Alpharetta home sales for June and July

Posted by Jeff Aughey on Sunday, August 6th, 2006 at 9:41am.

First we will take a quick look at the national market and then study our Alpharetta real estate market more closely to determine if we are tracking the national trends. The June housing report from the National Association of Realtors showed that nationally the housing market has turned in the buyer’s favor. The supply of homes for sale increased to the point that prices should remain relatively flat and homes will take longer to sell. This is the third straight month of declining home sales. June had nine percent lower sales than last year’s level. The weakness was felt in all four regions of the country. The largest drop was found in the Northeast followed by the second largest drop in the South. Homes sales in the South slid 2.3% from May’s level and 5.5% from last year. The median home price increased by less than one percent to $231,000 from last year. This represents the smallest year to year gain since May of 1995. National inventory has increased 39% from a year ago which works out to a 6.8 month supply at the current sales levels. Now let’s take a closer look at the market on the east side of GA 400 in Alpharetta. There is both good and bad news for the Alpharetta housing market for June 2006. Generally the lower and higher ends of the market held up better than the middle, which took a big hit. Overall the June 2006 figures as compared to June 2005 are as follows: For all prices, the total number of sales went down 14%. However this was offset by the total inventory level which was down 6% from June of 2005. There is currently a 4.15 month supply of homes at the current sales pace which is an increase of only 4.5% from June 2005. Upon a more detailed examination of the market, the lower end and the higher end did better in comparison to the mid range of $275,000 – $600,000. Homes priced under $275,000 had total sales drop 13% but the supply of homes decreased to a very low level of 2.19 months supply. This represents a 29% drop in supply (which is favorable for sellers) compared to last June. The higher end of the market, from $600,000 and up, saw a 27% increase in total sales over June 2005. This decreased the supply of homes from the June 2005 level of a 9.63 month supply to the June 2006 level of a 7.97 month supply. This is a 17% drop and means a seller’s home would sell faster this June than June of last year. The slow down is most prevalent in the mid range of the market, $275,000 - $600,000. Total home sales dropped 24% comparing June 2006 levels to June 2005. There was also a substantial increase in the supply to 4.30 months which represent a 41% increase over June of 2005. The June 2006 housing market cooled here in Alpharetta as it has across the country but the real story will be what happens from here on. July was similar to June’s figures with the one exception being the lower end of the market slowing down considerably. The total number of homes sold in July 2006 was down 3.0% from last month and 24.7% from July 2005. The total supply of homes at the current sales pace has increased by around 9.2% compared to June 2006. The supply of homes under $275,000 at the current rate of sales increased by 23.7% over June 2006 due in large part to a 15.7% drop in total homes sales. Even though this was a big change from last month, this is still the best price range in which to sell a home, with a 2.7 month supply of homes at the current sales pace. The range from $275,000 - $600,000 saw July sales increase slightly by 2.8% from June 2006 levels and 1.8% above July 2005. The supply of homes increased 4.0% over June 2006 to 4.47 months and up 18.9% from July 2005. Homes with sales prices above $600,000 did a better with sales up 7.9% over June 2006 and up a whopping 70.8% over July of 2005. The supply of homes at the current sales pace remained almost unchanged from June 2006 figures but down sharply by 31.3% over July 2005. Total supply at this price range is now 7.9 months. I will be keeping a close eye on the trends and make it a frequent topic for the blog. I have learned over my 18 years in this business not to panic over a change in market conditions. We have had a fantastic market lately so a bit of cooling should not come as a surprise. If you are a seller it will be more important than ever to price your home correctly and have your home in top condition if you expect to sell happily in this market. If you are a buyer the market trends are swinging in your favor, so take your time and find the home you really want from the increased inventory. All the best! Jeff

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