Real Estate Market Still Sending Mixed Messages, Though The Awaited Return Is Imminent
Mar 08, 2010“ Coldwell Banker NRT Development Advisors' quarterly report compares metro-Atlanta’s Q4 2009 residential real estate market to that of Q4 2008, as well as Q1, Q2 and Q3 2009 ”
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(iRealtyWire.Org) – The Q4 2009 report recently released by Coldwell Banker NRT Development Advisors confirmed that, similar to Q3 2009, there continues to be mixed messages indicating a possible long awaited turn in the market. Absorption levels increased for new condo/townhomes, but decreased for new single family and both types of resale. Average sales prices for new and resale condo/townhomes increased, while sales prices for new and resale single family decreased. Even though sales prices are down overall compared to Q4 2008, there seems to be a light at the end of the tunnel with resale single family up 0.9 percent.
The most significant news lies in the fact that current inventory levels continued their year long decline in Q4 2009, with a 25 percent decline in all active listings compared to Q4 2008. With building permits at historic lows and very little new construction condominium/townhome inventory being delivered in the foreseeable future, there was a 41.5 percent decline compared to Q4 2008.
Highlights about the 15-county metro area from Q4 2009 report include:
• Absorption ended 16 percent higher than the same period in 2008 when the mortgage and credit markets experienced severe turmoil. Of particular note, combined Q4 2009 condominium sales finished 36 percent above Q4 2008 levels. Factors contributing to improved 2009 absorption included continued low interest rates, declining prices, increased foreclosure activity and stock market gains.
• New construction absorption was down significantly across both single family and multi-family homes with a combined decrease of 21.3 percent over 2008 levels. Buoyed by attractively-priced foreclosure inventory, combined resale market sales fared better, increasing by 0.1 percent compared with 2008.
• Of the 49,072 single family resale transactions recorded through the year end 2009, 40.3 percent were priced below $100,000 (53 percent of the total sales below $100,000 were foreclosures).
• Since Q1 2009, the volume of new construction foreclosures has increased by 30.9 percent for single family homes and 37.7 percent for condominiums. Foreclosure volume, however, represented at most only 1/3 of total sales in 2009, up slightly for resale but considerably higher for new homes and condominiums.
• The significant 28.6 percent increase in condominium foreclosure absorption between Q4 2008 and Q4 2009 demonstrates a net effect in condominium foreclosures that was felt later in 2009, resulting in downward pressure on prices.
• Single family home permits decreased 10.5 percent in the Q4 2009 over Q3 2009. Despite this decrease, there were several counties that saw double digit improvement, including Cobb (31 percent), Paulding (38 percent), Newton (17 percent) and Rockdale (25 percent). Multi-family permits increased significantly over Q3 2009, although a majority of total permits issued in 2009 were made up of apartments.
“As we begin a new decade and look back over the past few years, many of us are relieved that one of the most challenging times in Atlanta real estate may be behind us. Overall, the results in the fourth quarter continued the improvement over the low points established in Q4 2008 and Q1 2009, signaling further signs of a slow recovery,” said Brad Horner, president of NRT Development Advisors. “The extension of the tax credit and the expanded tax credit for current homeowners, combined with historically low interest rates and the second highest affordability index, have created the perfect time to take advantage of homeownership. But today’s market is still unlike any we have experienced in the past, making it even more important to work with a sales and marketing partner that has a thorough and complete understanding of today’s challenges.”
Information for the quarterly review is complied largely from the company’s proprietary Universal Data Base, a system that pulls data for the entire metropolitan Atlanta market from both FMLS and GAMLS, deleting any duplication. The report includes submarket profiles for Cherokee, Clayton, Cobb, Coweta, DeKalb, Douglas, Fayette, Forsyth, Fulton (North and South), Gwinnett, Hall, Henry, Newton, Paulding and Rockdale counties. Multi-family home sub-market profiles are also included for Buckhead, Intown, Downtown and other urbanizing areas. The full report can be downloaded at http://nrtdevelopmentadvisors.com/nrt-four-quarter-atlanta-09/.>
About Coldwell Banker NRT Development Advisors
Coldwell Banker NRT Development Advisors, a leading residential real estate brokerage company, is a specialty division of Coldwell Banker that serves as a comprehensive, strategic advisor for new construction residential developments. Focusing on single-family developments, multi-family dwellings (including condominiums, townhomes and lofts) and bank-owned distressed assets, NRT Development Advisors assists with conceptualizing the product, provides input on design, develops the most effective marketing plan and provides expert onsite sales teams and support staff.
Based in Atlanta with a regional office in Orlando, Fla., NRT Development Advisors has successfully marketed more than 750 new construction and conversion developments including luxury high-rises, single-family developments and bank owned assets. NRT Development Advisors is part of NRT LLC, the nation’s largest residential real estate brokerage company. NRT, a subsidiary of Realogy Corporation, operates Realogy’s company-owned real estate brokerage offices. For more information, please visit http://www.NRTDevelopmentAdvisors.com or http://www.cbbankowned.com.
The most significant news lies in the fact that current inventory levels continued their year long decline in Q4 2009, with a 25 percent decline in all active listings compared to Q4 2008. With building permits at historic lows and very little new construction condominium/townhome inventory being delivered in the foreseeable future, there was a 41.5 percent decline compared to Q4 2008.
Highlights about the 15-county metro area from Q4 2009 report include:
• Absorption ended 16 percent higher than the same period in 2008 when the mortgage and credit markets experienced severe turmoil. Of particular note, combined Q4 2009 condominium sales finished 36 percent above Q4 2008 levels. Factors contributing to improved 2009 absorption included continued low interest rates, declining prices, increased foreclosure activity and stock market gains.
• New construction absorption was down significantly across both single family and multi-family homes with a combined decrease of 21.3 percent over 2008 levels. Buoyed by attractively-priced foreclosure inventory, combined resale market sales fared better, increasing by 0.1 percent compared with 2008.
• Of the 49,072 single family resale transactions recorded through the year end 2009, 40.3 percent were priced below $100,000 (53 percent of the total sales below $100,000 were foreclosures).
• Since Q1 2009, the volume of new construction foreclosures has increased by 30.9 percent for single family homes and 37.7 percent for condominiums. Foreclosure volume, however, represented at most only 1/3 of total sales in 2009, up slightly for resale but considerably higher for new homes and condominiums.
• The significant 28.6 percent increase in condominium foreclosure absorption between Q4 2008 and Q4 2009 demonstrates a net effect in condominium foreclosures that was felt later in 2009, resulting in downward pressure on prices.
• Single family home permits decreased 10.5 percent in the Q4 2009 over Q3 2009. Despite this decrease, there were several counties that saw double digit improvement, including Cobb (31 percent), Paulding (38 percent), Newton (17 percent) and Rockdale (25 percent). Multi-family permits increased significantly over Q3 2009, although a majority of total permits issued in 2009 were made up of apartments.
“As we begin a new decade and look back over the past few years, many of us are relieved that one of the most challenging times in Atlanta real estate may be behind us. Overall, the results in the fourth quarter continued the improvement over the low points established in Q4 2008 and Q1 2009, signaling further signs of a slow recovery,” said Brad Horner, president of NRT Development Advisors. “The extension of the tax credit and the expanded tax credit for current homeowners, combined with historically low interest rates and the second highest affordability index, have created the perfect time to take advantage of homeownership. But today’s market is still unlike any we have experienced in the past, making it even more important to work with a sales and marketing partner that has a thorough and complete understanding of today’s challenges.”
Information for the quarterly review is complied largely from the company’s proprietary Universal Data Base, a system that pulls data for the entire metropolitan Atlanta market from both FMLS and GAMLS, deleting any duplication. The report includes submarket profiles for Cherokee, Clayton, Cobb, Coweta, DeKalb, Douglas, Fayette, Forsyth, Fulton (North and South), Gwinnett, Hall, Henry, Newton, Paulding and Rockdale counties. Multi-family home sub-market profiles are also included for Buckhead, Intown, Downtown and other urbanizing areas. The full report can be downloaded at http://nrtdevelopmentadvisors.com/nrt-four-quarter-atlanta-09/.>
About Coldwell Banker NRT Development Advisors
Coldwell Banker NRT Development Advisors, a leading residential real estate brokerage company, is a specialty division of Coldwell Banker that serves as a comprehensive, strategic advisor for new construction residential developments. Focusing on single-family developments, multi-family dwellings (including condominiums, townhomes and lofts) and bank-owned distressed assets, NRT Development Advisors assists with conceptualizing the product, provides input on design, develops the most effective marketing plan and provides expert onsite sales teams and support staff.
Based in Atlanta with a regional office in Orlando, Fla., NRT Development Advisors has successfully marketed more than 750 new construction and conversion developments including luxury high-rises, single-family developments and bank owned assets. NRT Development Advisors is part of NRT LLC, the nation’s largest residential real estate brokerage company. NRT, a subsidiary of Realogy Corporation, operates Realogy’s company-owned real estate brokerage offices. For more information, please visit http://www.NRTDevelopmentAdvisors.com or http://www.cbbankowned.com.
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