If you’ve bought a house in Kirkwood over the last few years, you should be very happy.
Not only because you like your house and neighborhood, or even because you happen to be a happy person. You should be very happy because it is likely that the value of your home has skyrocketed over the past five years. For the benefit of my friends, clients, and loyal readers, I’ve been digging through some First Multiple Listing Service data (who said that Realtors don’t know how to have fun) for the first two quarters of 2017 vs. the first two quarters of 2012. Take a quick glance at the chart below, and then I’ll do some explaining…
|Total Sales||Avg. Sales Price||Homes Sold< $300K||Homes Sold < 400K||Days On Market|
Now that you’ve had a moment to digest those real estate numbers for a second, let me remind you of something: 2012 was not that long ago. Obama was just getting re-elected, Facebook had their initial public offering, and Lebron James was busy winning his first NBA championship. It was, like, yesterday. In terms of Atlanta real estate, the last five years have brought some seismic shifts in the market. This is evident, in particular, when we look at intown neighborhoods like Kirkwood. Drilling deeper, a few observations:
1. “Affordable” Is A Relative Term
Outside of some outliers, Kirkwood was a market that lived and breathed under $300,000 (85% of all home sales in 2012). Five short years later- and a 155% increase in the average sales price- and that market is now a fraction of what it was (18% of all home sales). Obviously, Kirkwood is still “affordable” compared to some of its neighbors (ahem, looking at you Decatur), but it ain’t what it was.
2. Buyer Demand Is Outstripping Seller Supply
One of the biggest problems that the market faced in 2012 was a lack of confident buyers. Sure, we were out of the doldrums of the market crash of ’08… but not all the way back. The proof is in the pudding in 2017: the sales price/list price ratio was over 100% this year (compared to 97% in 2012), days on market went down precipitously and total sales shot up by 38%. Once the real estate market “got healthy”, Kirkwood began to feel it in a major way.
3. “High End” Kirkwood, Redefined
For the first two quarters of 2012, only one house sold for over $400K- representing just over 1% of all homes sold. Over the same period in 2017, 57% of all homes sold (58 in total) sold for over $400K, and sales prices regularly touch down in the $600k range (for the cream of the crop, $700K is the new normal). Think about that for a moment. 1% of all homes sold… and five years later the number jumps to 57% of all homes sold.
Thinking about selling a house in Kirkwood? Just curious about what your home might sell for? Click here to give me a call. I’ll tell you more about why some homes are selling for over list price, while others are languishing on the market.
Thinking about buying a house in Kirkwood? In this market, the right agent is everything. I can tell you what you need to do to put yourself in the best position to navigate the seller’s market and score your dream house.