Buckhead Home Sellers and Intown Atlanta Neighborhoods Reap Benefits of Early Spring
The spring selling season came early for many neighborhoods in Buckhead and what is considered "In-town Atlanta" (Ansley Park, East Buckhead, Midtown, Morningside, Virginia-Highlands), where single family home sales collectively rose 21% from the first quarter of 2010 and prices increased 6%.
The story was not as rosy for the rest of metro Atlanta, however. While single family home sales were up 5% in the first quarter, prices were down 8% from a year ago. The average single family home sales price at the end of March ($167,617) was the lowest since January 1998 - more than 13 years ago.
The drop in prices can be attributed to the continued high level of foreclosures and short sales which have offset the increase in demand and seven-year low in local housing inventory. According to Realvaluator, an Atlanta company that provides analysis of the Atlanta real estate market, foreclosures were up 11% in 2010 from 31,428 to 34,937. On the other hand, foreclosures of $1 million-plus properties are declining.
In Buckhead, short sales and foreclosures are far less common than in recent years. In fact, housing inventory in Buckhead is down 31% from just one year ago and the resulting supply pressures are contributing to the increase in home prices. The atypical drop in housing supply at the peak of the selling season has created situations that harken back to the boom years, according to Dac Carver, Vice President and Managing Broker for Beacham & Company.
"In March, more than 15% of our new listings went under contract within the first two weeks of being put on the market," Carver said. "In the last 30 days, 26% of our listings went under contract after multiple offer situations where there was more than one buyer vying for the property. Demand is clearly outpacing supply for many Buckhead price points."
The reasons for the dichotomy between the intown real estate markets like Buckhead and the rest of the Atlanta are varied according to Carver. First and foremost, Buckhead is a top housing draw in any market because of its proximity to the city's greatest concentration of exceptional homes, high paying jobs, shopping, restaurants, schools, etc. With an average home sale price of $809,275 in the first quarter, Buckhead is an affluent community and the affluent have emerged from the recession in much better shape than any other economic class, especially now that the stock market has rebounded. Finally, there is no federal homebuyer tax credit as there was at this time last year.
"Buckhead really is a microcosm of what is happening with affluent consumers around the country," Carver said. "Sales of luxury items are up and so are luxury home sales in Buckhead."
About the Author
Beacham & Company Realtors, located on the web at http://www.beacham.com, is a residential Atlanta real estate company that specializes in Atlanta's most affluent neighborhoods.
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