Properly priced homes still command attention despite the ongoing Atlanta area housing market adjustment. The data into the 3rd Qtr of 2022 will show the pull back and move toward a balanced market, but as with everything real estate related, the devil is in the details. At the macro level, buyer activity slowed, days on market increased, months of inventory increased and the general balance of power is moving from sellers to a neutral position. On a granular level however, how homes are presented for sale makes all the difference.
Price & Appeal are Key
No market likes uncertainty, particularly real estate. As rates rose, the initial response of buyers was to sit on their hands, as the shock subsided they returned. However, they return to a market that’s moving in their favor. While rates are up, competition is down. Buyers can breathe a bit and be more selective. What attracts home buyers?
Homes realistically priced continue to get attention. We still see those first two weeks as the busiest time. If properly priced, buyers will look, and when buyers see other buyers…competition develops. Sellers that generate traffic, generate competition, and usually generate multiple offers. Overpriced homes do not sell, that's not breaking news.
Homes that are move in ready, updated, and appealing will stand out as the market shifts. There are fewer and more discerning buyers but those homes that grab attention and interest tend to still move quickly. Listings that are effectively marketed to the target audience will be seen. Buyers continue to place a high priority on homes that are ready to go, few want to deal with contractors and major work.
Sellers Chasing the Market
Sellers chasing the market are trying to catch a falling knife, it won’t end well. Buyers are more discerning; overpriced homes are ignored and while a poorly presented home might have garnered attention earlier in the year, those days are done. We see it in the data, sellers not acknowledging the market are the ones forced to drop price, relist or simply remove their home as it won’t sell. Altos Research allows us to track all types of market indicators, a sample look around the area as of 9/1/22 is below. The first number is the percentage of homes with price decreases, the second is percentage of homes relisted.
- Alpharetta 43% 19%
- Canton 46% 20%
- Cumming 52% 25%
- Johns Creek 56% 21%
- Kennesaw 48% 23%
- Marietta 49% 24%
- Milton 27% 19%
- Roswell 51% 18%
- Sandy Springs 56% 23%
- Woodstock 55% 25%
Each of those percentages continue to increase since May '22. All but Milton are near or over a 50% reduction rate, how can you miss pricing a home that badly? 20% - 25% of homes are being relisted? Come on.
Selling a Home During a Shift
The last six quarters (’21 early ’22) were an anomaly, an unsustainable market fueled by several influences. Now we enter the withdrawal period which will likely last several quarters, the final result should be a return to the largely mundane and predictable markets of ’13-’19. Home sellers will be impacted most; the power enjoyed during the run is largely over, sellers must adjust and adapt to the change. This is not done; it is certain that the rest of 2022 and probably most of 2023 will be a bit turbulent. Sellers that work with pros and adjust to the changes will be successful, those that don’t will add to the stats above. Don’t add to the stats.
The Hank Miller Team puts 30+ years of full time sales & appraisal experience to work for you. Act with complete confidence & make sound, decisive real estate decisions. 678-428-8276 and email@example.com Posted by Hank Miller on