Early Fall 2018 issue of The Beacham Insider

Atlanta $1-2 Million Market Surges While Overall Market Continues to be Static

Beacham Bucks the Trend with Record Summer Closings

 

Atlanta’s overall home sales continued to be flat this summer, while homes sales in the $1,000,000-$2,000,000 price range increased significantly.

Sales of all single-family detached homes remained unchanged this summer compared to a year ago. Sales of attached homes (condos and townhomes), which have buoyed the market for much of the year, declined just 1%. Attached homes have remained attractive to first-time home buyers and down-sizing Baby Boomers seeking lower prices, low maintenance and value.

Since last summer, closings for both attached and detached homes have remained in line with the previous year. The reason? A lack of move-in inventory (homes that are not in need of renovation) and an increase in mortgage rates.

Conversely, home buyers in the $1 million to $2 million range propelled sales to a new record this summer, including a 50% increase in June alone.

Even in the high-end market, buyers prized value and homes in tip-top condition and with functional floor plans. Those home buyers willing to renovate were scarce.

Housing affordability continued to be a hot topic in the news, and home prices rose at a robust pace this summer – 7% for single-family detached and a whopping 10% for condos and townhomes. However, historical data suggests the cost of buying a home may be LESS than it was a decade ago (see the page 1 sidebar). Some well-paid consumer advisors have warned potential home buyers to rent instead of buy, describing the market as “overinflated.” The increase in home prices is short-lived. In reality, the average home sales price increase in the Atlanta MLS is just 1.8% per year over for the past 11 years. Certainly not an “overinflated” market.

What does the future hold for Atlanta real estate? If affordable new home construction ramps up, the local real estate market would benefit because new construction keeps resale prices in check. New construction also provides the new home supply the area so desperately needs. All segments of the Atlanta real estate market would also benefit from more home buyers who are willing to renovate. Demand for housing continues to outpace supply by a wide margin, but demand is more heavily concentrated on “move-in ready” homes at the expense of great investment opportunities.

What Others are Saying About the Housing Market

“We believe there is room for continued growth in the new home market in the coming years. Household formations have been increasing and in many regions the aging housing stock may not satisfy the lifestyles of today’s buyers. In addition, existing home values have increased, providing potential move-up and empty nester customers with more equity that they can put toward a new home purchase. We believe these two groups, along with the growing number of Millennials starting to buy homes, are all sources of potential new demand in the coming years.” – Robert I. Toll, Executive Chairman, Toll Brothers (largest luxury homebuilder in the U.S.), 8/21

“Homeownership has bottomed out, but is likely to go more or less sideways for the foreseeable future. Easing credit standards and a strong job market will support homeownership, but higher mortgage rates and the change in tax law weigh on it.” – Economist Mark Zandi of Moody’s Analytics, WSJ 7/27

“Since the word ‘bubble’ is on the minds of many consumers, it is worth laying out why today’s conditions are fundamentally different compared to a decade ago. Back then, lending standards were non-existent, with subprime loans everywhere. By contrast, the lending standards today are still stringent, as evidenced by the higher than normal credit scores of those who are able to obtain a mortgage. That is why mortgage default and foreclosure rates are at historic lows. On the supply side, there was overbuilding with 2.1 million housing starts during the bubble years. Today, we are just scratching 1.3 million. Though no one can know the future, the likelihood of a nationwide home price collapse is near nil for the foreseeable future.” – Lawrence Yun, Chief Economist for the National Association of REALTORS, Forbes 8/2

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Another record selling summer season!

The number of $1 million-plus listing for sale that expired seemed to reach historic numbers this summer. At Beacham however, we’ve retained and sold more listings than at any time in our history despite a down overall market. Why? Many of the reasons for our success are contained in this newsletter, but there is much more to the story. If your home is off the market because it didn’t sell, contact us to find out why our listings are selling.

 

 

 

The early fall 2018 Beacham Insider also features:

  • Latest Changes to Your 2018 Property Tax Bills
  • Recent Updates from our Relocation Department
  • Beacham Gives Back Q3 Charity Initiatives
  • How Real Estate is Changing

 

Read full issue to see a more detailed summer housing market update.

 

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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.

VIP ticket giveaway! Music Midtown 2018

We are giving away 2 FREE VIP TICKETS to Music Midtown!

Valued at nearly $1400!

In order to win these tickets go to beachamandcompany‘s Instagram page for the rules! Stay tuned, giveaway opens Thursday, August 23rd!

Included in the VIP tickets:

  • Dedicated Entrances
  • Unlimited access to the VIP Lounge featuring:
    • Complimentary Beer & Wine
    • Complimentary Food Concessions
  • Preferred Viewing Areas
  • Private Air Conditioned Restrooms
  • Plus, all of the incredible elements General Admission includes:
    • Over 30 performances on 4 stages
    • Food available for purchase including vegan, vegetarian and gluten-free options
This festival will take place Saturday, September 15th and Sunday, September 16th at Piedmont Park. The festival hours are noon-11pm (Saturday and noon-10pm (Sunday)

‘Beacham Gives Back’ donates more than $21k to Shepherd Center

The agents and staff of Beacham & Company, REALTORS recently donated $21,047 to the Shepherd Center in Atlanta through it’s charitable giving initiative Beacham Gives Back. Pictured above is our fundraising captain, Kyle Baumann with Jon Roxland and Leslie Jackson. The donation, made August 14, 2018, is going towards a world-renowned rehabilitation hospital right here in Atlanta.

The Shepherd Center is a non-for-profit hospital specializing in medical treatment, research and rehabilitation for people with spinal cord injuries and other neuromuscular conditions. Founded in 1975, this center is ranked among the top 10 rehabilitation hospitals in the nation.   At the center patients receive more than just medical care, but an experience that brings healing and hope. Patients travel from across nation and the globe to the Shepherd Center because of the innovative brand of neuro-rehabilitation.

Beacham Gives Back was the brainchild of Beacham agent Rachel Farmer and is believed to be the first charitable giving program of its kind by an Atlanta real estate company. Beacham agents and staff select a new charity every quarter by vote of the office and the agent who nominated the winning charity serves as captain of fundraising. In all, Beacham Gives Back donations have reached nearly $100,000 in less than a year to several local charities. Since the firm was founded in 2006, Beacham & Company has given or committed more than $250,000 to Atlanta charities and non-profit institutions. Some past recipients include the Atlanta Symphony Orchestra, Childrens Healthcare of Atlanta, Forward Arts Foundation, and Emory Winship Cancer Institute.

 

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Beacham & Company, REALTORS is Atlanta’s top-selling luxury real estate office. The firm was founded 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.

Outselling Sotheby’s 4 to 1 with $372 Billion in Sales

Who is Luxury Portfolio?

Luxury Portfolio is the face of Leading Real Estate Companies of the World®, which is the largest global network of premier locally branded companies dominated by many of the world’s most powerful independent luxury brokerages. Their mission is simple, give listings exposure to the largest audience possible outside of the local market. By providing tangible marketing results at the best value, consumers are connected with the most reputable and powerful group of brokers in the industry.

 

Luxury Portfolio vs. “Competitors”

Leading RE® selects the independent luxury brokerages to represent Luxury Portfolio’s organization which encompasses 565 companies, 4,100 offices producing $372 billion in sales last year alone. When it comes to comparisons, Leading RE® is simply unmatched in the global arena. With properties in the United States and over 60 countries the total inventory of available properties totals over $56 billion, with the average listing price over $2.5 million dollars. As for it’s competitors in the U.S. like Sotheby’s, Coldwell Banker and Keller Williams, Luxury Portfolio has significantly more listings priced over $1Million.  As for sales, Leading RE® has $55 Billion more home sales than their closest competitor.

 

 

 

Website Traffic

On average 3 million high-net-worth visitors utilize the site annually. With listings in almost all states and over 60 countries, it’s clear why their website brings in so much traffic. Catering to the 60 countries, the listings can be translated into 9 languages and 60 currencies to help with any barriers for relocating professionals. With up to date mobile apps, 50% of traffic comes from mobile devices; a quick and easy way to view listings around the world anytime and on the go.

 

 

Information courtesy of Luxury Portfolio International®

Results Are In // Amazon HQ2 Contest

This past Spring we hosted a contest where participants could enter to win a $500 gift card to Buckhead Life Restaurant Group by selecting the winning city/region in the Beacham & Company, REALTORS®’ Amazon HQ2 sweepstakes.

Here are the top 3 chosen cities by our voters:

  1. Atlanta
  2. Northern Virginia
  3. Washington, D.C.

The contest winner will be announced after Amazon announces their HQ2 selection later in 2018. Thanks to all those who entered!

SEE PREVIOUS NEWS RELEASE BELOW FOR DETAILS ON OUR CONTEST

The winner will receive a $500 gift card to Buckhead Life Restaurant Group if they selected the winning city/region in Beacham & Company, REALTORS®’ Amazon HQ2 sweepstakes. We will randomly select a winner from correct answers we received.

Amazon HQ2 is anticipated to bring 50,000 six-figure jobs and billions of dollars to the winning city. Atlanta proved to be a front runner but it is not a sure thing we are going to win!

Atlanta is among the top 3 finalists. The others were:

Austin, Texas

Boston

Columbus, Ohio

Dallas

Denver

Indianapolis

Los Angeles

Miami

Montgomery County, Md.

Nashville

Newark, NJ

New York City

Northern Virginia

Philadelphia

Pittsburgh

Raleigh, NC

Toronto

Washington, DC

By entering this contest you consent to receive periodic promotional emails from Beacham & Company, REALTORS®.

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Beacham & Company, REALTORS® is Atlanta’s top-selling luxury real estate office. The firm was founded by Glennis Beacham, one of Atlanta’s most celebrated real estate agents and the only agent in Georgia to sell nearly $2 billion in real estate. The firm has 100 agents who average $7 million in sales per agent, more than any other Atlanta real estate firm. In 2017, the firm achieved record sales for the 11th consecutive year and remained the top-selling office in the city for single family listings sold for more than $1 million. The firm was also donated nearly $1,000 per agent to local charities over the course of the year.

Atlanta home sales start ’18 sluggish but Beacham continues to surge

We’ve described the Atlanta housing market in a recent issue as amoeba-like for its propensity to avoid attempts to neatly encapsulate it. Now, the market almost seems like a stress ball being squeezed and the pressure points are areas of town that offer value to the growing pool of Millennial home buyers.

Home sales in the five core Atlanta counties where the average sales price was between $450,000 and $750,000 in top performing public school districts were stronger than usual to begin the spring market. Meanwhile, old in-town stalwarts such as Buckhead and Morningside where average sales prices hover around $1 million stalled. While $450,000 to $750,000 isn’t normally associated with “starter homes,” the current issue of REALTOR® Magazine notes that many Millennials are skipping a starter home and already in the “first time move-up” category whether by choice or market conditions.

Some Millennial buyers are just as picky as some Baby Boomers are complacent in their current homes. These two factors have combined to create a low inventory, suddenly slow sales growth environment for the market as a whole. The number of closings in Atlanta in 2018 is up just 1% compared to the record sales year that was 2017. Take out attached (condos and townhomes) sales, and the single family home market is down from last year. Condos are appreciating in price faster than single family homes for the first time perhaps ever. Buyers are flocking to attached properties because they are more affordable in general than single family and maintenance costs are shared with other homeowners. However, the condo market gets very thin when the price is more than $500,000-$600,000.

Developers are watching. The “Westside” below 14th Street (some developers and exhuberant local media types have tabbed the area north of 14th Street as the “Upper Westside”) continues to attract investment as it attempts to become the next East Atlanta. Many Midtown real estate agents are even coding their Midtown properties in the local MLS to match the Westside geographic category so not to miss capturing Millennials and others who are gravitating westward forvalue and proximity to all of the intown trappings.

Millennials who want to buy intown should not be affected by the looming Fulton County property tax reassessments in June since taxes are set at the purchase price for the first year. However, homes that have not changed hands in recent years and have risen in market value are sure to feel the sting in June (see article on page 3). Sellers who cling to an unattainable list price may be forced to readjust to reflect a new property assessment reality.

 

Read the Summer 2018 Beacham Insider Here

Summer 2018 issue of The Beacham Insider released

The Summer 2018 issue of The Beacham Insider is redesigned with an emphasis on white space, color, and quick takeaways that will you quickly capture the pulse of the market. Much emphasis is also placed on explaining the abnormalities in the market, which areas are hot, and what to expect in Atlanta real estate the rest of the year.

We are often asked, why is inventory so low? Marci Rosell, formally chief economist for CNBC and now chief economist for Leading Real Estate Companies of the World, points to demographics.

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 2018 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 (withGen X the tiny handle in-between). Nearly 7 out of 10 homes in U.S. are bought or sold by either a Millennial or Baby Boomer. 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 – and making the inventory of larger more expensive homes rise. Until more Millennials age into the market for homes affluent Boomers want to sell, inventory of $2 million-plus homes will continue to rise.

 

“The data shows that a (luxury) property either sells very quickly out of the gate for a high percentage of its asking price, or it lingers on the market and sells at a much later date for a much lesser percentage of the original listing price.”

-Wall Street Journal article describing the “off the top”nature of the luxury real estate market / May 3, 2018

 

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.

 

Number of years it would take to sell every home in Atlanta priced more than $3 million at the current rate of sale if no new listings were added.

TAKEAWAY: The luxury market “barbell” is unbalanced to the Baby Boomer side and that is likely to continue to be the case for the immediate future. 

 

 

The percent of single family housing inventory as a percentage of U.S. population – an all-time low.

TAKEAWAY: Without more new construction and renovation/ regentrification, this number isn’t likely to materially improve in the near term.

 

What do local experts predict for Atlanta real estate in the second half of 2018 and beyond? Read the Insider to find out.

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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.

Top 10 Beacham pools//Summer 2018

Summer is finally upon us! Let’s take a look at some of our favorite Beacham and Company listings that feature breathtaking pools!

 

1. 1980 West Paces Ferry Road NW– Listed by Glennis Beacham 

Fully renovated and sitting on over 2.5 acres is this magnificent home located on the quiet end of Buckhead’s most prestigious street. Make this your home as it features a large resort style backyard with a main level infinity edge pool, flat yard, and a top-notch outdoor entertainment pavilion! Imagine yourself here; sitting back, relaxing, and unwinding poolside with your family after a long workweek!

 

 

2. 720 Heards Ferry Road- Listed by Troy Stowe

Luxury! Luxury! Luxury! Unlike any other is this luxurious Sandy Springs estate; it’s perfect for entertaining family, friends, and guests as it boasts a Mediterranean style heated salt water pool, a 6 car garage, a high end security system, and lush mature landscaping on over 1.5 acres. Take in the beautiful scenery and fresh air as your family soaks up the summer sun!

 

 

3. 2893 Rivermeade Drive NW- Listed by Cindy Smith 

Located in highly sought after Rivermeade sits this recently renovated family home with a fabulous rectangular pool.  Situated among pristine landscaping, it makes for perfect afternoon swims with your family in the scorching Georgia heat!

 

 

4. 1660 Winterthur Close- Listed by Nicole Farmer 

This fabulous 1.6 acre home is located in one of Sandy Springs most sought after neighborhoods. This house is an entertainers dream with a backyard built for summer. A ton of privacy here!

 

 

5. 6 West Andrews Drive- Listed by Glennis Beacham

Nestled on a private tree filled lot sits one of Buckhead’s best pools! This perfect 2.8-acre estate home features a HUGE pool with a pool house, lush mature greenery, and the perfect amount of privacy for your family and guests!

 

 

6. 923 Little Darby Lane- Listed by Nicholas Brown 

Set in one of Metro Atlanta’s most exclusive neighborhoods is this custom Suwanee home featuring a magnificent in-ground pool complimented by an exquisite covered Loggia. Your family would love this backyard as it provides privacy and proximity to many nearby communities!

 

 

7. 1925 Pine Mountain Road NW- Listed by Tricia Feagin 

A pool straight out of a magazine! Make your summer splash at this charming West Cobb estate. Imagine your children enjoying the water-slide, bright blue waters, and basking in the steamy summer air!

 

 

8. 5755 Heards Forest Drive- Listed By Meg Garrido 

Newly renovated and price below appraisal sits a wonderful Sandy Springs home with a world-class swimming pool ! A truly unique waterfall style pool capping off a brilliantly designed backyard oasis.

 

 

9. 4233 Valley Trail Drive – Listed by Dustin Kimberley 

Sitting in the heart of Vinings, this home features a master suite on main, finished basement with additional bedroom and fullbath and large back deck! The backyard is extremely private and boasts a gunite pool complete with waterfall and spa! The stone fireplace makes it perfect for year-round enjoyment!

 

 

10. 4475 Club Drive Atlanta, GA 30319 – SkogstadSodemann Team

Sitting in a gorgeous neighborhood in Historic Brookhaven you’ll find a home with the master on main, hardwoods throughout, finished basement and a large level from and backyard with a ton of privacy! The yard and pool are awesome for kids!

Cookie cutter doesn’t cut it: why a customized approach to real estate marketing wins

Beautiful marketing is our passion, and it shows in both the materials we produce and our ability to achieve record sales every year. From photography to graphic design to print materials to digital advertising, we are obsessed with producing fresh, original, and always custom marketing materials. Being the best is “a thing” for us!

When we see real estate marketing that fits the same format for property after property, we cringe. Every home has its own story that is best told through a creative voice instead of an assembly line. Our marketing staff is not alone in each endeavor; our agents play a huge collaborative role in developing each piece of marketing we release into the real estate universe. At the end of the day, marketing is all about enhancing value.

Our marketing goes beyond just pretty things though. It’s a commitment to understanding the market around each listing, the market as a whole, and how each home fits into both. As a brokerage, we are constantly evaluating, re-evaluating, and discussing the macro and micro changes in the market. Our founder calls it a “think tank environment,” and that’s exactly what it is.

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Beacham & Company, REALTORS® is Atlanta’s top-selling luxury real estate office. The firm was founded by Glennis Beacham, one of Atlanta’s most celebrated real estate agents and the only agent in Georgia to sell nearly $2 billion in real estate. The firm has 100 agents who average $7 million in sales per agent, more than any other Atlanta real estate firm. In 2017, the firm achieved record sales for the 11th consecutive year and remained the top-selling office in the city for single family listings sold for more than $1 million. The firm also donated nearly $1,000 per agent to local charities over the course of the year.

Beacham attends int’l relocation conference

Beacham & Company, REALTORS® relocation coordinator, Sharon Leone, recently attended the Worldwide Employee Relocation Council (ERC) Americas Mobility conference in Dallas, Tx. Beacham is a 10-year member of Worldwide ERC which is a relocation services industry trade group with a membership of 7,500 relocation professionals. Worldwide ERC’s chief mission is best practices management for the movement of employees by their employers within the United States and between all other countries.

Worldwide ERC President and CEO Peggy Smith addressed labor force participation in her keynote address. The rate of labor force participation in the United States continues to decline despite unemployment rates at 40-year lows. With Millennials now making up much of the workforce (and nearly 48% of all non-refinance loan originations), contract-based work is becoming more common she said. This “contingent workforce” gives companies the ability to hire the best available talent, which in turn enables quick adaptation into a job. Recruiting outsourced talent also saves companies money, she said.

“We are entering a workforce environment where on-demand contingent workers are rising as a talent option and are racing toward becoming a majority, in contrast to traditional workers,” Smith said. “This scenario is made even more complex with geopolitical churn, automation and technology shaking up the way companies operate, and the urgent need to continually up-skill current and future employees.”

Another hot discussion topic was the location of Amazon’s second headquarters (Amazon HQ2) and the impact on that area if chosen. Atlanta is among the finalists and considered one of several front-runners along with the Washington, D.C. area and Austin, Tx. Other topics focused on the Millennial impact on housing and the use of portals in the home search process. Of the top four real estate portals or websites, nearly 120 billion home buyers were sourced from Google and Facebook in 2017 compared to just 604 million from Zillow according to report published by T3 Sixty, a real estate consulting and research firm based in San Juan Capistrano, Calif.

If your growing company needs to outsource its employee relocation management, Beacham & Company is well-equipped to take over. Our relocation department can save companies money on employee transfers and offers excellent service from an agent team that is the top-producing in the city. For more information, contact Sharon Leone at 404.261.6300 or [email protected]

PHOTO CAPTION: Top – The Gaylord Hotel in Dallas, site of this year’s WorldwideERC conference; Side – Beacham relocation coordinator Sharon Leone (left) with Tara Chandler of Extended Stay America.

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Beacham & Company, REALTORS® is Atlanta’s top-selling luxury real estate office. The firm was founded by Glennis Beacham, one of Atlanta’s most celebrated real estate agents and the only agent in Georgia to sell nearly $2 billion in real estate. The firm has 100 agents who average $7 million in sales per agent, more than any other Atlanta real estate firm. In 2017, the firm achieved record sales for the 11th consecutive year and remained the top-selling office in the city for single family listings sold for more than $1 million. The firm also donated nearly $1,000 per agent to local charities over the course of the year.