The North Fulton real estate market needs sellers.
Despite the market finally showing progress, the demand in North Fulton is exceeding supply. With inventory levels down 26.4 percent compared with May 2011, quality homes don’t stay on the market long.
“The houses that are priced at market value or just below are going, and going fast,” said Stephanie Butler, founding partner of the Butler/Swayne Team of Prudential Georgia Realty.
The North Fulton area, composed of Alpharetta, Johns Creek, Milton and Roswell, stayed afloat after the housing crash due in large part to the lure of its quality of life and schools in the area. And it’s these things that are still driving traffic to these areas now, several real estate agents who work the area said.
Although a shortage of inventory can be perceived as a good thing, as in there are buyers that are ready to own a home, it also creates unforeseen issues for sellers.
When sellers are aware that homes like theirs are in high demand, they may assume that they can put their home on the market in any condition, at any price, and it will sell, the experts said. This, unfortunately for them, is far from true.
“My team and I have a saying,” she said. “List it right and hold tight. If your original list price is correct, you’ll get a higher percent of the sales price because it will sell faster.”
Although the inventory shortage is driving the market, sellers must be willing to make their home marketable and price it correctly to make the sale. Total sales are approximately the same as they were last year, according to data from Trendgraphix Inc.
Rhonda Haran, North Atlanta Office, REALTOR®
The largest shortage of inventory, said Rhonda Haran, a broker with Atlanta Fine Homes Sotheby’s International Realty , is in homes in the $600,000 to $800,000 range. Although prices in the area aren’t much higher than May 2011, prices of individual homes are increasing due to multiple offers driven by the shortage of inventory. That’s one of the most promising things Butler has seen in the market.
“This is the first time in seven years that we’ve seen multiple offers on $500,000 homes and up,” she said. “Multiple offers were rare even before the crash.”
In addition to multiple offers, agents are again selling million-dollar homes.
Haran just recently handled the sale of a $2.2 million home called Mariposa in Milton, which remained on the market for just three weeks.
“We’re seeing builders come back into the market again,” Haran said. “The general consensus is that we’ve finally turned the curve after five years of a depressed market.”
Butler of Prudential Realty is also seeing an increase in sales of luxury homes. Two weeks ago she closed on her first million-dollar sale this year.
In general, the North Fulton market’s foreclosure rate is lower than surrounding areas. In addition, homes that do come on the market as foreclosures don’t remain on the market due to the demand in the area.
“They get gobbled up so quickly,” Butler said. “The REO agents price them so well and there’s such a need for these homes at a great price.”
The majority of homes in the region that are in good shape and have been foreclosed upon have been bought, according to the agents.
The foreclosed properties that remain are often in poor condition, requiring more work than many buyers want to do. In essence, the majority of desirable foreclosures have been absorbed into the market.
Short sale rates, on the other hand, are up from last year, and drastically up from before the market crashed.
ChartMaster Services LLC data shows the Johns Creek area has seen a 16.8 percent rise in short sales from last year. These rates are suppressing prices of non-distressed sales, the agents said.
In today’s market, said Butler, “It’s a beauty contest and a pricing war.”
