Market Report, Atlanta Real Estate
Roger Bozza
Atlanta Market Update - January 2021

Atlanta Housing Market Update: January 2021

The Atlanta Housing Market started 2021 the same way it ended 2020, with prices continuing to increase and supply continuing to decrease. Current supply levels dropped to 1.2 months (6 months is normal) and the median sales prices was $309,000, up 17.9% from 2019. Below is the market update for January 2021 from the Atlanta REALTORS® Association.

January Highlights

Demand: January residential sales were at 4,421, an increase of 1.0% from the previous year.

Price: Average and median sales prices continue to outpace 2020’s figures, with positive gains. The median sales price in January was $309,000, an increase of 17.9% from last January. The average sales price was $379,000, up 17.9% from the previous year.

Supply: Atlanta area housing inventory totaled 8,133 units in January, a decrease of 48.5% from January 2020. New listings totaled 6,679, down 19.4% from January 2020 and up 27.1% from the previous month. The month’s supply over a 12-month period decreased to 1.2 months.

Atlanta Market Update - January 2021
Market Report, Atlanta Real Estate
Roger Bozza
Atlanta Market Update - November 2020

Atlanta Housing Market Update: November 2020

The Atlanta Housing Market remained strong in November. Demand remained strong, up 9.8% from 2019. Due to a continued drop in inventory and strong demand, prices continued to appreciate throughout Atlanta. Current supply levels dropped to 1.6 months (6 months is normal) and the median sales prices was $310,000, up 15.7% from 2019.

November Highlights

Demand: November residential sales were at 5,950, an increase of 9.8% from the previous year.

Price: Average and median sales prices continue to gain traction and outpace 2019’s figures, with positive gains. The median sales price in November was $310,000, an increase of 15.7% from last November. The average sales price was $376,500, up 15.0% from the previous year.

Supply: Atlanta area housing inventory totaled 10,485 units in November, a decrease of 42.3% from November 2019. New listings totaled 6,239, down 5.8% from November 2019 and down 27.1% from the previous month. The month’s supply over a 12-month period decreased to 1.6 months.

Atlanta Market Update - November 2020
Market Report, Atlanta Real Estate
Roger Bozza
Atlanta Market Update - October 2020

Atlanta Housing Market Update: October 2020

As expected the overall volume of real estate transactions decreased. However due to a continued drop in inventory and low interest rates, prices continued to appreciate throughout Atlanta. Below is the market update for October 2020 from the Atlanta REALTORS® Association.

October 2020 Highlights

Demand: October residential sales were at 6,051, a decrease of 3.3% from the previous year.

Price: Average and median sales prices continue to gain traction and outpace 2019’s figures, with positive gains. The median sales price in October was $315,000, an increase of 19.8% from last October. The average sales price was $375,500, up 16.8% from the previous year.

Supply: Atlanta area housing inventory totaled 12,291 units in October, a decrease of 36.9% from October 2019. New listings totaled 8,122, down 9.5% from October 2019 and down 4.7% from the previous month. The month’s supply over a 12-month period decreased to 2.0 months.

Demand: May residential sales were at 4,085, a decrease of 36.8% from the previous year.

Atlanta Market Update - October 2020
Market Report, Atlanta Real Estate, Selling Real Estate, Buying Real Estate, Real Estate Investing
Roger Bozza
Atlanta Market Update - September 2020

Atlanta Market Update - September 2020

The Atlanta Real Estate Market in September continued the strong activity observed in August 2020. Despite all of the uncertainty in the country, September has showed that the fundamentals are still in place to support a strong Atlanta housing market. Record low mortgage rates have certainly driven demand along with a renewed optimism in the economy. Strong demand along with low (and decreasing) supply has resulted in houses flying off the market, bidding wars and continued price appreciation. Although prices continue to rise in Metro Atlanta and the surrounding suburbs, the extremely low interest rates have helped counterbalance the increase in prices. Without an increase in inventory it will be interesting to see where the market goes next.

Here’s a summary of some key metrics.

Atlanta Market Update - September 2020
Market Report, Atlanta Real Estate, Selling Real Estate, Buying Real Estate, Real Estate Investing
Roger Bozza
Atlanta Market Update - August 2020

Atlanta Market Update - August 2020

The Atlanta Real Estate Market in August continued the strong activity observed in July 2020 and took it to the next level. The strong demand in June and July is generally believed to be due to pent up demand from the shutdown. August has showed that the fundamentals are still in place to support a strong housing market. Record low mortgage rates have certainly driven demand along with a renewed optimism in the economy. Strong demand along with low (and decreasing) supply has resulted in houses flying off the market, bidding wars and continued price appreciation. Although prices continue to rise in Metro Atlanta and the surrounding suburbs, the extremely low interest rates have helped counterbalance the increased cost. Without an increase in inventory it will be interesting to see where the market goes next.

Here’s a summary of some key metrics.

Atlanta Market Update - August 2020

Buying Real Estate

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How I Choose A Rental Property

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How I Choose A Rental Property

How I Choose A Rental Property

Since I’ve acquired a few rental properties and have enjoyed some level of success I thought I’d share some things I’ve learned and my thoughts on how to best position yourself for success. I may have a slightly different perspective than most, but it’s based on real world experience, being open minded and flexible and constantly analyzing what is working and why. Most people look only at the numbers to determine if a rental property is a good investment or not. I, on the other hand, blend analytics with subjective factors that impact success.

Your Property Is A Product - Treat It Like One

In order to be successful in the Rental Property business you need to think of your rental property as a product that you’re selling. Whether you’re renting out a house long-term or plan to sell it, you have a product that you want people to pay for. Like any product there is always competition, so you’ll need a quality product that stands out among the rest. Emotion plays a large role when many people decide on a place to live. Ultimately this will be the home they will be living in for at least a year. Their decision taps into their emotional side and will be greatly impacted by things like; beautiful spa-like bathroom with soaking tub, upgraded kitchen with custom design elements, clean, nice paint, custom backsplash, porch swing/bench, large deck to entertain.

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Home Selling Advice You Should Ignore

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Home Selling Advice You Should Ignore

Home Selling Advice You Should Ignore

Selling your home is a major decision and most likely will be one of the largest transactions of your life. Don’t listen to advice from just anyone. Here’s some common advice you might hear that you should ignore.

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6 Expenses That First-Time Homebuyers Should Consider

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6 Expenses That First-Time Homebuyers Should Consider

6 Expenses That First-Time Homebuyers Should Consider

When it comes to buying your first home, the down payment and mortgage costs tend to get most of the focus. There are other costs to consider when preparing to purchase your first home. Here are 6 expenses you should keep in mind.

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3 Reasons To Sell Your House

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3 Reasons To Sell Your House

3 Reasons To Sell Your House

The housing market for Sellers is still extremely strong. With inventory and interest rates at historic lows, well priced houses are selling quickly. But how do you know how to price your house correctly? Start by getting a detailed market report for your home via the “What’s My Home Worth Button” below. With just a couple of clicks and some basic information your report will be in your hands within minutes.

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Atlanta Market Update - September 2020

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Atlanta Market Update - September 2020

Atlanta Market Update - September 2020

The Atlanta Real Estate Market in September continued the strong activity observed in August 2020. Despite all of the uncertainty in the country, September has showed that the fundamentals are still in place to support a strong Atlanta housing market. Record low mortgage rates have certainly driven demand along with a renewed optimism in the economy. Strong demand along with low (and decreasing) supply has resulted in houses flying off the market, bidding wars and continued price appreciation. Although prices continue to rise in Metro Atlanta and the surrounding suburbs, the extremely low interest rates have helped counterbalance the increase in prices. Without an increase in inventory it will be interesting to see where the market goes next.

Here’s a summary of some key metrics.

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Atlanta Market Update - August 2020

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Atlanta Market Update - August 2020

Atlanta Market Update - August 2020

The Atlanta Real Estate Market in August continued the strong activity observed in July 2020 and took it to the next level. The strong demand in June and July is generally believed to be due to pent up demand from the shutdown. August has showed that the fundamentals are still in place to support a strong housing market. Record low mortgage rates have certainly driven demand along with a renewed optimism in the economy. Strong demand along with low (and decreasing) supply has resulted in houses flying off the market, bidding wars and continued price appreciation. Although prices continue to rise in Metro Atlanta and the surrounding suburbs, the extremely low interest rates have helped counterbalance the increased cost. Without an increase in inventory it will be interesting to see where the market goes next.

Here’s a summary of some key metrics.

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My First Rental Property - 3 Years Later

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My First Rental Property - 3 Years Later

Looking Back At My First Rental Property

It’s been a little over 3 years since I purchased my first rental property so I thought it would be interesting to look back and see how I did. I learned a ton from the process of purchasing this property. Although this was the third property added to my real estate portfolio, I credit this little gem with being the catalyst for catapulting my real estate career. Check out my blog post, My First Rental Property, to read the full story of how I purchased this property.

3 Years Later

Estimated Value: $375,000

Price Appreciation: $219,500 (141%)

Loan Balance: $117,500

Estimated Net Rental Income (3yr):$15,600

Principle Pay Down: 7,000

Total Return (3yr): $242,100

ROI: 778% (259%/year)

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How's The Real Estate Market?

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How's The Real Estate Market?

How’s The Real Estate Market?

Quite often when either someone finds out I’m a REALTOR® or they already know me and we get involved in a general conversation, I get asked “How’s the market?”. This might seem like a simple question, and on some level it is, however the answer is more involved. Unfortunately (or fortunately depending on your perspective) many real estate professionals will respond with a simple “Good” or “Bad”. And typically that’s the answer most people are looking for. But I’m not most people. We can do better.

Why It Is Not a Simple Question?

Although the question “How is the market” is a simple question on the surface, for me to answer the question accurately I need to know more about the person asking the question. Everyone has different goals, experience, perspectives and motivations for asking that question as well as a different definition for “Good” or “Bad”. What is good for one person can be bad for another. This is true in life but absolutely critical in investing. The answer to this question can be (and many times is) very different depending on the person asking it. As a simple example, is the person asking about the market looking to buy or sell a house?. This one little detail can change my response from “Great!” to “Terrible!”. If I assume I know how the person defines “Good Market” and“Bad Market” or that I know what they are looking to do, then I might give them misinformation which could result in them making poor financial decisions. Here are some examples of possible motivation for asking “How’s the market?”:

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Today's Paradoxical Market

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Today's Paradoxical Market

The Paradox

I’m often asked about the current state of the Atlanta housing market. Typically followed by “Is this a good time buy a house?” or “Is this a good time to sell my house?”. Most are surprised when I answer “Now is a great time to both buy and sell a house”. How could that be true? Conventional thinking states that the Real Estate Market is in one of three states. “Seller’s Market”, “Buyer’s Market” or “Balanced Market”. Although there are varying degrees of Seller’s and Buyer’s markets, they are typically considered mutually exclusive. For example you can’t be in a Seller’s Market and Buyer’s Market at the same time. Since today’s market in Atlanta is currently a Seller’s market but also a great time to be a Buyer, I describe it as a Paradoxical Market.

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My First Rental Property

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My First Rental Property

Time To Reflect

It’s been a little over 3 years since I purchased my first rental property so I thought it would interesting to take a walk down memory lane. Although this was not the first piece of real estate I’ve ever purchased, this was the first house I purchase for the sole purpose of renting it out and holding it as an investment. Prior to the purchase of my first rental property in 2017 I purchased a Condo in 2009, which I turned into a rental in 2015. I also purchased a Townhouse as my primary residence in 2015. So although I had some experience purchasing real estate I had never purchased a piece of real estate as a pure investment.

The Backstory

To help paint the full picture of how I knew this particular house was the one for me and therefore was able to make a quick decision, I think it’s important to provide a little backstory. Towards the middle of 2016 I decided it was time to purchase my first single family house for the sole purpose of renting it. I had been observing areas in Southwest Atlanta that seemed full of potential with construction of the Beltline. I already noticed a lot of momentum and new development which was resulting in price appreciation. My main objective at the time was price appreciation, with cash flow being secondary. I wanted to keep the price of the house relatively low, to limit my risk, since this was going to be my first investment in a transitioning area. My main focus was on Adair Park and Capitol View since I had become familiar with those areas when I first starting looking at properties in 2015. Unfortunately by the time I was ready to jump in and pull the trigger, Adair Park and Capitol View had become extremely hot. The prices were rising to levels that I wasn’t comfortable with and the houses that were in my price range were in multiple offer situations. Long story short, I either couldn’t move fast enough or I repeatedly was outbid.

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How to Handle Times Of Uncertainty

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How to Handle Times Of Uncertainty

Times Of Uncertainty

During times of uncertainty it’s easy to get caught up in a cycle of fear and doubt. This is completely understandable as you may have real and serious concerns like how will you pay your rent, mortgage, utilities or even buy food. Once you get caught in this cycle and let fear drive your thought process it will be even harder to come up with solutions and ultimately get you back on your feet. Below are some things that I think can help and what I am currently practicing.

Process The Situation

When something unexpected occurs it can be a shock to the system. The more dramatic the occurrence (like a sudden loss of your job) the greater the shock. I think it’s natural human behavior to react emotionally and that’s ok. You might go through a slew of emotions like anger, sadness and fear. Spend some time venting, complaining and worrying. But don’t spend too much time in this phase. The longer you’re here the harder it will be to move to the next step in the process. Eventually you need to get to a place of acceptance. Once you accept the hand you were dealt you can move on to the problem solving phases.

Address Your Immediate Needs

Once you have made it through the mourning phase it’s time to pick yourself back up and start the problem solving phase. It’s easy to feel overwhelmed in this phase so try tackling one thing at a time. Write a list (yes pen and paper) of the top issues, in priority order, that you need to address. I find it helps to focus on one particular problem or task than trying to solve everything at once. Attempting to solve all of your problems resulting from the current situation will cause you to feel overwhelmed and limit your ability to think clearly. Move down your list one at a time and either write down your next step to solve that problem or jot down a couple of options.

Don't Wait to Purchase Real Estate.

Don't Wait to Purchase Real Estate.

Should I wait for prices to decrease?

Disclaimer

Before I begin and before people misinterpret my statements I would just like to clarify that I am not saying everyone should rush out and buy a piece of real estate tomorrow. Investing in real estate is a major decision and should be made carefully and based on your individual situation. My overall stance is that if you are ready and have the desire to buy a house, don’t wait.

Some Background

Back in 2015 many people were telling me that they were going to hold off buying a house until prices came down. In their opinion prices had appreciated too much, so similar to how people try to time the stock market (buy low and sell high) they thought they could do the same with the real estate market. Many of these people felt very strongly, even though they were not in the real estate industry so did not understand the health and dynamics of the market. I attribute this to fear. Fear of either getting caught in another 2008 housing bubble/crash and being hurt financially or fear of looking stupid because they bought at the top. Fast forward 4 years and many properties in established or upcoming Atlanta neighborhoods have appreciated over 50%. If you factor in the use of leverage (small down payment with a mortgage for the balance) a 5x return on investments is not uncommon. So although we have experienced above normal price appreciation over the past few years and you might argue that hindsight is 20/20, I will explain why these results shouldn’t be a surprise. Even if a housing correction did take place, it was still a good time to buy if you had a long-term view.

Why it was wrong to wait in 2015

By 2015 houses in high-demand areas appreciated significantly from their lows in 2008, however in my opinion those were artificial lows. The economy was terrible and the housing collapse prevented banks from lending. That caused high-quality properties to drop well below what they were worth. As the economy started to improve many of those properties returned back to where they should have been priced in the first place. This appeared to some, who weren’t following the real estate market closely, as extraordinary price increases however, it was just things returning back to normal. It was clear that the most desirable areas in Atlanta were going to continue to appreciate at a solid rate. In 2015 the market became extremely hot because of a number of factors.