While segmenting sales by price range shows that the increase in sales came mostly in the price ranges below $300,000, sales rose above those of fourth quarter 2008 in all but the highest 2 price ranges - $750,000 to $1 Million, and $1 Million and up.
Sales increased by 14% in the <$200,000 price range and by 22% in the $200,000-$299999 range.
Of course, buyers and sellers must get to the closing table to even show up on the SOLD chart.
Here is the cocktail party chatter to remember if real estate is a topic at the next cocktail party – for instance, someone says “yeah, a neighbor’s house has been on the market for over 6 months” or “a foreclosure on my street flew off the market in less than one month” – if so, then memorize the following for maximum conversational impact:
•Out of every 100 finalized listings, 60 failed to sell and 40 sold
•Of the 40 sold listings, 27 (67%) required a price reduction, when listing prices from previous listing periods are included, in order to attract a Buyer
•Therefore, if 60 failed due to overpricing and another 27 required a price reduction in order to sell, 87 out of every 100 listings were initially overpriced in 4Q 2009, resulting in either no sale, or a sale at a much-reduced price after a much-longer listing period.
There is a dramatic difference between success with a quick sale, and the relative failure of sluggishness with a price-reduction driven, "chase the market" sale.
Robert Schiller wrote this in a Newsweek article in late December: “My data show that between 1890 and 1990 real home prices actually didn’t increase.”
If 87% of homeowners attempting to sell property in Atlanta continue to overprice, and don't get with the century old "program" then buyers will continue to rush to value and lower prices will always carry demand.
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