Housing Market Slowly Turns Positive

The latest figures form the National Association of Realtors indicate that existing-home sales rose year over year for the fourth straight month in October.

Sales of single-family homes, townhomes, condominiums and co-ops increased 13.5 percent last month to a seasonally adjusted annual rate of 4.97 million. Existing-home sales have been rising by double digits on an annual basis since July.

The South also saw a double-digit annual increase in sales last month: up 14.1 percent to 1.94 million. Sales rose 2.1 percent from the previous month. The region’s median price fell 1.6 percent year over year to $145,700 and months of supply is at a low of only eight months.

While some view the market as being somewhat stuck, I feel the sales volume is a key to establishing a healthy market. In my opinion, we still have more foreclosures to absorb before we can truly return to normalcy in the market.  Having greater demand that is evident by increased sales activity is essential to reaching that goal.

I also believe the macro numbers are much too general to apply to any one region of the country or even to a city as a whole. For example, there are many areas in Atlanta showing more positive signs of activity while others still have dilapidated, older, functionally obsolete homes that are still struggling from the excess supply.

A positive note is that investors and cash buyers make up 30% of the market today. They are the buyers that are required to come in and buy the homes that need major renovations to make them functional so that a typical owner occupant can acquire and finance them to live in as their principal residence.

For more Atlanta and Georgia real estate market information or to hear how EpiCity can help with your investment real estate needs, call EpiCity at 770-457-2300.

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