Property Lines

Conversations about Atlanta Real Estate

MLS Moments

[ 3 Comments ] 02/29/08 | Kathy Drewien | Filed under: Atlanta Real Estate, MLS Moments

We are far enough into 2008 to have some solid mls real estate sales information to begin tracking patterns and trends. Before we get ahead of ourselves, I think it’s important to review some basic mls sales data from the past few years. This will establish a baseline against which we can compare our analysis for 2008.

The chart below shows the total number of single family homes listed in the North Atlanta MLS Listing Area that sold in 2005, 2006 and 2007. As we track the number of 2008 mls sales for the same real estate market area, you can refer back to this baseline. (Note: This information is not compiled by the Atlanta mls real estate services.)

In 2005, (according to my research of the mls listings) the total number of single family homes sold in North Atlanta was 11,663; in 2006, the number increased slightly to 11,909. The total number of North Atlanta mls listings sold in 2007 dropped 19% to 9,622.

Looking at the average sales price during the same time period gives us a different perspective on the strength of the real estate market in North Atlanta.

You can see in the chart here that the average sales price increased 9% – from $345,503 in 2005 to $377,793 in 2007 — while the volume decreased over the same time period. It will be interesting to learn if the trend of increasing sales prices will continue into 2008.

Another real estate pattern to note is the average days on market (DOM). In the North Atlanta market, the average DOM has increased from 61 days in 2005 to 72 days in 2007 — a rise of 18%.

So, what do the 2008 mls listing statistics tell us today?

There are 362 single family homes reported as sold through the multiple listing service in January 2008, with an average of 95 days on market. The average price range in the North Atlanta Market Area for January is $402,158.

The reported year-to-date numbers through February 2008:

7062 7230 7352 active mls listings (updated: 3/7/08; 3/15/08)

742 776 771 are “under contract” pending closing (updated: 3/7/08; 3/15/08)

574 664 788 sold and closed (updated: 3/7/08: 3/15/08)

$385,703 $380,929 $377,198 average sales price (updated: 3/7/08; 3/15/08)

95 94 average days on market. (unchanged: 3/7/08: 3/15/08)

Okay, the baselines are set. What I want to do now is track these 5 markers on a weekly basis. I’ll strike through the changes as new listings, pending contracts and closings are reported to the multiple listing service.

If you have a proficiency with spreadsheets and graphs, and want to contribute a meaningful display, be my guest.

Things Look Bad for Atlanta Sellers

[ Add Comment ] 02/28/08 | Vivian Lacy | Filed under: Atlanta Real Estate, Sellers

Vivian Lacy In today's slow market, with Atlanta buyers having so many choices, with all the online listing services (Redfin, Zillow, Trulia, Roost) — you think a listing agent would at least get out of the car to take a picture!

Thanks to Aaron Hoffman for photo

Conversation Tags: Bad MLS Photos | Buyers | Sellers

Suze Orman Speaks Out

[ Add Comment ] 02/26/08 | Vivian Lacy | Filed under: Atlanta Real Estate, Buyers, Mortgages, Sellers

Vivian Lacy I was channel surfing a few nights ago and came across the Suze Orman show, the personal financial expert for CNBC . Suze was providing financial housing advice to a young couple from Oregon who found themselves in the situation of owning two homes, and paying two mortgages.

Simply put, the couple purchased a second home before selling their first home, and wanted advice on how to fix their problem.

Suze was visibly outraged. She lectured the couple that they should have never purchased a second home without first selling their home. And then she screamed into the monitor, to everyone listening,“You should never ever under any circumstance purchase a home before selling your first home. And, if you do, never, ever without a contingency.”

As a Realtor, I agree with this advice — with the exception of “under any circumstance.” There are several circumstances where people choose to buy before selling.

However — what sat me straight up on the edge of my chair — was what came out of Suze’s mouth next. She asked the couple, “If you didn’t have to pay the real estate commission, would you at least break even?” The couple lit up like a light bulb, and cheerfully answered, “Yes!”

Suze went on to say, “Your real estate agent gave you some bad advice by allowing you to purchase before selling, and clearly placed his/her own interest above yours. Because of that bad advice, this is what I want you do. Go back to your listing agent, and demand that they market and sale your home — minus their commission — because they are the reason you are in this situation.”

I sat straight up in my chair in disbelief. What!?

My issue with Suze’s advice to this couple are many, but here are just a few.

First, she obviously thinks a real estate agent has the power to force the consumers to buy or sell homes.
Second, Suze was not privy to the couple’s decisions as to why they chose to buy a new home, or sell their old home.
Third, she was not present for any of the conversations and counseling the Realtor provided to this couple.

It wasn’t clear if the listing agent was also the selling agent. Perhaps the couple listed their home for sale with one real estate broker and purchased a home through another. Suze assumed it was the Realtor’s fault that the couple now has two mortgages.

And, to solve the problem of carrying two mortgages, Suze not only told this couple, but everyone listening that may be in the same situation, to demand the Realtor to pay for the couple’s mistake by working without compensation.

I say Suze shouldn’t receive her salary for that episode of bad advice. What do you think?

Conversation Tags: Buyers | mortgages | Sellers

A “New” Form of Mortgage Insurance Gives Tax Deductions

[ Add Comment ] 02/26/08 | Jim Greenie | Filed under: Mortgages

Jim Greenie Private Mortgage Insurance (PMI) came back in vogue in 2007 for a number of reasons, the most widely-known of which was that PMI was suddenly tax-deductible.