Although down from the peak percentage in the first quarter of 2009, the portion of total sales represented by foreclosed properties remained high throughout 2009.
Fourth quarter 2009 foreclosures were also a lesser portion (27.4%) of total sales compared to 4Q 2008 (32.2%)
The percentage is slightly higher than in the third quarter of 2009.
Foreclosures were 35.6% of fourth quarter 2009 sales in the <$200,000 price range. Since the percentage one year ago in this price range was 44.5%, the pressure is obvious on sellers who are not in distress.
Short sales place even more pressure on those sellers who “don’t have to sell…”
In 2010, the expectation of foreclosure and short sale properties arriving on the market in “possibly record numbers” is a financial phenomenon that savvy sellers can not ignore.
Georgia, and Atlanta, may not be hit as hard as other submarkets around the USA, but foreclosures will impact even the best school districts of Cobb County, the finest gated country clubs of North Fulton and Gwinnett, and the coolest historic neighborhoods of Intown Atlanta and Decatur.
Ignore at thy peril…
Moreover, if failed Listings were 59.5% of all listings in fourth quarter 2009 and if overpriced listings were 87% of all listings in fourth quarter 2009, exactly how many savvy sellers are out there?
Supply of available, listed as “for sale” properties was down somewhat, but still high, at 9.0 months’ supply in December 2009 – however, if only 13% of sellers are savvy enough to price to meet immediate demand, and if over a quarter of all of the inventory for sale is a foreclosed property, and, if 2010 will only bring more foreclosures and more short sales, exactly how much of a “recovery” will happen in the next few years?
The great news is that foreclosure properties and those that have been price-reduced may set up a more favorable negotiating environment for buyers, causing anxious sellers to negotiate away more of their listing price, to pay all or most of buyer closing costs and to get hyper-competitive, street for street, neighborhood for neighborhood, house for house.
Expect the percentage of the portion of total sales in Atlanta represented by foreclosed properties to be high and to remain high for a few more years.
Just remember that all real estate sales are local, the numbers in this article span 8 metropolitan counties and solid real estate fundamentals will always keep great neighborhoods, great streets and great houses above average!
Comments