Real Estate Trends for Alpharetta & Johns Creek

Posted by Van Purser on Saturday, March 23rd, 2013 at 9:32am.

What a difference a year makes. Last year this time no one expected the reversal in housing that we are currently experiencing. A year ago investors and all cash transactions made up over 40% of home sales. We have seen that reduced to approximately half of that. Additionally the flow of foreclosures into the market has been significantly reduced by fewer mortgage defaults, and the presence of Private Equity Groups purchasing in volume. Add to this many would be sellers are still underwater on their loans and are choosing to stay put while prices continue to rise. The result is decreased supply, multiple offers on homes, and increasing prices.

Normally we do not move so quickly from a Buyers’ Market to a Sellers’ Market, but the current conditions have brought this about very quickly. At the core of this has to be the role that Private Equity Groups are playing in the market. Blackstone currently owns approximately 20,000 homes that are being rented; anticipating a rise in prices from the prices they have paid over the last several years. Add to this what seems to a frenzy to buy, and not be left behind, and you have what we are experiencing today.

At no time in the last 32 years have I seen anything quite like this. However it seems that it may be here to stay; provided interest rates remain low, and the investors that have purchased heavily over the last several years do not default on their loans due to increased competition in the rental market.

As for sellers, let’s just enjoy it while it last. As for buyers, buy an become a part of what sellers are currently enjoying, RAPID APPRECIATION. For who know what tomorrow may bring.

Below are Inventory Levels for Alpharetta and Johns Creek for the last six months, as well as Sales Price changes over the same time frame.

3-2013-6_month_inventory_levels_766

3-2013-6_month_avg_sales_price_759

Van Purser is a licensed real estate broker in Georgia. Since1981 he has successfully purchased and renovated over 400 homes. His expertise is in the area of foreclosures, rehabs and fixer uppers. Additionally, he has represented hundreds of clients over the years as a broker with Metro Brokers, RE/Max and now with his own firm. He and his wife, Jeanne, who is also a broker, have been married since 1977. For follow up on this article you may email Van at VanPurser@VanPurser.com

Van Purser and his wife Jeanne are a licensed Real Estate Brokers in Georgia.  Since1984 they successfully purchased and renovated over 400 homes.  Their expertise is in representing Buyers or Sellers as an advocate; which means always ensuring their best interest.  Additionally, they represented hundreds of clients over the years as an Associate Broker with Metro Brokers, RE/Max and now with his own firm.  He and his wife, Jeanne, have been married since 1977.   Van or Jeanne can be reached at 770-623-3313, or by email at vanpurser@vanpurser.com or jeanne@vanpurser.com

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