Real Estate 2011 Recap

The Good news for all, is great news! Peachtree Corners had a historic year regardless of the real estate market. I’m excited to follow as the City of Peachtree Corners evolves and we all see the impact on our values. had great news as well. FEMA agreed to cover the major cost of Berkeley Lake dam issues which was a boost to values. More good news, inventory is declining. This has to translate to improved values as long as inventory continues to decline.

The Bad news is that home values are continuing to drop each month. Inman news reported that home prices fell from September to October, in 19 of 20 markets tracked by the S&P/Case-Shiller 20-City Composite Home Price Index, with prices in Atlanta and Las Vegas hitting new lows and Midwest markets including Detroit, Minneapolis and Chicago also showing weakness. Cumulatively, the 20-City Composite was down 1.2 percent from September to October and 3.4 percent from a year ago.

In Peachtree Corners, using schools, and , as search criteria , there are 92 active listings. Based on the past performance of homes on the market in Metro Atlanta only 17 percent of these homes are priced right for the market and will sell. The remaining homes will go through at least one price reduction before selling,and some will decide not to sell at the current market value.  

There are 14 pending sales which is somewhat misleading, as some of these are lease purchase and so will be pending until they can close. There are three homes pending lender approval which means they are potential short sales and now must go through lender scrutiny to be approved as a short sale. These are some of the homes that make up the shadow inventory.

According to nationwide statistics, reported by Core Logic, for every two homes that sell, there is one in the shadows. That means we have homes that are distressed properties lurking in the background and this shadow inventory will become the  short sales or foreclosures of the future unless homeowners are able to resolve mortgage issues with their lender.

For you who are still wondering what a short sale is, this is a term for the lender agreeing to take a payoff on a loan that is less than the amount that is owed on the loan.

According to data from First Multiple Listing Service (FMLS) 139 homes sold in the Peachtree Corners area in 2011. In 2010, 125 homes were sold. More homes sold, but prices are down.

In Berkeley Lake there are 15 homes on the market. There were 22 homes that sold in 2011. The average price was $457,059.  Berkeley Lake had 16 homes sold in 2007 with an average price of $499,087. That is a drop in price of 32 percent.

The charts don’t always tell the whole story. There were very few sales in January 2011 but one was a $1 million-plus home that brought the average for the month to $456,720. We closed out the year with $221,062 average for December. The average monthly sales price was $323,236 for the year.

The Ugly is the number of potential foreclosures hiding in the shadows. To represent this number in ZIP code 30092 there are 124 single family and condo/attached homes scheduled for foreclosure. About 50 percent are single family homes.

In Berkeley Lake there are 10 homes scheduled for foreclosure. These all apprear to be single family homes. Some of these homes are scheduled for auction in the future, and the homeowner may make up deficient payments before scheduled date, or they may sell as a short sale. Many have already been foreclosed on and will be on the market or are on the market.  

There are many people who are struggling and through no fault of their own are now facing foreclosure. This has an impact on everyone in the market area, these are the homes that are used for comparison by appraisers. Leaders in the real estate industry predict that in the year 2012, 50 percent of our inventory will be distressed property.

I have used ZIP codes and school districts to define the general area of Peachtree Corners for this report and in the past. Now that we have real city boundaries, future reporting will consist of the City of Peachtree Corners. As always this information is believed correct but is not warranted.

One Open House is reported this Sunday January 8th at 4924 Millers Trace from 2:00 to 4:00. Millers Trace is off Scott Mill Run. The home is priced at $189,000.