The North Fulton Blog

As we approach the start of May 2012, many of us in the real estate industry in the Atlanta Metro area believe we're starting to see signs of a real estate recovery!  That's truly an amazing statement to make.  For so many months and the past few years, it's always been doom and gloom and home values trending down towards a bottom that no one knew when or if we had hit.  I am cautiously optimistic that we have turned the corner.  That does not mean that the foreclosures and short sales are all gone.  On the contrary, we're bracing for a reported flood of new foreclosures.  And, finally, the banks have realized that a short sale is a win, win, win for all concerned.  A buyer gets a good deal on the purchase of a home, the seller gets to avoid a foreclosure and have the opportunity to get on with their life and the banks are coming away with a deal that nets them 20-40% more than if they foreclosed. 

So what are these signs that we're starting to see?  It seems more homeowners are putting their homes on the market and they're really selling.  That doesn't mean that all sellers are going to make a ton of money on their sale.  They're probably just not going to lose as much as they once would.  I think it's too early in this trend to measure any appreciation we're starting to see. 

At my Open House yesterday, I actually had 6 couples come visit my home in The Manor with the intent of buying this year.  They're prepared to spend between $700-900,000 to make their purchase.  And I'm seeing this in many price ranges, not just this one.  Buyers are out looking at homes, both new and resales.  The low mortgage rates continue to fuel this buyer interest.  Signs that unemployment might be abating and the economy is expanding  are all adding to this cautious optimism.

Some areas and some price ranges are starting to experience shrinking inventory levels.  Purchasers are seeing multiple offers and price bidding in some areas.  This could be a double edged sword, however.  The smaller inventories will help support rising prices.  But we don't want the price increases to be so rapid and large that they are unsustainable, similar to what we experienced a few years ago.  Incremental appreciation in the 1-2% range would be a nice level to nudge this recovery along. 

So, I'm optimistic that the recovery for the housing industry is under way.  We have a long way to go, but getting started is the first step.  I hope I'm not looking from the Bottom up anymore.  I much prefer the view from the top down.  Don't you?