Home prices in the City of Decatur are up 73% since 2011. Not a huge shocker, considering that prices are up just about everywhere, but a 73% bump within an entire municipality is pretty noteworthy.
A quick chart, to help kick off our analysis:
|Avg. Sales Price||$360,916||$ 625,556|
|Total Homes Sold||241||309|
|Homes Sold <$500K||197||105|
|Homes Sold $750K>||5||92|
- Just five years ago, it was almost hard not to buy a house in Decatur for under $500,000. 82% of all homes that sold in Decatur sold for $500,000 or less. Compare that to 2016, when only 34% of all homes that sold were under $500,000. Mind you, I’m not even talking about sub $400,000 or $300,000, price points that are virtually non-existent in modern day Decatur.
- Welcome to Decatur, Where The Players Play? The average home price in Metro Atlanta is just under $200,000. The average home price in the City of Decatur is $625,556, more than three times the metro average. Decatur is an awesome place to live, work, play and put your kids in public school… but inexpensive, it is not.
- $750,000 doesn’t go nearly as far as it used to. If you were looking to buy a house in Decatur in 2011, a $750,000 budget could buy you just about any house that you wanted. Only 2% of all homes that sold in 2011 sold for over $750,000. In 2016, that number rose to 32% of all homes sold.
- Decatur-adjacent communities have and will continue to absorb buyer demand from those that have been priced out of Decatur. Look out for Kirkwood, East Lake, Medlock Park and Avondale Estates.
- It’s possible that we might begin to see more families choose to purchase condominiums or townhomes in lieu of single family homes. This is obviously not uncommon in larger cities, both in the US and abroad, and it’s a trend we’re beginning to see more and more within more desirable (and prohibitively expensive) neighborhoods.
- People like great schools, walkable neighborhoods and access to MARTA. Decatur’s got all three, and a limited supply of housing. City of Atlanta, are you paying attention?
- In the 30030 zip code, it turns out that $1,000,000 is the new $750,000. 11 homes in 2016 sold for over a million dollars. What doesn’t show up in the raw numbers is that fact that as new construction home prices go up, so does the price that builders are willing to pay for homes to tear down. Practically speaking, this will further limit supply of “move in” ready homes under $500,000.
- Don’t expect the next five years to look like the last five years. There’s no evidence that suggests that prices won’t continue to rise, but if you’re expecting home values to increase 73% over the next 5 years, you might want to re calibrate. Not going to happen.
And of course, if you’re thinking about buying or selling a home in Decatur, don’t be a stranger. We are a full service residential real estate team. We know the Decatur market, and are well positioned to help you make the most of your next move. Contact us today for a personalized real estate consultation.
Data Source: First Multiple Listing Service