North Fulton home sales for August and September

Posted by Jeff Aughey on Monday, October 9th, 2006 at 9:44am.

National Trends: The National Association of Realtors report on existing home sales for August 2006 showed that that the median home price was $225,000, which is down 1.7% from a year earlier. This was the first year over year drop in ten years. To give some perspective, consider that in 2004 the median price was up 9.3% and in 2005 it went up 12.4%. Slowing sales has lead to an increase in the supply of homes. The August report showed 3.9 million homes on the market which represents a 38% increase from a year earlier. At the current sales pace this represents a 7.5 month supply of homes, up from a 4.7 month supply in August of 2005. Alpharetta Trends: Locally, total sales for August 2006 were down 18.8% compared to August 2005. The lower range (under $275,000) and mid range ($275,000-$600,000) of the market dropped 23.1% and 18.3% respectively. The best news was in the higher end (over $600,000) which sale saws drop only 4% from August 2005. Be careful not to misinterpret the sales figures for the over $600,000 market. While total sales were only down slightly, the supply of homes is up 23% from August 2005 to 13.1 months. The top end of the market is the toughest in which to sell a home. Total August sales and inventory figures showed that Alpharetta had a 5.8 month supply of homes for sale which is a 38% increase from August 2005. The lower range had a 3.2 month supply, mid range was 5.6 months and as mentioned above, the high end had a 13.1 month supply. Interest rates have continued to drop from their recent peak in the third week in July to roughly 6.0% for a 30 year fixed rate as of the beginning of October. Lower rates and a continued good economy may help make the home sales slump reverse course or at least level off. September sales figures in Alpharetta showed some improvement as compared to September of last year in some of our price ranges. Total sales for September 2006 were down only 2.3% compared to September 2005. The mid range ($275,000-$600,000) and upper range (over $600,000) of the market performed the best with a 13.3% and 38.9% increase in sales respectively. The lower end (under $275,000) remained sluggish with sales down 35.9% from September of last year. Total September sales and inventory figures showed that Alpharetta had a 6.3 month supply of homes for sale which is a 26% increase from September 2005. The lower range had a 4.5 month supply, mid range was 5.2 months and the high end had a 13.9 month supply. So basically what does this jumble of numbers mean? Inventory is up a bit and sales are off a bit from the levels of last year. There is no nightmare scenario going on in Alpharetta’s housing market. The market is generally good with the one exception being the higher end of the market which still has a bloated supply of homes. My advice is to ignore the negative drumbeat from the national media. The metro Atlanta market is superior as compared to most markets in the country. So go ahead with your plans to buy or sell and feel confident. As always, feel free to call me if you want to discuss the market. All the best, Jeff 770-329-4495

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