Smart Numbers hosted their 2nd Housing Market Summit for Atlanta today at the Cobb Galleria. About 200 developers, builders, brokers, bankers, and service providers attended the 2 hour presentation. Senator Johnny Isakson made an appearance via video and stated that the Tax Incentive to Buy Homes would not be renewed and be sure to tell the public to take advantage now.
Key Points from the Atlanta Housing Market Summit:
- Internet is THE place to market homes, print is dying (already dead in most cases)
- First Time Homebuyers have been returning due to prices resetting
- Avg Sales Price for 1st Time Buyers is $207,000 (right where it should be based on Atlanta’s historical trends)
- Couples with No Children at Home is the largest growing Buyer Demo (most are aged 55 and over)
- Buyers 55+ Do Not want to be labeled as ‘Active Adult’, just build product for them without making it exclusive/restrictive to age
- Percentage of Buyer’s who use agents in a transaction is on the rise. A good agent helps everyone in the process.
- Atlanta is a Spec Home market (not pre-sales) and the spec homes are almost gone. New Homes will be built.
- $150,000 to $250,000 is the sweet spot for Atlanta Real Estate, expect more new construction in this range.
- Price is more important than square footage. Expect floor plans to shrink. Why do we need 2 or 3 extra bedrooms anyway?
- Historically, 80% of all homes sold in Atlanta were New Construction. Those percentages fell to 50% in 2008, now back 63% and trending up towards 80% again.
- $1 Million+ Homes are only 0.5%+/- of the Atlanta Market. Don’t build them anywhere except North Fulton.
- Post Closing Blind-Surveys are MUCH BETTER than Prospect Cards for authentic feedback on gauging advertising methods
- 75% of all sales in Metro Atlanta are below $250,000
- Foreclsoure of lots allows for a resetting of the market. Builders will seize opportunity to finish foreclosed neighborhoods in 2010.
- Product, Price, and Place are the keys to new homes success. Promotion is the 4th component and is pointless if the first 3 are wrong.
- Refinance now, as interest rates are going up
- Americans will pay for the bailouts via Inflation and/or Increased Taxes (unless Tiger Woods can save us, but he needs to save himself first)
- Best Part: they played Journey ‘Don’t Stop Believing‘, it fired me up! (and I couldn’t resist the chance to embed a Journey plus X-Men video into a real estate blog post)
If you have any questions about these Key Points, or just want to discuss the market as it pertains to your specific situation, please call Brad Nix at 678-683-9290 or send an email to bnix@maxsell.net
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