The listing headcount remains down. The listing headcount peak occurred in late 2011; back then, listings headcount was at an all time high in metro Atlanta.
Prices were at all time lows when list to sales price ratios were at 70% or so – that was early 2009. That means that sales prices were roughly 30% off of list on average. Prices began to stabilize as buyer vs. seller negotiations grew closer and closer to today’s tidier numbers. Demand has been steady, and by early 2012, inventories starting dropping through late 2013.
After that 2011 peak, the listings headcount trended downward until last Summer. We fell below 6 months supply - that’s what I call the listings headcount, back in March 2012. That drop to 6 months supply heralded the seller’s market we have been in since then. Listings headcount is down on average, across the broader Intown market.
This chart reveals that Q1 2014 ended with 4.2 months of supply, and here in May, it starting to feel like 7 months supply. That’s a more balanced, negotiator’s market.
What “supply” means is that if we sold off the current listings headcount, it would take 4.2 to do so, based on current demand. Based on absorption of the current inventory.
I intend to explore some phenomenally different Intown Atlanta submarkets in my next few posts:
* The below $100,000 market - the buyer’s market is back, especially in the Intown emerging residential submarkets
* The balanced market is here to stay for a while in the $200-$500K market
* the $500-$1M market and the distinctions in quality and finishes
* the $1M+ market and the appeal of the amenity rich condo market
The listings headcount in Intown Atlanta is down. And the challenge for buyers is evident – beggars can’t be choosers. Suckers walk and money talks. Etc.
The listings headcount in Intown Atlanta is down. And the challenge for sellers is evident – price to sell, instead of price to negotiate. Wiggle room attracts wiggly offers. How about 2 or 3 “put up or shut up” offers vs. no offers for week, after week, after week?
It is indeed a very good time to sell a house, as long as you know your local numbers and as long as you keep a realistic sense of price, terms and conditions.
It is indeed a good time to buy a house, as long as you don’t buy the most expensive house on the street !