March Highlights
· 14% increase in available inventory from February affecting every price level except over $3 million.
· Distress sales (foreclosures or short sales) continue to make up more than 50% of all pending sales.
· Average days on market (time required to sell) fell 15% from February.
· Volume of closed sales increased 40% from February.
Buckhead Real Estate Activity by Price Range
Under $500,000: The lowest price range in our report continues to be the most active with eight new contracts written. There were 21 new pending sales, 16 of which were foreclosures or short sales. The number of closings was up a meager 10% from February with 11 closings after an average of 130 days on the market and an average 13% reduction in price. With 176 active listings, there is currently a 10-month supply of available homes, based upon an average of 18 pending home sales each month in the past three months.
$500,000 to $750,000: With nine closings in March, activity was up 28% from February. Three new contracts were written and 10 existing contracts became pending sales. Four of those pending sales were foreclosures or short sales. The homes that sold required an average of 205 days on the market and sold at an average of 89% of the original list price. With 155 active listings in this price range, we have a 21-month supply based upon an average of 6 pending sales each month over the past three months. This represents a continued strong buyers market at this price point.
$750,000 to $1 Million: There were three new contracts written in March and 13 existing contracts became pending sales, including three foreclosures or short sales. Closing were up 40% from February with seven homes closed in March after an average of 148 days on the market. Those homes sold at an average discount from the original list price of 16%. With 88 homes remaining on the market at the end of March, there is a 9-month supply of homes in this price range, the same as at the end of February. This is based on an average of 10.33 pending sales per month for the last three months.
$1 Million to $1.5 Million: There was only one new contract written in March for this price range and seven existing contracts that became pending sales, including five foreclosures or short sales. Four homes sold during the month after an average of 122 days on the market and an average 10% reduction in price. With 99 available homes in this price range, there is a 20-month supply of homes. This is based upon an average of 5.0 pending contracts per month over the past three months.
$1.5 Million to $2 Million: Activity continues to remain very slow from this price point and above. There was only one new contract written, two new pending sales and one closed sale. The home that closed required an average of 477 days on the market and sold at a 54% discount, both of which are inexcusable from my viewpoint. With 58 available homes, there is a 35-month supply of homes based upon an average of 1.67 pending home sales per month over the past three months.
$2 Million to $3 Million: There were no new contracts written and only one new pending sales in March. One home closed after a very quick 16 days on the market, yet it sold at a 31% discount from the original list price. With 43 available homes, there is a 43-month supply of inventory, based upon an average of one pending home sales per month for the last three months.
Over $3 Million: There were no new contracts written in March and three new pending sales and a single closed sale. The home that sold required 132 days on the market and sold at a 36% discount from the original list price. With 45 available homes, there is currently a 23-month supply of homes on the market. This is based on an average of 2 pending home sales per month over the past three months. I give this price range an improving status based upon the reduction of the 4.7-year supply of homes in January to its current levels. This price range has continued to show steady improvement over the past few months primarily due to homes being taken off the market, creating less competition.
Recommendations
If you are planning to sell your home, there are several steps you can take to increase the likelihood of a successful sale in this market:
1. Hire a professional appraiser. This enables you to get a clear picture of the market value of your home and to recognize a market offer when one is made. Additionally, you avoid the likelihood of an agent attempting to “buy your listing” by suggesting a price that cannot be achieved. At Conrad Lyles, we pay for a professional appraisal when you list and close with us.
2. Have your home pre-inspected and make the required repairs. Buyers today have dozens of homes to select from. A home in great condition will sell faster and at a higher price. At Conrad Lyles, we pay for a pre-listing inspection and coordinate obtaining bids from contractors when you list and close with us.
3. Have your home professionally staged. Staged homes photograph better, show better and sell faster than non-staged homes. Conrad Lyles will coordinate the staging of your home at no cost to you.
4. Get great photography. With close to 90% of buyers using the internet to select, or reject, potential homes, professional photographs will capture and hold their attention. Conrad Lyles will coordinate the professional photography of your home at no cost to you. No other agents in Buckhead offer the quality of photography and video we provide!
5. Watch the competition. You are competing with homes in your area for the attention of potential buyers. It is imperative to know how you compare in terms of price, condition and marketing.
For more on positioning your home for a successful sale, please visit our web site at conradlyles.com.
Conrad Lyles is the only firm in Buckhead focused exclusively on seller representation.
Veteran broker, Greg Lyles, operates Conrad Lyles. Greg has 27 years experience in Buckhead real estate, selling more than $427 million in his career. He has sold 100% of his listings since 2007. By comparison, the two biggest name agents in Buckhead sold less than 10% of their listings in 2009. Greg sells his listings 40% faster than the market average and with less than a 10% reduction in price. In 2009, the two biggest name agents in Buckhead sold their listings at an average reduction of 32%. On a $1.5 million sale, Greg would have netted the seller $330,000 more. (Source: FMLS)
Conrad Lyles Realtors offers flexible commissions, a cancel-anytime policy and superior results.