very little housing inventory, relatively speaking.
Red line aka Average Sales Price– Chartmasters looks at the Atlanta market from 10,000 feet high- 8 counties, to be precise. So before you fixate on the number, take a look at the trends. Months of supply down. Sales price up. It was true in 2009 when the feds created the First Time Home Buyer Tax Credit, and it’s true again now. Months of supply up (anyone remember what the fall of 2008 felt like?), price goes down.
The Green Lines– 6-7 months is what’s generally considered a “”balanced market””. Anything less is a buyer’s market. Anything more tends to favor sellers.
Got it? Now, look at the graph again.
Since the January of 2011 the number of homes for sale in Atlanta is down. It’s been solid, steady, and sustained. While the housing market varies by neighborhood, school district, and price point… it’s becoming apparent that the seller’s market is here. So long as the yellow line stays below the green lines, the red line will continue moving up.
Source: ChartMaster Services Exclusively For Keller Williams Realty.