As we head into Fall 2012, we are seeing the typical slow down as we traditionally expect in the fall for both sales and rentals.
Atlanta Area Homes Sale
Since this is an election year, we expect that people are in a holding pattern until the election results are in before people make a purchasing decision. Due to the effects of the “robo-signing” for foreclosures, there was a significant drop off in the foreclosure market. However, a couple of weeks ago, all the fall out has been completed and we expect to see a huge increase in foreclosure filings. August saw 19% increase in advertised foreclosures from July to August. So this will also impact the available home inventory. Currently the home inventory is pretty low, approximately 45,000 active homes on the market today. It will take time for the advertised foreclosure homes to be foreclosed and be introduced into the market. One reputable source estimates that we will see 10,000 advertised Atlanta foreclosures by the end of 2012.
Here are some 2012 Atlanta Real Estate Trends:
We are seeing a huge increase of buyers paying cash for homes. Most of these purchases are real estate investors, but there are several home owner occupied buyers as well.
Banks are listing properties below market value, creating a frenzy, then pitting buyers against each other for highest and best. So in essence, the banks are creating a reverse auction. While this is netting higher returns for the banks, it is creating confusion, frustration and insecurity among buyers.
Another strategy that banks are using is fixing up the foreclosed homes and getting them in buying condition. This leaves real estate investors less inventory that they can purchase, rehab, & make money on. Since traditionally foreclosed homes were not able to qualify for FHA financing, the only ones who would be able to purchase were investors who would then fix them up for profit and then sell them to traditional home buyers.
Banks are not filing the Deeds Under Power. So what does that mean? It means that it is taking a much longer time to close. While we started seeing this trend late last year, it is becoming more prevalent. You can read more about this & the impact it has at New Registration Law.
So what do we have to look forward to in 4th quarter 2012 & into 2013? We believe it will be more of the same until we get some consumer confidence. Want to know what is going on in the Atlanta Rental Market? Click here for information on Atlanta Area Homes for Rent.