Wow! What a market it is. 2020 was the best year since I started tracking the Idlewood and Brockett area real estate. It looks like 2021 will be another very strong year with the
Tucker District 2 March Update
Dated: March 17 2021
Wow! What a market it is. 2020 was the best year since I started tracking the Idlewood and Brockett area real estate. It looks like 2021 will be another very strong year with the greatest current challenge being that there are very few homes on the market – today only 5 homes on the market. The average $/sq ft list price is $174.22.
Pending sales average $/sqft is $188.19. Of the pending sales, three are new construction built in 2020 with higher averages per square foot.
Sales YTD had an average list price of $289,858 or 166.11 $/sqft and a sales price of $167 $/sqft. Homes are selling slightly above the list price and sellers are getting the prices they are asking. Just for a point of reference average of all 2020 sales was $155.33. That is over an 7.5% increase when are normal year is closer to 3.5% change. Buyers still want homes that are updated and in good condition.
The driver is still what is being characterized by economists as “flight to the suburbs” at least in part driven by Covid and commuting having less impact on decisions.
The biggest questions posed to our team as we look ahead:
- How long will this last?
- Are we creating a bubble that will burst?
- If I buy in a market where prices are aggressive, will I have a problem in the future?
1. We do not know. It will be a supply and demand issue. As long as there is limited supply, it will be a driver of demand. Interest rates have been rising a bit which initially pushes buyers who have a fear of missing out on the best interest rates. The rates below are indicative of rates available currently and are still very good. I remember the rates from 13% - 18% so these look very good. So while interest rates are a factor, it is not as great of a driver as lack of inventory.
- I do not think we are creating a bubble. While we have had a significant increase, it is not the crazy markets of 2003 – 2005 in which valuations and mortgage lending were wild and often unbridled. Tucker had lower $/sq ft prices than many of the areas in the North and East suburbs and in particular the Decatur area. We still have great value comparatively and are still very attractive. While there are places in the US rising very quickly, the Atlanta metro area has been more moderate. To have a market collapse, there would have to be an external factor that impacted in most cases global economies. Collapses are rarely local in nature. As we are demand driven, right now, a collapse is unlikely. As herd immunity becomes a factor and the threat of covid reduces, we anticipate an economic surge with some Covid challenged businesses coming back and stabilization in others. This will result in greater consumer confidence and spending.
- The future is difficult to predict but chances are that since we are not having huge and unrealistic pricing, it is establishing a new threshold for the values in the market place. Once demand is saturated and inventory builds, you will see a natural slowing of increases but it is doubtful that equities would be endangered. Real estate is a long term purchase – it is only when it becomes a short term hold commodity that equity becomes threatened. We are not in an investor market currently so the risk is even more reduced.
Please reach out if you have questions and absolutely if you are ready to sell. Stay safe and remember daylight savings time begins on March 14!
Corbett Jordan joined Smoke Rise Agents Team in the Spring of 2017 as a new agent. In less than a year she created an extremely successful business winning the Pinnacle Award - 2017 Top New Realtor in....