National Housing Trends
34% America s Choice of Best Long Term Investment 26% 17% 15% 6% Real Estate Stocks / Mutual Funds Gold Savings Accounts / CDs Bonds Gallup 2018
Total Existing Home Sales in thousands 5,367 5,560 5,240 5,441 5,350 5,350 MBA FannieMae NAR
Housing Affordability 197 Index 1990 to Today 186 176 172 169 163.5 165.7 167 158 145.8 108 110 122 131 128 125 126 127 133 131 122 128 126 131 124 113 108 115 138 Years when distressed properties dominated the market National Association of Realtors
1,400 1,200 1,000 800 600 Overbuilt during Housing Boom Residential New Construction The market needs more new homes! Underbuilt Housing need since the Bust 400 200 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Census Bureau
U.S. Northeast Midwest South West -2.6% -7.0% -4.3% -5.6% EXISTING Home Sales Y-O-Y by region -15.4% NAR 1/2019
4.5% 1.5% -0.3% -4.8% -3.7% -12.2% % Change in Sales from last year by Price Range $0-100K $100-250K $250-500K $500-750K $750K-1M $1M+ % -12.2% -4.8% 1.5% -0.3% 4.5% -3.7% NAR 1/2019
Increase in Home Values 2005-2018 nar.realtor
Year-Over-Year Change in Price CoreLogic
Case Shiller Month-Over-Month Price Changes Metropolitan Area Monthly Change Atlanta.17% Boston.1% Charlotte.3% Chicago -.3% Cleveland -.5% Dallas 0% Denver -.3% Detroit 0% Las Vegas.3% Los Angeles.1% Miami.1% Metropolitan Area3 Monthly Change Minneapolis -.1% New York.4% Phoenix.7% Portland -.6% San Diego -.1% San Francisco -.7% Seattle -1.1% Tampa 0% Washington, D.C. 0% All 20 Metros 0% U.S. National.1%
What Will Home Prices Do in 2019? projections of 100 economists, market analysts, and real estate experts BY PERCENTAGE BY RAW NUMBERS 4% 2% 94 94% 4 2 Appreciate Depreciate No Change Appreciate Depreciate No Change
Projected Home Price % Appreciation Going Forward Source 2018 2019 2020 2021 2022 HPES +5.8 +3.8 +2.5 +2.5 +3.3 Zelman & Assoc. +4.7 +3.5 +3.2 N/A N/A MBA +6.3 +4.5 +3 +1.9 N/A Freddie Mac +5.1 +4.3 +2.9 N/A N/A NAR +4.7 +3.8 +3 N/A N/A Fannie Mae +5.4 +2.5 +2.8 N/A N/A
Forecasted Year-Over-Year % Change in Price CoreLogic
Average Days on the Market NAR
Seller Traffic NAR
Buyer Traffic NAR
Foot Traffic indicator of future sales 2017 2018 January February March April May June July August September October November December NAR 11/2018
Historic Mortgage Rates by Decade Decade Average Rate 1970s 8.86% 1980s 12.7% 1990s 8.12% 2000s 6.29% Freddie Mac
Mortgage Rate Projections Quarter Freddie Mac Fannie Mae MBA NAR Average of All Four 2019 1Q 4.9 4.8 4.8 4.7 4.80 2019 2Q 5.0 4.8 4.9 4.8 4.88 2019 3Q 5.2 4.8 5.0 4.9 4.98 2019 4Q 5.3 4.8 5.0 5.0 5.03 1/2019
Mortgage Rates Freddie Mac 30-Year Fixed Rate 2015 2016 2017 2018 2019 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 - Actual - Projected Rate 3.7 3.8 4.0 3.9 3.7 3.6 3.5 3.8 4.2 4.0 3.9 3.9 4.3 4.6 4.6 4.8 4.9 5 5.2 5.3 2018 Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3 2019 Q4 Freddie Mac
Increasing Mortgage Rates Make A Significant Difference In Home Affordability Amount Of Mortgage 3.5% Mortgage 30-Year Cost 5% Mortgage 30-Year Cost 8% Mortgage 30-Year Cost $200,000 $898 $323,280 $1,073 $386,280 $1,467 $528,120 $300,000 $1,347 $484,920 $1,610 $579,600 $2,201 $792,360 $400,000 $1,796 $646,560 $2,147 $772,920 $2,935 $1,056,600 $500,000 $2,245 $808,200 $2,684 $966,240 $3,668 $1,320,480 $1 million $4,490 $1,616,400 $5,368 $1,932,480 $7,337 $2,641,320
Greater Metro Atlanta Market January 2019 Report With Results Through December 2018
Metro Atlanta Homes Sold 140000 120000 100000 80000 60000 40000 20000 0 2018 Annual Closed Units 1.5% Higher Than 2017. Annual Pending Units Up 1.8%. Annual Closed Volume Up 7.4%.
Metro Atlanta 2013-2018 Closings 9000 Prior Year Current Month 8000 7000 6000 5000 4000 3000 2000 1000 0 December Closings Down 5% Compared To November Closings December 2018 Closings Down 11.3% Compared To December 2017
Metro Atlanta Closings December 2018 (Number Of Transactions By Price) 2633 85% Of Transactions In $100K-$500K Price Range 1280 189 455 71 10 < $100K $100K-$200K $200K-$500K $500K-$1 mil $1 mil - $2 Mil $2 Mil +
Metro Atlanta Closed Units By Price Point December 2018 Compared To December 2017 3 1-36 -184-332 -490 < $100K $100K-$200K $200K-$500K $500K-$1 mil $1 mil - $2 Mil $2 Mil +
Listed Inventory January 2012 December 2018 Residential Detached, Metro Atlanta 27500 Inventory Up 24% From Recent Bottom Of Feb. 2013 22500 17500 12500 7500 2500-2500 Inventory Down 6.7% From Last Month, Up 9.1% Compared To Last Year
7270 Metro Atlanta New Listings 7651 10727 9451 10614 10614 9319 9241 7607 7939 6599 4524 12000 10000 8000 6000 4000 2000 0 New Listings Up 10.8% Compared to Last Year. Down 27.1% From Last Month. Annual New Listings Up 4.1%.
Months of Inventory Change The Market Strategy LESS THAN 6 MONTHS BETWEEN 6-7 MONTHS GREATER THAN 7 MONTHS SELLERS MARKET Home prices will appreciate NEUTRAL MARKET Home prices will only appreciate with inflation BUYERS MARKET Home prices will depreciate
45 40 35 30 25 20 15 10 5 0 Metro Atlanta Months of Inventory (December 2018, Based On Closed Sales) 41.6 6 Months Supply Is Considered Normal Market 2.5 2.1 3.8 7.2 12.9 < $100K $100K-$200K $200K-$500K $500K-1 Mil $1 Mil - $2 Mil $2 Mil + Total Metro Atlanta Months Of Inventory Is 3.8 Months
Metro Atlanta Monthly Average Sale Prices 2013-2018 $350 $300 $250 $200 $150 $100 $50 $0 ASP $309,000 In December. ASP $309,000 Last Month. Up 6.9% From Last December.
Metro Atlanta Annual Average Sale Prices $261 $268 $209 $189 $190 $176 $183 $229 $250 $266 $276 $289 $307 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Annual ASP Up 74% From Bottom Of 2011
150.00 140.00 130.00 120.00 110.00 100.00 90.00 80.00 70.00 Case-Shiller Index For Metro Atlanta Jan 2010 Through Oct 2018 (Reported December 18, 2018) Home Values Up 75% From Recent Bottom Of March 2012.
Case-Shiller Gain/ Loss For Metro Atlanta Comparisons Based On The Latest Case Shiller Index Compared To The Average Index For The Year Property Was Purchased. Year Property Bought Gain/ Loss Year Property Bought Gain/ Loss 2001 36.91% 2002 31.13% 2003 27.00% 2004 22.68% 2005 16.79% 2006 11.47% 2007 10.75% 2008 21.05% 2009 36.95% 2010 40.36% 2011 50.94% 2012 63.65% 2013 38.28% 2014 26.77% 2015 20.14% 2016 13.47% 2017 7.62% 2018 YTD 1.97% Case Shiller Index For Metro Atlanta - October 2018 As Reported December 18, 2018. Micro Local Markets And Price Points May Have Significantly Different Outcomes.
Case-Shiller Home Values For Metro Atlanta 140 120 100 80 60 40 20 0 Recent Bottom Was March 2012. Metro Average Home Values Back To Normal Trend Line.
Berkshire Hathaway HomeServices Georgia Properties
BHHS KW-AP ATL Comm MB HNR CB AFH Annual Closed Units 2018 FMLS Counties + Southern Crescent 12,116 11,339 7,511 5,449 5,269 4,589 3,861 Information Provided By Trendgraphix and BHHS GP Internal Reports.
BHHS KW-AP HNR AFH ATL Comm CB MB $4 Billion Annual Closed Volume 2018 FMLS Counties + Southern Crescent ($ Volume in Billions) $3.1 Billion $2.4 Billion $2.3 Billion $2 Billion $1.49 Billion $1.28 Billion Information Provided By Trendgraphix and BHHS GP Internal Reports.
Georgia Economic & Housing Trends
Top State For Business Site Selection Magazine 6 Years in a Row! 2018 2017 2016 2015 2014 2013
Buyers Moving To Atlanta! Here is the Top 10 List including previous rank: 1. Atlanta (1) 2. Phoenix (4) 3. Tampa/Sarasota (2) 4. Dallas/Fort Worth (3) 5. Orlando (5) 6. Denver (7) 7. Houston (8) 8. Seattle (6) 9. Las Vegas (10) 10.Chicago (9) Penske Truck Rental published their latest moving destination list and Atlanta was ranked #1 for the 6 th year in a row. The trend of moving to the sunbelt has returned. Desirable attributes that help Metro Atlanta include a business friendly environment, low cost of living for a metro area, airport, moderate weather with 4 seasons and a high quality of life.
Baby Boomers Are Coming To Be Close To Their Children & Grandchildren. Rank of Share Total Population Under 20 20-64 65+ 25-39 45-59 Dallas 6,144,489 3 9 25 1 24 Atlanta 5,271,550 5 6 27 2 19 Phoenix 4,179,427 4 24 15 3 26 Denver 2,466,591 11 5 24 4 12 Riverside 4,081,371 1 27 22 5 27 Houston 5,629,127 2 10 26 6 21 Portland 2,174,631 19 4 19 7 7 Seattle 3,309,347 22 1 20 8 3 Sacramento 2,091,120 12 13 14 9 20 Washington 5,306,125 Metro 14 Atlanta 3 Has 23 The: 10 11 Los Angeles 12,875,587 6 17 18 11 23 San Diego 2,974,859 #2 Population 8 14 Age 16 25-3912 25 San Francisco 4,203,898 26 2 10 13 4 Orlando 2,032,496 18 15 8 14 22 Minneapolis #5 Population Under 20 3,208,212 10 7 21 15 6 Chicago 9,522,879 7 16 17 16 18 New York 18,815,988 21 12 6 17 15 Boston 4,482,857 23 8 9 18 10 Cincinnati 2,134,864 9 19 13 19 14 Baltimore 2,668,056 17 11 11 20 9 Detroit 4,467,592 13 18 12 21 5 Philadelphia 5,827,962 16 21 5 22 13 St. Louis 2,802,282 15 20 7 23 8 Miami 5,413,212 24 26 3 24 17 Tampa 2,723,949 25 25 1 25 16 Cleveland 2,096,471 20 23 4 26 2 Source :Census Bureau Pittsburgh 2,355,712 27 22 2 27 1
Rustbelt To Sunbelt
Population & Employment Growth Trends
Population By County Atlanta Regional Commission
Population & Employment Growth Trends U.S. Conference of Mayors Report predicts that Metro Atlanta will be the 6 th largest city in the nation by 2046. Metro Atlanta will grow from 5.8 million residents to 8.6 million residents. That means 2.8 million people will move to our area! This is great news for our long-term real estate values!