Karen Cannon

In May, the real estate market in Dunwoody, Sandy Springs, and the surrounding areas maintained its robust demand. Similar to the nationwide trend, there was a slight increase in supply compared to previous months. However, this increment was insufficient to counterbalance the persistently strong seller’s market, as the supply levels remain at only half of what they were in 2019.

Key Points

– Both Sandy Springs and Dunwoody experienced a minuscule decrease in the average sales price, which correlated with a small increase in supply.

– The average days on the market in both Dunwoody and Sandy Springs witnessed a sizable reduction, extending the trend observed in April.

Average Sales Price

In May 2023, the average sales price in both Dunwoody and Sandy Springs saw almost no change. Sandy Springs remained stable at $790,072, indicating a minimal 1.5% change compared to April and a slight 10.1% rise from May 2022. Likewise, in Dunwoody, the average sales price slightly declined to $666,325, representing a decrease of 6.42%. When compared to the corresponding period last year, the average price in Dunwoody exhibited a minor 1.3% change, indicating a similarity.

Average Days on Market

In May, both Dunwoody and Sandy Springs experienced a significant decline in the average days on the market, which had already been observed in April. Dunwoody witnessed a remarkable drop of over 40% to just 12 days. Nevertheless, it’s important to highlight that this represents an increase compared to the same period last year when the average days on the market were only 8 days. Similarly, Sandy Springs observed a decrease in the average days on the market from 22 to 19 days. It’s worth noting that during the corresponding period last May, the days on the market in Sandy Springs stood at 16 days.

Months Supply of Homes for Sale

Sandy Springs saw the smallest increase in months supply from 1.9 in April to 2.0 in May. Meanwhile, Dunwoody saw a jump from 0.4 to 0.8 in months supply, reflecting a 100% increase compared to April but a 27.3% decrease from May 2022.

Homes for Sale

In May, both Dunwoody and Sandy Springs observed a modest rise in the number of new homes available for sale. Dunwoody witnessed a slight increase from 14 homes in April to 25 homes in May, indicating a 44.4% decrease compared to May 2022 when there were 45 homes available. Similarly, Sandy Springs experienced a marginal increase from 128 homes in April to 134 homes for sale, representing a mere 3% increase compared to the previous year.

Pending Sales

In May, the number of pending sales in Sandy Springs continued to rise, reaching 81 compared to 72 in April. On the other hand, Dunwoody maintained a steady number of 30 pending sales, showing no change. When compared to May 2022, Sandy Springs observed a 12.5% increase in pending sales, as it had a total of 72 pending sales during that period. In contrast, Dunwoody experienced a significant 50% decrease from May 2022 when there were 61 pending sales.

Key Takeaway

In summary, despite the slight increase in market supply in Dunwoody and Sandy Springs, it is important to note that the seller’s market remains robust. The current market dynamics are still heavily influenced by the supply of homes. For those considering selling their homes during this opportune time, it’s crucial to adopt the right pricing and strategic approach. By partnering with our team, you can navigate the market effectively and maximize your chances of securing top dollar for your property. Take action today and reach out to our team to learn more about the market trends and how our expertise can help you achieve your real estate goals.

 

*All data from First Multiple Listing Service. InfoSparks© 2023 ShowingTime.

Selling your house is no simple task. While some homeowners opt to sell their homes on their own, known as a FSBO (For Sale by Owner), they often encounter various challenges without the guidance of a real estate agent. If you’re currently considering selling your house on your own, here’s what you should know.

The most recent Profile of Home Buyers and Sellers from the National Association of Realtors (NAR) surveyed homeowners who’d recently sold their own homes and asked what difficulties they faced. Those sellers say some of the greatest challenges were prepping their home for sale, pricing it right, and properly managing the required paperwork, just to name a few.

When it comes to selling your most valuable asset, consider the invaluable support that a real estate agent can provide. By partnering with an agent, you can navigate the complexities of the selling process with confidence. Here are just a few of the many ways an agent is essential to your home sale:

1. Marketing and Exposure

Effective marketing is a key piece of attracting qualified buyers to your property. Real estate agents have access to various marketing tools and platforms, including MLS listings, professional photography, virtual tours, and extensive professional networks. They can create a compelling listing that highlights your home’s best features and reaches a wider audience.

If you sell on your own, you may struggle to match the reach of agents, resulting in limited exposure and, ultimately, fewer potential buyers.

2. Managing Liability and Legal Considerations

Today, more disclosures and regulations are mandatory when selling a house. And all that paperwork and all the legal aspects of selling a home can be a lot to manage. Selling a house without professional guidance exposes homeowners to potential liability risks and legal complications.

Real estate agents are well-versed in the contracts, disclosures, and regulations necessary during a sale. Their expertise helps minimize the risk of errors or omissions that could lead to legal disputes or delays.

3. Negotiations and Contracts

Negotiating the terms of a home sale can be challenging, especially when emotions are involved. You may find it overwhelming to navigate these negotiations alone. Without an agent, you assume this responsibility on your own. This means you’ll have full accountability for working and negotiating with:

• The buyer, who wants the best deal possible.
• The buyer’s agent, who will use their expertise to advocate for the buyer.
• The home inspection company, who works for the buyer.
• The home appraiser, who assesses the property’s value to protect the lender.

Rather than going toe-to-toe with all these parties alone, lean on an expert. Real estate agents act as intermediaries, skillfully negotiating on your behalf and ensuring that your best interests are protected. They have experience in handling tough negotiations, counteroffers, and contingencies. When you sell your house yourself, you’ll need to be prepared to manage these vendors on your own.

4. Pricing and Housing Market Knowledge

Determining the right asking price for your property is crucial. It requires in-depth knowledge of the local real estate market, including recent sales data, neighborhood trends, and the current demand for properties. Real estate agents have access to comprehensive market data and the expertise to analyze it accurately.

When you sell your house on your own without this comprehensive information, you risk overpricing or underpricing your home. This can result in an extended time on the market and also the risk of leaving money on the table – which decreases your future buying power. An agent is a key piece of the pricing puzzle.

Bottom Line

While selling a home on your own might seem appealing at first, the challenges that come with it can quickly become overwhelming. The expertise that a real estate agent brings to the table is vital for a successful sale. Instead of tackling it alone, let’s connect to make sure you have an expert on your side.

During the month of April, the real estate market in Dunwoody, Sandy Springs, and nearby regions showed further signs of improvement compared to the uptick observed in March. The market’s strength was sustained by the surge in demand from buyers, which remained high due to stable mortgage rates with slight decreases. Although Atlanta witnessed a decline in average prices last month, the prices in Dunwoody, Sandy Springs, and other parts of North Atlanta did not follow the same trend. Instead, they continued to rise, contradicting the national price decreases.

Key Points

• The average sales price in Sandy Springs surpassed the $800,000 mark, showing a continuous increase compared to the previous month. Meanwhile, Dunwoody advanced further into the $700,000 range after already surpassing it last month.
• Average days on market for both Dunwoody and Sandy Springs dropped a sizable amount of days
• Dunwoody and Sandy Springs continue to struggle with demand as indicators – months supply and homes for sale – each dropped or sustained low numbers in April.

Average Sales Price

In April 2023, the average sales price in Sandy Springs reached $801,769, indicating a 12.28% rise compared to March and a notable 29.8% increase from April 2022. Similarly, in Dunwoody, the average sales price experienced a slight growth from $704,763 to $723,231, reflecting a 2.62% increase. When compared to the same period last year, the average price in Dunwoody demonstrates an almost 20% higher value.

Average Days on Market

In April, both Dunwoody and Sandy Springs witnessed a sudden drop in the average days on market. Dunwoody’s average days on market dropped by over 30% to 20 days. However, it is important to note that this marks a substantial increase compared to the same period last year when the average days on market stood at 10 days. Similarly, Sandy Springs experienced a decrease in the average days on the market from 46 to 22 days. It’s worth mentioning that the days on market in Sandy Springs during the same period last April were also 22 days.

 

Months Supply of Homes for Sale

Sandy Springs saw no change in months supply remaining at 1.8 from March. Meanwhile, Dunwoody decreased slightly from 0.7 to 0.5 months supply, reflecting a 50% decrease compared to April 2022. This decline points to a tighter supply of homes in Dunwoody’s market.

 

 

Homes for Sale

Both Dunwoody and Sandy Springs saw no increases in the number of new homes available in April – indicative of the strong seller’s market we are seeing. Dunwoody experienced a decrease from 25 to 17 new homes for sale, indicating a 58.5% decline compared to April 2022 when there were 44 homes available. Similarly, Sandy Springs saw a slight decrease from 128 homes in March to 122 homes for sale, representing only a 10% increase compared to the previous year.

Pending Sales

The number of pending sales in Sandy Springs showed further growth, rising from 72 in March to 78 in April. Conversely, Dunwoody experienced a decrease in pending sales, going from 34 to 26, representing a 23.53% decline. Comparing to April 2022, Sandy Springs witnessed a 32.2% decrease in pending sales, which totaled 115 at that time. Similarly, Dunwoody experienced a 38.1% decrease from April 2022 when there were 42 pending sales.

Key Takeaway

 

In summary, the real estate market in Dunwoody and Sandy Springs remains a strong seller’s market and will most likely continue to do so as we head into the summer break. It’s important when looking at national-level headlines to remember that they don’t always translate to what is happening at a local level.

 

*All data from First Multiple Listing Service. InfoSparks© 2023 ShowingTime.

If you’re following mortgage rates because you know they impact your borrowing costs, you may be wondering what the future holds for them. Unfortunately, there’s no easy way to answer that question because mortgage rates are notoriously hard to forecast.

But, there’s one thing that’s historically a good indicator of what’ll happen with rates, and that’s the relationship between the 30-Year Mortgage Rate and the 10-Year Treasury Yield. Here’s a graph showing those two metrics since Freddie Mac started keeping mortgage rate records in 1972:

As the graph shows, historically, the average spread between the two over the last 50 years was 1.72 percentage points (also commonly referred to as 172 basis points). If you look at the trend line you can see when the Treasury Yield trends up, mortgage rates will usually respond. And, when the Yield drops, mortgage rates tend to follow. While they typically move in sync like this, the gap between the two has remained about 1.72 percentage points for quite some time. But, what’s crucial to notice is that spread is widening far beyond the norm lately (see graph below):

If you’re asking yourself: what’s pushing the spread beyond its typical average? It’s primarily because of uncertainty in the financial markets. Factors such as inflation, other economic drivers, and the policy and decisions from the Federal Reserve (The Fed) are all influencing mortgage rates and a widening spread.

Why Does This Matter for You?

This may feel overly technical and granular, but here’s why homebuyers like you should understand the spread. It means, based on the normal historical gap between the two, there’s room for mortgage rates to improve today.

And, experts think that’s what lies ahead as long as inflation continues to cool. As Odeta Kushi, Deputy Chief Economist at First American, explains:

“It’s reasonable to assume that the spread and, therefore, mortgage rates will retreat in the second half of the year if the Fed takes its foot off the monetary tightening pedal . . . However, it’s unlikely that the spread will return to its historical average of 170 basis points, as some risks are here to stay.”

Similarly, an article from Forbes says:

“Though housing market watchers expect mortgage rates to remain elevated amid ongoing economic uncertainty and the Federal Reserve’s rate-hiking war on inflation, they believe rates peaked last fall and will decline—to some degree—later this year, barring any unforeseen surprises.”

Bottom Line

If you’re either a first-time home buyer or a current homeowner thinking of moving into a home that better fits your current needs, keep on top of what’s happening with mortgage rates and what experts think will happen in the coming months.

There have been a lot of shifts in the housing market recently. Mortgage rates rose dramatically last year, impacting many people’s ability to buy a home. And after several years of rapid price appreciation, home prices finally peaked last summer. These changes led to a rise in headlines saying prices would end up crashing.

Even though we’re no longer seeing the buyer frenzy that drove home values up during the pandemic, prices have been relatively flat at the national level. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), doesn’t expect that to change:

“[H]ome prices will be steady in most parts of the country with a minor change in the national median home price.”

You might think sellers would have to lower prices to attract buyers in today’s market, and that’s part of why some may have been waiting for prices to come crashing down. But there’s another factor at play – low inventory. And according to Yun, that’s limiting just how low prices will go:

“We simply don’t have enough inventory. Will some markets see a price decline? Yes. [But] with the supply not being there, the repeat of a 30 percent price decline is highly, highly unlikely.”

As you can see in the graph below, we’ve been at or near record-low inventory levels for a few years now.

That lack of available homes on the market is putting upward pressure on prices. Bankrate puts it like this:

“This ongoing lack of inventory explains why many buyers still have little choice but to bid up prices. And it also indicates that the supply-and-demand equation simply won’t allow a price crash in the near future.”

If more homes don’t come to the market, a lack of supply will keep prices from crashing, and, according to industry expert Rick Sharga, inventory isn’t likely to rise significantly this year:

“I believe that we’re likely to see low inventory continue to vex the housing market throughout 2023.”

Sellers are under no pressure to move since they have plenty of equity right now. That equity acts as a cushion for homeowners, lowering the chances of distressed sales like foreclosures and short sales. And with many homeowners locked into low mortgage rates, that equity cushion isn’t going anywhere soon.

With so few homes available for sale today, it’s important to work with a trusted real estate agent who understands your local area and can navigate the current market volatility.

Bottom Line

A lot of people expected prices would crash this year thanks to low buyer demand, but that isn’t happening. Why? There aren’t enough homes for sale. If you’re thinking about moving this spring, let’s connect.