This document summarizes housing market trends in the Greater Metro Atlanta area from 2000 to 2013. It shows that home sales peaked in 2006 at 125,000 but fell to 60,000 in 2010 due to low inventory and higher fallout rates. Inventory levels are down 19% from June 2012 and 48.7% from June 2011. The average sales price has increased 38.5% in 2013 and is up 20.8% in the last 12 months according to the Case-Shiller index. Prudential Georgia Realty outperformed the overall market in both June 2013 and year-to-date 2013 closings.
2. 125,000 Homes Sold In 2006. 60,000 Homes Sold in 2010. 2013
Closings Down Due To Low Inventory And Higher Fallout Rates.
0
20000
40000
60000
80000
100000
120000
140000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Metro Atlanta Homes Sold
3. Listed Inventory June 2011 – June 2013
Residential Detached - Metro Atlanta
• Inventory Levels Down 19% from June 2012, 48.7% from June 2011
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5000
10000
15000
20000
25000
30000
35000
40000
4. 6.2
4.9 5.0
4.3
4.0 4.1
3.8
4.4
3.9 4.0 3.9
4.6
4.2
3.5 3.4 3.3
3.8
7.4
0
1
2
3
4
5
6
7
8
Jan
Feb
M
ar
A
pr
M
ay
Jun
Jul
A
ug
Sept
O
ct
N
ov
D
ec
Jan
Feb
M
ar
A
pr
M
ay
Jun
Metro Atlanta – Months Of Supply
(Based Upon Closed Sales)
6 Months Is Considered A Normal Market
6. Investors See The Opportunity
To Buy Low, Lease & Sell High
For Single Family Properties!
This Is Causing A Shortage Of
Inventory Under $200,000.
7. Average Sales Price Up 38.5% In 2013
$184
$201
$217
$233
$241
$255
0
50
100
150
200
250
300
Jan Feb Mar Apr May Jun
Metro Atlanta 2013 Average Sale Prices
8. Average Sales Price Increasing From Bottom Of 2011
$241
$253
$261 $268
$209
$189 $190
$176 $183
$221
0
50
100
150
200
250
300
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Metro Atlanta Average Annual Sale Price Trend
9. Chart Shows Index Results January 2010 Through April 2013
(As Reported June 2013)
80
85
90
95
100
105
110 Jan
Mar
May
Jul
Sep
Nov
Jan
Mar
May
July
Sept
Nov
Jan
Mar
May
July
Sept
Nov
Jan
Mar
Case-Shiller Index For Metro Atlanta
Up 20.8% in Last 12 Months!
12. • Georgia Lost 325,000 Jobs In The Great Recession.
• 2012 Restarted Positive Job Growth Trend!
-250,000
-50,000
-25,000
68,400 63,300
76,500
94,400
-300000
-250000
-200000
-150000
-100000
-50000
0
50000
100000
150000
2009 2010 2011 2012 2013 2014 2015
More Jobs In Georgia!
(Data From Terry College of Business/ UGA& Georgia State Economic Forecasting Center)
18. • New Household Formation Dropped From 1.2 Mil (2006) To 400,000 (2008)
• Growing To 1.2 Million In 2013. Lots Of Pent-Up Demand.
• 4 Million Students Per Year Graduate From College For Next 10 Years!
0
200000
400000
600000
800000
1000000
1200000
1400000
1995-
2005
2006 2007 2008 2009 2010 2011 2012 2013 2015
U. S. Household Formation Trends
Demand For 1st Time Buyers Will Be Strong!
Source: U.S. Census, JCHS Household Growth Projections, Goldman Sachs
19. Prices Improving and Mortgage Rates Rising.
But Home Affordability Remains Historically Favorable.
207
187 187
197 194
160 154
146 141
116
0
50
100
150
200
250
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
Q3
2013
Q4
2013
Q1
2014
Q2
2014
National Housing Affordability Index
(Combination of home prices and mortgage rates)
24. Metro Atlanta Closings
Blue – Resale Red – New Homes
New Homes Closings Up 55% From Last Year. Resale Units In 2012 At Levels Not
Seen Since 2006. But Almost 50% Of Resale Units From Investors Under $200k.
25. Buyer Types For New Homes
First Time Buyers And Baby Boomers Remain Most Active Segments.
We Are Looking To See The 1st & 2nd Move-Up Buyers Return.
29. 876
4540
719
5299
0
1000
2000
3000
4000
5000
6000
PGR Market
June 2013 Closings Vs. June 2012 Closings
• PGR Closings Were Up 21.8% Compared To June 2012.
• The Market Was Down 14.3% Compared To June 2012.
• PGR Pendings Were Up 33.4% Compared To June 2012!
PGR
Outperforms
The Market
By 36.1%!
30. 4161
25600
3711
26718
0
5000
10000
15000
20000
25000
30000
PGR Market
YTD 2013 Closings Vs. YTD 2012 Closings
(Data As of June 2013)
PGR
Outperforms
The Market
By 16.3%!
• PGR Closings Were Up 12.1% Compared To YTD 2012.
• The Market Was Down 4.2% Compared To YTD 2012.
• PGR Pendings Were Up 25.3% Compared To YTD 2012!