The $187 Billion rescue of Freddie Mac and Fannie Mae. Saved the North American real estate market. Kept rates from going up. Intown Atlanta buyers got bargains through 2012.
And Freddie reported a $5B gain last quarter…
Now the time has come to dismantle these quasi-governmental gargantuans. And rates are going to go up. And, Intown Atlanta buyers will feel the pinch.
Just sabre rattling before the chopping block, I think. I expect the chopping to happen on Obama’s lame duck watch circa the winter of 2015.
And once sufficiently rebooted in a few years, there will be a direct effect on the purchasing power of Intown Atlanta buyers. When rates go up, Intown Atlanta buyers will lose some of their current stretchability.
And, when rates go up on Intown Atlanta buyers, some Intown Atlanta sellers will inevitably have a “shoulda woulda coulda” moment – they will recall the heady days of Spring 2013 – the fastest market ever in my experience.
Intown Atlanta buyers, based on my recent charts, snapped up over 51% of all properties sold at the rate of 11 days on market.
At the same time, May’s 700 or so sales topped June’s 600 or so sales by a long shot.
Is this a trend? Lets watch for it…July sure felt like a slowing trend was in place. August certainly showed slower numbers at my office, and we are the #1 brokerage office in greater Decatur and eastside Atlanta.
I’ll wrap this up with a mention of the fact that the new Intown stats for the second quarter came out this week and our market is in one word “fervent.” Really fast in all price categories and here is a general glance at the MLS market areas we analyze and call “Intown” – 21, 22, 23, 24, 32, 51, 52, 53, 71, 132:
21 is Buckhead, including Collier Hills
22 is the Westside – a low median price submarket
23 is Intown Atlanta, including Morningside
24 is greater East Atlanta
32 is Grant Park and the Turner Field side of south Atlanta
51 is Brookhaven and Chamblee
52 is greater Decatur
53 is southeastern Atlanta outside the city limits – a low median price submarket
71 is Vinings and 132 is the southside of Sandy Springs, ITP – two higher dollar submarkets
That’s Intown. I sense that sellers are now in a position to be even more certain about our market, since we have seen some high highs and low lows in just the last decade.
The fact is, overpricing is creeping upward and that doesn’t even matter if the property is awesome enough to an Intown Atlanta buyer.
The dismantling of the current infrastructure that holds up our Intown Atlanta real estate submarket is not something that we have any control over, and it’s a good thing that Fannie and Freddie are going away.
I’ll share more April-June 2013 charts in the coming weeks!
If you want more detailed, insider information on different submarkets by zip code, then check out my Market Insider page!