Midtown Atlanta Leads The Way – – 65% Turnaround in Midtown Atlanta Condominium and Townhome Market– Since the start of the Covid19 pandemic, conventional and accurate thinking was that the intown market, specifically Midtown due to its greater population density, would take longer to recover back up to 2019 levels. Midtown Atlanta, indeed showed its recovery in August with a 78% increase in single-family-home sales, and dramatic reversal in the condominium market, up 8%. What? Only 8? Simple, the Midtown Atlanta market was down 73% this July compared to the last one. Bottom line is that people still want to live in Midtown Atlanta, and now they apparently feel more comfortable living in denser spaces.
Buckhead Atlanta remains incredibly strong with a 37% increase in single-family-homes being sold, and 18% for the condominium/townhome market.
James Kobal – Coldwell Banker Commercial Metro Brokers (E) James.Kobal@CBCMetroBrokers.com | (M) 678.993.4951
Great News? Atlanta is stronger than ever, a reality is confined to areas experiencing population growth, even though we deal with the accumulating stress of Covid19 and sheltering in place. Here in Atlanta we can do commercial real estate transactions in which both parties simultaneously win.
Reality Snapshot – Bad News Now – Great News Future This morning, I caught up with a property manager of a well-known development in Metro Atlanta. Great news is that none of the tenants have asked for rent relief, and new ones have not postponed moving into the space. Bad news is that there are no pending deals, or at least that ones they can disclose. Such hesitancy in moving into new office mirrors what is happening in the residential condominium market, people are afraid to move into new confined quarters, but will do so once they feel the environment is safe. Although the office market for new leasing activity has slowed, it does not mean buyers can purchase or lease office properties at bargain properties. Demand for office space remains, as New York Magazine reported on July 29th.
Winning for Buyers and Sellers – How 1. Reasonable Expectations – Sellers need to understand that we are not pre-Covid19 levels, and thus cannot ask for such prices. Buyers need to understand that, except in distressed situations, sellers do not need to sell. 2. Educating Out-of-Georgia Buyers – Georgia’s economy continues to grow, unlike some other states. Atlanta is the strongest city in the state for corporate relocation and one of top-5 nationally for it. Therefore, low offers will probably be dismissed out of hand. 3. Analyzing the Market Situation – Before putting a property on the market or buying one, thoroughly know what is happening. Ask your commercial realtor to do their homework on comparable and neighboring properties. Contact me, James Kobal at Coldwell Banker Commercial Metro Brokers, James.Kobal@CBCMetrobrokers.com, (M) 678.993.4951. 4. Value for Buyer and Seller – Show the financial benefit for the buyer and seller, and what is the cost of waiting.
Focusing on residential real estate – Atlanta House numbers -it has been a great recovery from March through July 2020 and solid for a normal situation – The numbers are indisputably strong.
Without Question, the future of Atlanta remains bright. One just has to look at the housing market, specifically houses. The brightness really shines when you look at year-over-year statistics for the number of units sold. Both Buckhead Atlanta and Vinings distinguished their strengths in different ways, price and number of houses sold for consecutive months.
Buckhead Atlanta remains, justifiably, the iconic neighborhood to those outside of Atlanta, and year-over-year justified this view. For the month of July, 2019 to 2020, the number houses sold remained the same at 66. This market’s strength rests in the average increased sales prices for June ($162,172) and July ($208, 341) in the 30327 and 30305 zip codes.
Vinings and Midtown Atlanta further showed how strong the desire is for houses, especially greater personal space with normal social distancing. Leading the biggest gain was Vinings at 80% in June with sales almost doubling from 5 to 9. Better yet are July’s numbers, 100% increase of 7 to 14, and sales days on market dropping 44%. June’s average sales price trailed 2019s by approximately $38,000 and then surpassed last July’s by $90,000.
Midtown’s sales increased in June by 71% from 7 to 12, and 60% in July from 10 to 16. As for increased average sales price, there was a month’s delay in 2020 numbers surpassing 2019s. July 2020 outperformed 2019 by $131,673. Days on market remained relatively consistent with Buckhead Atlanta’s numbers.
When it comes to condominium and town home sales, 2020 numbers lag behind 2019s. This should be expected. The need for social distance and desire to have personal outdoor space, as a result of the quarantine, have not bode well for these sales. When will the trend reverse itself? I guess when people feel comfortable or are allowed to go back into an office, and other public spaces at pre-virus levels.
Back From The Dark Days to Atlanta Leading The Way – Dow drops 1,000 points in March, a good day back in March, as panic gripped the financial markets due to Covid-19, and residential real estate felt like it hit a brick wall.
Atlanta Residential Real Estate Stronger Than Ever – Year-over-year going into the Memorial Day holiday and thus a slight pause in market activity, buyer activity increased 3.9%, and is up 31% since January of 2020. Open Door returning to the market next week proves it, and they view Atlanta as a bell-weather market for the East Coast. Love or leave them, a company will not make such a move unless they see the value in Atlanta real estate.
Buckhead Atlanta’s Strength Revealed – The week leading up to Memorial Day showed a slight decline in the number of new listings, for all of Atlanta, and specifically for Buckhead and Midtown houses, and the later’s condominiums and town homes. For Buckhead, the decline in house listings WAS ONLY one house. That is great since the effective working week was shortened by two days – people wanting to finally feel justifiably hopeful about relief from Covid-19. Better yet, Buckhead Atlanta condominium listings increased 15% week-over-week while the rest of the market declined 21% and Midtown dropped 29%.
May 17, 2020 Back on April 27, 2020 I predicted and posted that the Atlanta housing market would come back strong. Well, it definitely has, and the number of new listings as recorded by the First Multiple Listing Service support this fact.
Jubilant Feeling of Georgia Re-Opening Confirmed – First Weekend of May New listings for both houses and attached homes (condominiums and townhomes) saw their biggest increase the weekend that Georgia Governor re-opened the state. Houses saw a 32.7% increase in new listings while attached homes experienced an 81.5% increase.
Condominium Listings Leading The Way – 218% Increase As you can imagine with all the precautions and concerns about contracting Covid-19, attached home listings were dramatically lower than house ones from the end of March of until the May 1st re-opening. During this gloomy period, there were 193 new listings, and now since approximately May 1st, 420 new ones. Count as that as a 218% increase homes coming on the market. Admittedly, these numbers still languish compared to house ones, as 506 houses were added to the market at this time.
Line of Delineation -Weeks of April 19th – 25th & April 26th-May 2nd The number of houses coming to the market stayed in the weekly range of 102-109 prior to April 26th. Since then, the lowest number has been 154 last week and jumped to 194 for this one, a 25% increase. For condominiums and town homes until the 26th, numbers fluctuated in the range of 56 to 79. Now, as of the line of delineation, the lowest number was the weekend Georgia re-opened, 118 units. Since then, the listings have increased to 143 and now 159 for this past week.
House Market Retaining Strength – Its second highest growth in the number of listings took place this past weekend at 25.9%, after a slight dip 3.4%. That hiccup followed a 32.7% increase during the weekend of the re-opening.
Buckhead Atlanta and Midtown Atlanta Markets – They have followed the same patterns as the overall Atlanta ones.
Updated May 5, 2020 Exceptional Strength in Atlanta Housing – Week-over-week, Atlanta listings for houses increased 33% from the weeks ending April 25th to May 2nd. In the prior week, First Multiple Listing Service (FMLS) reported 153 new listings, and and then 201 this Sunday. Now, couple that with Google dramatically expanding its office-space requirements in Midtown Atlanta from 135,000 square feet to 400,000+. Smile, Atlanta has a booming real estate market.
No question about it, I am going out on an optimistic limb by predicting that the Atlanta housing market will improve a lot, once we get comfortable with relaxed social distancing guidelines.
Sources of the Atlanta Housing Market Optimism – 1. Atlanta apartment resident dwellers. Already, as of mid to late April 2020, veteran apartment brokers are seeing a fundamental change in customer demand. The small one (1) and two (2) bedroom units have declined in popularity as working from home in limited confines felt more like being confined to a virtual prison. Add to this feeling the power of social media, primarily Facebook and Instagram, in which these residents seeing the physical benefits of living in a house. House owners can enjoy both the safety of social distancing while being able to interact with their neighbors, and finding more space in their home to both work and play.
2. New York City Residents – Fox Business reported, today, that people are cotinuing a three-year trend of leaving the city. Add to the fact that many of them live in apartments and condominiums, units that are typically significantly smaller than Atlanta’s. Add to that, what CNBC reported about the sudden rise in new home sales.
3. Atlanta House Listings – Up 28% from first week of April till now. In the past three weeks, the number of houses that have gone on the market has increased by 28% from the first full week of April until this past one. During the period of April 5th, there were 132 new listings, followed by 155 and 169. Concurrently, condominiums held their own with some growth, but not a steady increase.
Thank you for reading this article. For your Atlanta commercial and residential real estate needs, please contact James Kobal at (M) 678.993.4951 and James.Kobal@CBCMetroBrokers.com, commercial realtor at Better Homes & Gardens Coldwell Banker Commerical Metro Brokers
Rising up from the ashes, Atlanta proudly displays “The Phoenix” on its flag. Scrap the original reason for the symbol, but think about the goal of the city, then and now, a world-class city. 10 years ago, commercial real estate investors looked at Atlanta as a 2nd tier market. Now, it is considered a primary and safe one.
December 9, 2019 – Around 2012 and 2013, Atlanta was viewed as a “hinterland” commercial and residential real estate market according to Bisnow panelists, and now it stands out a primary one filled with opportunities. (Updated on December 13, 2019 to reflect a great example of Atlanta’s revitalization of neighborhoods with paths in green space.)
Here we are for the reasons for the present opportunities in Atlanta: 1. College student population – 5th largest nationally. 2. Metro Atlanta – 4th largest growing metropolitan area. 3. Atlanta – #1 city for corporate relocation the past six (6) years. 4. Midtown Atlanta – 36,000 jobs being added. 5. Multi-Family market remains strong – shortage of apartments, 4% vacancy rate. 6. #1 market for supply-chain technology. 7. Credit Ratings: – Georgia, AAA – Atlanta, AA 8. Atlanta BeltLine – Never can this brainchild from just 20 years ago, be under-estimated. Tourists visit Atlanta just to see a gem that, along with the Atlanta United soccer team, provides civic pride. 9. Emergence as National City for Investments “Atlanta is definitely on the radar [for outside investment deals] according Bisnow panelists on December 5th 2019. Just look at the multi-family opportunities. 10. All of Atlanta is included in this attraction for opportunities. – Dowtown Atlanta = Now a popular location for recent transplants, and hub for tourist and local attractions. – Midtown / Intown Atlanta – – WestSide Atlanta emerging as its own revitalized neighborhood. – Peachtree corridor – You just have to smile. – O4W (Old Fourth Ward) – Parks – New large ones under development, including Bellwood Quarry and Rodney Cook at the entrance to Vine City – Buckhead Atlanta – Again, thank you to Jamestown for purchasing The Shops Buckhead Atlanta and caring about the community. – It weathered a lot of transition, and still remains the prime location for newcomers. – Can’t wait to see what it will be like at the end of 2020.
2020 Opportunities in Atlanta – Thanks to all this incredible activity in recent years, 2020 presents the following real estate investment development opportunities, according the Bisnow Atlanta conference on December 5th 2019: – Abundant capital and low interest rates. No better time than now. > Abundant talent and universities, both local and regional. – Affordable housing – both for sale and rentals. > Back to small town USA in the big metro area. – Capitalize on the number one airport in the world. Airport City College Park and major industrial parks. > Creative cutting edge amenity packages for all property types. – Do well by doing good, creating social communities. > Greater focus on the customers than the users. – Reimaging / Value add deals > Residential for sale housing products – Technology and tech disruptors > Urban trail corridors, the the new beachfront properties for the city in the forest – Wellness / Health
Thank You – Why The Cheer Leading
Thank you for your understanding in the cheer leading Atlanta bullet points. We have a story of perseverance, private-public cooperation. In the past 10 years, our city went from a secondary commercial and real estate market, to being a primary national and international one. Who could blame people for that perception. The Great Recession of 2008 hit us hard, as we felt more of the real estate downturn than most cities. Not until 2013, did we feel like we could breathe, and think about new development and expansion.
Although we felt in Atlanta that we could start breathe again in 2013 as pent up residential real estate buyer demand spurned the increase in home values, we still had that secondary market perception. In 2016, I experienced that attitude when I visited New York City, myself having grown up there and graduating from the nationally prestigious Riverdale Country School. NYC brokers dismissed Atlanta unless they had spent time in the Southeast. In 2020, perfect vision jokes aside, I look forward to meeting the same group of commercial real estate brokers, and get their perception of the opportunities Atlanta presents for them.
We went from “breathing again” to emerging as a national attraction from 2013 to 2017, and now in 2019 into 2020, a great place for real estate investments. During this time, Atlanta emerged has one of the top tourist destinations in the country. Think about how strong Atlanta must be when we have to compete here in the Southeast with Nashville, Charleston, the Georgia and Florida coasts.
For more information about Atlanta real estate investment opportunities, please contact James Kobal at Coldwell Banker Commercial Metro Brokers – (M) 678.993.4951, preferably text for first contact, and email at James.Kobal@metrobrokers.com.
Vinings and Buckhead Atlanta housing markets have not experienced the realm of “Panic kills”- activity slows to a crawl. The panic that could “kill” market activity is the relative emotional meltdown of the trade war, impeachment, etc. Fortunately, Atlanta is far more attractive than these emotional stresses, as our city ranks as one of the top places for corporate and millennial relocation. Our (1)
Vinings and Buckhead Atlanta (30305) single-family strength remained solid year-over-year. Vinings rebounded from a slow start to the month and ended it with the same number of units sold in September 2019 as 2018’s, and a big improvement from a few months ago when Buckhead appeared to show some ongoing weakness. Buckhead Atlanta grew by an astonishing 21%, AND days on the market fell 289%. That number is much stronger than you realize as luxury homes that had been the market for over 365 days closed at the beginning of the month.
The condominium market for both Vinings and Buckhead Atlanta and revealed a potential softening, overall. Vinings dropped 25% while Buckhead Atlanta only fell 7%. In Midtown Atlanta, some of that weakening appeared with sales declining 4.5% (-3), 35 to 30. Its single home sales, just a small fraction of this market, fell by 1 unit (4 to 5).
Considering all the stress and anxiety that has been placed on the country through all trade war and impeachment turmoil, I think the market is doing incredibly well, and will grow again as soon as the panic abates. Moreover, you have multitudes of people leaving California, the Northeast, Illinois for Georgia where you have favorable business conditions. This should bode well for the Atlanta housing market, provided panic and anxiety do not rise to a paralytic level.
For further assistance in your Atlanta housing and real estate investment needs, please contact me at (M) 678.993.4951 or
(1) (Please see previous posts about Atlanta’s business environment.) (Note: In no way do I advocate, condone or stand by quietly in the face of any form of inappropriate physical or emotional misconduct.)
Source: RISMEDIA – Thursday September 19, 2019 – (TNS) – In recent years, sellers have called the shots in home-buying negotiations. They’ve had plenty of leverage, too, thanks to surges in buyer demand, tight inventory and soaring home prices in many top markets around the country.
But we all know that the housing market is a cyclical one. Pricing and demand that goes up eventually goes down, and that hot summer market often cools by the time winter rears its chilly head.
If you’re needing to sell a house and can’t wait for next year’s warm-weather sales surge, you’ll need to act fast. To get to the closing table sooner rather than later, sellers may need help to adjust their expectations and approach. Here are six (6) important steps you can take now to sell your home before the new year is here.
Rely on Comps – Not Emotion – to set a realistic asking price – First things first. Experts say you’ll want to jump into the housing market with a realistic asking price that has the potential to stick. This part can be hard for sellers to wrap their heads around since many want to “test the market” with a higher sales price knowing they can drop it later. This approach, however, is a mistake, says Chicago real estate agent David Cahill. “If your home is priced too high, it can be very difficult to overcome, even when you eventually reduce the price,” he says.
This is one area where you may want your agent to lead the way. Cahill says a good real estate [- the best in Atlanta and around the globe being Berkshire Hathaway HomeServices-] will do a comparative market analysis that helps you price your home based on recent comparable sales in your area – not just hopes and dreams.
The best agents [- Berkshire Hathaway HomeServices -] will even go the extra mile to find out the prices of comparable homes with a recent or pending sale in process, he says.
You’re paying your agent for their professional advice and expertise, so when they suggest a sales price based on mountains of research, you should listen.
Ask Your gent for “first look” Feedback – Homeowners hoping to unload their properties by year’s end will need to enter the market with their best foot forward. This means having a house that is easy to sell and free of glaring problems.
Michael Kelczewski, a real estate agent in the Greater Philadelphia area, says you should not only ask for real estate agent feedback but review all their notes — both positive and critical. It’s also a good idea to have your agent gather buyers feedback from people who tour your property. (Note: Maker sure they are serious buyers. You do not want feedback on a steak house from a vegetarian.)
Your real estate agent – Berkshire Hathaway HomeServices – may be able to point out defects you’ve overlooked like forgotten windows with cracked seals or the fact that your teenager has heavy metal posters plastered wall to wall. Or perhaps they’ll remind you that most people want to park in their garage instead of using it to store boxes of photos and old clothing.
Consider agent feedback carefully and implement their suggested changes to potentially avoid losing out on a sale due to minor issues.
Clean, Organize and Declutter – It’s possible your agent will advise you to take down family photos and clear out your closets right away, but you should make time for a major cleanup, independent of your Berkshire Hathaway’s agent input.
Cahill says you should “do everything within your budget to ensure your home gives a great first impression.” For example, give your front door a fresh coat of paint, trim back overgrown shrubs and keep your lawn in tip-top shape.
While your home is on the market, the interior should also be clean and ready for a last-minute showing at all times. Cahill says you should start by removing clutter, getting rid of any oversized furniture and taking down busy decorations.
“Rent a storage unit if you need more space,” he says.
Stay on top of cleanliness by taking time to wipe down counters, sweep floors and touch up bathrooms every day. Nobody wants to buy a dirty house.
4. Consider Hiring a Professional Stager – If you have the cleaning part down pat but need help making your home visually appealing, you can also consider hiring a professional stager, Cahill says. Home stagers have furniture, art and decor – an important consideration for anyone, but especially if your home feels especially dated.
Does staging work? Most experts would say it does. In fact, a recent study from the National Association of REALTORS(R) showed that 83 percent of buyer’s agents said staging helps helps their clients envision living in that specific home. Also, 28 percent of seller’s agents said they’ve staged all of selling clients’ homes before putting them on the market. However, 13 percent reported staging homes only if those properties were difficult to sell otherwise.
5. Spring for Professional Photos and Video – Where potential buyers perused the local newspaper for new-home listings decades ago, pretty much all home marketing is done online now – either through multiple listing services (MLSs), real estate websites, email marketing or a combination of all these avenues.
Susan Bozinovic, a REALTOR (R) in Troy Michigan, says this is why quality pictures are crucial if you hope to achieve a quick sale. Hire a photographer to take high-quality pictures and consider having your real estate agent’s office create a marketing video, she says.
Drone photography might be an important factor to sell a sprawling property with land or a ton of outdoor features, she adds.
Bozinovic also emphasizes the importance of social media marketing – especially on Facebook.
“I found that running ads on the Facebook platform is superior to any other social media space because the audience can be targeted very specifically.” (Note: Facebook removed demographic targeting due to fair housing laws.) LinkedIn is better: 1. Hashtags make your listing easier to find, 2. LinkedIn is not cluttered with garbage. 3. Your posts appear in real time.
If you’re hoping to spread the news of your home for sale far and wide, it may also help to work with a real estate agent who has knowledge of social media marketing to get more eyeballs on your virtual listing.
6. Get an Optional Pre-Sale Home Inspection Never assume your home is in perfect physical condition; take time to make sure. Paying for a home inspection upfront is typically a safe bet. With prior knowledge of issues like missing shingles on your roof or faulty electrical work, for example, you can buy time to fix these problems before they become a problem.
Cahill also says that hiring a home inspector to conduct a thorough inspection before you list your home may “inspire greater confidence in your home’s condition among potential buyers.”
This is even true though most savvy buyers will likely hire their own inspector.
Also note that, if you take time to fix big problems discovered in an inspection before a sale is underway, the negotiation process could be “short and sweet,” Cahill says.
Bottom Line A speedy home sale could be in your future if you take steps to avoid common problems that turn off potential buyers. This includes making sure your home is beautiful and clean, but also means uncovering major defects or repairs needs before someone else does.
There’s still plenty of time to get to the closing table before the end of the year. Working with an experienced REALTOR (R) who knows the local market trends, and can help you set a realistic price are key pieces to the puzzle.
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