Sugarloaf Country Club Real Estate Report 2022-2023

Sugarloaf Country Club Real Estate Report

2022 - 2023 Edition

Published January 2023

Floyd Real Estate Group | FloydREGroup.com

Mary Floyd | Mary.Floyd@Compass.com | 404.312.3837

Tony Floyd | Tony.Floyd@Compass.com | 404.406.7819

2022 Year in Review

2021 was the best year in the history of Sugarloaf Country Club real estate with 81 closings. 2022 began as another record-setting year. We continued to see very strong demand from Buyers and multiple offers on many properties. Then rising inflation caused the Fed to take aggressive action with the goal of destroying demand until inflation was back to the 2% range. Rising mortgage rates and fears over the economy began to change the real estate market in Sugarloaf. Buyer activity slowed. Multiple offers over list price were quickly a thing of the past. The “days on market” for Active listings began to extend. News headlines predicted major drops in housing prices and fears of another housing recession. Fortunately, that has not happened. Our “for sale” inventory remains historically low averaging 8 homes for sale in 2022. Normal listed inventory should average 40-50 homes. Though demand has slowed, the low inventory has kept our supply and demand more balanced. We went from a very strong Seller’s market during Covid to a more balanced market trending slightly toward a Buyer’s market.

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Now, let’s look at how Sugarloaf Country Club home values performed in 2022. The chart below shows “Average $ Per Square Feet” which is the most common approach to measuring home values. In 2022, Sugarloaf home values increased by an average of 22.9% to an all-time high of $225 per square foot. In the second half of the year, the average $ per square foot was $212. The current “Under Contract Sales” average $194 per square foot using the list price which means these are likely lower. We estimate we finished the year in the $190 to $200 per square foot range. Another factor to consider is the distribution of the types of properties sold. See the charts showing the distribution of homes sold by month for 2022 versus 2021. In 2022, we had fewer high-end sales and only 1 home sold under $1 million. That home sold for $998,000 which was a private sale on Grady Ridge Drive. In 2021, there were 13 sales under $1 million. The average “year built” for closed sales was 2002 – the same as last year.

Homeowners who bought at lower prices are doing very well. We estimate that home values have dropped around 10-15% from their peak as we close out 2022. Homes that are updated, in great condition and have desirable floor plans outperformed these averages.

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The “List To Sale Price Ratio” increased to 99% and “Days on Market” dropped to 22 days for 2022 18 homes sold for list price or higher in 2022. In the second half of the year, 5 homes sold for list price or above. Four of those were our clients!

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2022 Sold Homes for Sugarloaf Country Club

Closing Date

Address

Original List Price Closed Price

1/13/2022 3216 Bagley Passage $1,249,000 $1,223,443

1/14/2022 2520 Sugarloaf Club Drive $1,595,000 $1,600,000

1/21/2022 2331 Glen Mary Place $1,595,000 $1,800,000

1/21/2022 3095 Cypress Pond Pass Private Sale $1,500,000

1/24/2022 2793 Thurleston Lane $2,250,000 $2,175,000

1/25/2022 3510 Moye Trail $1,859,000 $1,750,000

1/25/2022 2636 Boddie Place $4,000,000 $2,650,000

1/28/2022 2130 Sugarloaf Club Drive $1,299,000 $1,402,000

2/11/2022 2674 Nutwood Trace $1,299,000 $1,300,000

2/28/2022 2726 Eudora Trail $1,399,000 $1,375,000

3/8/2022 2723 Pinebloom Way $1,275,000 $1,331,000

3/25/2022 2721 Callaway Court $1,699,000 $1,675,000

3/28/2022 2704 Lockerly Lane $1,399,000 $1,460,000

4/1/2022 2712 Pinebloom Way $1,175,000 $1,280,000

4/1/2022 2743 Bonar Hall Path $1,699,000 $1,620,000

4/1/2022 2805 Darlington Pointe $1,799,000 $1,845,000

4/14/2022 2797 Major Ridge Drive $1,550,000 $1,550,000

4/15/2022 2947 Major Ridge Trail $1,599,000 $1,575,786

4/21/2022 2321 Grady Ridge Drive Private Sale $998,000

4/25/2022 2784 Pebble Hill Pointe $1,799,000 $1,799,000

5/10/2022 2689 Tranquilla Way $1,750,000 $1,700,000

5/11/2022 2181 Broadfield Run $2,999,000 $3,075,000

5/13/2022 2785 Eudora Trail $1,450,000 $1,475,000

5/13/2022 2363 Seaborn Place $2,025,000 $2,025,000

5/18/2022 2439 Oak Hill Overlook $1,400,000 $1,400,000

5/20/2022 2908 Major Ridge Trail $2,299,000 $2,300,000

6/6/2022 2795 Eudora Trail $1,295,000 $1,290,000

6/9/2022 2942 Darlington Run $1,589,000 $1,589,000

6/15/2022 2735 Eudora Trail Private Sale $1,200,000

6/21/2022 2761 Major Ridge Trail $1,985,000 $1,965,000

6/27/2022 2827 Darlington Run $1,799,000 $1,700,000

6/28/2022 3229 Carmichael Place $2,499,995 $2,450,000

6/28/2022 3570 Moye Trail $2,899,000 $3,000,000

7/6/2022 2918 Major Ridge Trail $1,899,000 $1,899,000

7/21/2022 3120 Cypress Pond Pass $1,250,000 $1,375,000

7/29/2022 2957 Major Ridge Trail $2,500,000 $1,900,000

8/8/2022 2482 Oak Hill Overlook $1,299,000 $1,299,000

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8/10/2022 2828 Grey Moss Pass Foreclosure $1,784,085

8/19/2022 3114 Touchton Court $2,199,000 $1,990,000 8/29/2022 2713 Bonar Hall Path $1,849,000 $1,785,000

9/9/2022 2689 Boddie Place Private Sale $2,500,000 9/22/2022 2255 Taylor Grady Terrace $1,999,999 $1,750,000 9/30/2022 2626 Buena Vista Way $1,799,000 $1,750,000 10/11/2022 3670 Moye Trail Private Sale $1,325,000 10/11/2022 2348 Grady Ridge Drive Private Sale $1,500,000 12/12/2022 1760 Sugarloaf Club Drive $1,550,000 $1,499,000

The average closed price for 2022 was $1,726,833 compared to $1,508,298 in 2021 There were 6 private/ off-market home sales and 1 foreclosure sale. The average concession for 2021 was $2,900 versus $4,136 in 2021 There were 15 homes sold with concessions. The highest concessions were $25,000. Concessions are typically related to inspection items. Concessions can be limited if you use the right contract mechanisms and negotiating techniques. Contact us to learn more!

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HOW DO YOU SELL YOUR PROPERTY FOR THE HIGHEST VALUE?

Our exclusive Launch Marketing System has consistently achieved the best results. In 2022, Floyd Real Estate Group achieved the highest values for our closings – again!

Ranked #1 in 2022 For Selling

The Most Sugarloaf Properties!

Case Study: Stephen and Sandi Dennis selected Mary & Tony Floyd with Floyd Real Estate Group to market and sell their beautiful home at 3120 Cypress Pond Pass. They took advantage of our Compass Concierge program for interest-free funding to pay for repairs, improvements and staging. We implemented our exclusive Launch Marketing System which generated many showings, multiple offers and a winning bidder for $125,000 over list price. The Buyer could not close due to financing issues and the Seller was awarded the earnest money. We implemented new staging and re-launched the property which again generated multiple offers and another winning bidder who closed for the same price as the original contract.

"We selected Floyd Real Estate Group because we believed their marketing, professionalism and proven expertise could achieve the best results. That is exactly what happened! We closed for $125,000 over our list price! Tony & Mary gave us great advice to prepare & stage our home and their vendor partners made it easy. They took the time to understand the unique attributes of our home and were fantastic in communicating our value to Buyers at showings. Their print and digital Home Books were amazing. If you want the most professional representation and the best results, call Tony & Mary at Floyd Real Estate Group!"

Stephen & Sandi Dennis, 3120 Cypress Pond Pass

What Is Ahead In 2023?

Sugarloaf Country Club Real Estate in 2023

Now, let’s explore the major trends nationally and locally for 2023. Then, we will make our prediction for Sugarloaf Country Club real estate.

First, the Bad News:

• Mortgage rates have more than doubled, increasing at the fastest pace in more than 40 years from just 3.2% only a year ago to 6.5% today. This has caused many markets to slow considerably with buyers on the sidelines and sellers waiting to list their homes.

• Existing-home sales fell 7.7% nationally in late 2022. All regions of the U.S. recorded month-over-month and year-over-year declines. We have now seen unit declines for 10 months in a row. (NAR)

• Homeowners have lost $1.5 trillion in equity since May as home values drop. (CNBC)

• New construction is down 15.5% in Metro Atlanta due to economic fears and challenges with high costs, supply chains and retail price pressure. (NAR)

• The Fed is committed to increasing the federal funds rate plus other actions to slow the economy and destroy demand to achieve their goal of 2% inflation growth. Most analysts expect additional rate increases in 2023. Realistically, it may be late 2023 or 2024 to get to 2% inflation.

• Most economists expect a recession in 2023. The depth of the recession is the debate.

• The stock market ended 2022 with the worst year since 2008. The Dow was down 8.8%, the S&P 500 was down 19.4% and the Nasdaq was down 33.1%. The Crypto markets were also in the tank after the FTX debacle and heavy pressure to add regulation to this sector.

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Now, for the good news:

• Home values are impacted mostly by supply and demand. We are going into 2023 with an extremely low supply of listed inventory – only 8 homes for sale in Sugarloaf Country Club. We expect to see record low inventory this year – which is good news for Sugarloaf sellers! This will help keep home values from dropping dramatically.

• Mortgage rates are expected to settle into the 5-6% range. The average mortgage rate for the last 50 years was 8%.

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• Home values will be relatively flat nationally.

• Metro Atlanta is one of the most affordable large metro housing markets in the nation. The National Association of REALTORS® predicts that metro Atlanta may be one of the best performing real estate markets in the nation for 2023.

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• Homeowner debt remains historically low. Though debt-to-income ratios have risen recently, we are well below the levels seen in the great housing recession.

• Although national homeowner equity has dropped recently, levels remain historically high. This was not the case in the great housing recession when people were cashing out their equity to make purchases.

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• Foreclosures and short sales are slightly rising but well below the numbers in the great housing recession. Sugarloaf Country Club had only one foreclosure sale in 2022. Analysts do not expect a major surge of foreclosures and short sales in 2023.

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COMPASS Concierge fronts the cost of home improvement services with no interest and no fees. Concierge is the hassle-free way to sell your home faster and for a higher price! To get funds directly in your hands, COMPASS has partnered with Notable, an independent lender to provide Concierge Capital, an interest-free loan.

Top 10 Predictions for Sugarloaf Country Club Real Estate

The last few years have been outstanding years for Sellers in Sugarloaf Country Club. We changed from many years of a Buyer’s market to a strong Seller’s market. As we look at 2023, we expect to have a more balanced market trending slightly to a Buyer’s market. The 2023 listed inventory will be similar to 2022. We do not expect a significant increase in listings. It is possible that we could see even lower inventory. Many owners who have second homes or other places to go have already sold. Many owners who would downsize cannot find the right next home Some owners have refinanced to very low mortgage rates and are reluctant to give up those payments. Nevertheless, there are always reasons why people move – marriage, job changes, first time buyers, move-ups, downsizing, divorce, death and more.

We predict that there will be approximately 40-42 homes closed in 2023. This is slightly lower than 2022 and roughly half of the peak in 2021. The low inventory is making it harder for Buyers to find their desired homes. Some Buyers are waiting for a dramatic price drop that will likely not happen. Many Buyers who could have afforded more expensive homes now cannot qualify for the higher mortgage payments. However, metro Atlanta is a desirable area and Sugarloaf Country Club has many advantages for residents. There will continue to be Buyers looking for their dream home in Sugarloaf. Factors to watch will be mortgage rates, listing inventory and macro-economic conditions. If mortgage rates are too high, the Buyer activity will slow. If mortgage rates move back to the mid 5% range, Buyer activity will pick up.

There will be more homes sold under $1 million in 2023. We expect the pressure on prices will result in more properties sold under $1 million. These will likely be older homes that have not been updated or may not have finished basements. There is also a larger Buyer pool for homes in this price range. Buyers who were looking at $1.2 - $1.3 million will be focused on homes in this price range due to increased mortgage rates

Homes that are updated with more modern interiors will sell faster and for the most money in 2023. The majority of Sugarloaf Buyers are looking for more modern interiors versus traditional interiors. Buyers are often calculating the cost to update kitchens, update bathrooms, remove moldings & columns, refinish floors, change carpets to hardwood floors, update light fixtures and more. Their offers will reflect lower prices to offset these costs and the hassle of renovations. That said, there are some Buyers who still prefer a more classic interior – there are simply fewer of these Buyers. Staging is a great option to give a home a more modern look and can be far less costly than a major renovation. We have excellent staging partners and this has made a significant difference for our clients.

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Homes with pools and great outdoor living areas will be hot again in 2023! Most Buyers over the $1.25 million price range want a pool or at least the option to have a pool. Since Covid, homes with great pools have been hot and we do not see that slowing down in 2023. The demand for pools was so great during the Covid years that prices escalated dramatically and timeframes extended significantly. It often took 9-12 months to build a pool. The most desired pools are resort pools that are deep enough for jumping – 8 feet or more. Sadly, diving boards are a thing of the past due to the legal liability. New features include sun platforms, slides, water features, spas, basketball goals, volleyball nets and lots of creative stone work and landscaping.

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Homes with multi-generational living options will continue to be desirable. Many Buyers have other family members who would live with them or visit for extended periods. Some also want a destination home where their kids and grandkids want to come home and enjoy!

Secondary primary suites, elevators, large kitchens, second kitchens, lots of storage, resort pools, outdoor living areas and larger parking areas are popular options for these Buyers.

Main level living is still hot for downsizers! Many Buyers want homes with main level living such as primary suites on the main, large & updated kitchens, open family rooms/ keeping rooms and upscale outdoor living areas. These Buyers are looking for walk-out backyards with pools, outdoor living areas or golf course views. They do not want to have to climb stairs to their primary suite. They do want options for guests to stay and those are okay to be upstairs or downstairs They want smaller square footage (4,000 – 5,000 square feet) with very upscale finishes. This is why homes on Grady Ridge Drive have been popular – even at very high prices.

Older homes that are not well-maintained will take longer to sell and get lower prices. Sugarloaf began in 1996 so many properties are now over 20 years old. The average “year built” for sold properties in the last two years was in 2002. Buyers looking at resales are fearful that older homes will cost them significant money to repair and maintain. Common repair issues are wood rot, older or stained roofs, older HVAC systems, older water heaters, decks in need of repair, older gutters, downspouts that are clogged or not directing water away from the house, fogged windows, major cracks in the concrete and more. Sellers are wise to make repairs prior to listing their homes. Inspectors will find the issues and you will either need to make the repairs or pay money toward closing costs. It costs less to repair issues prior to listing and you will get a higher value when your home is move-in ready. Our Compass Concierge program can provide interest-free financing to cover these types of costs. We also have proven vendors that we can recommend to make the process easier for our clients.

Sugarloaf Country Club home values remain higher than pre-Covid levels. As always, there will be exceptions when it comes to home values. Larger homes, homes with pools, homes with no finished basements and others tend to have substantially higher $ per square foot numbers. We do expect some pressure on home values but do not expect a dramatic major drop in 2023 of 20%-30% like some analysts are predicting. $ per square foot ended 2022 in the $190 - $200 range. We expect to see the 2023 average around $180 - $190 which is well above the pre-Covid range of $143 in 2020. This assumes we remain in a low inventory market and mortgage rates settle back into the 5%-6% range. Of course, everything could change if we encountered a major economic problem or geo-political disaster 2023 is likely to be a more balanced supply and demand market with a slight advantage to Buyers. Contact us to learn how to sell your home for the highest value!

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M A RY F L O Y D

Mary Floyd has been a licensed REALTOR® since 2005 and has consistently been one of the top luxury agents in North Atlanta. Mary is a Certified Relocation Specialist, Short Sale/ Foreclosure Specialist, Certified International Property Specialist and has earned many performance awards including Chairman’s Circle, Legend Award, Master’s Club, NAMAR Top Producer, Phoenix Award and Best of Gwinnett. With a passion for service, Mary places the highest value on building trusted relationships and achieving exceptional results for clients.

T O N Y F L O Y D

Tony Floyd served 14 years as Chief Marketing and Innovation Officer for a global real estate brokerage. He is considered one the leading property marketing and real estate technology experts in the real estate industry and pioneered numerous innovations that delivered better value for clients. Prior to real estate, Tony led sales and marketing organizations for respected companies including IBM, Fujitsu, Trilogy Software and BellSouth eBusiness. No other real estate agent or team has this level of expertise to assist clients in selling, buying and investing.

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CLIENT FEEDBACK

"Mary and Tony did a great job selling our Sugarloaf house. Their constant communication was key as we were already on the west coast. Their marketing was exceptional and truly communicated the unique value of this amazing property. They also recommended vendors to make repairs and improvements that made the process of preparing our home very easy. We highly recommend Floyd Real Estate Group if you are considering selling or buying!“ ★★★★★

"Rarely in life is it possible to recommend someone without reservation but I am able to do that in the case of Mary and Tony Floyd. Their personal responsiveness, advice, and negotiating skill made the difference which resulted in selling my home during a lull in the market. Mary and Tony are delightful to work with in addition to being very skilled in marketing and negotiating for the benefit of their clients!" ★★★★★

"Mary and Tony know the Sugarloaf Market - and the Duluth area. They kept us well informed during the listing process. They are honest, professional, and will get your home sold (or help you find the right one if you are looking). I highly recommend Floyd Real Estate Group!"

"Working with Mary and Tony was a delight. They recommended resources to help with the upgrades and updates we wanted to make in the house prior to listing. They were extremely professional and timely. Mary and Tony took us through the process step by step and offered important feedback when needed. They not only sold our house quickly but also got the price we were looking for. Mary and Tony look out for your interests as the seller or the buyer. We feel very blessed to have had Floyd Real Estate Group handle our property for us." ★★★★★

"Mary and Tony Floyd were extremely professional, excellent communicators, and their marketing was exceptional. Our home was sold within a couple of days and they expertly guided us through the closing process. They were truly excellent and we highly recommend them to anyone!" ★★★★★

"Mary and Tony were extremely helpful during the process of selling our home. We had relocated to another city which required us to the sell our home remotely. They handled all the details for us and were in constant communication regarding the status of showings. Mary and Tony have a deep understanding of the marketplace and provided sound guidance. I would definitely recommend Floyd Real Estate Group!"

COMPASS CARES

COMPASS Cares contributes funds and skillsbased volunteering to local organizations, with 100% of real estate transactions resulting in a donation to the community.

Floyd Real Estate Group is a proud supporter of the Women’s Club of Sugarloaf Country Club Charities including Annandale Village, Duluth Co-Op, Mosaic Georgia, The Next Stop Foundation and the Special Needs School of Gwinnett.

We were honored that COMPASS also made substantial donations to Rainbow Village on our behalf. Rainbow Village is a wonderful organization here in Duluth that supports homeless families and helps give them a path forward in life. Giving back and being involved in our community is an important aspect of our lives.

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2023 Is Going To Be An Exciting Year!

Compass is a licensed real estate broker and abides by Equal Housing Opportunity laws. All material presented herein is inten ded for informational purposes only. Information is compiled from sources deemed reliable but is subject to errors and omissions. Sources include FMLS, Georgia MLS, Realist, CRS tax records and more. This is not intended to solicit property already listed. Reproduction of this material is strictly prohibit ed.

COMPASS ATLANTA

Buckhead Office: 3107 Peachtree Road NE, Suite A-1, Atlanta GA 30305

Intown Office: 1409 Peachtree St NE, Atlanta, GA 30309

Cobb Office: 4901 Olde Towne Parkway, Suite 301-S, Marietta GA 30068

North Atlanta Office: 2475 Northwinds Parkway, Suite 300, Alpharetta GA 30009

Mary Floyd

Luxury Real Estate Specialist

Founding Partner m. 404.312.3837 o. 404.668.6621 mary.floyd@compass.com FloydREGroup.com

Tony Floyd

Operating Principal

Founding Partner m. 404.406.7819 o. 404.668.6621 tony.floyd@compass.com FloydREGroup.com

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