Buckhead Real Estate Market Conditions for Sellers – December 2010

Buckhead real estate activity in December represented a mixed bag as there were some gifts and still some lumps of coal. For sellers, the good news came in the form of almost 10% lower inventory levels from November and a 30% increase in closed sales from the previous month. Now for the coal; Pending sales dropped 21% in volume from November and foreclosures and short sales continue to make up more than 50% of pending sales activity. But that shouldn’t come as a surprise – we knew December is the slowest month for real estate sales and if you read this blog – or the papers – you know the foreclosure issue is going to be around for awhile. One trend I continue to see is that homes are selling at an average of 80% of the original list price.

Buckhead Real Estate Activity by Price Range

Under $500,000: Once again, this price range saw the most activity in December with two new contracts written. There were 16 new pending sales, 9 of which were foreclosures or short sales. 22 homes, including 3 foreclosures or short sales, closed in December after an average of 135 days on the market and an average 16% reduction in price. With 164 active listings, there is currently an 11-month supply of available homes, based upon an average of 15.5 pending home sales each month in the 4th quarter. Six to eight months is considered a balanced market. For tips on getting your home positioned for a successful sale, visit my blog on Resources for Selling Your Home.

$500,000 to $750000: There were 14 closings in December, none of which were foreclosures or short sales. Three new contracts were written and 7 existing contracts became pending sales. Four of those pending sales were foreclosures or short sales. The homes that sold required an average of 100 days on the market and sold at an average of 87% of the original list price. With 147 active listings in this price range, there is currently a 14-month supply of homes based upon an average of 10.67 pending sales each month during the 4th quarter of 2010.

$750,000 to $1 Million: There was only one new contract written in December, however 7 existing contracts became pending sales, including four foreclosures or short sales. 12 homes closed in December after a very respectable 71 days average on the market. Those homes sold at an average discount from the original list price of 17%. With 84 homes remaining on the market at the end of December, there is a 12-month supply of homes in this price range, signaling a strong buyers market. This is based on an average of 12 pending sales per month for the 4th quarter.

$1 Million to $1.5 Million: While there were no new contracts written in December for this price range, there were five existing contracts that became pending sales. Four of those five were foreclosures or short sales. Five homes sold during the month, requiring an average of 246 days on market and an average 18% reduction from the original list price. With86 available homes in this price range, there is a 15-month supply of homes. This is based upon an average of 5.67 pending contracts per month for the 4th quarter. This inventory signals a strong buyers market. Sellers would be well advised to have their homes appraised, inspected and staged prior to further showings to ensure they are well positioned relative to the homes they are competing against.

$1.5 Million to $2 Million: This is the price point where the wheels fell off the wagon in December. There were only two new contracts written, one new pending sale and one closed sale. The home that closed required more than one year on the market and sold at a 20% discount. With 52 available homes, there is a 39-month supply of homes based upon an average of 1.33 pending home sales per month in the 4th quarter. There are numerous ways for sellers to beat the averages. For more information, please visit Selling Your Buckhead Home.

$2 Million to $3 Million: Buyers in this price range clearly had other things on their minds in December – things that didn’t include buying a house! There were no new contracts written, no pending sales nor any closed sales. Nothing. So, we start the New Year with 45 available homes, representing a whopping 67-months of inventory, based upon an average of .67 pending home sales per month for the 4th quarter.

Over $3 Million: The top price point in our survey took its lumps of coal as well in December. There were no new contract written, however there was one new pending sale and one closed sale. The home that closed required 339 days on the market and a 35% discount from the original list price before selling. With 60 available homes, there is currently an 89-month supply of homes on the market. This is based on an average of .67 pending home sales per month in the 4th quarter.

As always, I’d rather tell you the truth about the market and help you develop a plan for success than to mislead you with overly optimistic reports that cannot be substantiated.