Beacham Insider: What do Atlanta’s real estate market and this barbell have in common?

PHOTO CAPTION: Marci Rosell, formally chief economist for CNBC and now chief economist for Leading Real Estate Companies of the World of which Beacham & Company is a member, says to think of America’s population as a “barbell” with Baby Boomers on one side and Millennials on the other (with Gen X the tiny handle inbetween). Millennials and Boomers are, in many cases, pursuing the same type of housing (albeit for different reasons) which is extending an unprecedented housing inventory shortage.

 

The continued slowdown in Atlanta home sales along with the unabated year-over-year surge in average home sales prices are the biggest takeaways in the recently-released summer issue of The Beacham Insider. However, the market results from the first part of 2017 bely a complicated story about the factors and facets of the Atlanta real estate market right now.

A persistent lack of housing inventory priced less than $750,000 (higher in some areas like Buckhead) along with a surplus above that threshold continues to play havoc with the market and create vastly different scenarios for buyers and sellers. The reason for this divergence has a lot to do with population demographics. Marci Rosell, formally chief economist for CNBC and now chief economist for Leading Real Estate Companies of the World of which Beacham & Company is a member, says to think of America’s population as a “barbell” with Baby Boomers on one side and Millennials on the other (with Generation X the tiny handle in-between). Millennials and Boomers are, in many cases, pursuing the same type of housing (albeit for different reasons) which is extending an unprecedented housing inventory shortage. Also, Generation X is not large enough to absorb the inventory of downsizing Baby Boomers.

The market below $750,000 – which has just a three months’ supply of inventory but represents 96% of all sales – has driven home prices to 20 consecutive months of new record highs, while the average sales price of homes priced $1 million or more – which has a months’ supply of nearly 18 months and represents less than two percent of the market – has declined for nearly four years.

Interestingly, areas of Atlanta that experienced the greatest increase in single family detached home sales from the first part of 2016 to 2017 featured areas surrounding the new Atlanta Braves stadium: Sandy Springs north of I-285 (+9%), Smyrna (+26%) and Historic Vinings (+130%). For condos, Decatur led the way with a 29% increase from 2016, followed by Smyrna (+18%). Buckhead sales were down 9.5% through the first five months of the year, the second straight year of declining sales. Sales of homes priced $1 million or more increased 7.5% through May led by noteworthy jumps in Buckhead condo sales and Atlanta Intown (Morningside/Virginia Highlands) single family detached homes.

What do local experts predict for Atlanta real estate in the second half of 2017 and beyond? Read the Insider to find out.

#  #  #

Beacham & Company, REALTORS is Atlanta’s top-selling luxury real estate office. The firm was founded in 2006 by Glennis Beacham, one of Atlanta’s most celebrated real estate agents. The firm has 100 agents who average $7 million in sales per agent, more than any other Atlanta real estate firm.